TXN – Market expectations are for continued Uniform ROA expansion, but management has concerns about income, demand, and momentum

• • • Texas Instruments Inc. (TXN:USA)currently trades near recent highs relative to UAFRS-based (Uniform) Earnings, with a 23.1x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about income, demand, and momentum
    • Specifically, management may be downplaying concerns about declining other income, and may be exaggerating their focus on returning all free cash flow to shareholders as part of their capital management strategy. Additionally, they may lack confidence in the sustainability of strong demand for their products, and may be exaggerating the momentum they are seeing in their Industrial and Automotive segments