Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide.
Undervalued with adequate balance sheet.
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.
7 Day Return
US Aerospace & Defense
1 Year Return
US Aerospace & Defense
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.
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 StIs It Time To Consider Buying Textron Inc. (NYSE:TXT)?
1 month ago | Simply Wall StCalculating The Fair Value Of Textron Inc. (NYSE:TXT)
1 month ago | Simply Wall StWe Think Textron (NYSE:TXT) Can Stay On Top Of Its Debt
Is Textron undervalued compared to its fair value and its price relative to the market?
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).
How is Textron forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
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%).
How has Textron performed over the past 5 years?
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
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 ($5.8B).
Debt to Equity History and Analysis
Debt Level: TXT's debt to equity ratio (75%) is considered high.
Reducing Debt: TXT's debt to equity ratio has reduced from 86.9% to 75% over the past 5 years.
Debt Coverage: TXT's debt is not well covered by operating cash flow (15.5%).
Interest Coverage: TXT's interest payments on its debt are well covered by EBIT (8.5x coverage).
Inventory Level: TXT has a high level of physical assets or inventory.
Debt Coverage by Assets: TXT's debt is covered by short term assets (assets are 2x debt).
What is Textron's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: TXT's dividend (0.18%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: TXT's dividend (0.18%) is low compared to the top 25% of dividend payers in the US market (3.66%).
Stability and Growth of Payments
Stable Dividend: TXT is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: TXT is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: TXT is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of TXT's dividend in 3 years as they are not forecast to pay a notable one for the US market.
What is the CEO of Textron's salary, the management and board of directors tenure and is there insider trading?
Average management tenure
Scott Donnelly (57yo)
Mr. Scott C. Donnelly has been the Chairman, Chief Executive Officer and President of Textron Inc. since September 1, 2010, December 1, 2009 and January 2009 respectively. Mr. Donnelly serves Co-President ...
CEO Compensation Analysis
Compensation vs Market: Scott's total compensation ($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
Experienced Management: TXT's management team is considered experienced (4.3 years average tenure).
Board Age and Tenure
Experienced Board: TXT's board of directors are seasoned and experienced ( 10.6 years average tenure).
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Scott Donnelly (57yo)
- Tenure: 10.1yrs
- Compensation: US$13.95m
Frank Connor (59yo)
Executive VP & CFO
- Tenure: 10.4yrs
- Compensation: US$5.21m
President of Textron China
- Tenure: 16.8yrs
Vice President of Investor Relations & Treasurer
- Tenure: 3.1yrs
Bob Lupone (59yo)
- Tenure: 7.9yrs
- Compensation: US$2.81m
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
Senior Vice President of Washington Operations
- Tenure: 2.8yrs
Vice President & Chief Information Officer
- Tenure: 2yrs
Kathleen Bader (68yo)
- Tenure: 16yrs
- Compensation: US$292.06k
Lloyd Trotter (73yo)
- Tenure: 11.8yrs
- Compensation: US$285.84k
Scott Donnelly (57yo)
- Tenure: 10.1yrs
- Compensation: US$13.95m
Jim Ziemer (69yo)
- Tenure: 12.8yrs
- Compensation: US$276.66k
Larry Fish (74yo)
- Tenure: 21yrs
- Compensation: US$268.75k
Paul Gagné (72yo)
- Tenure: 1.8yrs
- Compensation: US$295.44k
Ralph Heath (70yo)
- Tenure: 3yrs
- Compensation: US$275.00k
Ronal Clark (66yo)
- Tenure: 16.3yrs
- Compensation: US$297.50k
James Conway (71yo)
- Tenure: 8.8yrs
- Compensation: US$283.50k
Maria Zuber (61yo)
- Tenure: 3.2yrs
- Compensation: US$260.00k
Textron Inc.'s company bio, employee growth, exchange listings and data sources
- 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
- Textron Inc.
- 40 Westminster Street
- Rhode Island
- United States
|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|
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|
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.