Textron (TXT) AI Stock Analysis

• Market Cap: $14.31B
• Dividend Yield: 0.1%
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 17.9
• Beta (1Y): 1.02
• Revenue Growth: 0.57%
• EPS Growth: -5.62%
• Country: US
• Employees: 34,000
• Sector: Industrials
• Sector Strength: 83
• Industry: Aerospace & Defense
• EPS (TTM): 1.28
• Shares Outstanding: 180,538,800
• 10 Day Avg. Volume: 1,785,288
• 30 Day Avg. Volume: 1,310,338
• PEG Ratio: 7.32
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.50
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 6.27
• Enterprise Value/Ebitda: 2.74
• 1Y Price Target: $84.57
• Price Target Upside: 5.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 74 Outperform
• Price Target: $82.00 ▲(2.07%Upside)

Textron's overall stock score is driven by strong financial performance and moderate technical indicators. While the company shows potential for growth, particularly in aviation and Bell segments, the mixed sentiments from the earnings call and modest valuation contribute to a balanced outlook. Continuous monitoring of financial leverage and segment performance will be critical.

Positive Factors

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.

Strategic 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.

Valuation Opportunity

TXT trades at a significant discount to its peers, offering value potential for investors.

Negative Factors

Industrial Performance

The Industrial segment faces challenges with a strategic review and production pause leading to a significant drop in sales.

Investor Sentiment

Investor interest in the stock and business jets remains limited as investors point to secondary market inventories coming off lows and the potential for slowing orders.

Supply Chain Challenges

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

Textron Business Overview & Revenue Model

Company Description

Textron Inc. operates in the aircraft, defense, industrial, and finance businesses. The company's Textron Aviation segment manufactures, sells, and services business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft; and offers maintenance, inspection, and repair services, as well as sells commercial parts. Its Bell segment supplies military and commercial helicopters, tiltrotor aircrafts, and related spare parts and services. The company's Textron Systems segment offers unmanned aircraft systems, electronic systems and solutions, advanced marine crafts, piston aircraft engines, live military air-to-air and air-to-ship training, weapons and related components, and armored and specialty vehicles. Its Industrial segment offers blow-molded plastic fuel systems, including conventional plastic fuel tanks and pressurized fuel tanks for hybrid vehicle applications, clear-vision systems, and plastic tanks for catalytic reduction systems primarily to automobile original equipment manufacturers; and golf cars, off-road utility vehicles, recreational side-by-side and all-terrain vehicles, snowmobiles, light transportation vehicles, aviation ground support equipment, professional turf-maintenance equipment, and turf-care vehicles to golf courses and resorts, government agencies and municipalities, consumers, outdoor enthusiasts, and commercial and industrial users. The company's Finance segment provides financing services to purchase new and pre-owned aircraft and bell helicopters. It serves in the United States, Europe, Asia, Australia, and internationally. Textron Inc. was founded in 1923 and is headquartered in Providence, Rhode Island.

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 exhibits strong financial health with robust profitability, effective asset utilization, and stable cash flow generation. The consistent revenue growth and solid profit margins indicate a resilient core operation. However, attention to leverage and external financing activities remains important.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.87B	13.70B	13.68B	12.87B	12.38B	11.65B
Gross Profit	2.62B	2.50B	2.28B	2.07B	2.08B	1.56B
EBITDA	1.45B	1.42B	1.56B	1.51B	1.39B	827.00M
Net Income	830.00M	824.00M	921.00M	861.00M	746.00M	309.00M
Balance Sheet
Total Assets	16.94B	16.84B	16.86B	16.29B	15.83B	15.40B
Cash, Cash Equivalents and Short-Term Investments	1.25B	1.44B	2.18B	1.96B	1.92B	2.15B
Total Debt	3.73B	3.59B	3.87B	3.18B	3.19B	3.71B
Total Liabilities	9.67B	9.63B	9.87B	9.18B	9.01B	9.55B
Stockholders Equity	7.28B	7.20B	6.99B	7.11B	6.82B	5.84B
Cash Flow
Free Cash Flow	545.00M	650.00M	864.00M	1.14B	1.22B	452.00M
Operating Cash Flow	898.00M	1.01B	1.27B	1.49B	1.60B	769.00M
Investing Cash Flow	-222.00M	-284.00M	-317.00M	-447.00M	-281.00M	-248.00M
Financing Cash Flow	-894.00M	-1.45B	-813.00M	-1.09B	-1.45B	360.00M

Textron Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 80.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 80.34 is above the 20-day moving average (MA) of 76.54, above the 50-day MA of 73.34, and above the 200-day MA of 77.83, indicating a bullish trend. The MACD of 1.50 indicates Negative momentum. The RSI at 71.66 is Negative, neither overbought nor oversold. The STOCH value of 83.24 is Negative, 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
BWXT	75 Outperform	$12.87B	44.78	28.24%	0.70%	9.87%	14.16%
TXT	74 Outperform	$14.31B	17.95	11.70%	0.10%	0.57%	-5.62%
CW	74 Outperform	$17.96B	42.39	17.40%	0.20%	9.77%	15.66%
WWD	72 Outperform	$14.48B	39.32	16.35%	0.45%	4.96%	8.41%
DRS	71 Outperform	$11.57B	49.86	9.50%	0.81%	13.58%	25.96%
Sector *	68 Neutral	£2.96B	10.47	8.40%	3.16%	2.88%	-10.00%
RKLB	59 Neutral	$14.93B	―	-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.