Textron Inc

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TXT : NYSE : Industrial Goods
$39.57 up 0.42 | 1.10%
Today's Range: 39.25 - 39.64
Avg. Daily Volume: 1,690,200
07/26/16 - 3:59 PM ET

Financial Analysis


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 12.69% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)3511.03247.0
EBITDA ($mil)0.0399.0
EBIT ($mil)0.0289.0
Net Income ($mil)177.0167.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)661.0792.0
Total Assets ($mil)15034.014948.0
Total Debt ($mil)3063.03884.0
Equity ($mil)5186.04602.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin0.022.42
EBITDA Margin0.012.28
Operating Margin0.08.9
Sales Turnover0.920.93
Return on Assets4.844.45
Return on Equity14.0714.55
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Debt/Capital0.370.46
Interest Expense0.042.0
Interest Coverage0.06.88


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)268.72276.34
Div / share0.020.02
EPS0.660.6
Book value / share19.316.65
Institutional Own % n/a n/a
Avg Daily Volume1690443.02904175.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 20.87 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 2.06 indicates a discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 9.98. 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 15.03 Peers 20.87   TXT 12.73 Peers 16.85

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 13.27 Peers 18.27   TXT 1.63 Peers 2.23

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.

 

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 2.06 Peers 9.98   TXT 10.87 Peers 3.33

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.

 

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

TXT is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TXT 0.77 Peers 1.66   TXT -0.23 Peers 6.59

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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