RTX CORP (RTX) Stock Fundamental Analysis
USA - NYSE:RTX - US75513E1010 - Common Stock
155.85 USD
-1.8 (-1.14%)
155.89 USD
+0.04 (+0.03%)
RTX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 69 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of RTX while its profitability can be described as average. While showing a medium growth rate, RTX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year RTX was profitable.
RTX had a positive operating cash flow in the past year.
Of the past 5 years RTX 4 years were profitable.
In the past 5 years RTX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.68%, RTX is in line with its industry, outperforming 58.82% of the companies in the same industry.
With a decent Return On Equity value of 9.85%, RTX is doing good in the industry, outperforming 67.65% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.07%, RTX is in line with its industry, outperforming 55.88% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RTX is below the industry average of 8.22%.
The last Return On Invested Capital (6.07%) for RTX is above the 3 year average (3.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 9.85% | ||
| ROIC | 6.07% |
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 7.35%. This is in the better half of the industry: RTX outperforms 69.12% of its industry peers.
In the last couple of years the Profit Margin of RTX has declined.
RTX has a Operating Margin of 9.83%. This is in the better half of the industry: RTX outperforms 66.18% of its industry peers.
In the last couple of years the Operating Margin of RTX has declined.
RTX has a Gross Margin of 20.05%. This is in the lower half of the industry: RTX underperforms 61.76% of its industry peers.
In the last couple of years the Gross Margin of RTX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.83% | ||
| PM (TTM) | 7.35% | ||
| GM | 20.05% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RTX is destroying value.
The number of shares outstanding for RTX has been increased compared to 1 year ago.
Compared to 5 years ago, RTX has more shares outstanding
Compared to 1 year ago, RTX has an improved debt to assets ratio.
2.2 Solvency
RTX has an Altman-Z score of 2.31. 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.
RTX's Altman-Z score of 2.31 is on the low side compared to the rest of the industry. RTX is outperformed by 64.71% of its industry peers.
RTX has a debt to FCF ratio of 15.76. This is a negative value and a sign of low solvency as RTX would need 15.76 years to pay back of all of its debts.
RTX has a Debt to FCF ratio (15.76) which is in line with its industry peers.
A Debt/Equity ratio of 0.64 indicates that RTX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.64, RTX is doing worse than 63.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 15.76 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.64
WACC9.43%
2.3 Liquidity
A Current Ratio of 1.01 indicates that RTX should not have too much problems paying its short term obligations.
RTX has a Current ratio of 1.01. This is amonst the worse of the industry: RTX underperforms 85.29% of its industry peers.
A Quick Ratio of 0.75 indicates that RTX may have some problems paying its short term obligations.
RTX has a worse Quick ratio (0.75) than 79.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
RTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.80%, which is quite good.
The Earnings Per Share has been decreasing by -7.02% on average over the past years.
RTX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.44%.
The Revenue has been growing by 12.23% on average over the past years. This is quite good.
EPS 1Y (TTM)13.8%
EPS 3Y10.36%
EPS 5Y-7.02%
EPS Q2Q%10.64%
Revenue 1Y (TTM)15.44%
Revenue growth 3Y7.83%
Revenue growth 5Y12.23%
Sales Q2Q%9.04%
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 8.01% yearly.
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 Y4.83%
EPS Next 2Y8.07%
EPS Next 3Y9.29%
EPS Next 5Y8.01%
Revenue Next Year7.27%
Revenue Next 2Y6.56%
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.
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 25.89, the valuation of RTX can be described as expensive.
Based on the Price/Earnings ratio, RTX is valued cheaply inside the industry as 80.88% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RTX to the average of the S&P500 Index (27.30), we can say RTX is valued inline with the index average.
A Price/Forward Earnings ratio of 23.25 indicates a rather expensive valuation of RTX.
69.12% of the companies in the same industry are more expensive than RTX, based on the Price/Forward Earnings ratio.
RTX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.89 | ||
| Fwd PE | 23.25 |
4.2 Price Multiples
66.18% of the companies in the same industry are more expensive than RTX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RTX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 78.31 | ||
| EV/EBITDA | 19.41 |
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)5.36
PEG (5Y)N/A
EPS Next 2Y8.07%
EPS Next 3Y9.29%
5. Dividend
5.1 Amount
RTX has a Yearly Dividend Yield of 1.73%.
