TEXTRON INC (TXT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TXT - US8832031012 - Common Stock
93.56 USD
-0.61 (-0.65%)
94.4995 USD
+0.94 (+1%)
TXT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 71 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.
- In the past year TXT had a positive cash flow from operations.
- Each year in the past 5 years TXT has been profitable.
- TXT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- TXT's Return On Assets of 4.76% is fine compared to the rest of the industry. TXT outperforms 67.61% of its industry peers.
- The Return On Equity of TXT (11.04%) is better than 70.42% of its industry peers.
- TXT's Return On Invested Capital of 6.29% is in line compared to the rest of the industry. TXT outperforms 54.93% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TXT is below the industry average of 8.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 11.04% | ||
| ROIC | 6.29% |
ROA(3y)5.21%
ROA(5y)4.47%
ROE(3y)12.24%
ROE(5y)10.59%
ROIC(3y)6.46%
ROIC(5y)5.77%
1.3 Margins
- The Profit Margin of TXT (5.81%) is better than 60.56% of its industry peers.
- In the last couple of years the Profit Margin of TXT has remained more or less at the same level.
- With a Operating Margin value of 6.57%, TXT perfoms like the industry average, outperforming 47.89% of the companies in the same industry.
- TXT's Operating Margin has declined in the last couple of years.
- TXT's Gross Margin of 20.62% is on the low side compared to the rest of the industry. TXT is outperformed by 60.56% of its industry peers.
- TXT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.57% | ||
| PM (TTM) | 5.81% | ||
| GM | 20.62% |
OM growth 3Y-2.25%
OM growth 5Y-3.69%
PM growth 3Y-0.06%
PM growth 5Y0.11%
GM growth 3Y3.26%
GM growth 5Y2.58%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TXT 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.
- TXT has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.73 indicates that TXT is not a great score, but indicates only limited risk for bankruptcy at the moment.
- TXT has a Altman-Z score of 2.73. This is in the lower half of the industry: TXT underperforms 61.97% of its industry peers.
- TXT has a debt to FCF ratio of 5.37. This is a neutral value as TXT would need 5.37 years to pay back of all of its debts.
- TXT has a better Debt to FCF ratio (5.37) than 67.61% 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.
- TXT has a Debt to Equity ratio (0.45) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 5.37 | ||
| Altman-Z | 2.73 |
ROIC/WACC0.69
WACC9.14%
2.3 Liquidity
- TXT has a Current Ratio of 1.71. This is a normal value and indicates that TXT is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.71, TXT is doing worse than 66.20% of the companies in the same industry.
- TXT has a Quick Ratio of 1.71. 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 has a Quick ratio of 0.73. This is amonst the worse of the industry: TXT underperforms 84.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
- The earnings per share for TXT have decreased by -0.35% in the last year.
- TXT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.88% yearly.
- Looking at the last year, TXT shows a small growth in Revenue. The Revenue has grown by 1.83% in the last year.
- TXT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.11% yearly.
EPS 1Y (TTM)-0.35%
EPS 3Y18.42%
EPS 5Y7.88%
EPS Q2Q%10.71%
Revenue 1Y (TTM)1.83%
Revenue growth 3Y3.43%
Revenue growth 5Y0.11%
Sales Q2Q%5.11%
3.2 Future
- The Earnings Per Share is expected to grow by 11.64% on average over the next years. This is quite good.
- The Revenue is expected to grow by 3.72% on average over the next years.
EPS Next Y12.73%
EPS Next 2Y12.36%
EPS Next 3Y12%
EPS Next 5Y11.64%
Revenue Next Year6.19%
Revenue Next 2Y5.59%
Revenue Next 3Y4.89%
Revenue Next 5Y3.72%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 16.36, TXT is valued correctly.
- Based on the Price/Earnings ratio, TXT is valued cheaply inside the industry as 98.59% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of TXT to the average of the S&P500 Index (27.54), we can say TXT is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 13.52, TXT is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TXT indicates a rather cheap valuation: TXT is cheaper than 98.59% of the companies listed in the same industry.
- TXT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 13.52 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TXT is valued cheaper than 92.96% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, TXT is valued cheaply inside the industry as 95.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.72 | ||
| EV/EBITDA | 14.17 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as TXT's earnings are expected to grow with 12.00% in the coming years.
PEG (NY)1.29
PEG (5Y)2.08
EPS Next 2Y12.36%
EPS Next 3Y12%
5. Dividend
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 0.37, TXT pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.92, TXT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
5.2 History
- The dividend of TXT decreases each year by -4.65%.
- TXT has been paying a dividend for at least 10 years, so it has a reliable track record.
- TXT has decreased its dividend recently.
Dividend Growth(5Y)-4.65%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- TXT pays out 1.81% of its income as dividend. This is a sustainable payout ratio.
