Textron Inc (TXT)
Industrials · Aerospace & Defense · US stock · S&P 500 component
$78.04
▲ +0.76 (0.98%)
Fair valueUndervalued
$104 +32.8% to fair value
$52fair band $88–$126$156
Day's range
$76.71 – $78.29
52-week range
$71.87 – $101.57
About Textron Inc
Textron is a diversified industrial company with operations in aviation, defense and specialty vehicles. Its Cessna and Beechcraft brands build business jets and turboprop aircraft, and Bell produces helicopters and tiltrotor aircraft for commercial and military customers. It also makes golf carts, off-road vehicles and industrial products. Revenue comes from selling aircraft and vehicles, from aftermarket parts and service, and from government contracts.
Revenue has grown 4.8% a year over three years, leaving the last twelve months at $15.3 billion. Operating margin is 7.6%. Return on invested capital comes to 15%. A dividend is paid, with a yield of 0.1%. This gives an X-Ray Score of 65 out of 100. These numbers describe past results and current financial position, and they are shown for reference only.
Price chart
52-wk range $71.87 – $101.57Volume 1,385,315Daily, split-adjusted
Vitals
Market cap$13.7B
52-week range$71.87 – $101.57
Volume (last day)1,385,315
P/E (TTM)14.8
EBIT / EV yield9.7%
Free-cash-flow yield5.6%
Dividend yield0.1%
Revenue (TTM)$15.3B
Net income (TTM)$937M
Operating margin7.6%
Return on capital14.6%
Debt incl. leasesData missing
Cash & securities$1.6B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$104middle half of models $97 – $110
Undervalued
+32.8% to fair value
Average of the 11 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $78
Undervalued < $88Fair $88 – $126Overvalued > $126
P/E multiple
$80
P/B multiple
$98
P/S multiple · not used
$186
EV/EBITDA multiple
$101
EV/EBIT multiple
$96
EV/revenue multiple · not used
$191
10-year DCF, EBITDA exit
$101
5-year DCF, EBITDA exit
$96
10-year DCF, revenue exit
$113
5-year DCF, revenue exit
$110
10-year DCF, growth exit
$110
5-year DCF, growth exit
$106
Dividend discount, stable · not used
$4
Dividend discount, multi-stage · not used
$8
Earnings power value
$129
Growth the price implies
3.5%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business at a low price
Our models put fair value above today's price, but models can be wrong, so check the business first. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Industrials peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Strong
91/100
Cheap against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield9.7%
Free-cash-flow yield5.6%
Fair value vs price1.3×
Growth
Weak
48/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)4.8%
EPS growth (3y)8.4%
Growth consistency90%
Profitability
Weak
45/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital14.6%
Operating margin7.6%
Financial health
Strong
88/100
Balance sheet looks strong: debt is well covered.
See the numbers →
Piotroski F-Score9 / 9
Interest coverNo interest cost
Dividends
Weak
34/100
Dividend is modest or less certain than peers.
See the numbers →
Dividend yield0.1%
Dividends vs free cash flow2%
Dividend growth1.9%
Quarterly results: last 6 quarters
+5.5%
Mar '25
+5.4%
Jun '25
+5.1%
Sep '25
+15.6%
Jan '26
+11.8%
Apr '26
+3.0%
Jul '26
Revenue against the same quarter a year earlier. Latest quarter revenue $3.8B, diluted EPS $1.42.
Compare with peers
GD General Dynamics Corp70 LHX L3harris Technologies,...60 TDG TransDigm Group INC57 LMT Lockheed Martin Corp55Other Aerospace & Defense companies by X-Ray Score.
SWOT analysis: Textron Inc
Strengthsinside the company
- Free cash flow equals 5.6% of the market value, which funds dividends, buybacks or debt paydown.
- Operating profit covers interest 50x, so debt costs are a small drag.
- Passes 9 of the 9 Piotroski tests, which points to improving profitability, funding and efficiency.
Weaknessesinside the company
- No clear weakness in the figures we track.
Opportunitiesvaluation and setting
- Trades at 14.6x earnings, 53% below the 30.8x median of industry peers.
- The price is 33% below our fair value estimate, with the gap larger than the margin we allow for error.
Threatsvaluation and setting
- No specific threat is flagged by our checks; general market and interest-rate risk still applies.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare TXT with peers and sector
Medians of 11 Aerospace & Defense peers and of 80 Industrials stocks in our universe.
Largest peers (X-Ray Score): GE 49, RTX 51, BA 35, LMT 55, GD 70, NOC 49.
