Textron Inc

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TXT : NYSE : Industrial Goods
$47.17 -0.04 | -0.08%
Today's Range: 46.731 - 47.45
Avg. Daily Volume: 1824700.0
02/24/17 - 4:02 PM ET

Financial Analysis


Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not.

During the same period, stockholders' equity ("net worth") has increased by 12.28% from the same quarter last year.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)3825.03923.0
EBITDA ($mil)0.0466.0
EBIT ($mil)0.0337.0
Net Income ($mil)214.0226.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)0.01005.0
Total Assets ($mil)15358.014708.0
Total Debt ($mil)0.03610.0
Equity ($mil)5574.04964.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin0.020.42
EBITDA Margin0.011.87
Operating Margin0.08.59
Sales Turnover0.90.91
Return on Assets6.264.73
Return on Equity15.1214.06
Debt Q4 FY16 Q4 FY15
Current Ratio0.00.0
Debt/Capital0.00.42
Interest Expense0.043.0
Interest Coverage0.07.84


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)270.13274.23
Div / share0.020.02
EPS0.780.81
Book value / share20.6318.1
Institutional Own % n/a n/a
Avg Daily Volume1764731.01323227.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.60 for the Aerospace & Defense industry and a significant discount compared to the S&P 500 average of 26.35. To use another comparison, its price-to-book ratio of 2.38 indicates a discount versus the S&P 500 average of 2.94 and a significant discount versus the industry average of 35.39. 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 15.86 Peers 22.60   TXT 13.08 Peers 16.87

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.

 

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 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 16.32 Peers 20.44   TXT 2.64 Peers 4.06

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 significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TXT 2.38 Peers 35.39   TXT 23.60 Peers 197.42

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 0.96 Peers 1.66   TXT 2.71 Peers 6.85

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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