Textron engages in the purchase, ownership, management, leasing, and disposal of a fleet of intermodal containers worldwide. It operates through three segments: Container Ownership, Container Management, and Container Resale. The company was founded in 1979 and is based in Hamilton, Bermuda.
TXT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for TXT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Textron Inc ranked in the 20th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Textron Inc, consider:
The company's compound free cash flow growth rate over the past 5.78 years comes in at -0.16%; that's greater than just 12.83% of US stocks we're applying DCF forecasting to.
As a business, TXT is generating more cash flow than 75.52% of positive cash flow stocks in the Industrials.
Textron Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than merely 6.38% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as TXT, try MIC, NSSC, UPS, WLFC, and ENR.
In the current market session, Textron Inc. (NYSE: TXT) is trading at $33.22, after a 0.94% spike. However, over the past month, the stock decreased by 4.38%, and in the past year, by 37.50%. Shareholders might be interested in knowing whether the stock is undervalued, even if the company is performing up to par in the current session.The stock is currently higher from its 52 week low by 63.97%. Assuming that all other factors are held constant, this could present itself as an opportunity for investors trying to diversify their portfolio with Aerospace & Defense stocks, and capitalize on the lower share price observed over the year.The P/E ratio measures the current share price to the company's EPS. It is used by long-term investors to analyze the company's current performance a...
Textron (TXT) unveils a restructuring plan that will eliminate as many as 1,950 positions, or 6% of the company's total headcount.The company says the plan primarily affects the TRU Simulation + Training business within the Textron Systems segment, which has seen substantial decline in demand and order cancellations for flight...
The company also said it expects to see lower sales volumes for its Cessna business jets and airport ground support equipment over the next few months. "There has been a substantial decline in demand and order cancellations for flight simulators in light of the expected long-term impact of the pandemic on the commercial air transportation business," the company said in a filing. Textron also said it would record pre-tax charges of $110 million to $130 million in the second quarter related to the restructuring.