| Metric | TXT | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 65 | 51 | 50 |
| Valuation | 91 | 52 | 44 |
| Growth | 48 | 64 | 51 |
| Profitability | 45 | 40 | 51 |
| Financial health | 88 | 55 | 49 |
| Dividends | 34 | 54 | 53 |
Sector leaders: highest X-Ray Score in Industrials
TXT ranks #8 of 81 in Industrials and #2 of 12 in Aerospace & Defense by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for TXT
Each factor is rated by where TXT stands among the 81 Industrials stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 8 Good · 4 Average · 6 Bad of 18
Growth: 1 · 2 · 0
Profitability: 0 · 1 · 3
Financial strength: 2 · 0 · 0
Valuation: 5 · 0 · 0
Cash flow: 0 · 1 · 3
| Factor | TXT | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +4.8% | Average beats 46% | +5.6% | – | – |
| Revenue growth, last year | +8.0% | Good beats 72% | +4.5% | +6.3% | ≈ In line |
| EPS growth, 3 years a year | +8.4% | Average beats 57% | +5.7% | – | – |
| Profitability | |||||
| Operating margin | 7.6% | Bad beats 18% | 17.5% | 7.9% | ≈ In line |
| Net margin | 6.1% | Bad beats 22% | 12.8% | 6.2% | ≈ In line |
| Return on invested capital | 14.6% | Average beats 46% | 14.9% | – | – |
| Return on equity | 11.6% | Bad beats 18% | 23.7% | 11.7% | ≈ In line |
| Financial strength | |||||
| Interest cover | 50.0x | Good beats 76% | 21.4x | – | – |
| Piotroski F-score | 9 / 9 | Good beats 96% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 14.6x | Good beats 94% | 28.9x | 17.7x | ▲ Better |
| Price / book | 1.7x | Good beats 97% | 6.2x | 2.1x | ▲ Better |
| Price / sales | 0.9x | Good beats 93% | 3.5x | 1.2x | ≈ In line |
| EV / EBITDA | 7.7x | Good beats 97% | 18.5x | – | – |
| Free cash flow yield | 5.6% | Good beats 76% | 3.8% | 5.9% | ≈ In line |
| Cash flow | |||||
| Free cash flow margin | 5.0% | Bad beats 10% | 13.8% | 6.3% | ▼ Worse |
| Cash from operations / net income | 1.32 | Average beats 46% | 1.39 | 1.42 | ≈ In line |
| Free cash flow growth, 3 years a year | −6.4% | Bad beats 12% | +14.5% | – | – |
| Accruals (lower is better) | −1.6% | Bad beats 25% | −3.2% | – | – |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 5 Good · ● 4 Average · ● 3 BadCash quality
Earnings backed by cashBad
Free-cash-flow yieldGood
Risk models
Piotroski F-ScoreGood
Growth
EPS growth (3y)Average
Free-cash-flow growth (3y)Bad
Revenue growth (3y)Average
Growth consistencyAverage
Balance sheet
Interest coverGood
Valuation
Fair value vs priceGood
EBIT / EV yieldGood
Profitability
Return on invested capitalAverage
Operating marginBad
Each check is graded against the company's sector, not a fixed number. Checklist score 59/100.
Financials
| FY22 | FY22 | FY23 | FY24 | FY26 | |
|---|---|---|---|---|---|
| Revenue | $12.4B | $12.9B | $13.7B | $13.7B | $14.8B |
| Operating income | $1.0B | $1.0B | $1.1B | $943M | $1.1B |
| Net income | $746M | $861M | $921M | $824M | $921M |
| Operating cash flow | $1.6B | $1.5B | $1.3B | $1.0B | $1.3B |
| Operating margin | 8.2% | 7.9% | 7.9% | 6.9% | 7.7% |
| Free cash flow | $1.2B | $1.1B | $864M | $650M | $929M |
| Diluted EPS | $3.30 | $4.01 | $4.56 | $4.33 | $5.11 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bearish
5 bullish · 1 neutral · 10 bearish
Weekly
Strongly bearish
0 bullish · 1 neutral · 11 bearish
Monthly
Strongly bearish
1 bullish · 1 neutral · 6 bearish
Moving averages (daily)
| SMA 10 | 75.79 | Bullish |
| EMA 10 | 76.36 | Bullish |
| SMA 20 | 75.88 | Bullish |
| EMA 20 | 76.55 | Bullish |
| SMA 50 | 79.31 | Bearish |
| EMA 50 | 79.31 | Bearish |
| SMA 100 | 84.88 | Bearish |
| EMA 100 | 82.77 | Bearish |
| SMA 200 | 88.63 | Bearish |
| EMA 200 | 85.00 | Bearish |
Oscillators (daily)
| RSI (14) | 54.29 | Neutral |
| MACD (12, 26) | -0.72 | Bearish |
| Momentum (12) | 3.32 | Bullish |
| Stochastic %K (14) | 96.11 | Bearish |
| Williams %R (14) | -3.89 | Bearish |
| CCI (20) | 108.8 | Bearish |
Pivot points (classic, last session)
S3 75.49 | S2 76.10 | S1 77.07 | Pivot 77.68 | R1 78.65 | R2 79.26 | R3 80.23 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
0.08 USD
Yield on today's price
0.10%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.0200 | |
| 0.0200 | |
| 0.0200 | |
| 0.0200 | |
| 0.0200 | |
| 0.0200 | |
| 0.0200 | |
| 0.0200 | |
| 0.0200 | |
| 0.0200 | |
| 0.0200 | |
| 0.0200 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold TXT
| ETF | Share of the fund |
|---|---|
| XAR SPDR S&P Aerospace & Defense | 2.59% |
| JETS U.S. Global Jets | 1.69% |
| PPA Invesco Aerospace & Defense | 1.12% |
| ITA iShares U.S. Aerospace & Defense | 1.12% |
| RSPN Invesco S&P 500 Equal Weight Industria... | 1.10% |
| TMSL T. Rowe Price Small-Mid Cap | 0.77% |
| DFEN Daily Aerospace & Defense Bull 3X | 0.69% |
| CLSE Convergence Long/Short Equity | 0.51% |
The eight funds with the largest weight in TXT among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
TXT stock splits
TXT has split its stock 2 times since 1997. The latest was a 2-for-1 split on 27 Aug 2007.
Full TXT stock split history →TXT SEC filings
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Shareholder vote results
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations; Regulation FD disclosure
DEF 14ASEC EDGAR
Proxy statement
10-KSEC EDGAR
Annual report
8-KSEC EDGAR
Director or officer change
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.