Textron Inc

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TXT : NYSE : Industrial Goods
$47.49 -0.39 | -0.81%
Today's Range: 47.31 - 48.39
Avg. Daily Volume: 1309700.0
12/02/16 - 4:04 PM ET

Financial Analysis


TEXTRON INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged 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.

During the same period, stockholders' equity ("net worth") has increased by 20.33% from the same quarter last year.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)3251.03180.0
EBITDA ($mil)375.0406.0
EBIT ($mil)267.0294.0
Net Income ($mil)421.0176.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)739.0614.0
Total Assets ($mil)15167.014898.0
Total Debt ($mil)3822.03772.0
Equity ($mil)5651.04696.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin21.4722.3
EBITDA Margin11.5312.76
Operating Margin8.219.25
Sales Turnover0.920.91
Return on Assets6.424.58
Return on Equity15.0914.6
Debt Q3 FY16 Q3 FY15
Current Ratio0.00.0
Debt/Capital0.40.45
Interest Expense45.041.0
Interest Coverage5.937.17


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)270.13273.86
Div / share0.020.02
EPS1.10.63
Book value / share20.9217.15
Institutional Own % n/a n/a
Avg Daily Volume1319666.01498257.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.08 for the Aerospace & Defense industry and a significant discount compared to the S&P 500 average of 25.16. To use another comparison, its price-to-book ratio of 2.13 indicates a discount versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 15.57. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, TEXTRON INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TXT 14.29 Peers 22.08   TXT 14.91 Peers 15.86

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

TXT is trading at a significant discount to its peers.

 

Average. 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 valuation on par 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 15.37 Peers 20.20   TXT 1.83 Peers 1.97

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

TXT is trading at a discount to its peers.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TXT 2.13 Peers 15.57   TXT 27.34 Peers 161.72

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 1.58   TXT 2.13 Peers 3.89

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

TXT significantly trails its peers on the basis of sales growth

 

 

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