TextronTXT +0.16%87 Interest Coverage is 6.79 as of Mar. 2026, which is 3% above its 10-year median of 6.58. GuruFocus rates TXT with a GF Score™ of 87/100 and a GF Value™ of $99.60 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 241 Aerospace & Defense companies, Textron ranks worse than 51.87% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Textron's
Operating Income
for the
three
months ended in Mar. 2026 was $231 Mil. Textron's Interest Expense for the
three
months ended in Mar. 2026 was $-34 Mil.
Textron's interest coverage for the quarter that ended in Mar. 2026 was 6.79.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Textron's Interest Coverage or its related term are showing as below:
TXT'
s Interest Coverage Range Over the Past 10 Years
Min: 3.08 Med: 6.58 Max: 13.68
Current: 7.85
TXT's Interest Coverage is ranked worse than 51.87% of 241
companies
in the Aerospace & Defense industry
Industry Median: 8.69
vs TXT: 7.85
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Textron Interest Coverage Related Terms
Textron Interest Coverage Historical Data
* Premium members only.
The historical data trend for Textron's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
TXT vs BWXT, PL, ARXS: Interest Coverage Comparison
For the Aerospace & Defense subindustry, Textron's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Textron Interest Coverage vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Textron's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Textron's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Textron (TXT) has a Interest Coverage of 6.79 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Textron and its competitors. This is near median its historical median of 6.58. Over the past decade, Textron's Interest Coverage has ranged from 3.08 to 13.68. According to the industry distribution chart, Textron ranks #125 out of 241 companies in the Aerospace & Defense industry, placing it in the top 51.9%.
Is Textron's Interest Coverage too high?
Textron's current Interest Coverage of 6.79 is near median its 10-year median of 6.58. Over the past 10 years, this metric has ranged from a low of 3.08 to a high of 13.68. The Aerospace & Defense industry median Interest Coverage is 8.69. Textron's value of 6.79 is 21.9% below this industry median. Based on the distribution chart, Textron ranks #125 out of 241 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Textron has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Textron's Interest Coverage compare to BWXT and PL?
According to the Aerospace & Defense industry distribution chart, Textron ranks #125 out of 241 companies for Interest Coverage. This places Textron in the lower half of its industry. The industry median Interest Coverage is 8.69. Textron's value of 6.79 is 21.9% below this benchmark. Historically, Textron's own Interest Coverage has ranged from 3.08 to 13.68 over the past decade. While the company's 10-year median is 6.58 vs. the industry median of 8.69, Textron has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Aerospace & Defense company?
The median Interest Coverage among Aerospace & Defense companies is 8.69, based on 241 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Textron's current Interest Coverage of 6.79 is 21.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Textron and its competitors. For the Aerospace & Defense industry, the median Interest Coverage is 8.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Textron's current Interest Coverage is 6.79, which is near median its own 10-year median of 6.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Textron stock overvalued right now?
Based on GuruFocus' analysis, Textron (TXT) is currently considered Modestly Undervalued. The stock's GF Value™ is $99.60, compared to a current price of $86.54 — trading 13.1% below its estimated fair value. The current Interest Coverage is 6.79, which is near median its 10-year median of 6.58 and 21.9% below the Aerospace & Defense industry median of 8.69. Textron's overall GF Score™ is 87/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Textron (TXT), the current Interest Coverage is 6.79 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Textron (TXT) Overvalued in 2026?
Based on GuruFocus' analysis, Textron stock appears to be undervalued.
The current stock price of $86.54 is trading 13.1% below its estimated GF Value™ of $99.60.
GuruFocus considers Textron to be Modestly Undervalued.
Key valuation signals for TXT:
Interest Coverage: 6.79 (near median its 10-year median of 6.58)
GF Value™: $99.60 vs. price of $86.54 (13.1% below fair value)
Industry Position: 21.9% below the Aerospace & Defense median (#125 of 241)
No single metric tells the full story. See the TXT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Textron is a conglomerate that designs, manufactures, and services a range of specialty aircraft including small jets, propeller-driven airplanes, helicopters, and tilt-rotor aircraft. Textron Aviation manufactures and services Cessna and Beechcraft planes. Bell is a helicopter and tilt-rotor manufacturer and servicer for both commercial and military customers. Textron Systems produces uncrewed aircraft and armored vehicles for the military market as well as aircraft simulators and training for the commercial and military markets. Textron Industrial houses the Kautex business, which manufactures plastic fuel tanks for conventional and hybrid motor vehicles, and other subsidiaries that produce specialized vehicles such as golf carts and all-terrain vehicles.
87GF Score
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