TEXTRON INC (TXT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TXT - US8832031012 - Common Stock
84.31 USD
+0.84 (+1.01%)
TXT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 72 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of TXT get a neutral evaluation. Nothing too spectacular is happening here. TXT has a correct valuation and a medium growth rate.
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.
In the past 5 years TXT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TXT (4.76%) is better than 66.67% of its industry peers.
Looking at the Return On Equity, with a value of 11.04%, TXT is in the better half of the industry, outperforming 73.61% of the companies in the same industry.
TXT has a Return On Invested Capital (6.29%) which is comparable to the rest of the 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
With a decent Profit Margin value of 5.81%, TXT is doing good in the industry, outperforming 63.89% of the companies in the same industry.
TXT's Profit Margin has been stable in the last couple of years.
With a Operating Margin value of 6.57%, TXT perfoms like the industry average, outperforming 48.61% of the companies in the same industry.
TXT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 20.62%, TXT is doing worse than 61.11% of the companies in the same industry.
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
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.
TXT has a better debt/assets ratio than last year.
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.
The Debt to FCF ratio of TXT is 5.37, which is a neutral value as it means it would take TXT, 5.37 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.37, TXT is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
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
WACC9.37%
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.
With a Current ratio value of 1.71, TXT is not doing good in the industry: 63.89% of the companies in the same industry are doing better.
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 84.72% of its industry peers.
| 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.
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
Based on estimates for the next years, TXT will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.64% on average per year.
Based on estimates for the next years, TXT will show a small growth in Revenue. The Revenue will grow by 3.87% on average per year.
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
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
With a Price/Earnings ratio of 14.74, TXT is valued correctly.
TXT's Price/Earnings ratio is rather cheap when compared to the industry. TXT is cheaper than 98.61% of the companies in the same industry.
When comparing the Price/Earnings ratio of TXT to the average of the S&P500 Index (26.49), we can say TXT is valued slightly cheaper.
The Price/Forward Earnings ratio is 12.18, 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.
When comparing the Price/Forward Earnings ratio of TXT to the average of the S&P500 Index (23.69), we can say TXT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 12.18 |
4.2 Price Multiples
TXT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TXT is cheaper than 94.44% of the companies in the same industry.
TXT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TXT is cheaper than 95.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.38 | ||
| EV/EBITDA | 12.75 |
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)1.16
PEG (5Y)1.87
EPS Next 2Y12.4%
EPS Next 3Y11.97%
5. Dividend
5.1 Amount
With a yearly dividend of 0.10%, TXT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.12, TXT pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.10, TXT pays less dividend than the S&P500 average, which is at 2.31.
| 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
TXT pays out 1.81% of its income as dividend. This is a sustainable payout ratio.
DP1.81%
EPS Next 2Y12.4%
EPS Next 3Y11.97%
NYSE:TXT (12/8/2025, 10:37:29 AM)
84.31
+0.84 (+1.01%)
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 Cap14.86B
Revenue(TTM)14.24B
Net Income(TTM)827.00M
Analysts74
Price Target92.66 (9.9%)
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 | 14.74 | ||
| Fwd PE | 12.18 | ||
| P/S | 1.04 | ||
| P/FCF | 21.38 | ||
| P/OCF | 14.04 | ||
| P/B | 1.98 | ||
| P/tB | 2.87 | ||
| EV/EBITDA | 12.75 |
EPS(TTM)5.72
EY6.78%
EPS(NY)6.92
Fwd EY8.21%
FCF(TTM)3.94
FCFY4.68%
OCF(TTM)6
OCFY7.12%
SpS80.79
BVpS42.52
TBVpS29.35
PEG (NY)1.16
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
WACC9.37%
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.