RTX CORP (1RTX.MI) Stock Fundamental Analysis
BIT:1RTX - Euronext Milan - US75513E1010 - Common Stock - Currency: EUR
Taking everything into account, 1RTX scores 3 out of 10 in our fundamental rating. 1RTX was compared to 46 industry peers in the Aerospace & Defense industry. 1RTX may be in some trouble as it scores bad on both profitability and health. 1RTX is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years 1RTX always reported a positive cash flow from operatings.
1.2 Ratios
1RTX has a worse Return On Assets (2.79%) than 60.87% of its industry peers.
1RTX has a Return On Equity (7.48%) which is comparable to the rest of the industry.
The Return On Invested Capital of 1RTX (4.66%) is worse than 67.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1RTX is significantly below the industry average of 8.83%.
The 3 year average ROIC (3.68%) for 1RTX is below the current ROIC(4.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | 7.48% | ||
| ROIC | 4.66% |
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
1RTX has a Profit Margin (5.63%) which is in line with its industry peers.
In the last couple of years the Profit Margin of 1RTX has declined.
With a Operating Margin value of 7.59%, 1RTX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
1RTX's Operating Margin has declined in the last couple of years.
1RTX's Gross Margin of 19.53% is on the low side compared to the rest of the industry. 1RTX is outperformed by 67.39% of its industry peers.
In the last couple of years the Gross Margin of 1RTX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.59% | ||
| PM (TTM) | 5.63% | ||
| GM | 19.53% |
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.
1RTX has more shares outstanding than it did 1 year ago.
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
An Altman-Z score of 2.23 indicates that 1RTX is not a great score, but indicates only limited risk for bankruptcy at the moment.
1RTX has a Altman-Z score of 2.23. This is comparable to the rest of the industry: 1RTX outperforms 41.30% of its industry peers.
1RTX has a debt to FCF ratio of 8.43. This is a slightly negative value and a sign of low solvency as 1RTX would need 8.43 years to pay back of all of its debts.
1RTX has a Debt to FCF ratio of 8.43. This is in the lower half of the industry: 1RTX underperforms 65.22% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that 1RTX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.63, 1RTX perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 8.43 | ||
| Altman-Z | 2.23 |
ROIC/WACC0.48
WACC9.79%
2.3 Liquidity
A Current Ratio of 1.01 indicates that 1RTX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.01, 1RTX is not doing good in the industry: 80.43% of the companies in the same industry are doing better.
A Quick Ratio of 0.75 indicates that 1RTX may have some problems paying its short term obligations.
1RTX's Quick ratio of 0.75 is on the low side compared to the rest of the industry. 1RTX is outperformed by 60.87% of 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 13.54%, which is quite good.
Measured over the past years, 1RTX shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.02% on average per year.
1RTX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.11%.
The Revenue has been growing by 12.23% on average over the past years. This is quite good.
EPS 1Y (TTM)13.54%
EPS 3Y10.36%
EPS 5Y-7.02%
EPS Q2Q%9.7%
Revenue 1Y (TTM)15.11%
Revenue growth 3Y7.83%
Revenue growth 5Y12.23%
Sales Q2Q%5.19%
3.2 Future
Based on estimates for the next years, 1RTX will show a small growth in Earnings Per Share. The EPS will grow by 7.44% on average per year.
The Revenue is expected to grow by 4.28% on average over the next years.
EPS Next Y4.99%
EPS Next 2Y8.53%
EPS Next 3Y9.32%
EPS Next 5Y7.44%
Revenue Next Year5.65%
Revenue Next 2Y5.7%
Revenue Next 3Y5.8%
Revenue Next 5Y4.28%
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
A Price/Earnings ratio of 25.23 indicates a quite expensive valuation of 1RTX.
80.43% of the companies in the same industry are more expensive than 1RTX, based on the Price/Earnings ratio.
1RTX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
1RTX is valuated rather expensively with a Price/Forward Earnings ratio of 21.89.
Based on the Price/Forward Earnings ratio, 1RTX is valued a bit cheaper than 65.22% of the companies in the same industry.
