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Textron Inc
TXT : NYSE : Industrial Goods
$42.90 0.19 | 0.44%
Today's Range: 42.53 - 43.00
Avg. Daily Volume: 2,154,000
12/22/14 - 4:01 PM ET

Financial Analysis


TEXTRON INC's gross profit margin for the third quarter of its fiscal year 2014 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago.

At the same time, stockholders' equity ("net worth") has greatly increased by 27.70% from the same quarter last year.

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Income Statement Q3 FY14 Q3 FY13
Net Sales ($mil)3430.02904.0
EBITDA ($mil)392.0279.0
EBIT ($mil)281.0186.0
Net Income ($mil)159.099.0


Balance Sheet Q3 FY14 Q3 FY13
Cash & Equiv. ($mil)511.0637.0
Total Assets ($mil)14739.012457.0
Total Debt ($mil)3968.03298.0
Equity ($mil)4572.03580.0


Profitability Q3 FY14 Q3 FY13
Gross Profit Margin20.2918.04
EBITDA Margin11.429.6
Operating Margin8.196.4
Sales Turnover0.90.96
Return on Assets3.763.84
Return on Equity12.3113.21
Debt Q3 FY14 Q3 FY13
Current Ratio0.00.0
Debt/Capital0.460.48
Interest Expense47.041.0
Interest Coverage5.984.54


Share Data Q3 FY14 Q3 FY13
Shares outstanding (mil)276.2281.07
Div / share0.020.02
EPS0.570.35
Book value / share16.5512.74
Institutional Own % n/a n/a
Avg Daily Volume2157524.01755003.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 19.49 for the Aerospace & Defense industry and a value on par with the S&P 500 average of 19.99. To use another comparison, its price-to-book ratio of 2.54 indicates valuation on par with the S&P 500 average of 2.76 and a significant discount versus the industry average of 4.69. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TXT 21.10 Peers 19.49   TXT 7.91 Peers 14.52

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

TXT is trading at a valuation on par with its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

TXT is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TXT 16.80 Peers 18.25   TXT 1.00 Peers 1.20

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

TXT is trading at a valuation on par with its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

TXT trades at a discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TXT 2.54 Peers 4.69   TXT 20.60 Peers 91.55

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

TXT is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, TXT is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TXT 0.87 Peers 1.63   TXT 11.10 Peers 3.50

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

TXT is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

TXT has a sales growth rate that significantly exceeds its peers.

 

 

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