Textron Inc. (TXT) Financial Ratios
30 years of historical data (1996–2025) · Industrials · Aerospace & Defense
EV/EBITDA
↓
10.81
↓-18% vs avg
5yr avg: 13.16
30Y Low6.4·High16.7
P/FCF
↓
17.62
↓-15% vs avg
5yr avg: 20.62
30Y Low5.4·High37.1
P/B Ratio
↓
2.05
-6% vs avg
5yr avg: 2.19
30Y Low1.5·High5.2
ROE
↑
12.2%
↓+0% vs avg
5yr avg: 12.2%
30Y Low-3%·High53%
Debt/EBITDA
↓
2.60
↓-14% vs avg
5yr avg: 3.02
30Y Low2.3·High11.1
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
TXT Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Textron Inc. trades at 17.5x earnings, 6% below its 5-year average of 18.7x, sitting at the 25th percentile of its historical range. Compared to the Industrials sector median P/E of 25.6x, the stock trades at a discount of 32%. On a free-cash-flow basis, the stock trades at 17.6x P/FCF, 15% below the 5-year average of 20.6x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $15.6B | $15.7B | $14.7B | $16.2B | $15.2B | $16.7B | $10.9B | $10.2B | $11.6B | $15.2B | $13.2B |
| Enterprise Value | $17.8B | $17.9B | $17.2B | $18.3B | $17.1B | $18.8B | $13.4B | $12.9B | $14.3B | $17.9B | $15.6B |
| P/E Ratio → | 17.51 | 17.04 | 17.83 | 17.64 | 17.66 | 23.39 | 35.80 | 12.74 | 9.52 | 49.64 | 13.76 |
| P/S Ratio | 1.05 | 1.06 | 1.07 | 1.19 | 1.18 | 1.35 | 0.94 | 0.75 | 0.83 | 1.07 | 0.96 |
| P/B Ratio | 2.05 | 1.99 | 2.04 | 2.32 | 2.14 | 2.46 | 1.87 | 1.84 | 2.24 | 2.69 | 2.37 |
| P/FCF | 17.62 | 17.75 | 17.01 | 18.78 | 12.44 | 37.13 | 16.21 | 13.78 | 22.70 | 26.87 | 19.74 |
| P/OCF | 12.28 | 12.37 | 11.61 | 12.82 | 9.52 | 21.80 | 10.79 | 9.19 | 12.44 | 15.03 | 12.13 |
P/E links to full P/E history page with 30-year chart
TXT EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Textron Inc.'s enterprise value stands at 10.8x EBITDA, 18% below its 5-year average of 13.2x. The Industrials sector median is 13.8x, placing the stock at a 22% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.21 | 1.26 | 1.34 | 1.33 | 1.52 | 1.15 | 0.95 | 1.03 | 1.26 | 1.13 |
| EV / EBITDA | 10.81 | 10.88 | 13.91 | 12.64 | 13.38 | 14.97 | 15.98 | 8.67 | 9.30 | 12.03 | 9.86 |
| EV / EBIT | 14.28 | 14.42 | 16.55 | 15.72 | 15.25 | 18.50 | 29.93 | 11.59 | 9.24 | 19.08 | 14.86 |
| EV / FCF | — | 20.30 | 19.92 | 21.18 | 14.00 | 41.63 | 19.87 | 17.48 | 27.92 | 31.55 | 23.30 |
TXT Profitability
Margins and return-on-capital ratios measuring operating efficiency
Textron Inc. earns an operating margin of 8.4%, above the Industrials sector average of 4.3%. ROE of 12.2% is modest. ROIC of 9.4% represents adequate returns on invested capital versus a sector median of 6.1%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 16.9% | 16.9% | 18.3% | 20.8% | 20.7% | 16.8% | 13.4% | 16.3% | 17.0% | 16.7% | 17.8% |
| Operating Margin | 8.4% | 8.4% | 6.2% | 7.7% | 6.9% | 7.0% | — | 7.9% | 7.9% | 7.3% | 8.2% |
| Net Profit Margin | 6.2% | 6.2% | 6.0% | 6.7% | 6.7% | 6.0% | 2.7% | 6.0% | 8.7% | 2.2% | 7.0% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 12.2% | 12.2% | 11.6% | 13.1% | 12.4% | 11.8% | 5.4% | 15.2% | 22.5% | 5.5% | 18.3% |
| ROA | 5.3% | 5.3% | 4.9% | 5.6% | 5.4% | 4.8% | 2.0% | 5.6% | 8.3% | 2.0% | 6.4% |
| ROIC | 9.4% | 9.4% | 6.8% | 8.7% | 7.4% | 7.6% | — | 10.0% | 10.2% | 9.6% | 11.0% |
| ROCE | 9.5% | 9.5% | 6.9% | 8.4% | 7.0% | 7.0% | — | 9.9% | 9.8% | 9.0% | 10.1% |
TXT Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Textron Inc. carries a Debt/EBITDA ratio of 2.6x, which is moderately leveraged (20% below the sector average of 3.2x). Net debt stands at $2.3B ($4.3B total debt minus $2.0B cash). Interest coverage of 12.8x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.54 | 0.54 | 0.55 | 0.61 | 0.55 | 0.61 | 0.81 | 0.74 | 0.73 | 0.69 | 0.66 |
| Debt / EBITDA | 2.60 | 2.60 | 3.20 | 2.94 | 3.08 | 3.31 | 5.63 | 2.75 | 2.46 | 2.64 | 2.32 |
| Net Debt / Equity | — | 0.29 | 0.35 | 0.30 | 0.27 | 0.30 | 0.42 | 0.50 | 0.52 | 0.47 | 0.43 |
| Net Debt / EBITDA | 1.37 | 1.37 | 2.04 | 1.43 | 1.49 | 1.62 | 2.94 | 1.84 | 1.74 | 1.79 | 1.50 |
