Textron (TXT)
Forward P/E is 11.68x against a peer median of 20.94x, a ratio of 0.56x — well below the fair range — with trailing P/E 14.69x and PEG 1.10. Latest-quarter revenue grew 3.0% year over year (PRIMARY, EDGAR), well below the group pace, which is a caution. Value-trap check: revenue is growing, not shrinking, and the group median growth is positive, so the discount is not explained by falling sales. Delivered demand check: the aerospace & defense group's median growth was 11.0% year over year — demand rising.
What would change this label: Move to FAIRLY PRICED if the forward P/E rises to about 18.8x or above (0.90x the peer median) at unchanged estimates, or if revenue growth rises above 11% year over year for two quarters, which would close the growth gap behind the caution. Move further from fair value if the forward P/E falls below about 10.5x (0.50x the peer median) while revenue growth stays positive.
Textron makes business jets, helicopters and industrial vehicles, and its sales grew only 3.0% in the latest quarter, well behind similar companies. Its shares are priced at barely half the earnings multiple those peers charge, a much bigger gap than the slower growth explains. The shares look undervalued, with the slow growth as the main caution.
Both lines start at 100 on 2020-09-01. Over the full window Textron returned +98.43% and the S&P 500 +118.28% (price returns; dividends not reinvested). Worst peak-to-trough fall for Textron: -37.4% (2024-04-08 to 2025-04-04). Source: Nasdaq official daily history.
What the label rests on
Forward P/E is 11.68x against a peer median of 20.94x, a ratio of 0.56x — well below the fair range — with trailing P/E 14.69x and PEG 1.10. Latest-quarter revenue grew 3.0% year over year (PRIMARY, EDGAR), well below the group pace, which is a caution. Value-trap check: revenue is growing, not shrinking, and the group median growth is positive, so the discount is not explained by falling sales. Delivered demand check: the aerospace & defense group's median growth was 11.0% year over year — demand rising. The company’s forward P/E is 11.7× against a peer median of 20.9×. Its own history: UNVERIFIED — no sourced range available. Sector demand read: Delivered demand check: the aerospace & defense group's median latest-quarter revenue growth was 11.0% year over year (SEC filings) — demand rising. This company grew much more slowly than the group, at 3.0%. Latest-quarter sales growth was +3.0% versus a year earlier (SEC filings).
| Company | Price (Oct 28, 2026) | Forward P/E | Trailing P/E |
|---|---|---|---|
| Textron (TXT) | $77.87 | 11.7× | 14.7× |
| HII | — | 14.3× | 16.7× |
| AXON | — | 47.3× | 175.4× |
| LHX | — | 20.9× | 26.1× |
| HONA | — | 20.4× | 27.1× |
| TDG | — | 24.3× | 34.4× |
| Peer median | 20.9× |
Multiples: stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026. Peer set chosen by sector; the median is the middle value of the set. The label and its numbers were recorded in the programme’s label registry on Oct 28, 2026 and will be scored at 6 and 12 months.
Sales, profit and cash
This company does not report a gross-profit line in its SEC facts (normal for banks, payment networks and some health insurers), so profit is shown as net income instead — gross margin is marked UNVERIFIED-absent rather than estimated.
Free cash flow = cash from operations minus spending on plant and equipment, both from the company’s SEC cash-flow statement. Gaps are quarters where that spending line is not separately tagged in the filings — shown as gaps, never estimated.
| Quarter | Sales | Gross margin | Net income | EPS (GAAP, diluted) | Free cash flow |
|---|---|---|---|---|---|
| Q/E Jul 2026 2026-07-04 | $3.8B | — | $248M | 1.42 | $209M |
| Q/E Apr 2026 2026-04-04 | $3.7B | — | $220M | 1.25 | $-250M |
| Q/E Jan 2026 2026-01-03 | $4.2B | — | $235M | — | $527M |
| Q/E Sep 2025 2025-09-27 | $3.6B | — | $234M | — | $273M |
| Q/E Jun 2025 2025-06-28 | $3.7B | — | $245M | 1.35 | $309M |
| Q/E Mar 2025 2025-03-29 | $3.3B | — | $207M | 1.13 | $-180M |
| Q/E Dec 2024 2024-12-28 | $3.6B | — | $141M | — | $293M |
| Q/E Sep 2024 2024-09-28 | $3.4B | — | $223M | — | $137M |
| Q/E Jun 2024 2024-06-29 | $3.5B | — | $259M | — | $293M |
| Q/E Mar 2024 2024-03-30 | $3.1B | — | $201M | 1.03 | $-73M |
| Q/E Dec 2023 2023-12-30 | $3.9B | — | $198M | — | $371M |
| Q/E Sep 2023 2023-09-30 | $3.3B | — | $269M | — | $179M |
The last twelve reported quarters. Full 24-quarter history sits in the data pack behind this page. A dash means the figure is not tagged as a standalone quarter in the company’s SEC facts (the usual case is the fourth quarter, which many companies only report inside the full-year filing) — it is missing, not zero.
