ScoreWhy is Textron, Inc. ?
1
Poor Management Efficiency with a low ROCE of 9.70%
- The company has been able to generate a Return on Capital Employed (avg) of 9.70% signifying low profitability per unit of total capital (equity and debt)
2
Company has a low Debt to Equity ratio (avg) at times
3
Poor long term growth as Net Sales has grown by an annual rate of 2.31% and Operating profit at 2.92% over the last 5 years
4
The company has declared Negative results for the last 5 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at USD 917 MM
- ROCE(HY) Lowest at 11.42%
- CASH AND EQV(HY) Lowest at USD 2,679 MM
5
With ROCE of 8.70%, it has a fair valuation with a 1.68 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 5.75%, its profits have fallen by -15.2%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Textron, Inc. should be less than 10%
- Overall Portfolio exposure to Aerospace & Defense should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Textron, Inc. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Textron, Inc.
25.51%
0.02
28.04%
S&P 500
18.81%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.90%
EBIT Growth (5y)
12.04%
EBIT to Interest (avg)
8.30
Debt to EBITDA (avg)
1.65
Net Debt to Equity (avg)
0.35
Sales to Capital Employed (avg)
1.28
Tax Ratio
12.25%
Dividend Payout Ratio
1.57%
Pledged Shares
0
Institutional Holding
90.92%
ROCE (avg)
9.70%
ROE (avg)
12.21%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
2.08
EV to EBIT
18.30
EV to EBITDA
13.07
EV to Capital Employed
1.87
EV to Sales
1.24
PEG Ratio
2.08
Dividend Yield
0.05%
ROCE (Latest)
10.23%
ROE (Latest)
11.76%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,312 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 28.66 %
DEBTORS TURNOVER RATIO(HY)
Highest at 16.7 times
NET SALES(Q)
Highest at USD 4,175 MM
PRE-TAX PROFIT(Q)
At USD 279 MM has Grown at 51.63%
-7What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 1.51%
RAW MATERIAL COST(Y)
Grown by 34.34% (YoY
INTEREST(Q)
Highest at USD 36 MM
Here's what is working for Textron, Inc.
Operating Cash Flow
Highest at USD 1,312 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 4,175 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Pre-Tax Profit
At USD 279 MM has Grown at 51.63%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Debt-Equity Ratio
Lowest at 28.66 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 16.7 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Depreciation
Highest at USD 112 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Textron, Inc.
Interest
At USD 36 MM has Grown at 20%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest
Highest at USD 36 MM
in the last five periods and Increased by 20% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Dividend Payout Ratio
Lowest at 1.51%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Grown by 34.34% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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