RTX Corporation (RTX.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:RTX
45.65 CAD
+0.02 (+0.04%)
Last: Feb 9, 2026, 07:00 PM
Taking everything into account, RTX scores 6 out of 10 in our fundamental rating. RTX was compared to 13 industry peers in the Aerospace & Defense industry. RTX scores excellent on profitability, but there are some minor concerns on its financial health. RTX scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
- In the past year RTX was profitable.
- RTX had a positive operating cash flow in the past year.
- In the past 5 years RTX has always been profitable.
- Each year in the past 5 years RTX had a positive operating cash flow.
1.2 Ratios
- RTX has a better Return On Assets (3.94%) than 92.31% of its industry peers.
- RTX has a better Return On Equity (10.32%) than 92.31% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.62%, RTX is in line with its industry, outperforming 53.85% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for RTX is below the industry average of 8.16%.
- The 3 year average ROIC (4.52%) for RTX is below the current ROIC(6.62%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 10.32% | ||
| ROIC | 6.62% |
ROA(3y)2.95%
ROA(5y)2.9%
ROE(3y)7.87%
ROE(5y)7.21%
ROIC(3y)4.52%
ROIC(5y)4.11%
1.3 Margins
- Looking at the Profit Margin, with a value of 7.60%, RTX belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
- In the last couple of years the Profit Margin of RTX has remained more or less at the same level.
- RTX has a Operating Margin of 10.38%. This is comparable to the rest of the industry: RTX outperforms 46.15% of its industry peers.
- RTX's Operating Margin has improved in the last couple of years.
- RTX has a worse Gross Margin (20.08%) than 76.92% of its industry peers.
- RTX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.38% | ||
| PM (TTM) | 7.6% | ||
| GM | 20.08% |
OM growth 3Y8.55%
OM growth 5Y23.56%
PM growth 3Y-0.65%
PM growth 5YN/A
GM growth 3Y-0.49%
GM growth 5Y4.94%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RTX is destroying value.
- Compared to 1 year ago, RTX has more shares outstanding
- RTX has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for RTX has been reduced compared to a year ago.
2.2 Solvency
- RTX has an Altman-Z score of 1.43. This is a bad value and indicates that RTX is not financially healthy and even has some risk of bankruptcy.
- RTX's Altman-Z score of 1.43 is fine compared to the rest of the industry. RTX outperforms 69.23% of its industry peers.
- RTX has a debt to FCF ratio of 5.09. This is a neutral value as RTX would need 5.09 years to pay back of all of its debts.
- RTX's Debt to FCF ratio of 5.09 is fine compared to the rest of the industry. RTX outperforms 76.92% of its industry peers.
- RTX has a Debt/Equity ratio of 0.53. This is a neutral value indicating RTX is somewhat dependend on debt financing.
- RTX has a better Debt to Equity ratio (0.53) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.09 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.7
WACC9.41%
2.3 Liquidity
- A Current Ratio of 1.03 indicates that RTX should not have too much problems paying its short term obligations.
- RTX's Current ratio of 1.03 is on the low side compared to the rest of the industry. RTX is outperformed by 69.23% of its industry peers.
- RTX has a Quick Ratio of 1.03. This is a bad value and indicates that RTX is not financially healthy enough and could expect problems in meeting its short term obligations.
- RTX has a Quick ratio of 0.80. This is in the better half of the industry: RTX outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.41% over the past year.
- Measured over the past years, RTX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.40% on average per year.
- The Revenue has grown by 9.74% in the past year. This is quite good.
- Measured over the past years, RTX shows a quite strong growth in Revenue. The Revenue has been growing by 9.38% on average per year.
EPS 1Y (TTM)9.41%
EPS 3Y9.45%
EPS 5Y12.4%
EPS Q2Q%0.65%
Revenue 1Y (TTM)9.74%
Revenue growth 3Y9.72%
Revenue growth 5Y9.38%
Sales Q2Q%12.09%
3.2 Future
- RTX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.97% yearly.
- RTX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.27% yearly.
EPS Next Y9.36%
EPS Next 2Y9.76%
EPS Next 3Y9.5%
EPS Next 5Y7.97%
Revenue Next Year7.25%
Revenue Next 2Y6.95%
Revenue Next 3Y6.6%
Revenue Next 5Y4.27%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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 5.34 indicates a rather cheap valuation of RTX.
- Compared to the rest of the industry, the Price/Earnings ratio of RTX indicates a somewhat cheap valuation: RTX is cheaper than 69.23% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of RTX to the average of the S&P500 Index (28.06), we can say RTX is valued rather cheaply.
- A Price/Forward Earnings ratio of 4.88 indicates a rather cheap valuation of RTX.
- 69.23% of the companies in the same industry are more expensive than RTX, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of RTX to the average of the S&P500 Index (27.86), we can say RTX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.34 | ||
| Fwd PE | 4.88 |
4.2 Price Multiples
- RTX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RTX is cheaper than 69.23% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of RTX indicates a somewhat cheap valuation: RTX is cheaper than 69.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.04 | ||
| EV/EBITDA | 5.54 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of RTX may justify a higher PE ratio.
PEG (NY)0.57
PEG (5Y)0.43
EPS Next 2Y9.76%
EPS Next 3Y9.5%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.39%, RTX has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.24, RTX pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.80, RTX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
- The dividend of RTX has a limited annual growth rate of 3.13%.
- RTX is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)3.13%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 53.09% of the earnings are spent on dividend by RTX. This is a bit on the high side, but may be sustainable.
