Textron Inc (TXT) stock analysis

P/E below its 5-year median

Textron's P/E of 15.5 is below its own 5-year median of 18.1.

P/E below the industry

Textron's P/E of 15.5 is below the Aircraft and Parts median of 27.6.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B below the industry

Textron's price-to-book of 1.79 is below the Aircraft and Parts median of 2.88.

Trading below fair value

The share price of $85.94 is below our fair value estimate of $108.38.

Margin of safety over 20%

The price is 20.7% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 4.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 8.4% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 17.7% over the last twelve months, against a 5-year average of 24.4% a year.

Growing slower than the industry

Revenue grew 8.5% over the last twelve months; the Aircraft and Parts median is 16.9%.

Guidance raised

Textron raised its 2026 Adjusted net income - Non-GAAP outlook on Jul 28, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 12.5% over the last twelve months and averaged 12.2% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Textron's return on equity of 12.5% is above the Aircraft and Parts median of 9.1%.

Earnings grew over 5 years

Net income grew 24.4% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 6.3% over the last twelve months, against a 5-year average of 6.3%.

Net margin above the industry

Textron's net margin of 6.3% is above the Aircraft and Parts median of 5.5%.

No debt

Textron has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.19; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Textron paid dividends worth 0.1% of the share price over the last twelve months.

Yield below Treasuries

The 0.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Textron yields 0.1%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 1.7% of net income.

Covered by free cash flow

Dividends take 2.1% of free cash flow.