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Is this Large Market Cap Stock target price reasonable for Textron Inc. (NYSE:TXT)?

The company in question is, Textron Inc. (NYSE:TXT) currently with a stock price of 37.77 (-0.47% today). The market cap for Textron Inc. is 10226.23, and is in the sector Industrial Goods, and Aerospace/Defense – Major Diversified industry. The target price for Textron Inc. is 45.5. Currently Textron Inc. is trading with a P/E of 14.22, and a forward P/E of 12.89. Average volume for Textron Inc. is 1125.42 and so far today it is 1301300.

Performance in the last year for Textron Inc. has been -5.02%. For EPS growth, Textron Inc. has seen a growth of 16.60%, and is looking to grow in the next year to 3.17%. More long term stats show that EPS growth has been 52.50% over the last five years and could be 6.98% for the next five years. Textron Inc. has seen sales growth quarter over quarter at 8.10%, with EPS growth quarter over quarter at 8.70%. The 20-day simple moving average is -5.06%, with the 200-day simple moving average coming to 0.40%.

Since the IPO date for Textron Inc. on the 10/24/1984, Textron Inc. has seen performance year to date to be -9.95%. With Textron Inc. trading at 37.77, the dividend yield is 0.21%, and the EPS is 2.66.

So could Textron Inc., be undervalued? Well as said before P/E is 14.22. The PEG is 2.04, P/S is 0.74 and the P/B is at 1.97. The P/cash is 15.47, with P/free cash flow at 26.84.

Textron Inc. ability to deal with debt shows that the current ratio is 2.1, and the quick ratio is 0.9. This is with long term debt/equity at 0.7, and total debt/equity at 0.75.

In terms of margins, Textron Inc. has a gross margin of 17.80%, an operating margin of 8.60% and a profit margin of 5.30%.Payout ratio for Textron Inc. is 3.00%. Return on assets come to 4.90% with return on investment coming to 10.10%.

Insider ownership for Textron Inc., is at 0.20% and institutional ownership comes to 80.90%. Outstanding shares are at 270.75. While shares float is 268.74. The float short is currently 1.05%, and short ratio is 2.5.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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