RTX CORP (RTX) Stock Fundamental Analysis
USA - NYSE:RTX - US75513E1010 - Common Stock
173.77 USD
-0.95 (-0.54%)
174.25 USD
+0.48 (+0.28%)
RTX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 71 industry peers in the Aerospace & Defense industry. RTX has a medium profitability rating, but doesn't score so well on its financial health evaluation. RTX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
RTX had positive earnings in the past year.
RTX had a positive operating cash flow in the past year.
Of the past 5 years RTX 4 years were profitable.
RTX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RTX has a better Return On Assets (3.91%) than 61.97% of its industry peers.
Looking at the Return On Equity, with a value of 10.22%, RTX is in the better half of the industry, outperforming 70.42% of the companies in the same industry.
RTX has a Return On Invested Capital (6.30%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for RTX is below the industry average of 8.47%.
The 3 year average ROIC (3.68%) for RTX is below the current ROIC(6.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 10.22% | ||
| ROIC | 6.3% |
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
RTX has a Profit Margin of 7.67%. This is in the better half of the industry: RTX outperforms 69.01% of its industry peers.
In the last couple of years the Profit Margin of RTX has declined.
RTX's Operating Margin of 10.02% is fine compared to the rest of the industry. RTX outperforms 64.79% of its industry peers.
In the last couple of years the Operating Margin of RTX has declined.
With a Gross Margin value of 20.13%, RTX is not doing good in the industry: 61.97% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of RTX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.02% | ||
| PM (TTM) | 7.67% | ||
| GM | 20.13% |
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), RTX is destroying value.
The number of shares outstanding for RTX has been increased compared to 1 year ago.
RTX has more 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 2.51. 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 (2.51) is worse than 61.97% of its industry peers.
RTX has a debt to FCF ratio of 8.26. This is a slightly negative value and a sign of low solvency as RTX would need 8.26 years to pay back of all of its debts.
RTX has a better Debt to FCF ratio (8.26) than 60.56% of its industry peers.
RTX has a Debt/Equity ratio of 0.60. This is a neutral value indicating RTX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.60, RTX is not doing good in the industry: 61.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 8.26 | ||
| Altman-Z | 2.51 |
ROIC/WACC0.66
WACC9.51%
2.3 Liquidity
A Current Ratio of 1.07 indicates that RTX should not have too much problems paying its short term obligations.
RTX has a worse Current ratio (1.07) than 85.92% of its industry peers.
RTX has a Quick Ratio of 1.07. 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 worse Quick ratio (0.81) than 77.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.21% over the past year.
Measured over the past years, RTX shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.02% on average per year.
The Revenue has grown by 8.79% in the past year. This is quite good.
RTX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.23% yearly.
EPS 1Y (TTM)14.21%
EPS 3Y10.36%
EPS 5Y-7.02%
EPS Q2Q%17.24%
Revenue 1Y (TTM)8.79%
Revenue growth 3Y7.83%
Revenue growth 5Y12.23%
Sales Q2Q%11.89%
3.2 Future
RTX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.26% yearly.
RTX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.22% yearly.
EPS Next Y9.14%
EPS Next 2Y9.39%
EPS Next 3Y9.99%
EPS Next 5Y8.26%
Revenue Next Year9.09%
Revenue Next 2Y7.58%
Revenue Next 3Y7.09%
Revenue Next 5Y5.22%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 27.71, the valuation of RTX can be described as expensive.
Based on the Price/Earnings ratio, RTX is valued a bit cheaper than 77.46% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.47. RTX is around the same levels.
Based on the Price/Forward Earnings ratio of 25.30, the valuation of RTX can be described as expensive.
73.24% 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 (35.42), we can say RTX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.71 | ||
| Fwd PE | 25.3 |
4.2 Price Multiples
RTX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RTX is cheaper than 69.01% of the companies in the same industry.
RTX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RTX is cheaper than 63.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.22 | ||
| EV/EBITDA | 20.46 |
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)3.03
PEG (5Y)N/A
EPS Next 2Y9.39%
EPS Next 3Y9.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.56%, 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 1.37. RTX pays more dividend than 88.73% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.44, RTX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
The dividend of RTX decreases each year by -3.08%.
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)-3.08%
Div Incr Years31
Div Non Decr Years34
5.3 Sustainability
52.52% of the earnings are spent on dividend by RTX. This is a bit on the high side, but may be sustainable.
