Textron Inc. — Aerospace & Defense. Scored on the same transparent 7-signal model behind the daily rankings.
★
TXT
Textron Inc. · Aerospace & Defense
FCF$859mC+
Rev+9.5%B
D/E0.53B+
P/E17.1xA-
PEG1.17B+
71.2Score
$88.75$15.4B
1Y Target$102.64Analyst consensus · 16 analysts
5Y Target$150.27Compound horizon
10Y Target$222.92Long-dated conviction
FCF$859mTTMC+
FCF $859m — respectable but not differentiating
Rev+9.5%TTM YoYB
Revenue +9.5% — at or above S&P median
D/E0.53B+
D/E 0.53 — below the Industrials debt median (≈40th pctile)
P/E17.1xA-
P/E 17.1 — cheaper than most Industrials peers (≈25th pctile)
PEG1.17B+
PEG 1.17 — near fair value, classic Lynch benchmark (1.0)
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 71.2
Quality0.66
Growth0.76
Value0.72
Why this score
Buying back stock
Short track record
Entry · Margin of safety
52-week rangeMid-range
13% off the 12-month high
vs DCF fair value7% belowest. fair value ~$96
What the price assumes: free cash flow compounding at ~6% a year for the next decade — vs the ~12% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability25% · Bgross profit ÷ total assets (Novy-Marx)
Why now
Textron’s defense‑heavy Bell segment is riding a wave of renewed military helicopter and tilt‑rotor procurement, driving a 9.5% revenue growth YoY while the company still generates $859 M of free cash flow on a modest PE of 16.9x—a rare growth‑value blend. The defense backlog compounds earnings each year, so the upside rests on sustaining that contract pipeline.
Moat
Bell’s certified military helicopter platforms lock in long‑term service and spare‑parts contracts, creating high switching costs for armed‑forces customers; meanwhile Textron Aviation’s aftermarket support and training devices lock in recurring revenue, underpinning an ROE of 11.7% that stems from pricing power in niche aerospace markets.
Risk
A sudden dip in defense spending or a shift to competing rotorcraft could crush the backlog, and the stock’s beta of 0.91 plus a thin profit margin of 6.1% leaves little cushion; a slowdown to sub‑5% revenue growth or margin erosion below 5% would trigger a sell‑off and invalidate the bull case.
Horizon
1-3 yr $102.64 (16-analyst consensus) — fundamentals + valuation re-rating. 5 yr $150.27 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $222.92 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Score history · TXT
Trend
+1.7 over 20 daily scores
From 69.5 (Jun 22) → 71.2 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Position sizing · TXT
$
%
%
Shares to buy
22
Position size
$1,953
3.9% of portfolio
Stop price
$66.56
25% below $88.75
$ at risk if stopped
$488.13
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Textron Inc. (TXT): score, valuation & FAQ
Textron Inc. (TXT) is a Aerospace & Defense company that scores 71.2 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are P/E (A-), D/E (B+) and PEG (B+). On valuation, TXT sits about 7% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 6% annual free-cash-flow growth over the next decade.
Is TXT a good stock to buy?
Bull Rankings scores TXT 71.2 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by P/E (A-), D/E (B+) and PEG (B+). A score is a quantitative screen of Textron Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does TXT score 71.2 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). TXT earns its highest marks on P/E (A-), D/E (B+) and PEG (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is TXT overvalued or undervalued?
Based on $88.75, TXT sits about 7% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 6% annual free-cash-flow growth over the next decade. It trades at a 17.1x× P/E (graded A-). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in TXT?
A sudden dip in defense spending or a shift to competing rotorcraft could crush the backlog, and the stock’s beta of 0.91 plus a thin profit margin of 6.1% leaves little cushion; a slowdown to sub‑5% revenue growth or margin erosion below 5% would trigger a sell‑off and invalidate the bull case.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.