TEXTRON INC (TXT) Fundamental Analysis & Valuation

NYSE:TXT • US8832031012

Current stock price

90.96 USD
+0.38 (+0.42%)
Last:

This TXT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. TXT Profitability Analysis

1.1 Basic Checks

  • In the past year TXT was profitable.
  • In the past year TXT had a positive cash flow from operations.
  • In the past 5 years TXT has always been profitable.
  • In the past 5 years TXT always reported a positive cash flow from operatings.
TXT Yearly Net Income VS EBIT VS OCF VS FCFTXT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

1.2 Ratios

  • TXT has a Return On Assets of 5.08%. This is in the better half of the industry: TXT outperforms 67.09% of its industry peers.
  • TXT's Return On Equity of 11.70% is fine compared to the rest of the industry. TXT outperforms 69.62% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 6.13%, TXT is in line with its industry, outperforming 51.90% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for TXT is below the industry average of 9.24%.
Industry RankSector Rank
ROA 5.08%
ROE 11.7%
ROIC 6.13%
ROA(3y)5.15%
ROA(5y)5.09%
ROE(3y)12.11%
ROE(5y)11.87%
ROIC(3y)6.4%
ROIC(5y)6.17%
TXT Yearly ROA, ROE, ROICTXT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • TXT's Profit Margin of 6.22% is fine compared to the rest of the industry. TXT outperforms 60.76% of its industry peers.
  • In the last couple of years the Profit Margin of TXT has grown nicely.
  • TXT has a Operating Margin (6.76%) which is in line with its industry peers.
  • In the last couple of years the Operating Margin of TXT has grown nicely.
  • TXT's Gross Margin of 18.21% is on the low side compared to the rest of the industry. TXT is outperformed by 64.56% of its industry peers.
  • TXT's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 6.76%
PM (TTM) 6.22%
GM 18.21%
OM growth 3Y-0.48%
OM growth 5Y9.01%
PM growth 3Y-2.38%
PM growth 5Y18.6%
GM growth 3Y4.24%
GM growth 5Y6.38%
TXT Yearly Profit, Operating, Gross MarginsTXT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

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4

2. TXT Health Analysis

2.1 Basic Checks

  • TXT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for TXT has been reduced compared to 1 year ago.
  • The number of shares outstanding for TXT has been reduced compared to 5 years ago.
  • Compared to 1 year ago, TXT has a worse debt to assets ratio.
TXT Yearly Shares OutstandingTXT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
TXT Yearly Total Debt VS Total AssetsTXT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 2.61 indicates that TXT is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • TXT's Altman-Z score of 2.61 is on the low side compared to the rest of the industry. TXT is outperformed by 64.56% of its industry peers.
  • The Debt to FCF ratio of TXT is 4.17, which is a neutral value as it means it would take TXT, 4.17 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 4.17, TXT is doing good in the industry, outperforming 75.95% of the companies in the same industry.
  • TXT has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
  • TXT has a Debt to Equity ratio (0.49) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 4.17
Altman-Z 2.61
ROIC/WACC0.62
WACC9.83%
TXT Yearly LT Debt VS Equity VS FCFTXT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 1.84 indicates that TXT should not have too much problems paying its short term obligations.
  • TXT's Current ratio of 1.84 is on the low side compared to the rest of the industry. TXT is outperformed by 64.56% of its industry peers.
  • TXT has a Quick Ratio of 1.84. This is a bad value and indicates that TXT is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 0.85, TXT is doing worse than 78.48% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.84
Quick Ratio 0.85
TXT Yearly Current Assets VS Current LiabilitesTXT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. TXT Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 11.50% over the past year.
  • TXT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.17% yearly.
  • TXT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.01%.
  • The Revenue has been growing slightly by 4.90% on average over the past years.
EPS 1Y (TTM)11.5%
EPS 3Y15.07%
EPS 5Y24.17%
EPS Q2Q%29.1%
Revenue 1Y (TTM)8.01%
Revenue growth 3Y4.77%
Revenue growth 5Y4.9%
Sales Q2Q%15.55%

