Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide. More Details
Good value with moderate growth potential.
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 exceeded the US Aerospace & Defense industry which returned -27.7% over the past year.
Return vs Market: TXT underperformed the US Market which returned 17.8% 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
5 days ago | Simply Wall StTextron (NYSE:TXT) Takes On Some Risk With Its Use Of Debt
2 weeks ago | Simply Wall StTextron Inc. (NYSE:TXT) Is Going Strong But Fundamentals Appear To Be Mixed : Is There A Clear Direction For The Stock?
1 month ago | Simply Wall StTextron Inc. (NYSE:TXT) Looks Just Right
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 ($35.19) is trading below our estimate of fair value ($107.25)
Significantly Below Fair Value: TXT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TXT's PE Ratio (21.4x) is in line with the US Aerospace & Defense industry average.
PE vs Market: TXT is poor value based on its PE Ratio (21.4x) compared to the US market (19.1x).
Price to Earnings Growth Ratio
PEG Ratio: TXT is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: TXT is good value based on its PB Ratio (1.5x) compared to the US Aerospace & Defense industry average (2.3x).
How is Textron forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TXT's forecast earnings growth (38.9% per year) is above the savings rate (2.2%).
Earnings vs Market: TXT's earnings (38.9% per year) are forecast to grow faster than the US market (22.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: TXT's revenue (8.3% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: TXT's revenue (8.3% 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 (10.5%).
How has Textron performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TXT has a large one-off loss of $244.0M impacting its July 4 2020 financial results.
Growing Profit Margin: TXT's current net profit margins (3%) are lower than last year (8.9%).
Past Earnings Growth Analysis
Earnings Trend: TXT's earnings have grown by 3.1% 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 (-68.1%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (1.6%).
Return on Equity
High ROE: TXT's Return on Equity (6.8%) is considered low.
How is Textron's financial position?
Financial Position Analysis
Short Term Liabilities: TXT's short term assets ($8.9B) exceed its short term liabilities ($4.1B).
Long Term Liabilities: TXT's short term assets ($8.9B) exceed its long term liabilities ($5.9B).
Debt to Equity History and Analysis
Debt Level: TXT's debt to equity ratio (85.6%) is considered high.
Reducing Debt: TXT's debt to equity ratio has increased from 84.3% to 85.6% over the past 5 years.
Debt Coverage: TXT's debt is not well covered by operating cash flow (19.5%).
Interest Coverage: TXT's interest payments on its debt are well covered by EBIT (5.4x coverage).
What is Textron current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TXT's dividend (0.23%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.63%).
High Dividend: TXT's dividend (0.23%) is low compared to the top 25% of dividend payers in the US market (4.56%).
Stability and Growth of Payments
Stable Dividend: TXT is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: TXT is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: TXT is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of TXT's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Scott Donnelly (58 yo)
Mr. Scott C. Donnelly has been the Chairman, Chief Executive Officer and President of Textron Inc. since September 1, 2010, December 1, 2009 and January 2009 respectively. Mr. Donnelly serves Co-President ...
CEO Compensation Analysis
Compensation vs Market: Scott's total compensation ($USD18.92M) is above average for companies of similar size in the US market ($USD7.31M).
Compensation vs Earnings: Scott's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|Executive VP & CFO||11.17yrs||US$6.68m||0.074% |
|Executive VP||8.67yrs||US$2.95m||0.040% |
|Executive Vice President of Human Resources||3.25yrs||US$2.82m||0.017% |
|VP & Chief Information Officer||2.75yrs||no data||no data|
|VP of Investor Relations & Treasurer||3.83yrs||no data||no data|
|Senior Vice President of Global Simulation & Training Strategy TRU Simulation + Training Inc||5.08yrs||no data||no data|
|CEO & President of Industrial Segment||0.50yr||no data||no data|
|Senior Vice President of Washington Operations||3.58yrs||no data||no data|
|President of Textron China||17.58yrs||no data||no data|
|VP & Corporate Controller||no data||no data||0.0080% |
|CEO & President of Textron Financial Corporation||5.83yrs||no data||no data|
Experienced Management: TXT's management team is seasoned and experienced (5.1 years average tenure).
|Independent Director||16.75yrs||US$275.00k||0.0077% |
|Director||0.75yr||no data||0.0030% |
|Independent Director||13.58yrs||US$280.00k||0.0031% |
|Independent Lead Director||2.5yrs||US$305.00k||0.0044% |
|Independent Director||3.75yrs||US$280.00k||0.0030% |
|Independent Director||3.25yrs||US$275.00k||0.0030% |
|Independent Director||17yrs||US$297.50k||0.0052% |
|Independent Director||9.5yrs||US$275.00k||0.0030% |
|Independent Director||3.92yrs||US$260.00k||0.0030% |
Experienced Board: TXT's board of directors are considered experienced (6.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
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$8.025b
- Shares outstanding: 228.04m
- 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|
|T1XT34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 1 REPR 1 SHS UNSPON||BR||BRL||Jan 2020|
Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide. The company’s Textron Aviation segment manufactures, sells, and services business jets, turboprop and piston en ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/10/26 05:17|
|End of Day Share Price||2020/10/23 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.