RTX CORP (RTX) Stock Fundamental Analysis
NYSE:RTX • US75513E1010
208.74 USD
-3.42 (-1.61%)
Last: Mar 3, 2026, 12:13 PM
We assign a fundamental rating of 5 out of 10 to RTX. RTX was compared to 75 industry peers in the Aerospace & Defense industry. While RTX belongs to the best of the industry regarding profitability, there are concerns on its financial health. RTX has a decent growth rate and is not valued too expensively.
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 each of the past 5 years.
- Each year in the past 5 years RTX had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of RTX (3.94%) is better than 60.26% of its industry peers.
- With a decent Return On Equity value of 10.32%, RTX is doing good in the industry, outperforming 65.38% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 6.62%, RTX is in line with its industry, outperforming 52.56% 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 8.86%.
- 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
- RTX has a Profit Margin of 7.60%. This is in the better half of the industry: RTX outperforms 67.95% of its industry peers.
- In the last couple of years the Profit Margin of RTX has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 10.38%, RTX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- In the last couple of years the Operating Margin of RTX has grown nicely.
- 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. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
- An Altman-Z score of 2.78 indicates that RTX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of RTX (2.78) is worse than 62.82% 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.
- With a decent Debt to FCF ratio value of 5.09, RTX is doing good in the industry, outperforming 74.36% of the companies in the same industry.
- A Debt/Equity ratio of 0.53 indicates that RTX is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.53, RTX is in line with its industry, outperforming 51.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.09 | ||
| Altman-Z | 2.78 |
ROIC/WACC0.72
WACC9.24%
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 88.46% of its industry peers.
- A Quick Ratio of 0.80 indicates that RTX may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.80, RTX is doing worse than 80.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.8 |
3. Growth
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.
- RTX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.74%.
- 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
- 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 Y9.36%
EPS Next 2Y9.76%
EPS Next 3Y9.5%
EPS Next 5Y6.92%
Revenue Next Year7.36%
Revenue Next 2Y7.05%
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.
- 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
- With a Price/Earnings ratio of 33.24, RTX can be considered very expensive at the moment.
- RTX's Price/Earnings ratio is a bit cheaper when compared to the industry. RTX is cheaper than 76.92% of the companies in the same industry.
- RTX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.13.
- RTX is valuated quite expensively with a Price/Forward Earnings ratio of 30.39.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RTX indicates a somewhat cheap valuation: RTX is cheaper than 74.36% of the companies listed in the same industry.
- RTX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 28.11, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.24 | ||
| Fwd PE | 30.39 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RTX indicates a somewhat cheap valuation: RTX is cheaper than 65.38% of the companies listed in the same industry.
- RTX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RTX is cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.62 | ||
| EV/EBITDA | 23.2 |
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)3.55
PEG (5Y)2.68
EPS Next 2Y9.76%
EPS Next 3Y9.5%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.38%, RTX has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.33, RTX pays a better dividend. On top of this RTX pays more dividend than 93.59% of the companies listed in the same industry.
- RTX's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
5.2 History
- The dividend of RTX has a limited annual growth rate of 3.13%.
- RTX has been paying a dividend for at least 10 years, so it has a reliable track record.
- RTX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.13%
Div Incr Years31
Div Non Decr Years34
5.3 Sustainability
- 53.09% of the earnings are spent on dividend by RTX. 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 2Y9.76%
EPS Next 3Y9.5%
NYSE:RTX (3/3/2026, 12:13:06 PM)
208.74
-3.42 (-1.61%)
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 Owners81.59%
Inst Owner Change5.23%
Ins Owners0.02%
Ins Owner Change1.07%
Market Cap280.19B
Revenue(TTM)88.60B
Net Income(TTM)6.73B
Analysts75.17
Price Target212.53 (1.82%)
Short Float %0.92%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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)8.46%
PT rev (3m)12.17%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-0.31%
EPS NY rev (1m)1.15%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)1.06%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.24 | ||
| Fwd PE | 30.39 | ||
| P/S | 3.16 | ||
| P/FCF | 37.62 | ||
| P/OCF | 26.52 | ||
| P/B | 4.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.2 |
EPS(TTM)6.28
EY3.01%
EPS(NY)6.87
Fwd EY3.29%
FCF(TTM)5.55
FCFY2.66%
OCF(TTM)7.87
OCFY3.77%
SpS66.01
BVpS48.61
TBVpS-14.86
PEG (NY)3.55
PEG (5Y)2.68
Graham Number82.87
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 | 2.78 |
F-Score9
WACC9.24%
ROIC/WACC0.72
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 Y9.36%
EPS Next 2Y9.76%
EPS Next 3Y9.5%
EPS Next 5Y6.92%
Revenue 1Y (TTM)9.74%
Revenue growth 3Y9.72%
Revenue growth 5Y9.38%
Sales Q2Q%12.09%
Revenue Next Year7.36%
Revenue Next 2Y7.05%
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 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 7 / 10.
What are the PE and PB ratios of RTX CORP (RTX) stock?
The Price/Earnings (PE) ratio for RTX CORP (RTX) is 33.24 and the Price/Book (PB) ratio is 4.29.
Can you provide the expected EPS growth for RTX stock?
The Earnings per Share (EPS) of RTX CORP (RTX) is expected to grow by 9.36% in the next year.