Textron (FRA:TXT) ROCE %: 8.90% (As of Mar. 2026)

What is Textron ROCE %?

Textron FRA:TXT -3.26% 87 ROCE % is 8.90% as of Mar. 2026. GuruFocus rates FRA:TXT with a GF Score™ of 87/100 and a GF Value™ of €87.01 (Modestly Undervalued). The stock has 2 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Textron's annualized ROCE % for the quarter that ended in Mar. 2026 was 8.90%.

Textron (FRA:TXT) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Textron ROCE % Related Terms

Textron ROCE % Historical Data

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The historical data trend for Textron's ROCE % 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.

Textron ROCE % Chart

Textron Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROCE %

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8.46

9.16

9.14

8.52

9.12

Textron Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															8.50	10.17	10.75	9.49	8.90

87GF Score

Textron Inc FRA:TXT

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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Textron ROCE % Calculation

Textron's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	1078.602	/	( ( (16080.29 - 4196.27)	+	(15482.166 - 3717.462) )	/ 2 )
	=	1078.602	/	( (11884.02	+	11764.704)	/ 2 )
	=	1078.602	/	11824.362
	=	9.12 %

Textron's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	1041.46	/	( ( (15482.166 - 3717.462)	+	(15691.965 - 4052.525) )	/ 2 )
	=	1041.46	/	( ( 11764.704	+	11639.44 )	/ 2 )
	=	1041.46	/	11702.072
	=	8.90 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 8.90% mean?

Textron (FRA:TXT) has a ROCE % of 8.90% as of Mar. 2026.

Is Textron's ROCE % too high?

Textron's current ROCE % is 8.90%. The Aerospace & Defense industry median ROCE % is 6.29. Textron's value of 8.90% is 41.5% above this industry median. 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 ROCE % compare to BWXT and PL?

Textron's ROCE % of 8.90% can be compared against companies in the Aerospace & Defense industry. The industry median ROCE % is 6.29. Textron's value of 8.90% is 41.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for an Aerospace & Defense company?

The median ROCE % among Aerospace & Defense companies is 6.29, based on 350 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Textron's current ROCE % of 8.90% is 41.5% above 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Aerospace & Defense industry, the median ROCE % is 6.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Textron's current ROCE % is 8.90%. 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 (FRA:TXT) is currently considered Modestly Undervalued. The stock's GF Value™ is €87.01, compared to a current price of €75.48 — trading 13.3% below its estimated fair value. The current ROCE % is 8.90% and 41.5% above the Aerospace & Defense industry median of 6.29. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Textron (FRA:TXT), the current ROCE % is 8.90% 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 (FRA:TXT) Overvalued in 2026?

Based on GuruFocus' analysis, Textron stock appears to be undervalued. The current stock price of €75.48 is trading 13.3% below its estimated GF Value™ of €87.01. GuruFocus considers Textron to be Modestly Undervalued.

Key valuation signals for FRA:TXT:

ROCE %: 8.90%
GF Value™: €87.01 vs. price of €75.48 (13.3% below fair value)
GF Score™: 87/100 with 2 warning signs
Industry Position: 41.5% above the Aerospace & Defense median

No single metric tells the full story. See the FRA:TXT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Textron Business Description

Industry Industrials Aerospace & Defense

Comparable Companies BWXT PL ARXS DRS HII KTOS MOG.A WWD AVAV SARO GE RTX BA XPAR:AIR LSE:RR.XPAR:SAF LMT HWM GD RKLB

Other Exchanges TXT:USA 1TXT:Italy 0LF0:UK TXT:Germany

Address 40 Westminster Street, Providence, RI, USA, 02903

Website https://www.textron.com

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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€75.48

Price

€87.01

GF Value

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