Textron
Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide. It operates in six segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. The Textron Aviation segment manufactures, sells, and services business jets, turboprop and…
Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide. It operates in six segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. The Textron Aviation segment manufactures, sells, and services business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft, as well as offers maintenance, inspection, and repair services; commercial parts; and advanced flight training devices. The Bell segment supplies military and commercial helicopters, tiltrotor aircraft, and related spare parts and services. The Textron Systems segment offers unmanned aircraft systems, electronic systems and solutions, advanced marine crafts, piston aircraft engines, live military air-to-air and air-to-ship training, weapons and related components, and armored and specialty vehicles. The Industrial segment offers blow-molded solutions, including conventional plastic fuel tanks and pressurized fuel tanks; plastic tanks for catalytic reduction systems and other fuel system components; lightweight and composite pentatonic battery systems for use in electric vehicles primarily to automobile original equipment manufacturers; and golf cars, off-road utility vehicles, powersports products, light transportation vehicles, aviation ground support equipment, professional turf-maintenance equipment, and turf-care vehicles to golf courses and resorts, government agencies and municipalities, consumers, outdoor enthusiasts, and commercial and industrial users. The Textron eAviation segment manufactures and sells light aircraft and gliders with electric and combustion engines; and provides other research and development initiatives related to sustainable aviation solutions. The Finance segment offers financing services to purchase new and pre-owned aviation aircraft and Bell helicopters. Textron Inc. was founded in 1923 and is headquartered in Providence, Rhode Island.Priced within the modelled range
Other models: USD 71.88–72.51 (median 72.19). The recommended value is in line with them.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Details and the full model are below.
Market price within modeled range
Free-cash-flow DCF using Fiscal year 2026 reported free cash flow, with cash, debt, and shares from the latest report. Base assumptions are 5.11% growth, 2.7% terminal growth, and 10% discount. Low/high cases vary growth by 2 and terminal growth/discount by 1 percentage point; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 5.11%, discount rate 10%, terminal growth 2.70% (sector defaults). See a worked example.
Blended growth assumption: 5.1% (sector default 6.2%, own revenue history 4.6%, analyst revenue consensus 4.8%).
5-year outlook: relative outlook of about 8.4% a year (High confidence), anchored to a 7% market return and adjusted for how this company ranks against others. A ranking aid, not a prediction. See the full forecast.
Analyst consensus expects revenue growth of 4.8% a year; the growth assumption used is 5.1%.
Adjust assumptions
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — USD 80.29 (-5.8%)
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EPS-based Gordon proxy
— USD 71.88 (-15.7%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— USD 80.29 (-5.8%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— USD 72.51 (-14.9%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
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EV/EBITDA (12x)
— not applicable
Not used: Cannot be computed: EBITDA is missing, zero or negative.
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Fade DCF (10-year growth fade)
— USD 80.00 (-6.1%)
Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
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EV/Sales (Rule of 40)
— USD 83.91 (-1.6%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear USD 59.75 | -42.6% |
| Base USD 80.29 | -6.2% |
| Bull USD 116.85 | 27.1% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At USD 85.23 the market implies about this annual free-cash-flow growth for 5 years (terminal 2.7%, discount 10.0%).
Compare: the market implies 6.5% a year, this model assumes 5.1%. The market expects more than this model does, which is why it reads as overvalued.
How the Free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 8.0% | 9.0% | 10.0% | 11.0% | 12.0% |
|---|---|---|---|---|---|
| 1.1% | 93.06 | 78.39 | 67.73 | 59.64 | 53.28 |
| 3.1% | 101.69 | 85.52 | 73.78 | 64.87 | 57.88 |
| 5.1% | 110.97 | 93.19 | 80.29 | 70.50 | 62.82 |
| 7.1% | 120.96 | 101.44 | 87.28 | 76.53 | 68.11 |
| 9.1% | 131.68 | 110.29 | 94.77 | 83.00 | 73.78 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 87 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +4.6% a year | 12 / 20 |
Peers in Industrials
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| TXT (this company) | USD 85.23 | -6.2% | 16.7 | 2.0 | 0.1% | 87 |
| EZJ.L easyJet plc | GBP 6.88 | 74.3% | 10.6 | 1.5 | 1.7% | 78 |
| WAWI.OL Wallenius Wilhelmsen ASA | NOK 160.80 | 64.5% | 7.1 | 2.2 | 0.3% | 100 |
| IAG.L International Consolidated Airlines Group S.A. | GBP 4.37 | 58.9% | 8.0 | 3.5 | 1.8% | 92 |
| TPK.L Travis Perkins plc | GBP 6.54 | 54.7% | – | 0.8 | 2.1% | 46 |
| SRP.L Serco Group plc | GBP 2.77 | 46.2% | 19.7 | 3.3 | 1.5% | 82 |
| DFDS.CO DFDS A/S | DKK 157.30 | 45.9% | – | 0.6 | – | 64 |
| DG.PA VINCI SA | EUR 111.75 | 42.2% | 12.9 | 2.1 | 4.2% | 90 |
| MPCC.OL MPC Container Ships ASA | NOK 24.23 | 33.5% | 5.5 | 1.1 | 0.7% | 80 |
| Peer median | 9.3 | 1.8 | ||||
Dividends
Paid in the last 12 months: USD 0.08 per share · yield 0.09% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 0.060 |
| 2025 | 0.080 |
| 2024 | 0.080 |
| 2023 | 0.080 |
| 2022 | 0.080 |
| 2021 | 0.080 |
Annual financial statement
Saved annual report · Fiscal year 2026 · SEC EDGAR annual filings · period ended 03 Jan 2026
| Revenue | USD 14,799,000,000 |
|---|---|
| EBITDA | USD |
| EBIT | USD |
| Net income | USD 921,000,000 |
| Free cash flow | USD 929,000,000 |
| Capital expenditures | USD -383,000,000 |
| Debt | USD |
| Cash | USD |
| Working capital | USD |
| Shares outstanding | 180,258,000 |
| Reported dividends per share | USD 0.0800 |