Textron
Market Cap
US$10.3b
Last Updated
2020/01/24 23:56 UTC
Data Sources
Company Financials +
Executive Summary
Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with adequate balance sheet.
Similar Companies
Share Price & News
How has Textron's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TXT has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-3.1%
TXT
0.3%
US Aerospace & Defense
-1.3%
US Market
1 Year Return
-15.0%
TXT
35.0%
US Aerospace & Defense
22.0%
US Market
Return vs Industry: TXT underperformed the US Aerospace & Defense industry which returned 37.9% over the past year.
Return vs Market: TXT underperformed the US Market which returned 24.7% over the past year.
Shareholder returns
| TXT | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.1% | 0.3% | -1.3% |
| 30 Day | -0.8% | 6.1% | 1.8% |
| 90 Day | -5.4% | 9.9% | 9.3% |
| 1 Year | -14.9%-15.0% | 37.5%35.0% | 24.6%22.0% |
| 3 Year | -6.0%-6.4% | 60.2%51.6% | 49.2%39.6% |
| 5 Year | 5.9%5.0% | 107.0%87.3% | 77.9%58.3% |
Price Volatility Vs. Market
How volatile is Textron's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Is It Time To Consider Buying Textron Inc. (NYSE:TXT)?1 month ago | Simply Wall St
Calculating The Fair Value Of Textron Inc. (NYSE:TXT)1 month ago | Simply Wall St
We Think Textron (NYSE:TXT) Can Stay On Top Of Its DebtValuation
Is Textron undervalued compared to its fair value and its price relative to the market?
37.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TXT ($45.35) is trading below our estimate of fair value ($68.14)
Significantly Below Fair Value: TXT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TXT is good value based on its PE Ratio (12.3x) compared to the Aerospace & Defense industry average (20.7x).
PE vs Market: TXT is good value based on its PE Ratio (12.3x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: TXT is poor value based on its PEG Ratio (6.1x)
Price to Book Ratio
PB vs Industry: TXT is good value based on its PB Ratio (1.9x) compared to the US Aerospace & Defense industry average (2.7x).
Next Steps
Future Growth
How is Textron forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
2.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TXT's forecast earnings growth (2% per year) is above the savings rate (1.7%).
Earnings vs Market: TXT's earnings (2% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: TXT's earnings are forecast to grow, but not significantly.
Revenue vs Market: TXT's revenue (3.5% per year) is forecast to grow slower than the US market (7.5% per year).
High Growth Revenue: TXT's revenue (3.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TXT's Return on Equity is forecast to be low in 3 years time (13.8%).
Next Steps
Past Performance
How has Textron performed over the past 5 years?
9.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TXT has high quality earnings.
Growing Profit Margin: TXT's current net profit margins (6.5%) are higher than last year (6.1%).
Past Earnings Growth Analysis
Earnings Trend: TXT's earnings have grown by 9.5% per year over the past 5 years.
Accelerating Growth: TXT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TXT had negative earnings growth (-0.4%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (13.9%).
Return on Equity
High ROE: TXT's Return on Equity (15.8%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Textron's financial position?
Financial Position Analysis
Short Term Liabilities: TXT's short term assets ($8.1B) exceed its short term liabilities ($3.8B).
Long Term Liabilities: TXT's short term assets ($8.1B) exceed its long term liabilities ($5.8B).
Debt to Equity History and Analysis
Debt Level: TXT's debt to equity ratio (75%) is considered high.
Reducing Debt: TXT's debt to equity ratio has reduced from 86.9% to 75% over the past 5 years.
Debt Coverage: TXT's debt is not well covered by operating cash flow (15.5%).
Interest Coverage: TXT's interest payments on its debt are well covered by EBIT (8.5x coverage).
Balance Sheet
Inventory Level: TXT has a high level of physical assets or inventory.
Debt Coverage by Assets: TXT's debt is covered by short term assets (assets are 2x debt).
Next Steps
Dividend
What is Textron's current dividend yield, its reliability and sustainability?
0.18%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: TXT's dividend (0.18%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: TXT's dividend (0.18%) is low compared to the top 25% of dividend payers in the US market (3.66%).
Stability and Growth of Payments
Stable Dividend: TXT is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: TXT is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: TXT is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of TXT's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
What is the CEO of Textron's salary, the management and board of directors tenure and is there insider trading?
4.3yrs
Average management tenure
CEO
Scott Donnelly (57yo)
10.1yrs
Tenure
US$13,948,917
Compensation
Mr. Scott C. Donnelly has been the Chairman, Chief Executive Officer and President of Textron Inc. since September 1, 2010, December 1, 2009 and January 2009 respectively. Mr. Donnelly serves Co-President ...
CEO Compensation Analysis
Compensation vs Market: Scott's total compensation ($USD13.95M) is about average for companies of similar size in the US market ($USD10.76M).
Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.
Management Age and Tenure
4.3yrs
Average Tenure
57yo
Average Age
Experienced Management: TXT's management team is considered experienced (4.3 years average tenure).
Board Age and Tenure
10.6yrs
Average Tenure
69.5yo
Average Age
Experienced Board: TXT's board of directors are seasoned and experienced ( 10.6 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Scott Donnelly (57yo)
Chairman
- Tenure: 10.1yrs
- Compensation: US$13.95m
Frank Connor (59yo)
Executive VP & CFO
- Tenure: 10.4yrs
- Compensation: US$5.21m
Ee Soon-Kiong
President of Textron China
- Tenure: 16.8yrs
Eric Salander
Vice President of Investor Relations & Treasurer
- Tenure: 3.1yrs
Bob Lupone (59yo)
Executive VP
- Tenure: 7.9yrs
- Compensation: US$2.81m
James Takats
Senior Vice President of Global Simulation & Training Strategy TRU Simulation + Training Inc
- Tenure: 4.3yrs
Julie Duffy (53yo)
Executive Vice President of Human Resources
- Tenure: 2.5yrs
- Compensation: US$1.65m
Mark Bamford (55yo)
VP, Corporate Controller & Principal Accounting Officer
Stewart Holmes
Senior Vice President of Washington Operations
- Tenure: 2.8yrs
Kimberly Mackenroth
Vice President & Chief Information Officer
- Tenure: 2yrs
Board Members
Kathleen Bader (68yo)
Independent Director
- Tenure: 16yrs
- Compensation: US$292.06k
Lloyd Trotter (73yo)
Independent Director
- Tenure: 11.8yrs
- Compensation: US$285.84k
Scott Donnelly (57yo)
Chairman
- Tenure: 10.1yrs
- Compensation: US$13.95m
Jim Ziemer (69yo)
Independent Director
- Tenure: 12.8yrs
- Compensation: US$276.66k
Larry Fish (74yo)
Independent Director
- Tenure: 21yrs
- Compensation: US$268.75k
Paul Gagné (72yo)
Lead Director
- Tenure: 1.8yrs
- Compensation: US$295.44k
Ralph Heath (70yo)
Independent Director
- Tenure: 3yrs
- Compensation: US$275.00k
Ronal Clark (66yo)
Independent Director
- Tenure: 16.3yrs
- Compensation: US$297.50k
James Conway (71yo)
Independent Director
- Tenure: 8.8yrs
- Compensation: US$283.50k
Maria Zuber (61yo)
Independent Director
- Tenure: 3.2yrs
- Compensation: US$260.00k
Company Information
Textron Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Textron Inc.
- Ticker: TXT
- Exchange: NYSE
- Founded: 1923
- Industry: Aerospace and Defense
- Sector: Capital Goods
- Market Cap: US$10.295b
- Shares outstanding: 228.26m
- Website: https://www.textron.com
Number of Employees
Location
- Textron Inc.
- 40 Westminster Street
- Providence
- Rhode Island
- 2903
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TXT | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| TXT | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| TXT * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1968 |
| 0LF0 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
Biography
Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide. The company’s Textron Aviation segment manufactures and sells business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft; and commercial parts, as well as provides maintenance, inspection, and repair services. Its Bell segment provides military and commercial helicopters, tiltrotor aircraft, and related spare parts and services. The company’s Textron Systems segment offers unmanned, marine, and land systems; simulation, training, and other defense and aviation mission support products and systems; airborne and ground-based sensors and surveillance systems, and protection systems; precision guided weapons systems; armored vehicles, turrets, and related subsystems, as well as marine craft; test equipment and electronic warfare test, and training solutions; piston aircraft engines; and intelligence software solutions. This segment also designs, develops, manufactures, installs, and maintains full flight simulators; and offers logistics support services. Its Industrial segment offers blow-molded plastic fuel systems and fuel systems, including pressurized fuel tanks for hybrid applications, clear-vision systems, catalytic reduction systems, cast iron engine components, and other fuel system components primarily to automobile OEMs, as well as plastic bottles and containers for various uses; golf cars, off-road utility vehicles, recreational side-by-side and all-terrain vehicles, snowmobiles, light transportation vehicles, aviation ground support equipment, professional turf-maintenance equipment, and turf-care vehicles that are marketed to golf courses and resorts, government agencies and municipalities, consumers, and commercial and industrial users. The company’s Finance segment provides financing to purchase new and pre-owned aircraft and helicopters. Textron Inc. was founded in 1923 and is headquartered in Providence, Rhode Island.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/24 23:56 |
| End of Day Share Price | 2020/01/24 00:00 |
| Earnings | 2019/09/28 |
| Annual Earnings | 2018/12/29 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.