NYSE:TXT stands out as a stock that provides good value for the fundamentals it showcases.

Our stock screener has singled out TEXTRON INC (NYSE:TXT) as a stellar value proposition. NYSE:TXT not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Looking at the Valuation

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:TXT has achieved a 8 out of 10:

• Based on the Price/Earnings ratio, TXT is valued cheaper than 95.31% of the companies in the same industry.
• TXT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.84.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of TXT indicates a rather cheap valuation: TXT is cheaper than 98.44% of the companies listed in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 20.78. TXT is valued slightly cheaper when compared to this.
• Based on the Enterprise Value to EBITDA ratio, TXT is valued cheaply inside the industry as 85.94% of the companies are valued more expensively.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of TXT indicates a rather cheap valuation: TXT is cheaper than 95.31% of the companies listed in the same industry.
• TXT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of TXT may justify a higher PE ratio.
• A more expensive valuation may be justified as TXT's earnings are expected to grow with 18.70% in the coming years.

How do we evaluate the Profitability for NYSE:TXT?

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:TXT was assigned a score of 6 for profitability:

• Looking at the Return On Assets, with a value of 5.75%, TXT is in the better half of the industry, outperforming 76.56% of the companies in the same industry.
• TXT has a better Return On Equity (13.43%) than 81.25% of its industry peers.
• TXT has a Return On Invested Capital of 6.66%. This is in the better half of the industry: TXT outperforms 70.31% of its industry peers.
• The 3 year average ROIC (5.11%) for TXT is below the current ROIC(6.66%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 7.07%, TXT is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
• In the last couple of years the Profit Margin of TXT has grown nicely.

Understanding NYSE:TXT's Health Score

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:TXT has earned a 5 out of 10:

• TXT has a Debt to FCF ratio of 4.12. This is amongst the best in the industry. TXT outperforms 87.50% of its industry peers.
• TXT has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.

Growth Analysis for NYSE:TXT

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:TXT scores a 5 out of 10:

• The Earnings Per Share has grown by an impressive 30.67% over the past year.
• Measured over the past years, TXT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.36% on average per year.
• TXT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.31% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of TXT

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.