TEXTRON INC (TXT) Stock Fundamental Analysis
NYSE:TXT • US8832031012
98.09 USD
-0.66 (-0.67%)
At close: Feb 13, 2026
98.09 USD
0 (0%)
After Hours: 2/13/2026, 8:04:00 PM
Taking everything into account, TXT scores 4 out of 10 in our fundamental rating. TXT was compared to 73 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of TXT while its profitability can be described as average. TXT has a correct valuation and a medium growth rate.
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.
- 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
- The Return On Assets of TXT (5.08%) is better than 68.49% of its industry peers.
- TXT has a better Return On Equity (11.70%) than 71.23% of its industry peers.
- TXT has a Return On Invested Capital of 6.10%. This is comparable to the rest of the industry: TXT outperforms 53.42% of its industry peers.
- TXT had an Average Return On Invested Capital over the past 3 years of 6.36%. This is below the industry average of 8.71%.
| Industry Rank | Sector 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%
1.3 Margins
- With a decent Profit Margin value of 6.22%, TXT is doing good in the industry, outperforming 63.01% of the companies in the same industry.
- TXT's Profit Margin has improved in the last couple of years.
- TXT has a Operating Margin of 6.73%. This is comparable to the rest of the industry: TXT outperforms 49.32% of its industry peers.
- In the last couple of years the Operating Margin of TXT has grown nicely.
- TXT has a worse Gross Margin (15.49%) than 68.49% of its industry peers.
- TXT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TXT is destroying value.
- Compared to 1 year ago, TXT has less shares outstanding
- The number of shares outstanding for TXT has been reduced compared to 5 years ago.
- Compared to 1 year ago, TXT has a worse debt to assets ratio.
2.2 Solvency
- TXT has a debt to FCF ratio of 4.23. This is a neutral value as TXT would need 4.23 years to pay back of all of its debts.
- The Debt to FCF ratio of TXT (4.23) is better than 75.34% of its industry peers.
- TXT has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
- TXT has a Debt to Equity ratio (0.50) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.23 | ||
| Altman-Z | N/A |
ROIC/WACC0.64
WACC9.57%
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.
- TXT has a worse Current ratio (1.82) than 63.01% of its industry peers.
- A Quick Ratio of 0.84 indicates that TXT may have some problems paying its short term obligations.
- TXT has a worse Quick ratio (0.84) than 79.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 11.50% over the past year.
- The Earnings Per Share has been growing by 24.17% on average over the past years. This is a very strong growth
- 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
- TXT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.68% yearly.
- Based on estimates for the next years, TXT will show a small growth in Revenue. The Revenue will grow by 3.21% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 16.05, the valuation of TXT can be described as correct.
- 98.63% of the companies in the same industry are more expensive than TXT, based on the Price/Earnings ratio.
- TXT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.97.
- Based on the Price/Forward Earnings ratio of 14.94, the valuation of TXT can be described as correct.
- TXT's Price/Forward Earnings ratio is rather cheap when compared to the industry. TXT is cheaper than 98.63% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 27.96. TXT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.05 | ||
| Fwd PE | 14.94 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TXT indicates a rather cheap valuation: TXT is cheaper than 91.78% of the companies listed in the same industry.
- TXT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TXT is cheaper than 97.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.61 | ||
| EV/EBITDA | 13.88 |
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)2.15
PEG (5Y)0.66
EPS Next 2Y10.41%
EPS Next 3Y10.66%
5. Dividend
5.1 Amount
- TXT has a yearly dividend return of 0.08%, which is pretty low.
- TXT's Dividend Yield is a higher than the industry average which is at 0.35.
- Compared to an average S&P500 Dividend Yield of 1.84, TXT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
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
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 2Y10.41%
EPS Next 3Y10.66%
98.09
-0.66 (-0.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)01-28 2026-01-28/bmo
Earnings (Next)04-22 2026-04-22/bmo
Inst Owners88.44%
Inst Owner Change-0.01%
Ins Owners0.52%
Ins Owner Change0%
Market Cap17.29B
Revenue(TTM)14.80B
Net Income(TTM)921.00M
Analysts72.73
Price Target100.27 (2.22%)
Short Float %3.08%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.05 | ||
| Fwd PE | 14.94 | ||
| P/S | 1.17 | ||
| P/FCF | 18.61 | ||
| P/OCF | 13.17 | ||
| P/B | 2.19 | ||
| P/tB | 3.11 | ||
| EV/EBITDA | 13.88 |
EPS(TTM)6.11
EY6.23%
EPS(NY)6.57
Fwd EY6.69%
FCF(TTM)5.27
FCFY5.37%
OCF(TTM)7.45
OCFY7.59%
SpS83.98
BVpS44.69
TBVpS31.52
PEG (NY)2.15
PEG (5Y)0.66
Graham Number78.38
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC9.57%
ROIC/WACC0.64
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 16.05 and the Price/Book (PB) ratio is 2.19.
Can you provide the financial health for TXT stock?
The financial health rating of TEXTRON INC (TXT) is 3 / 10.