Earnings: getting better or worse?
Each box is one quarter’s earnings per share (EPS). Green means EPS was higher than the same quarter a year earlier; red means lower; a dash means the figure is not tagged in the filings.
Basis: GAAP diluted EPS from SEC company facts, compared with the same quarter a year earlier.
Key facts
| Item | Value |
|---|---|
| Company (legal name in filings) | TEXTRON INC |
| Chief executive | Lisa Atherton (source: https://investor.textron.com/news-releases/news-details/2025/Textron-Announces-Appointment-of-Lisa-Atherton-as-its-President-and-CEO-and-as-a-Member-of-the-Board-Effective-January-4-2026-Scott-Donnelly-Appointed-Executive-Chairman-of-the-Board/default.aspx) |
| Sector | Industrials — Aerospace & Defense — makes business jets, helicopters and industrial vehicles |
| Share price (Oct 28, 2026) | $77.87 |
| Market value (market cap) | $13.4B — share price times shares outstanding of 171,986,917 (SEC filings; SEC EDGAR dei EntityCommonStockSharesOutstanding (latest)) |
| Sales, last twelve months | $15.3B |
| Net income, last twelve months | $937M |
| Free cash flow, last twelve months | $759M |
| Latest reported quarter | Q/E Jul 2026 (of 24 quarters in the data pack) |
| Six-year price return vs S&P 500 | +98.43% vs +118.28% |
| Worst peak-to-trough fall | -37.4% (2024-04-08 to 2025-04-04) |
What we could not verify
- Gross profit / gross margin: not tagged as a standalone line in this company's EDGAR company facts (common for banks, payment networks and some healthcare payers) — shown as UNVERIFIED-absent; the page charts revenue and net income instead.
- TTM GAAP diluted EPS could not be summed from company facts because at least one of the last four quarters (typically Q4) has no standalone tagged EPS; trailing P/E is therefore taken from the labelled secondary source in valuation_label.md.
- Own-history P/E (5-year median): not computed in the Phase 1 batch — UNVERIFIED
- Guidance record (each quarter scored against the guidance the company gave the quarter before) is not yet compiled for this company — it is a Phase 2 layer. The earnings strip below therefore uses reported EPS versus a year earlier, which is fully sourced from filings.
The IT factor — the most exciting thing the market is overlooking — is not assessed on an X-Ray page. It belongs to the Deep Dive (Phase 2), where it gets the evidence standard it needs. Leadership-era scoring (the six years split by chief executive) is likewise a Phase 2 layer; this page names the current chief executive only, from a sourced profile.
Sources
- SEC EDGAR submissions — Filing index; company legal name.
https://data.sec.gov/submissions/CIK0000217346.json - SEC EDGAR company facts — Quarterly financial spine: revenue, gross profit, net income, GAAP diluted EPS, operating cash flow, PP&E capex, buybacks, dividends, diluted shares.
https://data.sec.gov/api/xbrl/companyfacts/CIK0000217346.json - Nasdaq official daily history — Daily closes for the company; SPY (assetclass=etf) saved as raw/nasdaq_spy_raw.json over identical dates.
https://api.nasdaq.com/api/quote/TXT/historical?assetclass=stocks - Valuation multiples and peer figures — stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026; see valuation_label.md in the data pack.
Conventions: earliest-filed value per period, as first reported; cash-flow years-to-date differenced quarter by quarter; EPS never differenced; free cash flow = operating cash flow minus plant-and-equipment spending. This page is a dated snapshot — updates are new versions, never silent edits.