TEXTRON INC (TXT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TXT - US8832031012 - Common Stock
84.4 USD
+0.5 (+0.6%)
Overall TXT gets a fundamental rating of 5 out of 10. We evaluated TXT against 72 industry peers in the Aerospace & Defense industry. TXT has only an average score on both its financial health and profitability. TXT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TXT was profitable.
TXT had a positive operating cash flow in the past year.
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 has a Return On Assets of 4.76%. This is in the better half of the industry: TXT outperforms 66.67% of its industry peers.
TXT has a Return On Equity of 11.04%. This is in the better half of the industry: TXT outperforms 73.61% of its industry peers.
With a Return On Invested Capital value of 6.29%, TXT perfoms like the industry average, outperforming 55.56% 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 8.58%.
| 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 63.89% of its industry peers.
In the last couple of years the Profit Margin of TXT has remained more or less at the same level.
TXT has a Operating Margin (6.57%) which is comparable to the rest of the industry.
TXT's Operating Margin has declined in the last couple of years.
TXT has a worse Gross Margin (20.62%) than 61.11% 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
TXT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TXT has less shares outstanding
TXT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TXT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.62 indicates that TXT is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.62, TXT is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
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's Debt to FCF ratio of 5.37 is fine compared to the rest of the industry. TXT outperforms 69.44% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that TXT is not too dependend on debt financing.
TXT has a Debt to Equity ratio of 0.45. This is comparable to the rest of the industry: TXT outperforms 51.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 5.37 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.67
WACC9.4%
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.
TXT has a Current ratio of 1.71. This is in the lower half of the industry: TXT underperforms 63.89% of its industry peers.
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.
With a Quick ratio value of 0.73, TXT is not doing good in the industry: 84.72% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
TXT shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.35%.
Measured over the past 5 years, TXT shows a small growth in Earnings Per Share. The EPS has been growing by 7.88% on average per year.
TXT shows a small growth in Revenue. In the last year, the Revenue has grown by 1.83%.
The Revenue has been growing slightly by 0.11% on average over the past years.
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 2Y12.4%
EPS Next 3Y11.97%
EPS Next 5Y11.64%
Revenue Next Year6.19%
Revenue Next 2Y5.57%
Revenue Next 3Y4.9%
Revenue Next 5Y3.87%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
TXT is valuated correctly with a Price/Earnings ratio of 14.76.
98.61% of the companies in the same industry are more expensive than TXT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.29, TXT is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.19, which indicates a correct valuation of TXT.
TXT's Price/Forward Earnings ratio is rather cheap when compared to the industry. TXT is cheaper than 97.22% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.51, TXT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 12.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TXT is valued cheaper than 93.06% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TXT is valued cheaper than 95.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.4 | ||
| EV/EBITDA | 12.81 |
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)1.17
PEG (5Y)1.87
EPS Next 2Y12.4%
EPS Next 3Y11.97%
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 1.12, TXT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, 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 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
1.81% of the earnings are spent on dividend by TXT. This is a low number and sustainable payout ratio.
DP1.81%
EPS Next 2Y12.4%
EPS Next 3Y11.97%
NYSE:TXT (12/10/2025, 12:22:21 PM)
84.4
+0.5 (+0.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners88.32%
Inst Owner Change-1.97%
Ins Owners0.52%
Ins Owner Change-0.05%
Market Cap14.87B
Revenue(TTM)14.24B
Net Income(TTM)827.00M
Analysts74
Price Target92.66 (9.79%)
Short Float %20.32%
Short Ratio2.91
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)0.08%
PT rev (3m)-1.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.63%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 12.19 | ||
| P/S | 1.04 | ||
| P/FCF | 21.4 | ||
| P/OCF | 14.06 | ||
| P/B | 1.98 | ||
| P/tB | 2.88 | ||
| EV/EBITDA | 12.81 |
EPS(TTM)5.72
EY6.78%
EPS(NY)6.92
Fwd EY8.2%
FCF(TTM)3.94
FCFY4.67%
OCF(TTM)6
OCFY7.11%
SpS80.79
BVpS42.52
TBVpS29.35
PEG (NY)1.17
PEG (5Y)1.87
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 | 2.62 |
F-Score7
WACC9.4%
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 2Y12.4%
EPS Next 3Y11.97%
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 Year50.04%
EBIT Next 3Y19.62%
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 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.
How financially healthy is TEXTRON INC?
The financial health rating of TEXTRON INC (TXT) is 4 / 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.