RTX CORP (1RTX.MI) Stock Fundamental Analysis
BIT:1RTX - Euronext Milan - US75513E1010 - Common Stock - Currency: EUR
Overall 1RTX gets a fundamental rating of 3 out of 10. We evaluated 1RTX against 46 industry peers in the Aerospace & Defense industry. While 1RTX is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, 1RTX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
1RTX had positive earnings in the past year.
1RTX had a positive operating cash flow in the past year.
Of the past 5 years 1RTX 4 years were profitable.
Each year in the past 5 years 1RTX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 1RTX (3.68%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 9.85%, 1RTX is in line with its industry, outperforming 50.00% of the companies in the same industry.
1RTX has a Return On Invested Capital (6.07%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1RTX is significantly below the industry average of 9.15%.
The last Return On Invested Capital (6.07%) for 1RTX is above the 3 year average (3.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 9.85% | ||
| ROIC | 6.07% |
ROA(3y)2.73%
ROA(5y)1.68%
ROE(3y)6.81%
ROE(5y)4.17%
ROIC(3y)3.68%
ROIC(5y)3.17%
1.3 Margins
The Profit Margin of 1RTX (7.35%) is better than 65.22% of its industry peers.
In the last couple of years the Profit Margin of 1RTX has declined.
With a decent Operating Margin value of 9.83%, 1RTX is doing good in the industry, outperforming 65.22% of the companies in the same industry.
1RTX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 20.05%, 1RTX is doing worse than 65.22% of the companies in the same industry.
In the last couple of years the Gross Margin of 1RTX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.83% | ||
| PM (TTM) | 7.35% | ||
| GM | 20.05% |
OM growth 3Y-2.13%
OM growth 5Y-7.15%
PM growth 3Y-0.49%
PM growth 5Y-13.5%
GM growth 3Y-0.54%
GM growth 5Y-4.24%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1RTX is destroying value.
Compared to 1 year ago, 1RTX has more shares outstanding
Compared to 5 years ago, 1RTX has more shares outstanding
The debt/assets ratio for 1RTX has been reduced compared to a year ago.
2.2 Solvency
1RTX has an Altman-Z score of 2.31. This is not the best score and indicates that 1RTX is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.31, 1RTX is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
1RTX has a debt to FCF ratio of 15.76. This is a negative value and a sign of low solvency as 1RTX would need 15.76 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.76, 1RTX is doing worse than 71.74% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that 1RTX is somewhat dependend on debt financing.
The Debt to Equity ratio of 1RTX (0.64) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 15.76 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.61
WACC10.02%
2.3 Liquidity
A Current Ratio of 1.01 indicates that 1RTX should not have too much problems paying its short term obligations.
The Current ratio of 1RTX (1.01) is worse than 78.26% of its industry peers.
1RTX has a Quick Ratio of 1.01. This is a bad value and indicates that 1RTX is not financially healthy enough and could expect problems in meeting its short term obligations.
1RTX has a Quick ratio (0.75) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
1RTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.80%, which is quite good.
1RTX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.02% yearly.
1RTX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.44%.
1RTX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.23% yearly.
EPS 1Y (TTM)13.8%
EPS 3Y10.36%
EPS 5Y-7.02%
EPS Q2Q%10.64%
Revenue 1Y (TTM)15.44%
Revenue growth 3Y7.83%
Revenue growth 5Y12.23%
Sales Q2Q%9.43%
3.2 Future
The Earnings Per Share is expected to grow by 7.26% on average over the next years.
The Revenue is expected to grow by 4.44% on average over the next years.
EPS Next Y4.5%
EPS Next 2Y8.47%
EPS Next 3Y9.22%
EPS Next 5Y7.26%
Revenue Next Year7.36%
Revenue Next 2Y6.64%
Revenue Next 3Y6.36%
Revenue Next 5Y4.44%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
1RTX is valuated quite expensively with a Price/Earnings ratio of 25.85.
Based on the Price/Earnings ratio, 1RTX is valued a bit cheaper than 73.91% of the companies in the same industry.
1RTX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.48.
With a Price/Forward Earnings ratio of 23.05, 1RTX is valued on the expensive side.
1RTX's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.04. 1RTX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.85 | ||
| Fwd PE | 23.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1RTX is on the same level as its industry peers.
1RTX's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1RTX is more expensive than 67.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 78.2 | ||
| EV/EBITDA | 19.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1RTX does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)5.74
PEG (5Y)N/A
EPS Next 2Y8.47%
EPS Next 3Y9.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.75%, 1RTX has a reasonable but not impressive dividend return.
1RTX's Dividend Yield is rather good when compared to the industry average which is at 1.18. 1RTX pays more dividend than 84.78% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.39, 1RTX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
The dividend of 1RTX decreases each year by -3.08%.
