Textron (TXT) AI Stock Analysis

• Market Cap: $15.25B
• Dividend Yield: 0.1%
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): 19.1
• Beta (1Y): 1.02
• Revenue Growth: 0.57%
• EPS Growth: -5.62%
• Country: US
• Employees: 34,000
• Sector: Industrials
• Sector Strength: 90
• Industry: Aerospace & Defense
• EPS (TTM): 1.28
• Shares Outstanding: 180,538,800
• 10 Day Avg. Volume: 1,259,400
• 30 Day Avg. Volume: 1,443,726
• PEG Ratio: 8.07
• Price to Book (P/B): 2.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.08
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 6.78
• Enterprise Value/Ebitda: 2.96
• 1Y Price Target: $86.29
• Price Target Upside: 1.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 75 Outperform
• Price Target: $92.00 ▲(7.78%Upside)

Textron's overall stock score is driven by strong financial performance and positive earnings call highlights, particularly in revenue growth and strategic achievements. However, technical indicators suggest caution due to overbought conditions, and the valuation reflects a moderate P/E ratio with a low dividend yield.

Positive Factors

Partnerships

Textron's partnership with NetJets for the launch of the Citation Ascend signifies strong relationships with key fleet operators and potential for high demand.

Product Innovation

Textron Aviation is focusing on bringing new products to market, including the M2 Gen2, CJ3 Gen2, and Ascend, indicating innovation and growth potential.

Negative Factors

Industrial Segment Challenges

The Industrial portfolio reported another quarter of soft performance, prompting a strategic review.

Supply Chain Challenges

Supply chain and labor challenges constrain the potential upside for Textron.

Textron Business Overview & Revenue Model

Company Description

Textron Inc. is a multi-industry company that operates globally in various sectors including aerospace, defense, and industrial products. The company's core products and services include aircraft, defense solutions, and industrial equipment. Textron is known for its renowned brands such as Bell helicopters, Cessna and Beechcraft aircraft, and Textron Systems, which deliver innovative solutions to commercial and military customers worldwide.

How the Company Makes Money

Textron Inc. generates revenue through the manufacturing and sale of aviation products, defense systems, and industrial equipment. The company's revenue streams are primarily divided into several segments: Textron Aviation, Bell, Textron Systems, Industrial, and Finance. Textron Aviation contributes significantly through the sale of business jets, turboprop aircraft, and aftermarket services. The Bell segment earns revenue from the sale of military and commercial helicopters. Textron Systems, which includes unmanned aircraft systems and advanced marine craft, generates income from defense contracts and other government-related business. The Industrial segment provides revenue through the sale of specialized vehicles and equipment, such as golf carts and utility vehicles. Additionally, Textron's Finance segment supports sales of Textron products through financing solutions. Strategic partnerships and contracts with government agencies and commercial entities play a crucial role in sustaining and growing Textron's revenue.

Textron Financial Statement Overview

Summary

Textron's financial health is robust, characterized by strong profitability, effective asset utilization, and stable cash flow generation. The company displays growth potential, particularly in revenue and profit margins, while maintaining a balanced capital structure. Continuous monitoring of leverage and external financing activities will be crucial for sustained stability.

Income Statement

Textron's income statement demonstrates strong profitability with a consistent increase in Total Revenue over the years. The Gross Profit Margin and Net Profit Margin are healthy, indicative of effective cost management and operational efficiency. Revenue growth, albeit moderate, reflects stability, and EBIT and EBITDA margins are solid, suggesting resilient core operations.

Balance Sheet

The balance sheet reflects a stable financial position with a reasonable Debt-to-Equity ratio, indicating a balanced approach to leveraging. Return on Equity (ROE) is strong, reflecting effective utilization of equity capital to generate profits. The Equity Ratio suggests a stable asset base, although there is room for improvement in reducing liabilities.

Cash Flow

Textron exhibits strong cash flow generation with consistent Operating Cash Flow and Free Cash Flow over recent periods. The Free Cash Flow to Net Income ratio is healthy, and the company effectively manages capital expenditures to sustain growth. However, fluctuations in cash flow from financing activities indicate potential volatility in external financial obligations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.70B	13.68B	12.87B	12.38B	11.65B
Gross Profit	2.50B	2.28B	2.07B	2.08B	1.56B
EBITDA	1.42B	1.56B	1.51B	1.39B	827.00M
Net Income	824.00M	921.00M	861.00M	746.00M	309.00M
Balance Sheet
Total Assets	16.84B	16.86B	16.29B	15.83B	15.40B
Cash, Cash Equivalents and Short-Term Investments	1.44B	2.18B	1.96B	1.92B	2.15B
Total Debt	3.59B	3.87B	3.18B	3.19B	3.71B
Total Liabilities	9.63B	9.87B	9.18B	9.01B	9.55B
Stockholders Equity	7.20B	6.99B	7.11B	6.82B	5.84B
Cash Flow
Free Cash Flow	650.00M	864.00M	1.14B	1.22B	452.00M
Operating Cash Flow	1.01B	1.27B	1.49B	1.60B	769.00M
Investing Cash Flow	-284.00M	-317.00M	-447.00M	-281.00M	-248.00M
Financing Cash Flow	-1.45B	-813.00M	-1.09B	-1.45B	360.00M

Textron Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 85.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TXT, the sentiment is Positive. The current price of 85.36 is above the 20-day moving average (MA) of 81.54, above the 50-day MA of 77.56, and above the 200-day MA of 77.53, indicating a bullish trend. The MACD of 2.34 indicates Negative momentum. The RSI at 73.32 is Negative, neither overbought nor oversold. The STOCH value of 72.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TXT.

Textron Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRS	78 Outperform	$12.77B	55.43	9.50%	0.75%	13.58%	25.96%
WWD	77 Outperform	$15.09B	41.59	16.35%	0.44%	4.96%	8.41%
TXT	75 Outperform	$15.25B	19.12	11.70%	0.10%	0.57%	-5.62%
BWXT	75 Outperform	$12.56B	43.70	28.24%	0.71%	9.87%	14.16%
CW	74 Outperform	$18.16B	43.06	17.40%	0.20%	9.77%	15.66%
Sector *	65 Neutral	$10.86B	15.57	5.28%	1.92%	3.13%	-27.76%
RKLB	62 Neutral	$22.86B	―	-45.38%	―	64.98%	-10.52%

Textron Corporate Events

Textron Appoints Rob Mionis to Board of Directors

On February 26, 2025, Textron Inc. announced the election of Rob Mionis to its Board of Directors, effective March 1, 2025. Mionis, who is the President and CEO of Celestica Inc., brings extensive experience in aerospace and industrial markets, having previously held leadership roles at StandardAero and Honeywell. This strategic addition to the board is expected to enhance Textron’s capabilities in these sectors. Mionis will serve on Textron’s Audit Committee and Organization and Compensation Committee, potentially influencing the company’s governance and operational strategies.