TEXTRON INC (TXT) Stock Fundamental Analysis
USA - NYSE:TXT - US8832031012 - Common Stock
83.09 USD
+0.61 (+0.74%)
Taking everything into account, TXT scores 5 out of 10 in our fundamental rating. TXT was compared to 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
TXT had positive earnings in the past year.
In the past year TXT had a positive cash flow from operations.
In the past 5 years TXT has always been profitable.
TXT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.76%, TXT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
With a decent Return On Equity value of 11.04%, TXT is doing good in the industry, outperforming 73.61% of the companies in the same industry.
TXT has a Return On Invested Capital of 6.29%. This is comparable to the rest of the industry: TXT outperforms 55.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TXT is below the industry average of 8.47%.
| 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 65.28% of the companies in the same industry.
TXT's Profit Margin has been stable in the last couple of years.
TXT has a Operating Margin (6.57%) which is in line with its industry peers.
TXT's Operating Margin has declined in the last couple of years.
TXT has a Gross Margin (20.62%) which is in line with 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TXT is destroying value.
The number of shares outstanding for TXT has been reduced compared to 1 year ago.
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
TXT has an Altman-Z score of 2.62. This is not the best score and indicates that TXT is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.62, TXT is doing worse than 61.11% of the companies in the same industry.
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.
TXT has a better Debt to FCF ratio (5.37) than 66.67% 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 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 5.37 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.66
WACC9.5%
2.3 Liquidity
A Current Ratio of 1.71 indicates that TXT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.71, TXT perfoms like the industry average, outperforming 40.28% of the companies in the same industry.
A Quick Ratio of 0.73 indicates that TXT may have some problems paying its short term obligations.
TXT's Quick ratio of 0.73 is on the low side compared to the rest of the industry. TXT is outperformed by 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The earnings per share for TXT have decreased by -0.35% in the last year.
TXT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.88% yearly.
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 2Y12.41%
EPS Next 3Y12%
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.
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
The Price/Earnings ratio is 14.53, which indicates a correct valuation of TXT.
95.83% of the companies in the same industry are more expensive than TXT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.34. TXT is valued slightly cheaper when compared to this.
TXT is valuated reasonably with a Price/Forward Earnings ratio of 12.00.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TXT indicates a rather cheap valuation: TXT is cheaper than 95.83% of the companies listed in the same industry.
TXT is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.53 | ||
| Fwd PE | 12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TXT is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TXT indicates a rather cheap valuation: TXT is cheaper than 94.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.31 | ||
| EV/EBITDA | 12.74 |
4.3 Compensation for Growth
TXT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.15
PEG (5Y)1.84
EPS Next 2Y12.41%
EPS Next 3Y12%
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.
Compared to an average S&P500 Dividend Yield of 2.36, 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 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
1.81% of the earnings are spent on dividend by TXT. This is a low number and sustainable payout ratio.
DP1.81%
EPS Next 2Y12.41%
EPS Next 3Y12%
NYSE:TXT (11/13/2025, 10:20:31 AM)
83.09
+0.61 (+0.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners89.03%
Inst Owner Change-0.76%
Ins Owners0.52%
Ins Owner Change-0.05%
Market Cap14.81B
Revenue(TTM)14.24B
Net Income(TTM)827.00M
Analysts74
Price Target92.59 (11.43%)
Short Float %2.23%
Short Ratio2.86
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)-0.15%
PT rev (3m)-1.24%
EPS NQ rev (1m)-5.73%
EPS NQ rev (3m)-5.64%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.21%
Revenue NQ rev (1m)-0.74%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)-0.73%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.53 | ||
| Fwd PE | 12 | ||
| P/S | 1.04 | ||
| P/FCF | 21.31 | ||
| P/OCF | 14 | ||
| P/B | 1.98 | ||
| P/tB | 2.86 | ||
| EV/EBITDA | 12.74 |
EPS(TTM)5.72
EY6.88%
EPS(NY)6.92
Fwd EY8.33%
FCF(TTM)3.9
FCFY4.69%
OCF(TTM)5.94
OCFY7.15%
SpS79.89
BVpS42.05
TBVpS29.02
PEG (NY)1.15
PEG (5Y)1.84
Graham Number73.56
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
WACC9.5%
ROIC/WACC0.66
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 2Y12.41%
EPS Next 3Y12%
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 Year50.55%
EBIT Next 3Y20.02%
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 7 / 10 to TEXTRON INC (TXT). This can be considered as Undervalued.
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.