RTX's Dividend Yield is rather good when compared to the industry average which is at 1.47. RTX pays more dividend than 92.65% of the companies in the same industry.
RTX's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-3.08%
Div Incr Years31
Div Non Decr Years34
5.3 Sustainability
RTX pays out 54.91% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP54.91%
EPS Next 2Y8.07%
EPS Next 3Y9.29%
155.85
-1.8 (-1.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners82.89%
Inst Owner Change0.57%
Ins Owners0.02%
Ins Owner Change-1.56%
Market Cap208.61B
Analysts75.71
Price Target164.66 (5.65%)
Short Float %1.31%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend2.42
Dividend Growth(5Y)-3.08%
DP54.91%
Div Incr Years31
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.19%
Min EPS beat(2)6.96%
Max EPS beat(2)7.43%
EPS beat(4)4
Avg EPS beat(4)8.04%
Min EPS beat(4)6.96%
Max EPS beat(4)10.7%
EPS beat(8)8
Avg EPS beat(8)6.59%
EPS beat(12)12
Avg EPS beat(12)6.23%
EPS beat(16)16
Avg EPS beat(16)6.8%
Revenue beat(2)2
Avg Revenue beat(2)2.59%
Min Revenue beat(2)1.58%
Max Revenue beat(2)3.6%
Revenue beat(4)4
Avg Revenue beat(4)2.4%
Min Revenue beat(4)0.21%
Max Revenue beat(4)4.23%
Revenue beat(8)7
Avg Revenue beat(8)1.95%
Revenue beat(12)9
Avg Revenue beat(12)1.22%
Revenue beat(16)9
Avg Revenue beat(16)0.39%
PT rev (1m)0.76%
PT rev (3m)18.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.23%
EPS NY rev (1m)0.31%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.54%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)1.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.89 | ||
| Fwd PE | 23.25 | ||
| P/S | 2.5 | ||
| P/FCF | 78.31 | ||
| P/OCF | 35.68 | ||
| P/B | 3.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.41 |
EPS(TTM)6.02
EY3.86%
EPS(NY)6.7
Fwd EY4.3%
FCF(TTM)1.99
FCFY1.28%
OCF(TTM)4.37
OCFY2.8%
SpS62.46
BVpS46.62
TBVpS-17.69
PEG (NY)5.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 9.85% | ||
| ROCE | 7.29% | ||
| ROIC | 6.07% | ||
| ROICexc | 6.34% | ||
| ROICexgc | 29.46% | ||
| OM | 9.83% | ||
| PM (TTM) | 7.35% | ||
| GM | 20.05% | ||
| FCFM | 3.19% |
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%
ROICexcg growth 3Y14.66%
ROICexcg 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-Score8
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 15.76 | ||
| Debt/EBITDA | 3.17 | ||
| Cap/Depr | 72.99% | ||
| Cap/Sales | 3.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 46.47% | ||
| Profit Quality | 43.35% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.31 |
F-Score8
WACC9.43%
ROIC/WACC0.64
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)13.8%
EPS 3Y10.36%
EPS 5Y-7.02%
EPS Q2Q%10.64%
EPS Next Y4.83%
EPS Next 2Y8.07%
EPS Next 3Y9.29%
EPS Next 5Y8.01%
Revenue 1Y (TTM)15.44%
Revenue growth 3Y7.83%
Revenue growth 5Y12.23%
Sales Q2Q%9.04%
Revenue Next Year7.27%
Revenue Next 2Y6.56%
Revenue Next 3Y6.29%
Revenue Next 5Y4.99%
EBIT growth 1Y245.38%
EBIT growth 3Y5.54%
EBIT growth 5Y4.21%
EBIT Next Year39.27%
EBIT Next 3Y18.46%
EBIT Next 5Y11.96%
FCF growth 1Y24.72%
FCF growth 3Y-6.17%
FCF growth 5Y-10.06%
OCF growth 1Y11.12%
OCF growth 3Y0.41%
OCF growth 5Y-4.22%