- The dividend of RTX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP53.09%
EPS Next 2Y9.76%
EPS Next 3Y9.5%
TSX:RTX (2/9/2026, 7:00:00 PM)
45.65
+0.02 (+0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-02 2026-02-02/bmo
Earnings (Next)04-20 2026-04-20/bmo
Inst Owners81.59%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap61.21B
Revenue(TTM)88.60B
Net Income(TTM)6.73B
Analysts77.14
Price Target48.95 (7.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend3.65
Dividend Growth(5Y)3.13%
DP53.09%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.02%
Min EPS beat(2)4.58%
Max EPS beat(2)19.47%
EPS beat(4)4
Avg EPS beat(4)9.61%
Min EPS beat(4)4.58%
Max EPS beat(4)19.47%
EPS beat(8)8
Avg EPS beat(8)8.97%
EPS beat(12)12
Avg EPS beat(12)7.68%
EPS beat(16)16
Avg EPS beat(16)7.08%
Revenue beat(2)2
Avg Revenue beat(2)4.99%
Min Revenue beat(2)4.42%
Max Revenue beat(2)5.56%
Revenue beat(4)4
Avg Revenue beat(4)3.79%
Min Revenue beat(4)1.58%
Max Revenue beat(4)5.56%
Revenue beat(8)8
Avg Revenue beat(8)3.09%
Revenue beat(12)11
Avg Revenue beat(12)-0.04%
Revenue beat(16)11
Avg Revenue beat(16)-0.54%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)-1.36%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.4%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.34 | ||
| Fwd PE | 4.88 | ||
| P/S | 0.51 | ||
| P/FCF | 6.04 | ||
| P/OCF | 4.26 | ||
| P/B | 0.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.54 |
EPS(TTM)8.55
EY18.73%
EPS(NY)9.35
Fwd EY20.47%
FCF(TTM)7.56
FCFY16.56%
OCF(TTM)10.72
OCFY23.49%
SpS89.92
BVpS66.22
TBVpS-20.24
PEG (NY)0.57
PEG (5Y)0.43
Graham Number112.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 10.32% | ||
| ROCE | 8.19% | ||
| ROIC | 6.62% | ||
| ROICexc | 7.09% | ||
| ROICexgc | 37.46% | ||
| OM | 10.38% | ||
| PM (TTM) | 7.6% | ||
| GM | 20.08% | ||
| FCFM | 8.41% |
ROA(3y)2.95%
ROA(5y)2.9%
ROE(3y)7.87%
ROE(5y)7.21%
ROIC(3y)4.52%
ROIC(5y)4.11%
ROICexc(3y)4.81%
ROICexc(5y)4.37%
ROICexgc(3y)25.78%
ROICexgc(5y)22.54%
ROCE(3y)5.6%
ROCE(5y)5.09%
ROICexgc growth 3Y25.93%
ROICexgc growth 5Y39.07%
ROICexc growth 3Y22.45%
ROICexc growth 5Y38.27%
OM growth 3Y8.55%
OM growth 5Y23.56%
PM growth 3Y-0.65%
PM growth 5YN/A
GM growth 3Y-0.49%
GM growth 5Y4.94%
F-Score9
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.09 | ||
| Debt/EBITDA | 2.54 | ||
| Cap/Depr | 71.24% | ||
| Cap/Sales | 3.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.82% | ||
| Profit Quality | 110.64% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 1.43 |
F-Score9
WACC9.41%
ROIC/WACC0.7
Cap/Depr(3y)73.53%
Cap/Depr(5y)67.82%
Cap/Sales(3y)4.04%
Cap/Sales(5y)3.97%
Profit Quality(3y)113.48%
Profit Quality(5y)109.58%
High Growth Momentum
Growth
EPS 1Y (TTM)9.41%
EPS 3Y9.45%
EPS 5Y12.4%
EPS Q2Q%0.65%
EPS Next Y9.36%
EPS Next 2Y9.76%
EPS Next 3Y9.5%
EPS Next 5Y7.97%
Revenue 1Y (TTM)9.74%
Revenue growth 3Y9.72%
Revenue growth 5Y9.38%
Sales Q2Q%12.09%
Revenue Next Year7.25%
Revenue Next 2Y6.95%
Revenue Next 3Y6.6%
Revenue Next 5Y4.27%
EBIT growth 1Y52.37%
EBIT growth 3Y19.11%
EBIT growth 5Y35.16%
EBIT Next Year41.27%
EBIT Next 3Y17.29%
EBIT Next 5Y12.68%
FCF growth 1Y89.85%
FCF growth 3Y19.24%
FCF growth 5Y35.36%
OCF growth 1Y47.6%
OCF growth 3Y13.81%
OCF growth 5Y23.99%
RTX Corporation / RTX.CA FAQ
Can you provide the ChartMill fundamental rating for RTX Corporation?
ChartMill assigns a fundamental rating of 6 / 10 to RTX.CA.
What is the valuation status for RTX stock?
ChartMill assigns a valuation rating of 8 / 10 to RTX Corporation (RTX.CA). This can be considered as Undervalued.
What is the profitability of RTX stock?
RTX Corporation (RTX.CA) has a profitability rating of 7 / 10.
What are the PE and PB ratios of RTX Corporation (RTX.CA) stock?
The Price/Earnings (PE) ratio for RTX Corporation (RTX.CA) is 5.34 and the Price/Book (PB) ratio is 0.69.
Can you provide the expected EPS growth for RTX stock?
The Earnings per Share (EPS) of RTX Corporation (RTX.CA) is expected to grow by 9.36% in the next year.