| Debt / FCF | — | 2.55 | 2.91 | 2.40 | 1.56 | 4.50 | 3.66 | 3.70 | 5.22 | 4.68 | 3.56 |
| Interest Coverage | 12.84 | 12.84 | 10.72 | 15.12 | 10.50 | 7.15 | 2.70 | 6.51 | 9.34 | 5.38 | 6.03 |
TXT Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.84x means Textron Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 0.85x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 1.79x to 1.84x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.84 | 1.84 | 1.63 | 1.79 | 2.04 | 2.37 | 2.27 | 1.80 | 1.92 | 1.97 | 1.85 |
| Quick Ratio | 0.85 | 0.85 | 0.70 | 0.89 | 1.07 | 1.27 | 1.21 | 0.79 | 0.83 | 0.84 | 0.71 |
| Cash Ratio | 0.47 | 0.47 | 0.33 | 0.50 | 0.55 | 0.68 | 0.68 | 0.34 | 0.32 | 0.34 | 0.33 |
| Asset Turnover | — | 0.82 | 0.81 | 0.81 | 0.79 | 0.78 | 0.76 | 0.91 | 0.98 | 0.93 | 0.90 |
| Inventory Turnover | 2.87 | 2.87 | 2.75 | 2.77 | 2.87 | 2.97 | 2.87 | 2.80 | 3.04 | 2.85 | 2.54 |
| Days Sales Outstanding | — | 20.30 | 25.28 | 23.15 | 24.25 | 24.70 | 24.66 | 24.66 | 26.75 | 35.04 | 28.17 |
TXT Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Textron Inc. returns 7.0% to shareholders annually — split between a 0.1% dividend yield and 6.9% buyback yield. The payout ratio of 2.1% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 5.7% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.2% | 0.2% | 0.2% | 0.1% | 0.2% |
| Payout Ratio | 2.1% | 2.1% | 1.9% | 1.7% | 2.1% | 2.4% | 5.8% | 2.5% | 1.7% | 7.2% | 2.3% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.7% | 5.9% | 5.6% | 5.7% | 5.7% | 4.3% | 2.8% | 7.8% | 10.5% | 2.0% | 7.3% |
| FCF Yield | 5.7% | 5.6% | 5.9% | 5.3% | 8.0% | 2.7% | 6.2% | 7.3% | 4.4% | 3.7% | 5.1% |
| Buyback Yield | 6.9% | 6.9% | 7.9% | 7.2% | 6.1% | 1.1% | 4.6% | 17.5% | 5.0% | 1.6% | 1.7% |
| Total Shareholder Yield | 7.0% | 7.0% | 8.1% | 7.3% | 6.2% | 1.2% | 4.8% | 17.7% | 5.2% | 1.7% | 1.8% |
| Shares Outstanding | — | $180M | $190M | $202M | $215M | $217M | $226M | $228M | $253M | $269M | $272M |
Peer Comparison
Compare TXT with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 TXTYou | $16B | 17.5 | 10.8 | 17.6 | 16.9% | 8.4% | 12.2% | 9.4% | 2.6 |
 GD | $95B | 22.6 | 16.9 | 23.9 | 15.1% | 10.2% | 17.7% | 12.5% | 1.6 |
 LHX | $55B | 34.6 | 18.8 | 20.5 | 25.7% | 10.0% | 8.2% | 5.4% | 3.1 |
 HII | $11B | 18.5 | 14.5 | 14.2 | 12.7% | 4.9% | 12.4% | 6.2% | 3.4 |
 NOC | $74B | 17.9 | 15.5 | 22.4 | 19.8% | 10.2% | 26.2% | 10.2% | 3.4 |
 LMT | $118B | 23.8 | 16.0 | 17.0 | 10.2% | 10.3% | 76.9% | 23.9% | 2.6 |
 BA | $176B | 89.8 | — | — | 4.8% | -6.1% | 289.7% | -9.5% | — |
 RTX | $250B | 37.4 | 21.9 | 31.5 | 20.1% | 10.0% | 10.4% | 6.7% | 3.1 |
 HEI | $47B | 68.8 | 40.3 | 54.5 | 39.8% | 22.7% | 17.1% | 12.6% | 1.8 |
 TDG | $75B | 41.4 | 22.6 | 41.3 | 60.1% | 47.2% | — | 20.9% | 6.6 |
 KTOS | $10B | 417.0 | 112.5 | — | 22.1% | 2.1% | 1.3% | 1.4% | 2.1 |
| Industrials Median | — | 25.6 | 13.8 | 20.0 | 32.0% | 4.3% | 8.2% | 6.1% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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TXT — Frequently Asked Questions
Quick answers to the most common questions about buying TXT stock.
What is Textron Inc.'s P/E ratio?
Textron Inc.'s current P/E ratio is 17.5x. The historical average is 25.5x. This places it at the 25th percentile of its historical range.
What is Textron Inc.'s EV/EBITDA?
Textron Inc.'s current EV/EBITDA is 10.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.2x.
What is Textron Inc.'s ROE?
Textron Inc.'s return on equity (ROE) is 12.2%. The historical average is 13.0%.
Is TXT stock overvalued?
Based on historical data, Textron Inc. is trading at a P/E of 17.5x. This is at the 25th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Textron Inc.'s dividend yield?
Textron Inc.'s current dividend yield is 0.12% with a payout ratio of 2.1%.
What are Textron Inc.'s profit margins?
Textron Inc. has 16.9% gross margin and 8.4% operating margin.
How much debt does Textron Inc. have?
Textron Inc.'s Debt/EBITDA ratio is 2.6x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.