RTX CORP (RTX) Stock Fundamental Analysis
USA - NYSE:RTX - US75513E1010 - Common Stock
179.24 USD
+0.59 (+0.33%)
178.75 USD
-0.49 (-0.27%)
Taking everything into account, RTX scores 4 out of 10 in our fundamental rating. RTX was compared to 70 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 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RTX was profitable.
RTX had a positive operating cash flow in the past year.
RTX had positive earnings in 4 of the past 5 years.
Each year in the past 5 years RTX had a positive operating cash flow.
1.2 Ratios
RTX's Return On Assets of 3.91% is fine compared to the rest of the industry. RTX outperforms 61.43% of its industry peers.
The Return On Equity of RTX (10.22%) is better than 68.57% of its industry peers.
RTX has a Return On Invested Capital of 6.30%. This is comparable to the rest of the industry: RTX outperforms 58.57% of its industry peers.
RTX had an Average Return On Invested Capital over the past 3 years of 3.68%. This is below the industry average of 8.41%.
The last Return On Invested Capital (6.30%) for RTX is above the 3 year average (3.68%), which is a sign of increasing profitability.
| 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
The Profit Margin of RTX (7.67%) is better than 68.57% of its industry peers.
RTX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 10.02%, RTX is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
In the last couple of years the Operating Margin of RTX has declined.
RTX has a worse Gross Margin (20.13%) than 62.86% of its industry peers.
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.
RTX has more shares outstanding than it did 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 2.55. 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.
With a Altman-Z score value of 2.55, RTX is not doing good in the industry: 62.86% of the companies in the same industry are doing better.
The Debt to FCF ratio of RTX is 8.26, which is on the high side as it means it would take RTX, 8.26 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 8.26, RTX is doing good in the industry, outperforming 61.43% of the companies in the same industry.
RTX has a Debt/Equity ratio of 0.60. This is a neutral value indicating RTX is somewhat dependend on debt financing.
RTX has a Debt to Equity ratio (0.60) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 8.26 | ||
| Altman-Z | 2.55 |
ROIC/WACC0.67
WACC9.34%
2.3 Liquidity
RTX has a Current Ratio of 1.07. This is a normal value and indicates that RTX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of RTX (1.07) is worse than 85.71% 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 Quick ratio of 0.81. This is in the lower half of the industry: RTX underperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
RTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.21%, which is quite good.
RTX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.02% yearly.
The Revenue has grown by 8.79% 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 12.23% on average per year.
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
The Earnings Per Share is expected to grow by 8.01% on average over the next years. This is quite good.
Based on estimates for the next years, RTX will show a small growth in Revenue. The Revenue will grow by 4.99% on average per year.
EPS Next Y4.75%
EPS Next 2Y8.06%
EPS Next 3Y9.23%
EPS Next 5Y8.01%
Revenue Next Year7.31%
Revenue Next 2Y6.6%
Revenue Next 3Y6.29%
Revenue Next 5Y4.99%
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 28.59 indicates a quite expensive valuation of RTX.
78.57% of the companies in the same industry are more expensive than RTX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.08, RTX is valued at the same level.
RTX is valuated quite expensively with a Price/Forward Earnings ratio of 26.74.
Based on the Price/Forward Earnings ratio, RTX is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RTX to the average of the S&P500 Index (23.09), we can say RTX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.59 | ||
| Fwd PE | 26.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RTX is valued a bit cheaper than 70.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RTX is valued a bit cheaper than the industry average as 67.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.77 | ||
| EV/EBITDA | 21.03 |
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.
PEG (NY)6.02
PEG (5Y)N/A
EPS Next 2Y8.06%
EPS Next 3Y9.23%
5. Dividend
5.1 Amount
RTX has a Yearly Dividend Yield of 1.52%. Purely for dividend investing, there may be better candidates out there.
RTX's Dividend Yield is rather good when compared to the industry average which is at 1.11. RTX pays more dividend than 90.00% of the companies in the same industry.
RTX's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
5.2 History
The dividend of RTX decreases each year by -3.08%.
RTX has been paying a dividend for at least 10 years, so it has 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
RTX pays out 52.52% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP52.52%
EPS Next 2Y8.06%
EPS Next 3Y9.23%
179.24
+0.59 (+0.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners83.31%
Inst Owner Change-0.17%
Ins Owners0.02%
Ins Owner Change-1.57%
Market Cap239.92B
Revenue(TTM)85.99B
Net Income(TTM)6.59B
Analysts76.15
Price Target165.14 (-7.87%)
Short Float %0.9%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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)0.29%
PT rev (3m)11.75%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)-1.92%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.59 | ||
| Fwd PE | 26.74 | ||
| P/S | 2.79 | ||
| P/FCF | 50.77 | ||
| P/OCF | 30.13 | ||
| P/B | 3.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.03 |
EPS(TTM)6.27
EY3.5%
EPS(NY)6.7
Fwd EY3.74%
FCF(TTM)3.53
FCFY1.97%
OCF(TTM)5.95
OCFY3.32%
SpS64.24
BVpS48.2
TBVpS-15.73
PEG (NY)6.02
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 | 2.55 |
F-Score9
WACC9.34%
ROIC/WACC0.67
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 Y4.75%
EPS Next 2Y8.06%
EPS Next 3Y9.23%
EPS Next 5Y8.01%
Revenue 1Y (TTM)8.79%
Revenue growth 3Y7.83%
Revenue growth 5Y12.23%
Sales Q2Q%11.89%
Revenue Next Year7.31%
Revenue Next 2Y6.6%
Revenue Next 3Y6.29%
Revenue Next 5Y4.99%
EBIT growth 1Y48.43%
EBIT growth 3Y5.54%
EBIT growth 5Y4.21%
EBIT Next Year39.27%
EBIT Next 3Y18.46%
EBIT Next 5Y11.96%
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 3 / 10 to RTX CORP (RTX). This can be considered as Overvalued.
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%.