Textron Inc

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TXT : NYSE : Industrial Goods
$47.68 -0.44 | -0.91%
Today's Range: 47.55 - 48.09
Avg. Daily Volume: 1287300.0
08/18/17 - 3:59 PM ET

Financial Analysis


TEXTRON INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased.

During the same period, stockholders' equity ("net worth") has increased by 9.56% from the same quarter last year.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)3604.03511.0
EBITDA ($mil)383.0418.0
EBIT ($mil)271.0304.0
Net Income ($mil)153.0177.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)1129.0743.0
Total Assets ($mil)15775.015034.0
Total Debt ($mil)4004.03912.0
Equity ($mil)5682.05186.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin20.1420.96
EBITDA Margin10.6211.9
Operating Margin7.528.66
Sales Turnover0.870.92
Return on Assets5.634.84
Return on Equity13.4914.07
Debt Q2 FY17 Q2 FY16
Current Ratio0.00.0
Debt/Capital0.410.43
Interest Expense43.044.0
Interest Coverage6.36.91


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)265.11269.34
Div / share0.020.02
EPS0.570.66
Book value / share21.4319.25
Institutional Own % n/a n/a
Avg Daily Volume1324337.01660360.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 28.40 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 24.31. To use another comparison, its price-to-book ratio of 2.25 indicates a discount versus the S&P 500 average of 3.03 and a significant discount versus the industry average of 16.11. 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 17.11 Peers 28.40   TXT 9.92 Peers 16.48

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 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 16.34 Peers 22.20   TXT NM Peers 4.97

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TXT 2.25 Peers 16.11   TXT 6.41 Peers 60.33

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 0.93 Peers 1.85   TXT -0.31 Peers 3.82

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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