TEXTRON INC (TXT) Stock Fundamental Analysis
USA - NYSE:TXT - US8832031012 - Common Stock
79.52 USD
-0.33 (-0.41%)
Taking everything into account, TXT scores 5 out of 10 in our fundamental rating. TXT was compared to 71 industry peers in the Aerospace & Defense industry. TXT has an average financial health and profitability rating. TXT scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make TXT suitable for value investing!
1. Profitability
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.
Each year in the past 5 years TXT had a positive operating cash flow.
1.2 Ratios
TXT has a better Return On Assets (4.76%) than 67.61% of its industry peers.
TXT's Return On Equity of 11.04% is fine compared to the rest of the industry. TXT outperforms 73.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.29%, TXT is in line with its industry, outperforming 56.34% 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 8.46%.
| 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
TXT has a Profit Margin of 5.81%. This is in the better half of the industry: TXT outperforms 64.79% of its industry peers.
TXT's Profit Margin has been stable in the last couple of years.
TXT has a Operating Margin of 6.57%. This is comparable to the rest of the industry: TXT outperforms 50.70% of its industry peers.
In the last couple of years the Operating Margin of TXT has declined.
Looking at the Gross Margin, with a value of 20.62%, TXT is in line with its industry, outperforming 40.85% of the companies in the same industry.
In the last couple of years the Gross Margin of TXT has grown nicely.
| 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
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.
TXT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TXT has been reduced compared to a year ago.
2.2 Solvency
TXT has an Altman-Z score of 2.59. This is not the best score and indicates that TXT is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.59, TXT perfoms like the industry average, outperforming 40.85% of the companies in the same industry.
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 Debt to FCF ratio of 5.37. This is in the better half of the industry: TXT outperforms 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's Debt to Equity ratio of 0.45 is in line compared to the rest of the industry. TXT outperforms 53.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 5.37 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.67
WACC9.33%
2.3 Liquidity
A Current Ratio of 1.71 indicates that TXT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.71, TXT is in line with its industry, outperforming 40.85% of the companies in the same industry.
A Quick Ratio of 0.73 indicates that TXT may have some problems paying its short term obligations.
The Quick ratio of TXT (0.73) is worse than 83.10% 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.
The Revenue has been growing slightly by 1.83% in the past 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
TXT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.64% yearly.
The Revenue is expected to grow by 3.87% on average over the next years.
EPS Next Y12.65%
EPS Next 2Y12.41%
EPS Next 3Y12%
EPS Next 5Y11.64%
Revenue Next Year6.19%
Revenue Next 2Y5.57%
Revenue Next 3Y4.9%
Revenue Next 5Y3.87%
3.3 Evolution
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.
4. Valuation
4.1 Price/Earnings Ratio
TXT is valuated correctly with a Price/Earnings ratio of 13.90.
TXT's Price/Earnings ratio is rather cheap when compared to the industry. TXT is cheaper than 95.77% of the companies in the same industry.
When comparing the Price/Earnings ratio of TXT to the average of the S&P500 Index (25.51), we can say TXT is valued slightly cheaper.
With a Price/Forward Earnings ratio of 11.48, the valuation of TXT can be described as very reasonable.
TXT's Price/Forward Earnings ratio is rather cheap when compared to the industry. TXT is cheaper than 95.77% of the companies in the same industry.
TXT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.9 | ||
| Fwd PE | 11.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TXT is valued cheaply inside the industry as 92.96% of the companies are valued more expensively.
TXT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TXT is cheaper than 95.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.39 | ||
| EV/EBITDA | 12.39 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.1
PEG (5Y)1.76
EPS Next 2Y12.41%
EPS Next 3Y12%
5. Dividend
5.1 Amount
TXT has a yearly dividend return of 0.10%, which is pretty low.
Compared to an average industry Dividend Yield of 1.37, TXT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, TXT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
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
1.81% of the earnings are spent on dividend by TXT. This is a low number and sustainable payout ratio.
DP1.81%
EPS Next 2Y12.41%
EPS Next 3Y12%
NYSE:TXT (11/19/2025, 2:58:31 PM)
79.52
-0.33 (-0.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners89.03%
Inst Owner Change-2.11%
Ins Owners0.52%
Ins Owner Change-0.05%
Market Cap14.17B
Revenue(TTM)14.24B
Net Income(TTM)827.00M
Analysts74
Price Target92.59 (16.44%)
Short Float %2.12%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
Yearly Dividend0.06
Dividend Growth(5Y)-4.65%
DP1.81%
Div Incr Years0
Div Non Decr Years1
Ex-Date
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)-0.15%
PT rev (3m)-1.24%
EPS NQ rev (1m)-5.81%
EPS NQ rev (3m)-5.63%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.21%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)-0.74%
Revenue NY rev (1m)-0.73%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.9 | ||
| Fwd PE | 11.48 | ||
| P/S | 1 | ||
| P/FCF | 20.39 | ||
| P/OCF | 13.39 | ||
| P/B | 1.89 | ||
| P/tB | 2.74 | ||
| EV/EBITDA | 12.39 |
EPS(TTM)5.72
EY7.19%
EPS(NY)6.92
Fwd EY8.71%
FCF(TTM)3.9
FCFY4.9%
OCF(TTM)5.94
OCFY7.47%
SpS79.89
BVpS42.05
TBVpS29.02
PEG (NY)1.1
PEG (5Y)1.76
Graham Number73.56
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 | 2.59 |
F-Score7
WACC9.33%
ROIC/WACC0.67
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 Y12.65%
EPS Next 2Y12.41%
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 2Y5.57%
Revenue Next 3Y4.9%
Revenue Next 5Y3.87%
EBIT growth 1Y-8.24%
EBIT growth 3Y1.11%
EBIT growth 5Y-3.59%
EBIT Next Year50.55%
EBIT Next 3Y20.02%
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.
What is the valuation status for TXT stock?
ChartMill assigns a valuation rating of 7 / 10 to TEXTRON INC (TXT). This can be considered as Undervalued.
Can you provide the profitability details for TEXTRON INC?
TEXTRON INC (TXT) has a profitability rating of 5 / 10.
How financially healthy is TEXTRON INC?
The financial health rating of TEXTRON INC (TXT) is 5 / 10.
What is the earnings growth outlook for TEXTRON INC?
The Earnings per Share (EPS) of TEXTRON INC (TXT) is expected to grow by 12.65% in the next year.