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 -2.27%, its profits have fallen by -15.2%
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -2.27% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
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.
-2.27%
-0.13
27.95%
S&P 500
13.22%
0.65
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.31%
EBIT Growth (5y)
2.92%
EBIT to Interest (avg)
8.30
Debt to EBITDA (avg)
1.65
Net Debt to Equity (avg)
0.35
Sales to Capital Employed (avg)
1.27
Tax Ratio
12.25%
Dividend Payout Ratio
1.85%
Pledged Shares
0
Institutional Holding
88.64%
ROCE (avg)
9.70%
ROE (avg)
12.21%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
1.92
EV to EBIT
19.36
EV to EBITDA
13.37
EV to Capital Employed
1.68
EV to Sales
1.19
PEG Ratio
NA
Dividend Yield
0.06%
ROCE (Latest)
8.70%
ROE (Latest)
12.27%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -15.38% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 16.31 times
NET SALES(Q)
Highest at USD 3,716 MM
EPS(Q)
Highest at USD 1.35
-12What is not working for the Company
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
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.6 times
INTEREST(Q)
Highest at USD 31 MM
Here's what is working for Textron, Inc.
Net Sales
Highest at USD 3,716 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
EPS
Highest at USD 1.35
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Debtors Turnover Ratio
Highest at 16.31 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -15.38% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Textron, Inc.
Operating Cash Flow
Lowest at USD 917 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Interest
Highest at USD 31 MM
in the last five periods and Increased by 6.9% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Cash and Eqv
Lowest at USD 2,679 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Inventory Turnover Ratio
Lowest at 2.6 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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