3.2 Future

  • The Earnings Per Share is expected to grow by 6.59% on average over the next years.
  • TXT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.47% yearly.
EPS Next Y6.93%
EPS Next 2Y9.79%
EPS Next 3Y9.84%
EPS Next 5Y6.59%
Revenue Next Year5.65%
Revenue Next 2Y5.08%
Revenue Next 3Y4.34%
Revenue Next 5Y3.47%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
TXT Yearly Revenue VS EstimatesTXT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B
TXT Yearly EPS VS EstimatesTXT Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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6

4. TXT Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 14.89, which indicates a correct valuation of TXT.
  • Based on the Price/Earnings ratio, TXT is valued cheaply inside the industry as 93.67% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 25.50. TXT is valued slightly cheaper when compared to this.
  • TXT is valuated correctly with a Price/Forward Earnings ratio of 13.92.
  • 93.67% of the companies in the same industry are more expensive than TXT, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.67, TXT is valued a bit cheaper.
Industry RankSector Rank
PE 14.89
Fwd PE 13.92
TXT Price Earnings VS Forward Price EarningsTXT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TXT indicates a rather cheap valuation: TXT is cheaper than 88.61% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of TXT indicates a rather cheap valuation: TXT is cheaper than 97.47% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 17.05
EV/EBITDA 12.63
TXT Per share dataTXT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The decent profitability rating of TXT may justify a higher PE ratio.
PEG (NY)2.15
PEG (5Y)0.62
EPS Next 2Y9.79%
EPS Next 3Y9.84%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. TXT Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.09%, TXT is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.36, TXT pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, TXT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.09%

5.2 History

  • The dividend of TXT decreases each year by -4.65%.
  • TXT has paid a dividend for at least 10 years, which is a reliable track record.
  • TXT has decreased its dividend recently.
Dividend Growth(5Y)-4.65%
Div Incr Years0
Div Non Decr Years1
TXT Yearly Dividends per shareTXT Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3

5.3 Sustainability

  • 1.95% of the earnings are spent on dividend by TXT. This is a low number and sustainable payout ratio.
DP1.95%
EPS Next 2Y9.79%
EPS Next 3Y9.84%
TXT Yearly Income VS Free CF VS DividendTXT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
TXT Dividend Payout.TXT Dividend Payout, showing the Payout Ratio.TXT Dividend Payout.PayoutRetained Earnings

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TXT Fundamentals: All Metrics, Ratios and Statistics

TEXTRON INC

NYSE:TXT (3/25/2026, 11:35:38 AM)

