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Textron Inc (TXT) is a leading aerospace & defense business with stocks listed in the US. It opened the day at US$68.59 after a previous close of US$68.22. During the day the price has varied from a low of USD67.46 to a high of USD68.88. The latest price was USD68.38 (25 minute delay). Textron is listed on the NYSE. All prices are listed in US Dollars.
How to buy shares in Textron
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Textron. Find the share by name or ticker symbol: TXT. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Textron reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$69.1, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Textron, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Textron. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- Textron key stats
- Compare share trading platforms
- Is Textron stock a buy or sell?
- Textron performance over time
- Can I short Textron shares?
- Is Textron suitable for ethical investing?
- Are Textron shares over-valued?
- Textron's financials
- How volatile are Textron shares?
- Does Textron pay a dividend?
- Have Textron shares ever split?
- Other common questions
Textron share priceUse our graph to track the performance of TXT stocks over time.
Textron shares at a glance
|52-week range||US$30.0156 - US$70.68|
|50-day moving average||US$66.1246|
|200-day moving average||US$54.6869|
|Dividend yield||US$0.08 (0.12%)|
|Earnings per share (TTM)||US$1.879|
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Is it a good time to buy Textron stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Textron price performance over time
|1 week (2021-06-03)||-0.01%|
|1 month (2021-05-13)||2.50%|
|3 months (2021-03-12)||24.19%|
|6 months (2020-12-11)||43.56%|
|1 year (2020-06-12)||100.23%|
|2 years (2019-06-13)||37.50%|
|3 years (2018-06-13)||0.84%|
|5 years (2016-06-13)||79.95%|
Is Textron under- or over-valued?
Valuing Textron stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Textron's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Textron's P/E ratio
Textron's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 36x. In other words, Textron shares trade at around 36x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Textron's PEG ratio
Textron's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.6879. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Textron's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Textron's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$1.1 billion.
The EBITDA is a measure of a Textron's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||US$11.8 billion|
|Operating margin TTM||5.98%|
|Gross profit TTM||US$1.6 billion|
|Return on assets TTM||2.8%|
|Return on equity TTM||7.46%|
|Market capitalisation||US$15.4 billion|
TTM: trailing 12 months
Shorting Textron shares
There are currently 4.1 million Textron shares held short by investors – that's known as Textron's "short interest". This figure is 1.1% up from 4.0 million last month.
There are a few different ways that this level of interest in shorting Textron shares can be evaluated.
Textron's "short interest ratio" (SIR)
Textron's "short interest ratio" (SIR) is the quantity of Textron shares currently shorted divided by the average quantity of Textron shares traded daily (recently around 1.3 million). Textron's SIR currently stands at 3.08. In other words for every 100,000 Textron shares traded daily on the market, roughly 3080 shares are currently held short.
However Textron's short interest can also be evaluated against the total number of Textron shares, or, against the total number of tradable Textron shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Textron's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 Textron shares in existence, roughly 20 shares are currently held short) or 0.0245% of the tradable shares (for every 100,000 tradable Textron shares, roughly 25 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Textron.
Find out more about how you can short Textron stock.
Textron's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Textron.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Textron's total ESG risk score
Total ESG risk: 37.31
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Textron's overall score of 37.31 (as at 12/31/2018) is pretty weak – landing it in it in the 79th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Textron is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Textron's environmental score
Environmental score: 6.49/100
Textron's social score
Social score: 15.19/100
Textron's governance score
Governance score: 6.12/100
Textron's controversy score
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Textron scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Textron has, for the most part, managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
|Total ESG score||37.31|
|Total ESG percentile||78.8|
|Level of controversy||2|
Textron share dividends
Dividend payout ratio: 2.68% of net profits
Recently Textron has paid out, on average, around 2.68% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.12% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Textron shareholders could enjoy a 0.12% return on their shares, in the form of dividend payments. In Textron's case, that would currently equate to about $0.08 per share.
While Textron's payout ratio might seem low, this can signify that Textron is investing more in its future growth.
Textron's most recent dividend payout was on 30 June 2021. The latest dividend was paid out to all shareholders who bought their shares by 9 June 2021 (the "ex-dividend date").
Have Textron's shares ever split?
Textron's shares were split on a 2:1 basis on 26 August 2007. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Textron shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Textron shares which in turn could have impacted Textron's share price.
Textron share price volatility
Over the last 12 months, Textron's shares have ranged in value from as little as US$30.0156 up to US$70.68. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Textron's is 1.7984. This would suggest that Textron's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide. The company's Textron Aviation segment manufactures, sells, and services business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft; and commercial parts, as well as offers maintenance, inspection, and repair services. Its Bell segment supplies military and commercial helicopters, tiltrotor aircraft, and related spare parts and services. The company's Textron Systems segment offers unmanned aircraft systems, unmanned surface systems, mission command hardware and solutions, and customer support and logistics services; simulation, training, and other defense and aviation mission support products and services; airborne and ground-based sensors and surveillance systems, and protection systems; precision guided weapons systems; marine craft, armored vehicles, and specialty vehicles used for fire and rescue applications; test equipment, electronic warfare test, and training and intelligence software solutions; and piston aircraft engines, as well as designs, develops, manufactures, installs, and maintains full flight simulators. Its Industrial segment offers blow-molded plastic fuel systems, including conventional plastic fuel tanks and pressurized fuel tanks for hybrid vehicle applications, clear-vision systems, and plastic tanks for catalytic reduction systems primarily to automobile OEMs; and golf cars, off-road utility vehicles, recreational side-by-side and all-terrain vehicles, snowmobiles, light transportation vehicles, aviation ground support equipment, professional turf-maintenance equipment, and turf-care vehicles to golf courses and resorts, government agencies and municipalities, consumers, outdoor enthusiasts, and commercial and industrial users. The company's Finance segment provides financing to purchase new and pre-owned aircraft and helicopters. Textron Inc. was founded in 1923 and is headquartered in Providence, Rhode Island.
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