Textron Inc

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TXT : NYSE : Industrial Goods
$46.66 | %
Today's Range: 46.16 - 47.01
Avg. Daily Volume: 1949200.0
04/21/17 - 4:02 PM ET

Financial Analysis


Sales and net income have dropped, underperforming the average competitor within its industry.

During the same period, stockholders' equity ("net worth") has increased by 11.88% from the same quarter last year.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)3093.03201.0
EBITDA ($mil)0.0367.0
EBIT ($mil)0.0258.0
Net Income ($mil)101.0150.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)0.0778.0
Total Assets ($mil)15703.015099.0
Total Debt ($mil)0.03997.0
Equity ($mil)5582.04989.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin0.021.09
EBITDA Margin0.011.46
Operating Margin0.08.06
Sales Turnover0.870.9
Return on Assets5.814.76
Return on Equity14.1814.45
Debt Q1 FY17 Q1 FY16
Current Ratio0.00.0
Debt/Capital0.00.44
Interest Expense0.043.0
Interest Coverage0.06.0


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)270.29268.72
Div / share0.020.02
EPS0.370.55
Book value / share20.6518.57
Institutional Own % n/a n/a
Avg Daily Volume1940623.01432288.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.84 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 24.92. To use another comparison, its price-to-book ratio of 2.22 indicates a discount versus the S&P 500 average of 2.99 and a significant discount versus the industry average of 36.73. 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 15.78 Peers 22.84   TXT 12.81 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 15.54 Peers 20.85   TXT NM Peers 4.05

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 2.22 Peers 36.73   TXT 12.35 Peers 24.24

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 0.91 Peers 1.67   TXT 0.95 Peers 5.58

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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