Textron Earnings: Core Focus on Aerospace and Defense Shows Promise; Shares 10% Undervalued
Third-quarter revenue grew 4% year over year to $3.8 billion, while segment operating dropped 1% to $355 million at 9.5% margin.
Third-quarter revenue grew 4% year over year to $3.8 billion, while segment operating dropped 1% to $355 million at 9.5% margin.
Textron has a massive opportunity with the MV-75 contract to become the preeminent military rotorcraft manufacturer for the foreseeable future.
Textron’s smaller aircraft face increased competition from new entrants in the business jet market, which can challenge pricing and margins.
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Metric
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TXT
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GD
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BA
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|---|---|---|---|
Price/Earnings (Normalized) | 13.50 | 22.73 | 82.08 |
Price/Book Value | 1.82 | 3.69 | 20.77 |
Price/Sales | 0.97 | 1.81 | 1.42 |
Price/Cash Flow | 9.23 | 19.66 | 49.02 |
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Metric
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TXT
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GD
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BA
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|---|---|---|---|
Quick Ratio | 0.65 | 0.84 | 0.31 |
Current Ratio | 1.80 | 1.43 | 1.13 |
Interest Coverage | 9.68 | 18.75 | 4.21 |
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Metric
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TXT
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GD
|
BA
|
|---|---|---|---|
Return on Assets (Normalized) | 5.42% | 8.22% | −0.61% |
Return on Equity (Normalized) | 12.36% | 18.57% | −31.58% |
Return on Invested Capital (Normalized) | 9.30% | 14.09% | 2.65% |
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