RTX Corporation (RTX.CA) Fundamental Analysis & Valuation
TSX:RTX
Current stock price
47.87 CAD
+0.34 (+0.72%)
Last:
This RTX.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. RTX.CA Profitability Analysis
1.1 Basic Checks
- In the past year RTX was profitable.
- In the past year RTX had a positive cash flow from operations.
- Each year in the past 5 years RTX has been profitable.
- In the past 5 years RTX always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 3.94%, RTX perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
- RTX's Return On Equity of 10.32% is amongst the best of the industry. RTX outperforms 92.31% of its industry peers.
- With a Return On Invested Capital value of 6.62%, RTX perfoms like the industry average, outperforming 46.15% 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 9.52%.
- The last Return On Invested Capital (6.62%) for RTX is above the 3 year average (4.52%), which is a sign of increasing profitability.
| 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
- With a Profit Margin value of 7.60%, RTX perfoms like the industry average, outperforming 46.15% 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.
- The Operating Margin of RTX (10.38%) is comparable to the rest of the industry.
- RTX's Operating Margin has improved in the last couple of years.
- RTX has a Gross Margin of 20.08%. This is in the better half of the industry: RTX outperforms 61.54% of its industry peers.
- In the last couple of years the Gross Margin of RTX has grown nicely.
| 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. RTX.CA Health Analysis
2.1 Basic Checks
- RTX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- RTX has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, RTX has less shares outstanding
- RTX has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.44, we must say that RTX is in the distress zone and has some risk of bankruptcy.
- With a decent Altman-Z score value of 1.44, RTX is doing good in the industry, outperforming 69.23% of the companies in the same industry.
- The Debt to FCF ratio of RTX is 5.09, which is a neutral value as it means it would take RTX, 5.09 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 5.09, RTX is doing worse than 61.54% of the companies in the same industry.
- 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 Debt to Equity ratio of 0.53. This is in the better half of the industry: RTX outperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.09 | ||
| Altman-Z | 1.44 |
ROIC/WACC0.71
WACC9.29%
2.3 Liquidity
- A Current Ratio of 1.03 indicates that RTX should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.03, RTX is doing worse than 69.23% of the companies in the same industry.
- 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's Quick ratio of 0.80 is fine compared to the rest of the industry. RTX outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.8 |
3. RTX.CA Growth Analysis
3.1 Past
- RTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.41%, which is quite good.
- 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.
- Looking at the last year, RTX shows a quite strong growth in Revenue. The Revenue has grown by 9.74% in the last year.
- 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
- The Earnings Per Share is expected to grow by 6.92% on average over the next years.
- Based on estimates for the next years, RTX will show a small growth in Revenue. The Revenue will grow by 5.72% on average per year.
EPS Next Y9.87%
EPS Next 2Y9.91%
EPS Next 3Y9.72%
EPS Next 5Y6.92%
Revenue Next Year7.27%
Revenue Next 2Y6.96%
Revenue Next 3Y6.73%
Revenue Next 5Y5.72%
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 decreasing.
- 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. RTX.CA Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 5.57 indicates a rather cheap valuation of RTX.
- Based on the Price/Earnings ratio, RTX is valued a bit cheaper than 69.23% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 25.96. RTX is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 5.07, the valuation of RTX can be described as very cheap.
- Based on the Price/Forward Earnings ratio, RTX is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.04. RTX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.57 | ||
| Fwd PE | 5.07 |
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 | 6.31 | ||
| EV/EBITDA | 5.69 |
4.3 Compensation for Growth
- RTX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- RTX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.56
PEG (5Y)0.45
EPS Next 2Y9.91%
EPS Next 3Y9.72%
5. RTX.CA Dividend Analysis
5.1 Amount
- RTX has a Yearly Dividend Yield of 1.34%.
- Compared to an average industry Dividend Yield of 2.27, RTX pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.91, RTX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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
- RTX pays out 53.09% of its income as dividend. This is a bit on the high side, but may be sustainable.
- RTX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP53.09%
EPS Next 2Y9.91%
EPS Next 3Y9.72%
RTX.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:RTX (3/16/2026, 7:00:00 PM)
47.87
+0.34 (+0.72%)
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 Owners81.1%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap64.26B
Revenue(TTM)88.60B
Net Income(TTM)6.73B
Analysts73.1
Price Target49.47 (3.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Yearly Dividend3.66
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)1.07%
PT rev (3m)N/A
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.46%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.57 | ||
| Fwd PE | 5.07 | ||
| P/S | 0.53 | ||
| P/FCF | 6.31 | ||
| P/OCF | 4.44 | ||
| P/B | 0.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.69 |
EPS(TTM)8.59
EY17.94%
EPS(NY)9.44
Fwd EY19.72%
FCF(TTM)7.59
FCFY15.86%
OCF(TTM)10.77
OCFY22.5%
SpS90.31
BVpS66.5
TBVpS-20.33
PEG (NY)0.56
PEG (5Y)0.45
Graham Number113.37
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 | 1.44 |
F-Score9
WACC9.29%
ROIC/WACC0.71
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 Y9.87%
EPS Next 2Y9.91%
EPS Next 3Y9.72%
EPS Next 5Y6.92%
Revenue 1Y (TTM)9.74%
Revenue growth 3Y9.72%
Revenue growth 5Y9.38%
Sales Q2Q%12.09%
Revenue Next Year7.27%
Revenue Next 2Y6.96%
Revenue Next 3Y6.73%
Revenue Next 5Y5.72%
EBIT growth 1Y52.37%
EBIT growth 3Y19.11%
EBIT growth 5Y35.16%
EBIT Next Year42.66%
EBIT Next 3Y18.95%
EBIT Next 5Y11.66%
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 Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for RTX Corporation?
ChartMill assigns a fundamental rating of 5 / 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 6 / 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 5.57 and the Price/Book (PB) ratio is 0.72.
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 9.87% in the next year.