1RTX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.23 | ||
| Fwd PE | 21.89 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1RTX.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1RTX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.35 | ||
| EV/EBITDA | 22.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)5.05
PEG (5Y)N/A
EPS Next 2Y8.53%
EPS Next 3Y9.32%
5. Dividend
5.1 Amount
1RTX has a Yearly Dividend Yield of 2.02%.
Compared to an average industry Dividend Yield of 1.28, 1RTX pays a better dividend. On top of this 1RTX pays more dividend than 91.30% of the companies listed in the same industry.
1RTX's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
5.2 History
The dividend of 1RTX decreases each year by -3.09%.
Dividend Growth(5Y)-3.09%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1RTX pays out 71.48% of its income as dividend. This is not a sustainable payout ratio.
DP71.48%
EPS Next 2Y8.53%
EPS Next 3Y9.32%
BIT:1RTX (6/19/2025, 7:00:00 PM)
128.92
+3.14 (+2.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners81.8%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap172.23B
Analysts76.67
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
Yearly Dividend2.14
Dividend Growth(5Y)-3.09%
DP71.48%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.06%
Min EPS beat(2)7.43%
Max EPS beat(2)10.7%
EPS beat(4)4
Avg EPS beat(4)8.24%
Min EPS beat(4)7.07%
Max EPS beat(4)10.7%
EPS beat(8)8
Avg EPS beat(8)6.76%
EPS beat(12)12
Avg EPS beat(12)5.85%
EPS beat(16)16
Avg EPS beat(16)6.97%
Revenue beat(2)2
Avg Revenue beat(2)2.9%
Min Revenue beat(2)1.58%
Max Revenue beat(2)4.23%
Revenue beat(4)4
Avg Revenue beat(4)1.83%
Min Revenue beat(4)0.21%
Max Revenue beat(4)4.23%
Revenue beat(8)7
Avg Revenue beat(8)-1.81%
Revenue beat(12)8
Avg Revenue beat(12)-1.73%
Revenue beat(16)8
Avg Revenue beat(16)-1.7%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.23 | ||
| Fwd PE | 21.89 | ||
| P/S | 2.42 | ||
| P/FCF | 40.35 | ||
| P/OCF | 24.34 | ||
| P/B | 3.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.12 |
EPS(TTM)5.11
EY3.96%
EPS(NY)5.89
Fwd EY4.57%
FCF(TTM)3.19
FCFY2.48%
OCF(TTM)5.3
OCFY4.11%
SpS53.31
BVpS40.12
TBVpS-16.07
PEG (NY)5.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | 7.48% | ||
| ROCE | 5.53% | ||
| ROIC | 4.66% | ||
| ROICexc | 4.89% | ||
| ROICexgc | 24.81% | ||
| OM | 7.59% | ||
| PM (TTM) | 5.63% | ||
| GM | 19.53% | ||
| FCFM | 5.99% |
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 | 0.63 | ||
| Debt/FCF | 8.43 | ||
| Debt/EBITDA | 3.64 | ||
| Cap/Depr | 73.97% | ||
| Cap/Sales | 3.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.91% | ||
| Profit Quality | 106.5% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.23 |
F-Score8
WACC9.79%
ROIC/WACC0.48
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)13.54%
EPS 3Y10.36%
EPS 5Y-7.02%
EPS Q2Q%9.7%
EPS Next Y4.99%
EPS Next 2Y8.53%
EPS Next 3Y9.32%
EPS Next 5Y7.44%
Revenue 1Y (TTM)15.11%
Revenue growth 3Y7.83%
Revenue growth 5Y12.23%
Sales Q2Q%5.19%
Revenue Next Year5.65%
Revenue Next 2Y5.7%
Revenue Next 3Y5.8%
Revenue Next 5Y4.28%
EBIT growth 1Y67.24%
EBIT growth 3Y5.54%
EBIT growth 5Y4.21%
EBIT Next Year37.99%
EBIT Next 3Y18.06%
EBIT Next 5Y10.91%
FCF growth 1Y70.76%
FCF growth 3Y-6.17%
FCF growth 5Y-10.06%
OCF growth 1Y39.34%
OCF growth 3Y0.41%
OCF growth 5Y-4.22%