---
title: Textron (TXT) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/txt
ticker: TXT
as_of: 2026-10-17
sector: Industrials
industry: Aerospace & Defense
---
# Textron (TXT)

Textron (TXT) closed at $75.93 on Oct 16, 2026, undervalued by 17% vs its model value of $91.45 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $75.93 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $91.45 |
| Price vs model | undervalued by 17% vs model |
| Range of that model | $66.58 – $166.14 |
| Market value | $13.1B |
| P/E (fiscal 2026) | 14.9 |
| Net margin (fiscal 2026) | 6.2% |
| Free cash flow (fiscal 2026) | $929.0M |
| Dividend yield (trailing twelve months) | 0.11% |
| Beta | 0.91 |
| Cost of capital (WACC) | 8.97% |
| Business classification | Mature & Stable (Low/slowing growth (~4% recent), Moderate margins (6% net margin), Highly cyclical earnings, Strong FCF yield (7.1%)) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Near 52-week lows | #21 | +4.0% | https://sweetvaluelab.com/lists/near-52-week-lows |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 0.11% |
| Dividends per share, last 12 months | $0.08 |
| Dividends / free cash flow (fiscal 2026) | 1.9% |
| Raised | — |
| Growth over 5 years | 0.0% a year |
| Latest payment | $0.02, ex-date Sep 11, 2026, paid Oct 1, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Sep 9, 2021 | $0.08 |
| To Sep 8, 2022 | $0.08 |
| To Sep 14, 2023 | $0.08 |
| To Sep 13, 2024 | $0.08 |
| To Sep 12, 2025 | $0.08 |
| Trailing twelve months (to Sep 11, 2026) | $0.08 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $91.45 | $66.58 | $166.14 |
| DCF · Perpetuity growth · 10y | cross check | $93.03 | $69.28 | $162.96 |
| DCF · EBITDA exit · 5y | cross check | $158.92 | $122.01 | $202.22 |
| DCF · EBITDA exit · 10y | cross check | $144.40 | $107.85 | $192.74 |
| P/E · peers | cross check | $141.45 | $130.13 | $225.37 |
| P/E · own history | cross check | $108.32 | $101.60 | $113.43 |
| PEG | sanity check | $55.01 | $55.01 | $55.01 |
| EV/EBITDA · peers | cross check | $190.84 | $162.27 | $260.34 |
| EV/Revenue · peers | cross check | $178.19 | $168.67 | $394.09 |
| Earnings power value | cross check | $45.84 | $40.88 | $52.78 |
| Dividend discount | cross check | $1.34 | $0.92 | $2.19 |

## Insider activity (SEC Form 4)

No open-market insider buys or sales filed in the past 90 days.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| May 6, 2026 | CLARK R KERRY | Director | Open-market sell | 2,517 | $234,307.5 |
| Apr 29, 2026 | Zuber Maria T | Director | Grant / award | 2,061 | $0 |
| Apr 29, 2026 | NOWELL LIONEL L III | Director | Grant / award | 2,061 | $0 |
| Apr 29, 2026 | MIONIS ROBERT | Director | Grant / award | 2,061 | $0 |
| Apr 29, 2026 | Mendez Echevarria Maria Cristina | Director | Grant / award | 2,061 | $0 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Jul 28, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/217346/000021734626000036/txt-20260704.htm |
| Jul 28, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/217346/000021734626000034/txt-20260728.htm |
| May 1, 2026 | 8-K | 5.07 Submission of Matters to a Shareholder Vote | https://www.sec.gov/Archives/edgar/data/217346/000110465926054116/tm2613360d1_8k.htm |
| Apr 30, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/217346/000021734626000012/txt-20260404.htm |
| Apr 30, 2026 | 8-K | 2.02 Results of Operations (Earnings); 7.01 Regulation FD Disclosure; 8.01 Other Events; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/217346/000021734626000009/txt-20260430.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Bridgewater | 2026-06-30 | 50,477 | $4.6M |

1 tracked managers in all.

## About

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 tr…

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Source: https://sweetvaluelab.com/stocks/txt (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.