Dividend Growth(5Y)-3.08%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
54.91% of the earnings are spent on dividend by 1RTX. This is a bit on the high side, but may be sustainable.
DP54.91%
EPS Next 2Y8.47%
EPS Next 3Y9.22%
BIT:1RTX (8/8/2025, 7:00:00 PM)
133.62
-1.36 (-1.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners82.89%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap178.86B
Analysts76.55
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Yearly Dividend2.08
Dividend Growth(5Y)-3.08%
DP54.91%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.19%
Min EPS beat(2)6.96%
Max EPS beat(2)7.43%
EPS beat(4)4
Avg EPS beat(4)8.04%
Min EPS beat(4)6.96%
Max EPS beat(4)10.7%
EPS beat(8)8
Avg EPS beat(8)6.59%
EPS beat(12)12
Avg EPS beat(12)6.23%
EPS beat(16)16
Avg EPS beat(16)6.8%
Revenue beat(2)2
Avg Revenue beat(2)2.59%
Min Revenue beat(2)1.58%
Max Revenue beat(2)3.6%
Revenue beat(4)4
Avg Revenue beat(4)2.4%
Min Revenue beat(4)0.21%
Max Revenue beat(4)4.23%
Revenue beat(8)7
Avg Revenue beat(8)-1.68%
Revenue beat(12)9
Avg Revenue beat(12)-1.2%
Revenue beat(16)9
Avg Revenue beat(16)-1.43%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)-3.01%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.34%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)1.25%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.62%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.85 | ||
| Fwd PE | 23.05 | ||
| P/S | 2.49 | ||
| P/FCF | 78.2 | ||
| P/OCF | 35.63 | ||
| P/B | 3.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.39 |
EPS(TTM)5.17
EY3.87%
EPS(NY)5.8
Fwd EY4.34%
FCF(TTM)1.71
FCFY1.28%
OCF(TTM)3.75
OCFY2.81%
SpS53.62
BVpS40.02
TBVpS-15.19
PEG (NY)5.74
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 9.85% | ||
| ROCE | 7.29% | ||
| ROIC | 6.07% | ||
| ROICexc | 6.34% | ||
| ROICexgc | 29.46% | ||
| OM | 9.83% | ||
| PM (TTM) | 7.35% | ||
| GM | 20.05% | ||
| FCFM | 3.19% |
ROA(3y)2.73%
ROA(5y)1.68%
ROE(3y)6.81%
ROE(5y)4.17%
ROIC(3y)3.68%
ROIC(5y)3.17%
ROICexc(3y)3.89%
ROICexc(5y)3.36%
ROICexgc(3y)20.34%
ROICexgc(5y)17.15%
ROCE(3y)4.37%
ROCE(5y)3.76%
ROICexcg growth 3Y14.66%
ROICexcg growth 5Y12.77%
ROICexc growth 3Y9.47%
ROICexc growth 5Y0.94%
OM growth 3Y-2.13%
OM growth 5Y-7.15%
PM growth 3Y-0.49%
PM growth 5Y-13.5%
GM growth 3Y-0.54%
GM growth 5Y-4.24%
F-Score8
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 15.76 | ||
| Debt/EBITDA | 3.17 | ||
| Cap/Depr | 72.99% | ||
| Cap/Sales | 3.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 46.47% | ||
| Profit Quality | 43.35% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.31 |
F-Score8
WACC10.02%
ROIC/WACC0.61
Cap/Depr(3y)72.3%
Cap/Depr(5y)63.03%
Cap/Sales(3y)4.25%
Cap/Sales(5y)3.96%
Profit Quality(3y)104.78%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.8%
EPS 3Y10.36%
EPS 5Y-7.02%
EPS Q2Q%10.64%
EPS Next Y4.5%
EPS Next 2Y8.47%
EPS Next 3Y9.22%
EPS Next 5Y7.26%
Revenue 1Y (TTM)15.44%
Revenue growth 3Y7.83%
Revenue growth 5Y12.23%
Sales Q2Q%9.43%
Revenue Next Year7.36%
Revenue Next 2Y6.64%
Revenue Next 3Y6.36%
Revenue Next 5Y4.44%
EBIT growth 1Y245.38%
EBIT growth 3Y5.54%
EBIT growth 5Y4.21%
EBIT Next Year39.27%
EBIT Next 3Y18.46%
EBIT Next 5Y10.74%
FCF growth 1Y24.72%
FCF growth 3Y-6.17%
FCF growth 5Y-10.06%
OCF growth 1Y11.12%
OCF growth 3Y0.41%
OCF growth 5Y-4.22%