RTX CORP (RTX) Fundamental Analysis & Valuation
NYSE:RTX • US75513E1010
Current stock price
189.71 USD
-3.14 (-1.63%)
At close:
189 USD
-0.71 (-0.37%)
After Hours:
This RTX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. RTX Profitability Analysis
1.1 Basic Checks
- RTX had positive earnings in the past year.
- In the past year RTX had a positive cash flow from operations.
- In the past 5 years RTX has always been profitable.
- In the past 5 years RTX always reported a positive cash flow from operatings.
1.2 Ratios
- RTX's Return On Assets of 3.94% is in line compared to the rest of the industry. RTX outperforms 59.49% of its industry peers.
- RTX has a Return On Equity of 10.32%. This is in the better half of the industry: RTX outperforms 65.82% 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 54.43% of the companies in the same industry.
- RTX had an Average Return On Invested Capital over the past 3 years of 4.52%. This is below the industry average of 9.24%.
- 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
- RTX has a Profit Margin of 7.60%. This is in the better half of the industry: RTX outperforms 69.62% of its industry peers.
- In the last couple of years the Profit Margin of RTX has remained more or less at the same level.
- RTX has a better Operating Margin (10.38%) than 68.35% of its industry peers.
- RTX's Operating Margin has improved in the last couple of years.
- The Gross Margin of RTX (20.08%) is comparable to the rest of the industry.
- 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 Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RTX is destroying value.
- Compared to 1 year ago, RTX has more shares outstanding
- Compared to 5 years ago, RTX has less shares outstanding
- The debt/assets ratio for RTX has been reduced compared to a year ago.
2.2 Solvency
- RTX has an Altman-Z score of 2.64. 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 (2.64) is worse than 60.76% of its industry peers.
- 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.
- RTX has a Debt to FCF ratio of 5.09. This is in the better half of the industry: RTX outperforms 73.42% of its industry peers.
- A Debt/Equity ratio of 0.53 indicates that RTX is somewhat dependend on debt financing.
- RTX has a Debt to Equity ratio (0.53) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.09 | ||
| Altman-Z | 2.64 |
ROIC/WACC0.66
WACC10.03%
2.3 Liquidity
- A Current Ratio of 1.03 indicates that RTX should not have too much problems paying its short term obligations.
- RTX has a Current ratio of 1.03. This is amonst the worse of the industry: RTX underperforms 87.34% 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.
- The Quick ratio of RTX (0.80) is worse than 82.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.8 |
3. RTX Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 9.41% over the past year.
- The Earnings Per Share has been growing by 12.40% on average over the past years. This is quite good.
- The Revenue has grown by 9.74% in the past year. This is quite good.
- The Revenue has been growing by 9.38% on average over the past years. This is quite good.
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 6.92% yearly.
- RTX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.72% yearly.
EPS Next Y9.87%
EPS Next 2Y9.91%
EPS Next 3Y9.72%
EPS Next 5Y6.92%
Revenue Next Year7.26%
Revenue Next 2Y6.96%
Revenue Next 3Y6.73%
Revenue Next 5Y5.72%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. RTX Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 30.21 indicates a quite expensive valuation of RTX.
- Based on the Price/Earnings ratio, RTX is valued a bit cheaper than 68.35% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 24.88, RTX is valued a bit more expensive.
- With a Price/Forward Earnings ratio of 27.50, RTX can be considered very expensive at the moment.
- RTX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RTX is cheaper than 69.62% of the companies in the same industry.
- RTX is valuated rather expensively 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 | 30.21 | ||
| Fwd PE | 27.5 |
4.2 Price Multiples
- 64.56% of the companies in the same industry are more expensive than RTX, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, RTX is valued cheaply inside the industry as 81.01% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.28 | ||
| EV/EBITDA | 21.35 |
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.
- The decent profitability rating of RTX may justify a higher PE ratio.
PEG (NY)3.06
PEG (5Y)2.44
EPS Next 2Y9.91%
EPS Next 3Y9.72%
5. RTX Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 1.41%, RTX has a reasonable but not impressive dividend return.
- RTX's Dividend Yield is rather good when compared to the industry average which is at 0.36. RTX pays more dividend than 93.67% of the companies in the same industry.
- RTX's Dividend Yield is slightly below the S&P500 average, which is at 1.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
- The dividend of RTX has a limited annual growth rate of 3.13%.
- 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)3.13%
Div Incr Years31
Div Non Decr Years34
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.
- The dividend of RTX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP53.09%
EPS Next 2Y9.91%
EPS Next 3Y9.72%
RTX Fundamentals: All Metrics, Ratios and Statistics
189.71
-3.14 (-1.63%)
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 Change6.17%
Ins Owners0.02%
Ins Owner Change1.07%
Market Cap255.34B
Revenue(TTM)88.60B
Net Income(TTM)6.73B
Analysts73.1
Price Target212.77 (12.16%)
Short Float %0.98%
Short Ratio1.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Yearly Dividend2.67
Dividend Growth(5Y)3.13%
DP53.09%
Div Incr Years31
Div Non Decr Years34
Ex-Date02-20 2026-02-20 (0.68)
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)3.13%
Revenue beat(12)11
Avg Revenue beat(12)2.38%
Revenue beat(16)11
Avg Revenue beat(16)1.28%
PT rev (1m)0.9%
PT rev (3m)11%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-1.19%
EPS NY rev (1m)0.46%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.21 | ||
| Fwd PE | 27.5 | ||
| P/S | 2.88 | ||
| P/FCF | 34.28 | ||
| P/OCF | 24.16 | ||
| P/B | 3.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.35 |
EPS(TTM)6.28
EY3.31%
EPS(NY)6.9
Fwd EY3.64%
FCF(TTM)5.53
FCFY2.92%
OCF(TTM)7.85
OCFY4.14%
SpS65.83
BVpS48.47
TBVpS-14.82
PEG (NY)3.06
PEG (5Y)2.44
Graham Number82.76
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 | 2.64 |
F-Score9
WACC10.03%
ROIC/WACC0.66
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 Year7.26%
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 CORP / RTX Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for RTX CORP?
ChartMill assigns a fundamental rating of 5 / 10 to RTX.
What is the valuation status for RTX stock?
ChartMill assigns a valuation rating of 4 / 10 to RTX CORP (RTX). This can be considered as Fairly Valued.
What is the profitability of RTX stock?
RTX CORP (RTX) has a profitability rating of 6 / 10.
What are the PE and PB ratios of RTX CORP (RTX) stock?
The Price/Earnings (PE) ratio for RTX CORP (RTX) is 30.21 and the Price/Book (PB) ratio is 3.91.
Can you provide the expected EPS growth for RTX stock?
The Earnings per Share (EPS) of RTX CORP (RTX) is expected to grow by 9.87% in the next year.