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Textron Inc. (NYSE: TXT) – Is this large market cap stock undervalued?

Textron Inc. (NYSE: TXT), is firmly in the large market cap category with market cap of 10611.54. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Textron Inc. is 39.34 (with a change from open of 0.43%), this in conjunction with a target price of 45.6. Volume today has so far reached 159945, with an average volume of about 1407.88. The GAP for this stock, is 0.67%.

The P/E ratio is 14.65, bringing the forward P/E to a value of 13.19. The current EPS for Textron Inc., is 2.66, with a EPS growth for this year coming to a value of 16.60%. Performance has been interesting with performance year to date coming to -7.23%.

Looking further into the growth statistics for Textron Inc., EPS is looking like it will grow 8.54% in the next year. Looking even further it is projected to be 9.04%. Quarter over quarter is 8.70% for EPS growth and for sales growth quarter over quarter it is 8.10%. Looking at past EPS growth statistics we see that for the past five years it has been 52.50%. Sales growth for the past five years has in fact been 5.00%.

Looking at the ownership, we see that the insider ownership is at 0.20% and institutional ownership is 81.00%. Shares outstanding is 272.72, while shares float is at a value of 269.16. Float short for Textron Inc. is 1.01% and the short ratio is 1.93.

In terms of debt, long term debt/equity is 0.7, while the total debt/equity comes to 0.75. The ability to meet these debts, means that the current ratio is 2.1, and the quick ratio is 0.9. The most recent gross margin is 17.80% and their operating margin is 8.60%. The profit margin is 5.30%.

Textron Inc. has seen returns on assets of 4.90%, and on investment, 10.10%. Return on equity is 14.70%. Price/Earnings to growth ratio is 1.62. Price/Sales ratio is at a value of 0.77, with Price/book ratio coming to 2.02 and Price/cash is 16.05, and finally Price/Free cash Flow is 27.85.

The simple moving averages are -0.73% and 3.91% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -10.26% and the 52 week low is 28.39%.

Textron Inc. has a dividend yield of 0.21%, with a current price of 39.34. The ability to pay this means the payout ratio is 3.00%. This is in an industry, Aerospace/Defense – Major Diversified, with equally high dividends from other companies in this sector, which it is Industrial Goods. Textron Inc. is based in USA.

Performance in the Aerospace/Defense – Major Diversified industry means that Textron Inc. has seen performance for the past week of -2.31%, with performance for the month coming to -3.66%. Looking at the data for the quarter it is at a value of 1.80%, and for the half year the performance is -4.13%. Volatility for this week is 2.00% and for the month this is 1.37%.

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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Peter Clarke

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