90.96

+0.38 (+0.42%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)01-28
Earnings (Next)04-22
Inst Owners90.77%
Inst Owner Change-0.58%
Ins Owners0.54%
Ins Owner Change1.29%
Market Cap15.84B
Revenue(TTM)14.80B
Net Income(TTM)921.00M
Analysts72.73
Price Target101.84 (11.96%)
Short Float %3.16%
Short Ratio2.98
Dividend
Industry RankSector Rank
Dividend Yield 0.09%
Yearly Dividend0.06
Dividend Growth(5Y)-4.65%
DP1.95%
Div Incr Years0
Div Non Decr Years1
Ex-Date03-13
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.07%
Min EPS beat(2)0.5%
Max EPS beat(2)5.65%
EPS beat(4)4
Avg EPS beat(4)6.32%
Min EPS beat(4)0.5%
Max EPS beat(4)12.71%
EPS beat(8)5
Avg EPS beat(8)2.25%
EPS beat(12)9
Avg EPS beat(12)4.89%
EPS beat(16)12
Avg EPS beat(16)6.3%
Revenue beat(2)1
Avg Revenue beat(2)-1.4%
Min Revenue beat(2)-3.66%
Max Revenue beat(2)0.87%
Revenue beat(4)3
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-3.66%
Max Revenue beat(4)1.14%
Revenue beat(8)3
Avg Revenue beat(8)-2.24%
Revenue beat(12)3
Avg Revenue beat(12)-2.46%
Revenue beat(16)4
Avg Revenue beat(16)-2.4%
PT rev (1m)1.57%
PT rev (3m)9.91%
EPS NQ rev (1m)0.74%
EPS NQ rev (3m)-5.32%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)-5.63%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.31%
Valuation
Industry RankSector Rank
PE 14.89
Fwd PE 13.92
P/S 1.07
P/FCF 17.05
P/OCF 12.07
P/B 2.01
P/tB 2.85
EV/EBITDA 12.63
EPS(TTM)6.11
EY6.72%
EPS(NY)6.53
Fwd EY7.18%
FCF(TTM)5.34
FCFY5.87%
OCF(TTM)7.54
OCFY8.28%
SpS85
BVpS45.23
TBVpS31.9
PEG (NY)2.15
PEG (5Y)0.62
Graham Number78.86
Profitability
Industry RankSector Rank
ROA 5.08%
ROE 11.7%
ROCE 7.27%
ROIC 6.13%
ROICexc 7.13%
ROICexgc 8.87%
OM 6.76%
PM (TTM) 6.22%
GM 18.21%
FCFM 6.28%
ROA(3y)5.15%
ROA(5y)5.09%
ROE(3y)12.11%
ROE(5y)11.87%
ROIC(3y)6.4%
ROIC(5y)6.17%
ROICexc(3y)7.46%
ROICexc(5y)7.26%
ROICexgc(3y)9.67%
ROICexgc(5y)9.53%
ROCE(3y)7.59%
ROCE(5y)7.31%
ROICexgc growth 3Y-1.05%
ROICexgc growth 5Y9.15%
ROICexc growth 3Y0.47%
ROICexc growth 5Y10.38%
OM growth 3Y-0.48%
OM growth 5Y9.01%
PM growth 3Y-2.38%
PM growth 5Y18.6%
GM growth 3Y4.24%
GM growth 5Y6.38%
F-Score7
Asset Turnover0.82
Health
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 4.17
Debt/EBITDA 2.76
Cap/Depr 95.51%
Cap/Sales 2.59%
Interest Coverage 6.59
Cash Conversion 93.58%
Profit Quality 100.87%
Current Ratio 1.84
Quick Ratio 0.85
Altman-Z 2.61
F-Score7
WACC9.83%
ROIC/WACC0.62
Cap/Depr(3y)97.52%
Cap/Depr(5y)95.58%
Cap/Sales(3y)2.73%
Cap/Sales(5y)2.79%
Profit Quality(3y)91.19%
Profit Quality(5y)113.84%
High Growth Momentum
Growth
EPS 1Y (TTM)11.5%
EPS 3Y15.07%
EPS 5Y24.17%
EPS Q2Q%29.1%
EPS Next Y6.93%
EPS Next 2Y9.79%
EPS Next 3Y9.84%
EPS Next 5Y6.59%
Revenue 1Y (TTM)8.01%
Revenue growth 3Y4.77%
Revenue growth 5Y4.9%
Sales Q2Q%15.55%
Revenue Next Year5.65%
Revenue Next 2Y5.08%
Revenue Next 3Y4.34%
Revenue Next 5Y3.47%
EBIT growth 1Y12.09%
EBIT growth 3Y4.27%
EBIT growth 5Y14.35%
EBIT Next Year41.47%
EBIT Next 3Y18.07%
EBIT Next 5Y9.4%
FCF growth 1Y42.92%
FCF growth 3Y-6.43%
FCF growth 5Y15.55%
OCF growth 1Y29.39%
OCF growth 3Y-4.11%
OCF growth 5Y11.31%

TEXTRON INC / TXT Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for TEXTRON INC?

ChartMill assigns a fundamental rating of 5 / 10 to TXT.


Can you provide the valuation status for TEXTRON INC?

ChartMill assigns a valuation rating of 6 / 10 to TEXTRON INC (TXT). This can be considered as Fairly Valued.


Can you provide the profitability details for TEXTRON INC?

TEXTRON INC (TXT) has a profitability rating of 6 / 10.


What are the PE and PB ratios of TEXTRON INC (TXT) stock?

The Price/Earnings (PE) ratio for TEXTRON INC (TXT) is 14.89 and the Price/Book (PB) ratio is 2.01.


Can you provide the financial health for TXT stock?

The financial health rating of TEXTRON INC (TXT) is 4 / 10.