DP1.81%
EPS Next 2Y12.36%
EPS Next 3Y12%
93.56
-0.61 (-0.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)10-23 2025-10-23/bmo
Earnings (Next)01-20 2026-01-20/amc
Inst Owners88.44%
Inst Owner Change0.32%
Ins Owners0.52%
Ins Owner Change-0.05%
Market Cap16.49B
Revenue(TTM)14.24B
Net Income(TTM)827.00M
Analysts73.33
Price Target94.18 (0.66%)
Short Float %2.71%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
Yearly Dividend0.06
Dividend Growth(5Y)-4.65%
DP1.81%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.04%
Min EPS beat(2)5.65%
Max EPS beat(2)6.44%
EPS beat(4)3
Avg EPS beat(4)6.16%
Min EPS beat(4)-0.14%
Max EPS beat(4)12.71%
EPS beat(8)5
Avg EPS beat(8)2.55%
EPS beat(12)8
Avg EPS beat(12)4.67%
EPS beat(16)11
Avg EPS beat(16)6.11%
Revenue beat(2)1
Avg Revenue beat(2)-1.26%
Min Revenue beat(2)-3.66%
Max Revenue beat(2)1.14%
Revenue beat(4)2
Avg Revenue beat(4)-1.97%
Min Revenue beat(4)-6.11%
Max Revenue beat(4)1.14%
Revenue beat(8)2
Avg Revenue beat(8)-2.64%
Revenue beat(12)2
Avg Revenue beat(12)-2.56%
Revenue beat(16)3
Avg Revenue beat(16)-2.73%
PT rev (1m)1.64%
PT rev (3m)1.57%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)-5.45%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.69%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 13.52 | ||
| P/S | 1.16 | ||
| P/FCF | 23.72 | ||
| P/OCF | 15.58 | ||
| P/B | 2.2 | ||
| P/tB | 3.19 | ||
| EV/EBITDA | 14.17 |
EPS(TTM)5.72
EY6.11%
EPS(NY)6.92
Fwd EY7.39%
FCF(TTM)3.94
FCFY4.22%
OCF(TTM)6
OCFY6.42%
SpS80.79
BVpS42.52
TBVpS29.35
PEG (NY)1.29
PEG (5Y)2.08
Graham Number73.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 11.04% | ||
| ROCE | 7.3% | ||
| ROIC | 6.29% | ||
| ROICexc | 7.14% | ||
| ROICexgc | 8.99% | ||
| OM | 6.57% | ||
| PM (TTM) | 5.81% | ||
| GM | 20.62% | ||
| FCFM | 4.88% |
ROA(3y)5.21%
ROA(5y)4.47%
ROE(3y)12.24%
ROE(5y)10.59%
ROIC(3y)6.46%
ROIC(5y)5.77%
ROICexc(3y)7.59%
ROICexc(5y)6.85%
ROICexgc(3y)9.98%
ROICexgc(5y)9.07%
ROCE(3y)7.5%
ROCE(5y)6.7%
ROICexgc growth 3Y-0.61%
ROICexgc growth 5Y-6.86%
ROICexc growth 3Y-0.39%
ROICexc growth 5Y-5.86%
OM growth 3Y-2.25%
OM growth 5Y-3.69%
PM growth 3Y-0.06%
PM growth 5Y0.11%
GM growth 3Y3.26%
GM growth 5Y2.58%
F-Score7
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 5.37 | ||
| Debt/EBITDA | 2.55 | ||
| Cap/Depr | 92.6% | ||
| Cap/Sales | 2.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.73% | ||
| Profit Quality | 84.04% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 2.73 |
F-Score7
WACC9.14%
ROIC/WACC0.69
Cap/Depr(3y)95.41%
Cap/Depr(5y)92.69%
Cap/Sales(3y)2.78%
Cap/Sales(5y)2.82%
Profit Quality(3y)101.47%
Profit Quality(5y)122.86%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.35%
EPS 3Y18.42%
EPS 5Y7.88%
EPS Q2Q%10.71%
EPS Next Y12.73%
EPS Next 2Y12.36%
EPS Next 3Y12%
EPS Next 5Y11.64%
Revenue 1Y (TTM)1.83%
Revenue growth 3Y3.43%
Revenue growth 5Y0.11%
Sales Q2Q%5.11%
Revenue Next Year6.19%
Revenue Next 2Y5.59%
Revenue Next 3Y4.89%
Revenue Next 5Y3.72%
EBIT growth 1Y-8.24%
EBIT growth 3Y1.11%
EBIT growth 5Y-3.59%
EBIT Next Year50.21%
EBIT Next 3Y19.58%
EBIT Next 5Y12.03%
FCF growth 1Y-19%
FCF growth 3Y-19%
FCF growth 5Y-0.75%
OCF growth 1Y-14.95%
OCF growth 3Y-14.07%
OCF growth 5Y0%
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 5 / 10.
What are the PE and PB ratios of TEXTRON INC (TXT) stock?
The Price/Earnings (PE) ratio for TEXTRON INC (TXT) is 16.36 and the Price/Book (PB) ratio is 2.2.
Can you provide the financial health for TXT stock?
The financial health rating of TEXTRON INC (TXT) is 4 / 10.