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Textron Inc. — Intrinsic Value & Fair Price

TXT
NYSEIndustrialsAerospace & DefenseCIK 0000217346textron.comAbout TXT
Last close · Oct 16, 202675.93+0.78 (+1.04%)
Market cap$13.1B
Model value · DCF · Perpetuity growth · 5y
91.45
Textron closed at $75.93 — undervalued by 17% vs model.
66.58the model's range166.14

DCF · Perpetuity growth · 5y leads for mature & stable — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
1.34 – 190.84
Wall St. target
108.00 30% below
Below model, 1y
20 of 20 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
0.11%
Past 2 years
low 0.08%high 0.13%
Dividends per share, a year at a time
$0.08Sep ’21$0.08Sep ’22$0.08Sep ’23$0.08Sep ’24$0.08Sep ’25$0.08TTM
Dividends / free cash flow, FY2026
1.9%
Raised
—
Growth, 5 yrs
0.0% a year
Last change
—
Every payment, with ex-dates · latest $0.02, paid Oct 1, 2026

Research on TXT

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How it is valued

Valued asMature & Stable
Low/slowing growth (~4% recent)Moderate margins (6% net margin)Highly cyclical earningsStrong FCF yield (7.1%)
What growth the price implies: the reverse DCF

Key figures

FY2026
P/E
14.9×
EV / EBITDA
6.6×
FCF yield
6.5%
Dividend yield, TTM
0.11%
Beta
0.91
Cost of capital (WACC)
8.97%
On the lists: #21 Near 52-week lows
Full financials

Analyst actions

third-party, quoted
10-16Morgan Stanley · target86.00
07-29Morgan Stanley · target98.00
07-29UBS · target95.00
07-28UBS · “Neutral” from “Sell”upgrade
Ratings, targets and estimates

The weekly

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About Textron

Textron Inc. (TXT) is a diverse global enterprise with significant involvement in the aerospace, defense, industrial, and financial sectors. Its Textron Aviation division is responsible for the production, sale, and maintenance of a variety of aircraft, including corporate jets, turboprop and piston-engine planes, and military trainer and defense aircraft. This segment also delivers extensive maintenance, inspection, and repair services, alongside selling commercial aircraft components. The Bell segment stands as a primary provider of military and civilian helicopters, in addition to tiltrotor aircraft, supported by related spare parts and services. Textron Systems focuses on developing and supplying advanced unmanned aerial platforms, sophisticated electronic systems and solutions, specialized marine vessels, piston aircraft engines, realistic live military air-to-air and air-to-ship training systems, weaponry and associated components, and a range of armored and specialty vehicles. Within its Industrial segment, Textron creates specialized plastic fuel containment systems, including innovative pressurized versions designed for hybrid vehicles, clear-vision systems, and plastic tanks for catalytic reduction systems, primarily serving original equipment manufacturers (OEMs) in the automotive sector. This segment also manufactures a broad array of recreational and utility vehicles, such as golf carts, off-road vehicles (including ATVs and side-by-sides), snowmobiles, and light transportation solutions. Additionally, it produces specialized equipment for aviation ground support, as well as professional-grade turf management and landscaping machinery. Its varied customer base spans golf courses and resorts, government entities, municipalities, individual consumers, outdoor enthusiasts, and diverse commercial and industrial enterprises. Finally, the Finance segment extends financial services, facilitating the acquisition of new and pre-owned aircraft from Textron Aviation and Bell helicopters. Textron's operational footprint is worldwide, with a presence across the United States, Europe, Asia, Australia, and other international markets. The company, founded in 1923, maintains its corporate headquarters in Providence, Rhode Island.

CEO
Lisa Atherton
Headquarters
Providence, RI
Employees
34,000
IPO
1947-12-22
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.