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:
We started the process of determining a valid price forecast for Textron Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Textron Inc ranked in the 32th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 24.5%. 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 5.6 years comes in at -0.11%; that's greater than just 16.54% of US stocks we're applying DCF forecasting to.
As a business, TXT is generating more cash flow than 83.09% 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 only 9.67% 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 FAST, CODA, EMR, ENS, and TISI.