Latest Ratios: P/E Ratio 18.4x · EV/EBITDA 11.3x · ROE 12.2%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $16.3B | $15.7B | $14.7B | $16.2B | $15.2B | $16.7B | $10.9B | $10.2B | $11.6B | $15.2B | $13.2B |
| Enterprise Value | $18.6B | $17.9B | $17.2B | $18.3B | $17.1B | $18.8B | $13.4B | $12.9B | $14.3B | $17.9B | $15.6B |
| P/E Ratio → | 18.36 | 17.04 | 17.83 | 17.64 | 17.66 | 23.39 | 35.80 | 12.74 | 9.52 | 49.64 | 13.76 |
| P/S Ratio | 1.10 | 1.06 | 1.07 | 1.19 | 1.18 | 1.35 | 0.94 | 0.75 | 0.83 | 1.07 | 0.96 |
| P/B Ratio | 2.15 | 1.99 | 2.04 | 2.32 | 2.14 | 2.46 | 1.87 | 1.84 | 2.24 | 2.69 | 2.37 |
| P/FCF | 18.48 | 17.75 | 17.01 | 18.78 | 12.44 | 37.13 | 16.21 | 13.78 | 22.70 | 26.87 | 19.74 |
| P/OCF | 12.88 | 12.37 | 11.61 | 12.82 | 9.52 | 21.80 | 10.79 | 9.19 | 12.44 | 15.03 | 12.13 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.21 | 1.26 | 1.34 | 1.33 | 1.52 | 1.15 | 0.95 | 1.03 | 1.26 | 1.13 |
| EV / EBITDA | 11.27 | 10.88 | 13.91 | 12.64 | 13.38 | 14.97 | 15.98 | 8.67 | 9.30 | 12.03 | 9.86 |
| EV / EBIT | 14.89 | 14.42 | 16.55 | 15.72 | 15.25 | 18.50 | 29.93 | 11.59 | 9.24 | 19.08 | 14.86 |
| EV / FCF | — | 20.30 | 19.92 | 21.18 | 14.00 | 41.63 | 19.87 | 17.48 | 27.92 | 31.55 | 23.30 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 16.9% | 16.9% | 18.3% | 20.8% | 20.7% | 16.8% | 13.4% | 16.3% | 17.0% | 16.7% | 17.8% |
| Operating Margin | 8.4% | 8.4% | 6.2% | 7.7% | 6.9% | 7.0% | — | 7.9% | 7.9% | 7.3% | 8.2% |
| Net Profit Margin | 6.2% | 6.2% | 6.0% | 6.7% | 6.7% | 6.0% | 2.7% | 6.0% | 8.7% | 2.2% | 7.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 12.2% | 12.2% | 11.6% | 13.1% | 12.4% | 11.8% | 5.4% | 15.2% | 22.5% | 5.5% | 18.3% |
| ROA | 5.3% | 5.3% | 4.9% | 5.6% | 5.4% | 4.8% | 2.0% | 5.6% | 8.3% | 2.0% | 6.4% |
| ROIC | 9.4% | 9.4% | 6.8% | 8.7% | 7.4% | 7.6% | — | 10.0% | 10.2% | 9.6% | 11.0% |
| ROCE | 9.5% | 9.5% | 6.9% | 8.4% | 7.0% | 7.0% | — | 9.9% | 9.8% | 9.0% | 10.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.54 | 0.54 | 0.55 | 0.61 | 0.55 | 0.61 | 0.81 | 0.74 | 0.73 | 0.69 | 0.66 |
| Debt / EBITDA | 2.60 | 2.60 | 3.20 | 2.94 | 3.08 | 3.31 | 5.63 | 2.75 | 2.46 | 2.64 | 2.32 |
| Net Debt / Equity | — | 0.29 | 0.35 | 0.30 | 0.27 | 0.30 | 0.42 | 0.50 | 0.52 | 0.47 | 0.43 |
| Net Debt / EBITDA | 1.37 | 1.37 | 2.04 | 1.43 | 1.49 | 1.62 | 2.94 | 1.84 | 1.74 | 1.79 | 1.50 |
| Debt / FCF | — | 2.55 | 2.91 | 2.40 | 1.56 | 4.50 | 3.66 | 3.70 | 5.22 | 4.68 | 3.56 |
| Interest Coverage | 12.84 | 12.84 | 10.72 | 15.12 | 10.50 | 7.15 | 2.70 | 6.51 | 9.34 | 5.38 | 6.03 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.84 | 1.84 | 1.63 | 1.79 | 2.04 | 2.37 | 2.27 | 1.80 | 1.92 | 1.97 | 1.85 |
| Quick Ratio | 0.85 | 0.85 | 0.70 | 0.89 | 1.07 | 1.27 | 1.21 | 0.79 | 0.83 | 0.84 | 0.71 |
| Cash Ratio | 0.47 | 0.47 | 0.33 | 0.50 | 0.55 | 0.68 | 0.68 | 0.34 | 0.32 | 0.34 | 0.33 |
| Asset Turnover | — | 0.82 | 0.81 | 0.81 | 0.79 | 0.78 | 0.76 | 0.91 | 0.98 | 0.93 | 0.90 |
| Inventory Turnover | 2.87 | 2.87 | 2.75 | 2.77 | 2.87 | 2.97 | 2.87 | 2.80 | 3.04 | 2.85 | 2.54 |
| Days Sales Outstanding | — | 20.30 | 25.28 | 23.15 | 24.25 | 24.70 | 24.66 | 24.66 | 26.75 | 35.04 | 28.17 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.2% | 0.2% | 0.2% | 0.1% | 0.2% |
| Payout Ratio | 2.1% | 2.1% | 1.9% | 1.7% | 2.1% | 2.4% | 5.8% | 2.5% | 1.7% | 7.2% | 2.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.4% | 5.9% | 5.6% | 5.7% | 5.7% | 4.3% | 2.8% | 7.8% | 10.5% | 2.0% | 7.3% |
| FCF Yield | 5.4% | 5.6% | 5.9% | 5.3% | 8.0% | 2.7% | 6.2% | 7.3% | 4.4% | 3.7% | 5.1% |
| Buyback Yield | 6.6% | 6.9% | 7.9% | 7.2% | 6.1% | 1.1% | 4.6% | 17.5% | 5.0% | 1.6% | 1.7% |
