TEXTRON INC (TXT) Stock Fundamental Analysis

NYSE:TXT • US8832031012

98.75 USD
+1.47 (+1.51%)
At close: Feb 12, 2026
97.28 USD
-1.47 (-1.49%)
After Hours: 2/12/2026, 5:24:31 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

TXT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 73 industry peers in the Aerospace & Defense industry. TXT has a medium profitability rating, but doesn't score so well on its financial health evaluation. TXT has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

5

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.
  • TXT had positive earnings in each of the past 5 years.
  • 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

  • TXT has a better Return On Assets (5.08%) than 68.49% of its industry peers.
  • TXT has a Return On Equity of 11.70%. This is in the better half of the industry: TXT outperforms 71.23% of its industry peers.
  • TXT has a Return On Invested Capital (6.10%) which is in line with its industry peers.
  • The Average Return On Invested Capital over the past 3 years for TXT is below the industry average of 8.71%.
Industry RankSector Rank
ROA 5.08%
ROE 11.7%
ROIC 6.1%
ROA(3y)5.15%
ROA(5y)5.09%
ROE(3y)12.11%
ROE(5y)11.87%
ROIC(3y)6.36%
ROIC(5y)6.15%
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

  • Looking at the Profit Margin, with a value of 6.22%, TXT is in the better half of the industry, outperforming 63.01% of the companies in the same industry.
  • In the last couple of years the Profit Margin of TXT has grown nicely.
  • The Operating Margin of TXT (6.73%) is comparable to the rest of the industry.
  • In the last couple of years the Operating Margin of TXT has grown nicely.
  • TXT has a Gross Margin of 15.49%. This is in the lower half of the industry: TXT underperforms 68.49% of its industry peers.
  • TXT's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 6.73%
PM (TTM) 6.22%
GM 15.49%
OM growth 3Y-1.08%
OM growth 5Y8.61%
PM growth 3Y-2.38%
PM growth 5Y18.6%
GM growth 3Y-21.2%
GM growth 5Y-10.06%
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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ROAROEROICOperating and Profit MarginShow most profitable peers

3

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.
  • TXT has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, TXT has less shares outstanding
  • 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

  • The Debt to FCF ratio of TXT is 4.23, which is a neutral value as it means it would take TXT, 4.23 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 4.23, TXT is doing good in the industry, outperforming 75.34% of the companies in the same industry.
  • A Debt/Equity ratio of 0.50 indicates that TXT is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.50, TXT is in line with its industry, outperforming 52.05% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 4.23
Altman-Z N/A
ROIC/WACC0.63
WACC9.71%
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 1.82. 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 (1.82) is worse than 63.01% of its industry peers.
  • TXT has a Quick Ratio of 1.82. 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 0.84. This is in the lower half of the industry: TXT underperforms 79.45% of its industry peers.
Industry RankSector Rank
Current Ratio 1.82
Quick Ratio 0.84
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

5

3. Growth

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.
  • Measured over the past years, TXT shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.17% on average per year.
  • 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

  • Based on estimates for the next years, TXT will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.68% on average per year.
  • The Revenue is expected to grow by 3.21% on average over the next years.
EPS Next Y7.46%
EPS Next 2Y10.41%
EPS Next 3Y10.66%
EPS Next 5Y11.68%
Revenue Next Year5.54%
Revenue Next 2Y5.07%
Revenue Next 3Y4.35%
Revenue Next 5Y3.21%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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 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 2 4 6 8

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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 16.16, the valuation of TXT can be described as correct.
  • Based on the Price/Earnings ratio, TXT is valued cheaply inside the industry as 98.63% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of TXT to the average of the S&P500 Index (27.67), we can say TXT is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 15.04, which indicates a correct valuation of TXT.
  • 98.63% of the companies in the same industry are more expensive than TXT, based on the Price/Forward Earnings ratio.
  • TXT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.69, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 16.16
Fwd PE 15.04
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 93.15% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, TXT is valued cheaper than 97.26% of the companies in the same industry.
Industry RankSector Rank
P/FCF 18.73
EV/EBITDA 13.69
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.
PEG (NY)2.17
PEG (5Y)0.67
EPS Next 2Y10.41%
EPS Next 3Y10.66%

