NYSE
TXT
Last Price
US $89.50
KEY FIGURES
MKT CAP
$15.6B
EPS
TTM
$5.30
PEG
TTM
0.99x
P/E
TTM
16.88x
P/S
TTM
1.04x
YIELD
0.09%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
12.13%
Return on equity
ROIC: 13.51%
Valuation History
17.4X
Price to Earnings
EV/EBITDA: 10.8X
Cash flow
Profit margin
4.90%
(FY vs FY)
EBITDA Y/Y
14.43%
(FY vs FY)
Cash flow Y/Y
5.54%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $89.50
-30.58%
Default assumptions
EBITDA Multiple
Fair Value
Market $89.50
-40.56%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Textron Inc. cash flow to debt ratio of 29.61% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial risk - Healthy cash flow growth.
Textron Inc. has insufficient data to evaluate this check.
Financial stability - Healthy debt to equity ratio.
Textron Inc.'s debt to equity ratio is 0.48, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial risk - Healthy debt to equity ratio development.
Textron Inc. has insufficient data to evaluate this check.
Financial stability - Net debt/EBITDA.
Textron Inc. has a net debt to EBITDA ratio of 1.37x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Textron Inc.'s interest coverage ratio of 13.10 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Textron Inc.'s profit margin has increased (2.26%) in the last year from 6.01% to 6.15%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
Textron Inc.'s short-term assets of $8.00G exceed its short-term liabilities of $4.35G
Increasing performance - ROA.
Textron Inc.'s return on assets of 5.15% is higher than the 5.00% threshold, indicating efficient asset utilization
Decreasing performance - Absolute return on equity.
Textron Inc.'s return on equity of 12.13%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
Textron Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Textron Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Textron Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Textron Inc. has a free cash flow yield of 5.68%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Textron Inc.'s yearly earnings has increased 11.77% since last year from $824.00M to $921.00M, signaling increasing performance
Decreasing performance - Healthy revenue growth.
Textron Inc. has insufficient data to evaluate this check.
Increasing performance - ROIC.
ROIC 13.51% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
Textron Inc.'s 3-year revenue CAGR of 4.77% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Textron Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Textron Inc. had positive ROE in 4.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Textron Inc. is overvalued relative to its fair value price of 62.13 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Textron Inc. has an earnings yield of 5.92%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Textron Inc. is overvalued relative to its fair value price of 53.20 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Textron Inc. has an EV/EBITDA ratio of 10.83x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Textron Inc. has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
Textron Inc. has a price-to-book ratio of 1.97x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Textron Inc. has a price-to-sales ratio of 1.04x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue