TEXTRON INC (TXT) Stock Fundamental Analysis
NYSE:TXT • US8832031012
98.63 USD
+1.99 (+2.06%)
At close: Feb 26, 2026
98.63 USD
0 (0%)
After Hours: 2/26/2026, 5:05:00 PM
Taking everything into account, TXT scores 5 out of 10 in our fundamental rating. TXT was compared to 74 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of TXT get a neutral evaluation. Nothing too spectacular is happening here. TXT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- TXT had positive earnings in the past year.
- TXT had a positive operating cash flow in the past year.
- In the past 5 years TXT has always been profitable.
- In the past 5 years TXT always reported a positive cash flow from operatings.
1.2 Ratios
- TXT has a better Return On Assets (5.08%) than 68.92% of its industry peers.
- Looking at the Return On Equity, with a value of 11.70%, TXT is in the better half of the industry, outperforming 71.62% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 6.13%, TXT is in line with its industry, outperforming 52.70% of the companies in the same industry.
- TXT had an Average Return On Invested Capital over the past 3 years of 6.40%. This is below the industry average of 8.98%.
| Industry Rank | Sector 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%
1.3 Margins
- TXT has a Profit Margin of 6.22%. This is in the better half of the industry: TXT outperforms 62.16% of its industry peers.
- TXT's Profit Margin has improved in the last couple of years.
- TXT has a Operating Margin (6.76%) which is comparable to the rest of the industry.
- TXT's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 18.21%, TXT is not doing good in the industry: 64.86% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of TXT has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TXT is destroying value.
- Compared to 1 year ago, TXT has less shares outstanding
- TXT has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for TXT is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.68 indicates that TXT is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.68, TXT is doing worse than 62.16% of the companies in the same industry.
- TXT has a debt to FCF ratio of 4.17. This is a neutral value as TXT would need 4.17 years to pay back of all of its debts.
- TXT has a Debt to FCF ratio of 4.17. This is in the better half of the industry: TXT outperforms 77.03% of its industry peers.
- 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 of 0.49. This is comparable to the rest of the industry: TXT outperforms 52.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 2.68 |
ROIC/WACC0.65
WACC9.4%
2.3 Liquidity
- TXT has a Current Ratio of 1.84. This is a normal value and indicates that TXT is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.84, TXT is not doing good in the industry: 63.51% of the companies in the same industry are doing better.
- 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.
- TXT's Quick ratio of 0.85 is on the low side compared to the rest of the industry. TXT is outperformed by 78.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 11.50% over the past year.
- The Earnings Per Share has been growing by 24.17% on average over the past years. This is a very strong growth
- TXT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.01%.
- TXT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.90% yearly.
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
- Based on estimates for the next years, TXT will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.75% on average per year.
- The Revenue is expected to grow by 2.74% on average over the next years.
EPS Next Y7.46%
EPS Next 2Y10.41%
EPS Next 3Y10.66%
EPS Next 5Y8.75%
Revenue Next Year5.54%
Revenue Next 2Y5.07%
Revenue Next 3Y4.36%
Revenue Next 5Y2.74%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 16.14 indicates a correct valuation of TXT.
- Compared to the rest of the industry, the Price/Earnings ratio of TXT indicates a rather cheap valuation: TXT is cheaper than 98.65% of the companies listed in the same industry.
- TXT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- TXT is valuated correctly with a Price/Forward Earnings ratio of 15.02.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TXT indicates a rather cheap valuation: TXT is cheaper than 98.65% of the companies listed in the same industry.
- TXT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 28.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.14 | ||
| Fwd PE | 15.02 |
4.2 Price Multiples
- TXT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TXT is cheaper than 93.24% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, TXT is valued cheaply inside the industry as 97.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.71 | ||
| EV/EBITDA | 13.53 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TXT does not grow enough to justify the current Price/Earnings ratio.
- TXT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.16
PEG (5Y)0.67
EPS Next 2Y10.41%
EPS Next 3Y10.66%
5. Dividend
5.1 Amount
- TXT has a yearly dividend return of 0.08%, which is pretty low.
- TXT's Dividend Yield is a higher than the industry average which is at 0.34.
- With a Dividend Yield of 0.08, TXT pays less dividend than the S&P500 average, which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
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.
- The dividend of TXT decreased recently.
Dividend Growth(5Y)-4.65%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- TXT pays out 1.95% of its income as dividend. This is a sustainable payout ratio.
DP1.95%
EPS Next 2Y10.41%
EPS Next 3Y10.66%
98.63
+1.99 (+2.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)01-28 2026-01-28/bmo
Earnings (Next)04-22 2026-04-22/bmo
Inst Owners88.44%
Inst Owner Change-0.38%
Ins Owners0.52%
Ins Owner Change-1.09%
Market Cap17.38B
Revenue(TTM)14.80B
Net Income(TTM)921.00M
Analysts72.73
Price Target100.27 (1.66%)
Short Float %3.3%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
Yearly Dividend0.06
Dividend Growth(5Y)-4.65%
DP1.95%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
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)5.13%
PT rev (3m)8.21%
EPS NQ rev (1m)-5.92%
EPS NQ rev (3m)-6.75%
EPS NY rev (1m)-4.65%
EPS NY rev (3m)-5.18%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.14 | ||
| Fwd PE | 15.02 | ||
| P/S | 1.17 | ||
| P/FCF | 18.71 | ||
| P/OCF | 13.25 | ||
| P/B | 2.21 | ||
| P/tB | 3.13 | ||
| EV/EBITDA | 13.53 |
EPS(TTM)6.11
EY6.19%
EPS(NY)6.57
Fwd EY6.66%
FCF(TTM)5.27
FCFY5.35%
OCF(TTM)7.45
OCFY7.55%
SpS83.98
BVpS44.69
TBVpS31.52
PEG (NY)2.16
PEG (5Y)0.67
Graham Number78.38
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.68 |
F-Score7
WACC9.4%
ROIC/WACC0.65
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 Y7.46%
EPS Next 2Y10.41%
EPS Next 3Y10.66%
EPS Next 5Y8.75%
Revenue 1Y (TTM)8.01%
Revenue growth 3Y4.77%
Revenue growth 5Y4.9%
Sales Q2Q%15.55%
Revenue Next Year5.54%
Revenue Next 2Y5.07%
Revenue Next 3Y4.36%
Revenue Next 5Y2.74%
EBIT growth 1Y12.09%
EBIT growth 3Y4.27%
EBIT growth 5Y14.35%
EBIT Next Year40.94%
EBIT Next 3Y16.53%
EBIT Next 5Y10.76%
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 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 16.14 and the Price/Book (PB) ratio is 2.21.
Can you provide the financial health for TXT stock?
The financial health rating of TEXTRON INC (TXT) is 4 / 10.