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Textron Inc TXT

Morningstar Rating
$89.39 +0.71 (0.80%)
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Company Report

Textron Makes Some of the Most Popular Aircraft on the Market

Textron is not a household name, but many of its products are: from Cessna airplanes to Bell helicopters and E-Z-Go golf carts, the company designs, produces, and services a wide array of specialized vehicles, overwhelmingly aircraft, for commercial and military customers. In some of its key markets, Textron products are far and away the most common version in use today, and part of the company's strategy is to provide ongoing service and parts for its back catalog of vehicles. Aircraft are generally fairly long-lived, often in use for decades, and this provides Textron with many years of recurring revenue streams, though its heavy exposure to business and private aviation makes those revenue streams quite cyclical.

Price vs Fair Value

TXT is trading at a 4% premium.
Price
$89.39
Fair Value
$16.00
Uncertainty
Medium
1-Star Price
$143.10
5-Star Price
$81.20
Economic Moat
Tqld
Capital Allocation
Yxvwfjdzb

Bulls Say, Bears Say

Bulls

Textron has a massive opportunity with the Future Vertical Lift contract to become the preeminent military rotorcraft manufacturer for the foreseeable future.

Bears

Textron’s smaller aircraft face increased competition from new entrants in the business jet market, which can challenge pricing and margin

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News

Trading Information

Previous Close Price
$88.68
Day Range
$88.3489.89
52-Week Range
$61.2789.89
Bid/Ask
$87.60 / $90.70
Market Cap
$17.24 Bil
Volume/Avg
759,274 / 1.1 Mil

Key Statistics

Price/Earnings (Normalized)
15.96
Price/Sales
1.32
Dividend Yield (Trailing)
0.09%
Dividend Yield (Forward)
0.09%
Total Yield
6.86%

Company Profile

Textron is a conglomerate that mostly designs, manufactures, and services a range of specialty aircraft including small jets, propeller-driven airplanes, helicopters, and tilt-rotor aircraft. The firm’s aviation segment manufactures and services Cessna and Beechcraft planes. Bell is a helicopter and tilt-rotor manufacturer and servicer for both commercial and military customers. Textron Systems produces uncrewed aircraft and armored vehicles for the military market as well as aircraft simulators and training for the commercial and military markets. Textron Industrial contains the Kautex business that manufactures plastic fuel tanks for conventional and hybrid motor vehicles and other subsidiaries that produce specialized vehicles such as golf carts, snowmobiles, and all-terrain vehicles.
Sector
Industrials
Industry
Aerospace & Defense
Stock Style Box
Mid Core
Total Number of Employees
35,000

Competitors

Valuation

Metric
TXT
BA
GD
Price/Earnings (Normalized)
15.9622.85
Price/Book Value
2.473.53
Price/Sales
1.321.561.79
Price/Cash Flow
13.8264.9318.59
Price/Earnings
TXT
BA
GD

Financial Strength

Metric
TXT
BA
GD
Quick Ratio
0.830.280.79
Current Ratio
1.921.141.44
Interest Coverage
15.120.1810.84
Quick Ratio
TXT
BA
GD

Profitability

Metric
TXT
BA
GD
Return on Assets (Normalized)
6.83%−1.22%6.55%
Return on Equity (Normalized)
16.00%17.61%
Return on Invested Capital (Normalized)
11.19%0.74%12.01%
Return on Assets
TXT
BA
GD
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