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

3

5. Dividend

5.1 Amount

  • TXT has a yearly dividend return of 0.09%, which is pretty low.
  • TXT's Dividend Yield is a higher than the industry average which is at 0.35.
  • With a Dividend Yield of 0.09, TXT pays less dividend than the S&P500 average, which is at 1.80.
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 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 0.1 0.2 0.3

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%
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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Find the best dividend stocksShow peers with best dividend

TEXTRON INC

NYSE:TXT (2/12/2026, 5:24:31 PM)

After market: 97.28 -1.47 (-1.49%)

98.75

+1.47 (+1.51%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)01-28
Earnings (Next)04-22
Inst Owners88.44%
Inst Owner Change-0.01%
Ins Owners0.52%
Ins Owner Change0%
Market Cap17.40B
Revenue(TTM)14.80B
Net Income(TTM)921.00M
Analysts73.33
Price Target100.27 (1.54%)
Short Float %3.08%
Short Ratio3.26
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-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)6.47%
PT rev (3m)8.3%
EPS NQ rev (1m)-5.79%
EPS NQ rev (3m)-6.52%
EPS NY rev (1m)-5.09%
EPS NY rev (3m)-5.18%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.21%
Valuation
Industry RankSector Rank
PE 16.16
Fwd PE 15.04
P/S 1.18
P/FCF 18.73
P/OCF 13.26
P/B 2.21
P/tB 3.13
EV/EBITDA 13.69
EPS(TTM)6.11
EY6.19%
EPS(NY)6.57
Fwd EY6.65%
FCF(TTM)5.27
FCFY5.34%
OCF(TTM)7.45
OCFY7.54%
SpS83.98
BVpS44.69
TBVpS31.52
PEG (NY)2.17
PEG (5Y)0.67
Graham Number78.38
Profitability
Industry RankSector Rank
ROA 5.08%
ROE 11.7%
ROCE 7.23%
ROIC 6.1%
ROICexc 7.1%
ROICexgc 8.83%
OM 6.73%
PM (TTM) 6.22%
GM 15.49%
FCFM 6.28%
ROA(3y)5.15%
ROA(5y)5.09%
ROE(3y)12.11%
ROE(5y)11.87%
ROIC(3y)6.36%
ROIC(5y)6.15%
ROICexc(3y)7.42%
ROICexc(5y)7.24%
ROICexgc(3y)9.51%
ROICexgc(5y)9.43%
ROCE(3y)7.54%
ROCE(5y)7.29%
ROICexgc growth 3Y-2.82%
ROICexgc growth 5Y7.97%
ROICexc growth 3Y-0.14%
ROICexc growth 5Y9.98%
OM growth 3Y-1.08%
OM growth 5Y8.61%
PM growth 3Y-2.38%
PM growth 5Y18.6%
GM growth 3Y-21.2%
GM growth 5Y-10.06%
F-Score7
Asset Turnover0.82
Health
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 4.23
Debt/EBITDA 2.81
Cap/Depr 95.51%
Cap/Sales 2.59%
Interest Coverage 250
Cash Conversion 93.92%
Profit Quality 100.87%
Current Ratio 1.82
Quick Ratio 0.84
Altman-Z N/A
F-Score7
WACC9.71%
ROIC/WACC0.63
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 5Y11.68%
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 3Y4.35%
Revenue Next 5Y3.21%
EBIT growth 1Y11.53%
EBIT growth 3Y3.64%
EBIT growth 5Y13.93%
EBIT Next Year40.94%
EBIT Next 3Y16.53%
EBIT Next 5Y11.81%
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 4 / 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 16.16 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 3 / 10.