TEXTRON INC (TXT) Fundamental Analysis & Valuation

NYSE:TXT • US8832031012

Current stock price

88.05 USD
-0.86 (-0.97%)
At close:
88.05 USD
0 (0%)
After Hours:

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

  • 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.
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

  • Looking at the Return On Assets, with a value of 5.08%, TXT is in the better half of the industry, outperforming 65.82% of the companies in the same industry.
  • The Return On Equity of TXT (11.70%) is better than 70.89% 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 54.43% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for TXT is below the industry average of 9.21%.
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 62.03% of its industry peers.
  • TXT's Profit Margin has improved in the last couple of years.
  • TXT's Operating Margin of 6.76% is in line compared to the rest of the industry. TXT outperforms 48.10% of its industry peers.
  • In the last couple of years the Operating Margin of TXT has grown nicely.
  • The Gross Margin of TXT (18.21%) is worse than 63.29% 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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
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 2.58 indicates that TXT is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • The Altman-Z score of TXT (2.58) is worse than 63.29% 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.
  • The Debt to FCF ratio of TXT (4.17) is better than 74.68% of its industry peers.
  • A Debt/Equity ratio of 0.49 indicates that TXT is not too dependend on debt financing.
  • TXT has a Debt to Equity ratio of 0.49. This is comparable to the rest of the industry: TXT outperforms 54.43% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 4.17
Altman-Z 2.58
ROIC/WACC0.65
WACC9.39%
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

  • 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.
  • The Current ratio of TXT (1.84) is worse than 64.56% of its industry peers.
  • A Quick Ratio of 0.85 indicates that TXT may have some problems paying 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 77.22% of its industry peers.
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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4

3. TXT Growth Analysis

3.1 Past

  • TXT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.50%, which is quite good.
  • The Earnings Per Share has been growing by 24.17% on average over the past years. This is a very strong growth
  • Looking at the last year, TXT shows a quite strong growth in Revenue. The Revenue has grown by 8.01% in the last year.
  • 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

  • Based on estimates for the next years, TXT will show a small growth in Earnings Per Share. The EPS will grow by 6.59% on average per year.
  • The Revenue is expected to grow by 3.47% on average over the next years.
EPS Next Y6.93%
EPS Next 2Y9.79%
EPS Next 3Y9.84%
EPS Next 5Y6.59%
Revenue Next Year5.64%
Revenue Next 2Y5.12%
Revenue Next 3Y4.43%
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

  • With a Price/Earnings ratio of 14.41, TXT is valued correctly.
  • Based on the Price/Earnings ratio, TXT is valued cheaper than 94.94% of the companies in the same industry.
  • TXT is valuated rather cheaply when we compare the Price/Earnings ratio to 26.17, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 13.48, 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 94.94% of the companies listed in the same industry.
  • TXT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.05, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.41
Fwd PE 13.48
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

  • Based on the Enterprise Value to EBITDA ratio, TXT is valued cheaply inside the industry as 89.87% of the companies are valued more expensively.
  • 97.47% of the companies in the same industry are more expensive than TXT, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 16.5
EV/EBITDA 12.32
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 TXT does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of TXT may justify a higher PE ratio.
PEG (NY)2.08
PEG (5Y)0.6
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.
  • With a Dividend Yield of 0.09, TXT pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector 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.
  • The dividend of TXT decreased in the last 3 years.
Dividend Growth(5Y)-4.65%
Div Incr Years0
Div Non Decr Years2
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 (4/2/2026, 8:04:00 PM)

After market: 88.05 0 (0%)

88.05

-0.86 (-0.97%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)01-28
Earnings (Next)04-22
Inst Owners90.77%
Inst Owner Change0%
Ins Owners0.54%
Ins Owner Change1.29%
Market Cap15.33B
Revenue(TTM)14.80B
Net Income(TTM)921.00M
Analysts72.17
Price Target101.84 (15.66%)
Short Float %3.34%
Short Ratio3.13
Dividend
Industry RankSector Rank
Dividend Yield 0.09%
Yearly Dividend0.06
Dividend Growth(5Y)-4.65%
DP1.95%
Div Incr Years0
Div Non Decr Years2
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)0%
PT rev (3m)8.13%
EPS NQ rev (1m)-0.82%
EPS NQ rev (3m)-6.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.56%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.26%
Valuation
Industry RankSector Rank
PE 14.41
Fwd PE 13.48
P/S 1.04
P/FCF 16.5
P/OCF 11.68
P/B 1.95
P/tB 2.76
EV/EBITDA 12.32
EPS(TTM)6.11
EY6.94%
EPS(NY)6.53
Fwd EY7.42%
FCF(TTM)5.34
FCFY6.06%
OCF(TTM)7.54
OCFY8.56%
SpS85
BVpS45.23
TBVpS31.9
PEG (NY)2.08
PEG (5Y)0.6
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 2.58
F-Score7
WACC9.39%
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 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 Year5.64%
Revenue Next 2Y5.12%
Revenue Next 3Y4.43%
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.


What is the valuation status of TEXTRON INC (TXT) stock?

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


What is the profitability of TXT stock?

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


Can you provide the expected EPS growth for TXT stock?

The Earnings per Share (EPS) of TEXTRON INC (TXT) is expected to grow by 6.93% in the next year.


How sustainable is the dividend of TEXTRON INC (TXT) stock?

The dividend rating of TEXTRON INC (TXT) is 3 / 10 and the dividend payout ratio is 1.95%.