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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Textron Inc. To summarize, we found that Textron Inc ranked in the 33th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 48.5%. In terms of the factors that were most noteworthy in this DCF analysis for TXT, they are:
The company's compound free cash flow growth rate over the past 5.68 years comes in at -0.02%; that's greater than only 21.4% of US stocks we're applying DCF forecasting to.
Textron Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than just 11.72% of tickers in our DCF set.
As a business, Textron Inc experienced a tax rate of about 1% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than merely 21.42% of stocks generating free cash flow.
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 ADT, REVG, CMI, DCI, and NAT.
PROVIDENCE, R.I.--(BUSINESS WIRE)--Textron Inc. (NYSE:TXT) will release its third quarter 2020 financial results on Thursday morning, October 29, 2020. Textron will also host a conference call at 8:00 a.m. (Eastern) to discuss the results and the company’s outlook. The call will be available via webcast at www.textron.com or by direct dial at (844) 721-7241 in the U.S. or (409) 207-6955 outside of the U.S.; Access Code: 4252363. In addition, the call will be recorded and available for playback
DUBLIN--(BUSINESS WIRE)--The "Freighter Aircraft Market - Growth, Trends, and Forecasts (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering. The freighter aircraft market is projected to grow with a CAGR of more than 4.5% during the forecast period. Companies Mentioned The Boeing Company Airbus SE Textron Inc. Aviation Industry Corporation of China ATR KF Aerospace Singapore Technologies Engineering Ltd Aeronautical Engineers, Inc. Precision Aircraft Solution Israel Aerosp
Investment Thesis Textron (TXT) management has aggressively pursued a policy of share repurchases. Share repurchases only benefit shareholders if the reduction in share count causes the share price to rise. This has not been the case for Textron's shareholders. Since January 1, 2017, Textron's management has aggressively repurchased shares, expending...
Robert Honeywill on Seeking Alpha | August 11, 2020