DP52.52%
EPS Next 2Y9.39%
EPS Next 3Y9.99%
173.77
-0.95 (-0.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners83.31%
Inst Owner Change-2.68%
Ins Owners0.02%
Ins Owner Change-2.6%
Market Cap232.60B
Revenue(TTM)85.99B
Net Income(TTM)6.59B
Analysts76.15
Price Target189.46 (9.03%)
Short Float %0.93%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend2.42
Dividend Growth(5Y)-3.08%
DP52.52%
Div Incr Years31
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.21%
Min EPS beat(2)6.96%
Max EPS beat(2)19.47%
EPS beat(4)4
Avg EPS beat(4)11.14%
Min EPS beat(4)6.96%
Max EPS beat(4)19.47%
EPS beat(8)8
Avg EPS beat(8)8.73%
EPS beat(12)12
Avg EPS beat(12)7.41%
EPS beat(16)16
Avg EPS beat(16)7.08%
Revenue beat(2)2
Avg Revenue beat(2)4.01%
Min Revenue beat(2)3.6%
Max Revenue beat(2)4.42%
Revenue beat(4)4
Avg Revenue beat(4)3.45%
Min Revenue beat(4)1.58%
Max Revenue beat(4)4.42%
Revenue beat(8)7
Avg Revenue beat(8)2.39%
Revenue beat(12)10
Avg Revenue beat(12)1.81%
Revenue beat(16)10
Avg Revenue beat(16)0.78%
PT rev (1m)14.73%
PT rev (3m)15.94%
EPS NQ rev (1m)-2.57%
EPS NQ rev (3m)-3.01%
EPS NY rev (1m)4.11%
EPS NY rev (3m)4.44%
Revenue NQ rev (1m)0.59%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)1.73%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.71 | ||
| Fwd PE | 25.3 | ||
| P/S | 2.71 | ||
| P/FCF | 49.22 | ||
| P/OCF | 29.21 | ||
| P/B | 3.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.46 |
EPS(TTM)6.27
EY3.61%
EPS(NY)6.87
Fwd EY3.95%
FCF(TTM)3.53
FCFY2.03%
OCF(TTM)5.95
OCFY3.42%
SpS64.24
BVpS48.2
TBVpS-15.73
PEG (NY)3.03
PEG (5Y)N/A
Graham Number82.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 10.22% | ||
| ROCE | 7.46% | ||
| ROIC | 6.3% | ||
| ROICexc | 6.64% | ||
| ROICexgc | 30.19% | ||
| OM | 10.02% | ||
| PM (TTM) | 7.67% | ||
| GM | 20.13% | ||
| FCFM | 5.5% |
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%
ROICexgc growth 3Y14.66%
ROICexgc 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-Score9
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 8.26 | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | 74.28% | ||
| Cap/Sales | 3.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.38% | ||
| Profit Quality | 71.69% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.51 |
F-Score9
WACC9.51%
ROIC/WACC0.66
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)14.21%
EPS 3Y10.36%
EPS 5Y-7.02%
EPS Q2Q%17.24%
EPS Next Y9.14%
EPS Next 2Y9.39%
EPS Next 3Y9.99%
EPS Next 5Y8.26%
Revenue 1Y (TTM)8.79%
Revenue growth 3Y7.83%
Revenue growth 5Y12.23%
Sales Q2Q%11.89%
Revenue Next Year9.09%
Revenue Next 2Y7.58%
Revenue Next 3Y7.09%
Revenue Next 5Y5.22%
EBIT growth 1Y48.43%
EBIT growth 3Y5.54%
EBIT growth 5Y4.21%
EBIT Next Year39.27%
EBIT Next 3Y18.46%
EBIT Next 5Y12.3%
FCF growth 1Y5.47%
FCF growth 3Y-6.17%
FCF growth 5Y-10.06%
OCF growth 1Y2.09%
OCF growth 3Y0.41%
OCF growth 5Y-4.22%
RTX CORP / RTX FAQ
Can you provide the ChartMill fundamental rating for RTX CORP?
ChartMill assigns a fundamental rating of 4 / 10 to RTX.
Can you provide the valuation status for RTX CORP?
ChartMill assigns a valuation rating of 4 / 10 to RTX CORP (RTX). This can be considered as Fairly Valued.
How profitable is RTX CORP (RTX) stock?
RTX CORP (RTX) has a profitability rating of 5 / 10.
Can you provide the financial health for RTX stock?
The financial health rating of RTX CORP (RTX) is 3 / 10.
Is the dividend of RTX CORP sustainable?
The dividend rating of RTX CORP (RTX) is 5 / 10 and the dividend payout ratio is 52.52%.