TXT Textron
$75.72
▲ 0.8%Updated Oct 16, 2:25 PM ET
Report Card
TXT at a glance — five pillars scored 0–100 from real filed financials.
How the 0–100 rating is calculatedOverall: Favorable · 59/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
Price — Past Year
▲ Up 16.8% in the year to Jul 6, 2026
Key Metrics
Market Cap
$16.08B
P/E
14.14x
Forward P/E (est.)
11.93x
ROE
12.1%
Revenue Growth
9.5%
EPS Growth
18.5%
Profit Margin
6.2%
FCF Yield
7.0%
Debt / Equity
0.49x
ROIC
—
Interest Coverage
—
Current Ratio
—
Dividend Yield
0.1%
Implied Growth (rev. DCF)
3.0%
Rating Score
59/100
Business Overview
Textron (TXT) is a large-cap company in the Aerospace & Defense industry, part of the Industrials sector of the S&P 500, with a market value around $16.08B.
In its latest reported year it generated about $14.80B in revenue and $921.00M in net profit.
Our model rates TXT Favorable (59/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Technical Analysis (Educational)
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what TXT's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. TXT trades near $75.72, below its 50-day average ($90.99) and 200-day average ($88.93). Price below both averages is a downtrend — momentum is against buyers for now.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 46 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. TXT's is $2.69 (~3.6% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. In the month to Jul 6, 2026, TXT found buyers near $85.94 (support) and sellers near $95.03 (resistance); its 52-week range then was $75.80–$101.57. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.8× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. The indicators were last computed on Jul 6, 2026; the price is current.
Revenue Growth
4Y CAGR
6.2%
Revenue moved from $13.88B in 2015 to $14.80B in 2026, a 0.7% compound annual growth rate. The most recent year grew a steady 9.5% year over year. Slower, mature growth is common for established businesses.
Profitability
Gross Margin
18.0%
Operating Margin
6.7%
Net Margin
6.2%
ROE
12.1%
Textron keeps about 6.2% of each sales dollar as net profit, with a 18.0% gross margin and 6.7% operating margin. Return on equity is 12.1%. Margins are moderate — typical of a competitive but profitable business.
Debt Analysis
Total Debt
—
Net Debt
—
Net Debt / EBITDA
—
Debt / Equity
0.49x
Leverage: debt-to-equity is 0.5x. That is a conservative balance sheet — a cushion in downturns.
Cash Flow Analysis
Operating CF
$1.31B
Free Cash Flow
$929.00M
FCF Margin
6.3%
In the latest year Textron produced about $1.31B of operating cash flow and $929.00M of free cash flow after capital spending. That is a free-cash-flow yield of about 7.0% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Dividend Safety
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
What to look for in a dividend stockThe dividend is being paid, but coverage or consistency is thinner than an income investor should rely on without a closer look.
Dividend yield
0.1%
Per share (latest FY)
$0.08
Total paid (latest FY)
$18.00M
History on record
10 years
dividend uses 2% of free cash flow
2% of net income paid out
total dividends increased 1 year in a row
payout was cut at least once in the last 10 years
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
Valuation Analysis
P/E
14.14x
P/S
1.1x
P/B
1.61x
EV / EBITDA
—
TXT trades at 14.1x trailing earnings (about 11.9x on estimated forward earnings), 1.1x sales, and 1.6x book value. Reverse-engineering today's price implies the market expects roughly 3.0% long-term free-cash-flow growth. That is an undemanding multiple — potentially cheap if the business is stable.
DCF Fair Value (Educational)
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
How this DCF estimate is calculatedDCF fair value / share
$126.12
Current price
$75.72
Starting FCF (latest 10-K)
$929.00M
Growth, years 1–5
9.5%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Metrics vs. Sector Range
Where TXT sits versus the Industrials companies we cover.
Bands show the middle half (25th–75th percentile) of the 144 Industrials companies in our coverage that have fundamentals data — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
Sector Peer Comparison
How TXT stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.
Among the 142 rated Industrials companies we cover, TXT ranks #36 by our overall rating. It trades at a discount versus the sector on earnings (14.1x P/E vs. 30.5x median) with a lower return on equity (12.1% vs. 18.1%) and faster revenue growth (9.5% vs. 6.0%).
P/E vs sector
14.1x
median 30.5x
ROE vs sector
12.1%
median 18.1%
Growth vs sector
9.5%
median 6.0%
Sector rank
#36
of 142 rated
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Industrials companies by sub-industry and size, preferring ones with full data. Sector medians and rank use the 142 rated companies among the 273 Industrials stocks we cover. Educational, not a recommendation.
5-Year Projection Model
Project revenue → earnings → price. Edit the assumptions to build your own case.
What drives this projection, and its limits2030 scenario price range (Base Case)
$51.45 – $90.04
vs. $75.72 today · implied CAGR -7% – 4%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $16.13B | $17.58B | $19.17B | $20.89B | $22.77B |
| Net income | $967.85M | $1.05B | $1.15B | $1.25B | $1.37B |
| EPS | $4.56 | $4.97 | $5.41 | $5.90 | $6.43 |
| Share price (low) | $36.45 | $39.73 | $43.31 | $47.20 | $51.45 |
| Share price (high) | $63.79 | $69.53 | $75.79 | $82.61 | $90.04 |
| CAGR (low–high) | -52% / -16% | -28% / -4% | -17% / 0% | -11% / 2% | -7% / 4% |
Educational scenario model, not a forecast or investment advice. It starts from the latest annual revenue in SEC filings. By default, growth is trailing revenue growth (held between 3% and 45% a year), the net margin is the latest one (held between 3% and 50%, so a loss-making company is modeled with a small profit), and the Base case P/E runs from 60% to 100% of today's. Carrying recent growth forward five years can miss badly in either direction. Outputs are only as good as the assumptions.
Bull Case
The case for TXT:
- Healthy free-cash-flow yield (~7.0%) funds buybacks and dividends.
- A conservative balance sheet (debt/equity 0.5x) lowers risk.
- Our model's overall read is Favorable (59/100).
Bear Case
The case against TXT:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
Investment Thesis
On balance, the fundamentals screen favourably: Textron is a large-cap industrials business growing at a mature pace, with modest profitability, and a sound balance sheet. It trades at 14.1x earnings, which our model scores Favorable (59/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Latest SEC Filings
TXT's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen. How to read a 10-K
In the Idea Lab
TXT — frequently asked questions
Is TXT a good stock to buy?
We don't give buy or sell advice. Our model rates Textron Favorable (59/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is TXT's rating on The Stocks School?
Textron currently scores 59/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does TXT's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Textron's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for TXT calculated?
It's a scenario model. It starts from the latest annual revenue and net margin in SEC filings, grows revenue at an assumed rate (trailing revenue growth by default), and applies a P/E range built around today's multiple to show the resulting share-price range. When a stock has no growth or P/E data, the starting values are placeholders. It's a tool for thinking, not a prediction.
Is this TXT analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell TXT. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.