| Total Shareholder Yield | 6.7% | 7.0% | 8.1% | 7.3% | 6.2% | 1.2% | 4.8% | 17.7% | 5.2% | 1.7% | 1.8% |
| Shares Outstanding | — | $180M | $190M | $202M | $215M | $217M | $226M | $228M | $253M | $269M | $272M |
Defense program execution volatility
Based on current market data, Textron trades at a forward P/E of 14.00, which appears to reflect a conglomerate discount when compared to pure-play aerospace peers like General Dynamics, suggesting the market may be underpricing the long-term potential of the Bell segment's tiltrotor technology.
The valuation gap relative to defense-heavy peers suggests that investors are applying a cyclical discount due to the company's exposure to general aviation and industrial markets. This pricing may overlook the potential for a valuation re-rating as the FLRAA program transitions into a more predictable, high-margin production phase.
As reported in financial statements, Textron's ROIC has struggled to gain momentum, hovering between 1.1% and 3.7% over the last ten quarters, which indicates that the company is currently failing to generate returns that meaningfully exceed its cost of capital in a consistent manner.
The persistent low ROIC suggests that the capital-intensive nature of aerospace manufacturing, combined with the lower-margin industrial segment, creates a structural drag on efficiency. Investors should monitor whether future defense program milestones can drive the margin expansion necessary to improve these returns toward peer-level performance.
According to recent SEC filings, Textron's cash conversion cycle has remained elevated, peaking at 135 days in 2024Q1, which highlights significant inefficiencies in managing inventory and receivables compared to the leaner operational profiles observed in specialized aerospace manufacturing competitors.
The high days inventory outstanding (DIO) suggests that the company is carrying substantial capital in its supply chain, likely due to the long lead times required for aircraft production. This working capital intensity appears to be a primary factor in the volatility of the company's free cash flow generation.
The P/E ratio is frequently misapplied to Textron's business model because it fails to account for the significant non-cash charges and percentage-of-completion accounting nuances inherent in long-term defense contracts, which can artificially distort reported net income and obscure the company's true underlying cash-generating power.
Analysts should prioritize EV/EBITDA or free cash flow yield over P/E to better capture the operational reality of the business. Relying on P/E risks misinterpreting the impact of cyclical industrial earnings and accounting-driven fluctuations in defense revenue recognition on the company's actual economic performance.
Includes 30+ ratios · 30 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying TXT stock.
Textron Inc.'s current P/E ratio is 18.4x. The historical average is 25.5x. This places it at the 36th percentile of its historical range.
Textron Inc.'s current EV/EBITDA is 11.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.2x.
Textron Inc.'s return on equity (ROE) is 12.2%. The historical average is 13.0%.
Based on historical data, Textron Inc. is trading at a P/E of 18.4x. This is at the 36th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Textron Inc.'s current dividend yield is 0.11% with a payout ratio of 2.1%.
Textron Inc. has 16.9% gross margin and 8.4% operating margin.
Textron Inc.'s Debt/EBITDA ratio is 2.6x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.