TEXTRON INC (TXT) Stock Fundamental Analysis
NYSE:TXT • US8832031012
98.63 USD
+1.99 (+2.06%)
At close: Feb 26, 2026
99.5 USD
+0.87 (+0.88%)
After Hours: 2/26/2026, 8:04:00 PM
Overall TXT gets a fundamental rating of 5 out of 10. We evaluated TXT against 74 industry peers in the Aerospace & Defense industry. TXT has an average financial health and profitability rating. TXT has a decent growth rate and is not valued too expensively.
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.
- 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
- TXT has a better Return On Assets (5.08%) than 68.92% of its industry peers.
- TXT has a Return On Equity of 11.70%. This is in the better half of the industry: TXT outperforms 71.62% of its industry peers.
- TXT has a Return On Invested Capital (6.13%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for TXT is below the industry average of 8.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 11.7% | ||
| ROIC | 6.13% |
ROA(3y)5.15%
ROA(5y)5.09%
ROE(3y)12.11%
ROE(5y)11.87%
ROIC(3y)6.4%
ROIC(5y)6.17%
1.3 Margins
- TXT's Profit Margin of 6.22% is fine compared to the rest of the industry. TXT outperforms 62.16% of its industry peers.
- TXT's Profit Margin has improved in the last couple of years.
- TXT has a Operating Margin (6.76%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of TXT has grown nicely.
- TXT has a Gross Margin of 18.21%. This is in the lower half of the industry: TXT underperforms 64.86% of its industry peers.
- TXT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.76% | ||
| PM (TTM) | 6.22% | ||
| GM | 18.21% |
OM growth 3Y-0.48%
OM growth 5Y9.01%
PM growth 3Y-2.38%
PM growth 5Y18.6%
GM growth 3Y4.24%
GM growth 5Y6.38%
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
- TXT has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, TXT has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.70 indicates that TXT is not a great score, but indicates only limited risk for bankruptcy at the moment.
- TXT's Altman-Z score of 2.70 is on the low side compared to the rest of the industry. TXT is outperformed by 62.16% of its industry peers.
- The Debt to FCF ratio of TXT is 4.17, which is a neutral value as it means it would take TXT, 4.17 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.17, TXT is in the better half of the industry, outperforming 77.03% of the companies in the same industry.
- TXT has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
- TXT has a Debt to Equity ratio (0.49) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.17 | ||
| Altman-Z | 2.7 |
ROIC/WACC0.65
WACC9.39%
2.3 Liquidity
- A Current Ratio of 1.84 indicates that TXT should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.84, TXT is doing worse than 63.51% of the companies in the same industry.
- A Quick Ratio of 0.85 indicates that TXT may have some problems paying its short term obligations.
- TXT has a Quick ratio of 0.85. This is in the lower half of the industry: TXT underperforms 78.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 11.50% over the past year.
- 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.
- The Revenue has grown by 8.01% in the past year. This is quite good.
- TXT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.90% yearly.
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 8.75% on average per year.
- Based on estimates for the next years, TXT will show a small growth in Revenue. The Revenue will grow by 2.74% on average per year.
EPS Next Y7.46%
EPS Next 2Y10.41%
EPS Next 3Y10.66%
EPS Next 5Y8.75%
Revenue Next Year5.54%
Revenue Next 2Y5.07%
Revenue Next 3Y4.36%
Revenue Next 5Y2.74%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 16.14, the valuation of TXT can be described as correct.
- Based on the Price/Earnings ratio, TXT is valued cheaply inside the industry as 98.65% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.11. TXT is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 15.02, TXT is valued correctly.
- Based on the Price/Forward Earnings ratio, TXT is valued cheaper than 98.65% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.13, TXT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.14 | ||
| Fwd PE | 15.02 |
4.2 Price Multiples
- 93.24% of the companies in the same industry are more expensive than TXT, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TXT indicates a rather cheap valuation: TXT is cheaper than 97.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.71 | ||
| EV/EBITDA | 13.78 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of TXT may justify a higher PE ratio.
PEG (NY)2.16
PEG (5Y)0.67
EPS Next 2Y10.41%
EPS Next 3Y10.66%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.08%, TXT is not a good candidate for dividend investing.
- TXT's Dividend Yield is a higher than the industry average which is at 0.34.
- With a Dividend Yield of 0.08, TXT pays less dividend than the S&P500 average, which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
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.
- TXT has decreased its dividend 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%
98.63
+1.99 (+2.06%)
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-0.38%
Ins Owners0.52%
Ins Owner Change-1.09%
Market Cap17.38B
Revenue(TTM)14.80B
Net Income(TTM)921.00M
Analysts72.73
Price Target100.27 (1.66%)
Short Float %3.3%
Short Ratio3.15
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)5.13%
PT rev (3m)8.21%
EPS NQ rev (1m)-5.92%
EPS NQ rev (3m)-6.75%
EPS NY rev (1m)-4.65%
EPS NY rev (3m)-5.18%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.14 | ||
| Fwd PE | 15.02 | ||
| P/S | 1.17 | ||
| P/FCF | 18.71 | ||
| P/OCF | 13.25 | ||
| P/B | 2.21 | ||
| P/tB | 3.13 | ||
| EV/EBITDA | 13.78 |
EPS(TTM)6.11
EY6.19%
EPS(NY)6.57
Fwd EY6.66%
FCF(TTM)5.27
FCFY5.35%
OCF(TTM)7.45
OCFY7.55%
SpS83.98
BVpS44.69
TBVpS31.52
PEG (NY)2.16
PEG (5Y)0.67
Graham Number78.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 11.7% | ||
| ROCE | 7.27% | ||
| ROIC | 6.13% | ||
| ROICexc | 7.13% | ||
| ROICexgc | 8.87% | ||
| OM | 6.76% | ||
| PM (TTM) | 6.22% | ||
| GM | 18.21% | ||
| FCFM | 6.28% |
ROA(3y)5.15%
ROA(5y)5.09%
ROE(3y)12.11%
ROE(5y)11.87%
ROIC(3y)6.4%
ROIC(5y)6.17%
ROICexc(3y)7.46%
ROICexc(5y)7.26%
ROICexgc(3y)9.67%
ROICexgc(5y)9.53%
ROCE(3y)7.59%
ROCE(5y)7.31%
ROICexgc growth 3Y-1.05%
ROICexgc growth 5Y9.15%
ROICexc growth 3Y0.47%
ROICexc growth 5Y10.38%
OM growth 3Y-0.48%
OM growth 5Y9.01%
PM growth 3Y-2.38%
PM growth 5Y18.6%
GM growth 3Y4.24%
GM growth 5Y6.38%
F-Score7
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 4.17 | ||
| Debt/EBITDA | 2.76 | ||
| Cap/Depr | 95.51% | ||
| Cap/Sales | 2.59% | ||
| Interest Coverage | 6.59 | ||
| Cash Conversion | 93.58% | ||
| Profit Quality | 100.87% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 2.7 |
F-Score7
WACC9.39%
ROIC/WACC0.65
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 5Y8.75%
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 3Y4.36%
Revenue Next 5Y2.74%
EBIT growth 1Y12.09%
EBIT growth 3Y4.27%
EBIT growth 5Y14.35%
EBIT Next Year40.94%
EBIT Next 3Y16.53%
EBIT Next 5Y10.76%
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 5 / 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 6 / 10.
What are the PE and PB ratios of TEXTRON INC (TXT) stock?
The Price/Earnings (PE) ratio for TEXTRON INC (TXT) is 16.14 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 4 / 10.