RTX CORP (RTX)
US75513E1010 - Common Stock
RTX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 64 industry peers in the Aerospace & Defense industry. RTX has a bad profitability rating. Also its financial health evaluation is rather negative. RTX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year RTX was profitable.
RTX had a positive operating cash flow in the past year.
Of the past 5 years RTX 4 years were profitable.
In the past 5 years RTX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.17%, RTX is in line with its industry, outperforming 53.13% of the companies in the same industry.
With a Return On Equity value of 5.75%, RTX perfoms like the industry average, outperforming 57.81% of the companies in the same industry.
RTX has a Return On Invested Capital of 2.82%. This is comparable to the rest of the industry: RTX outperforms 46.88% of its industry peers.
RTX had an Average Return On Invested Capital over the past 3 years of 3.43%. This is below the industry average of 8.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 5.75% | ||
| ROIC | 2.82% |
ROA(3y)2.55%
ROA(5y)1.89%
ROE(3y)5.93%
ROE(5y)5.23%
ROIC(3y)3.43%
ROIC(5y)3.24%
1.3 Margins
RTX has a Profit Margin of 4.90%. This is comparable to the rest of the industry: RTX outperforms 57.81% of its industry peers.
In the last couple of years the Profit Margin of RTX has declined.
RTX has a Operating Margin (5.22%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of RTX has declined.
The Gross Margin of RTX (17.01%) is worse than 65.63% of its industry peers.
RTX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.22% | ||
| PM (TTM) | 4.9% | ||
| GM | 17.01% |
OM growth 3Y12.34%
OM growth 5Y-9.02%
PM growth 3YN/A
PM growth 5Y-21.12%
GM growth 3Y3.59%
GM growth 5Y-3.4%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RTX is destroying value.
The number of shares outstanding for RTX has been reduced compared to 1 year ago.
The number of shares outstanding for RTX has been increased compared to 5 years ago.
Compared to 1 year ago, RTX has a worse debt to assets ratio.
2.2 Solvency
RTX has an Altman-Z score of 1.85. This is not the best score and indicates that RTX is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of RTX (1.85) is comparable to the rest of the industry.
The Debt to FCF ratio of RTX is 7.18, which is on the high side as it means it would take RTX, 7.18 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RTX (7.18) is better than 64.06% of its industry peers.
RTX has a Debt/Equity ratio of 0.70. This is a neutral value indicating RTX is somewhat dependend on debt financing.
RTX has a Debt to Equity ratio (0.70) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.32
WACC8.67%
2.3 Liquidity
A Current Ratio of 1.07 indicates that RTX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.07, RTX is not doing good in the industry: 76.56% of the companies in the same industry are doing better.
A Quick Ratio of 0.79 indicates that RTX may have some problems paying its short term obligations.
RTX has a worse Quick ratio (0.79) than 76.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
RTX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.38%.
Measured over the past years, RTX shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.90% on average per year.
The Revenue has been growing slightly by 3.56% in the past year.
The Revenue has been growing by 14.71% on average over the past years. This is quite good.
EPS 1Y (TTM)6.38%
EPS 3Y13%
EPS 5Y-7.9%
EPS Q2Q%9.84%
Revenue 1Y (TTM)3.56%
Revenue growth 3Y6.79%
Revenue growth 5Y14.71%
Sales Q2Q%12.15%
3.2 Future
Based on estimates for the next years, RTX will show a small growth in Earnings Per Share. The EPS will grow by 5.95% on average per year.
RTX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.52% yearly.
EPS Next Y7.62%
EPS Next 2Y10.19%
EPS Next 3Y10.69%
EPS Next 5Y5.95%
Revenue Next Year6.66%
Revenue Next 2Y6.37%
Revenue Next 3Y6.27%
Revenue Next 5Y4.52%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.85, the valuation of RTX can be described as rather expensive.
RTX's Price/Earnings ratio is rather cheap when compared to the industry. RTX is cheaper than 81.25% of the companies in the same industry.
RTX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.05.
RTX is valuated rather expensively with a Price/Forward Earnings ratio of 17.58.
84.38% of the companies in the same industry are more expensive than RTX, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.07, RTX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.85 | ||
| Fwd PE | 17.58 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RTX.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RTX indicates a rather cheap valuation: RTX is cheaper than 87.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.03 | ||
| EV/EBITDA | 22.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RTX does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.74
PEG (5Y)N/A
EPS Next 2Y10.19%
EPS Next 3Y10.69%
5. Dividend
5.1 Amount
RTX has a Yearly Dividend Yield of 2.38%. Purely for dividend investing, there may be better candidates out there.
RTX's Dividend Yield is rather good when compared to the industry average which is at 1.33. RTX pays more dividend than 95.31% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, RTX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
5.2 History
The dividend of RTX decreases each year by -2.37%.
RTX has paid a dividend for at least 10 years, which is a reliable track record.
RTX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-2.37%
Div Incr Years17
Div Non Decr Years17
5.3 Sustainability
RTX pays out 92.52% of its income as dividend. This is not a sustainable payout ratio.
DP92.52%
EPS Next 2Y10.19%
EPS Next 3Y10.69%
RTX CORP
NYSE:RTX (5/31/2024, 7:04:07 PM)
After market: 107.81 0 (0%)107.81
+2.09 (+1.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap143.33B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.85 | ||
| Fwd PE | 17.58 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.74
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 5.75% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.22% | ||
| PM (TTM) | 4.9% | ||
| GM | 17.01% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)6.38%
EPS 3Y13%
EPS 5Y
EPS Q2Q%
EPS Next Y7.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.56%
Revenue growth 3Y6.79%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y