RTX CORP (RTX) Stock Fundamental Analysis
NYSE:RTX • US75513E1010
202.62 USD
+4.99 (+2.52%)
At close: Feb 27, 2026
202.8 USD
+0.18 (+0.09%)
After Hours: 2/27/2026, 8:04:00 PM
Overall RTX gets a fundamental rating of 5 out of 10. We evaluated RTX against 75 industry peers in the Aerospace & Defense industry. While RTX has a great profitability rating, there are quite some concerns on its financial health. RTX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year RTX was profitable.
- In the past year RTX had a positive cash flow from operations.
- RTX had positive earnings in each of the past 5 years.
- In the past 5 years RTX always reported a positive cash flow from operatings.
1.2 Ratios
- RTX has a better Return On Assets (3.94%) than 62.67% of its industry peers.
- RTX's Return On Equity of 10.32% is fine compared to the rest of the industry. RTX outperforms 68.00% 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 54.67% 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 8.89%.
- 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
- With a decent Profit Margin value of 7.60%, RTX is doing good in the industry, outperforming 72.00% of the companies in the same industry.
- 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 69.33% of its industry peers.
- 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.
- RTX's Gross Margin has improved in the last couple of years.
| 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
- 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.
- Compared to 5 years ago, RTX has less shares outstanding
- RTX has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.71 indicates that RTX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- RTX has a Altman-Z score of 2.71. This is in the lower half of the industry: RTX underperforms 64.00% of its industry peers.
- RTX has a debt to FCF ratio of 5.09. This is a neutral value as RTX would need 5.09 years to pay back of 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 73.33% of its industry peers.
- RTX has a Debt/Equity ratio of 0.53. This is a neutral value indicating RTX is somewhat dependend on debt financing.
- The Debt to Equity ratio of RTX (0.53) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.09 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.7
WACC9.46%
2.3 Liquidity
- A Current Ratio of 1.03 indicates that RTX should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.03, RTX is doing worse than 88.00% of the companies in the same industry.
- 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 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.8 |
3. Growth
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.
- 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
- Based on estimates for the next years, RTX will show a small growth in Earnings Per Share. The EPS will grow by 6.92% on average per year.
- The Revenue is expected to grow by 5.72% on average over the next years.
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.
- 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
- The Price/Earnings ratio is 32.26, which means the current valuation is very expensive for RTX.
- Based on the Price/Earnings ratio, RTX is valued cheaper than 81.33% of the companies in the same industry.
- RTX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.07.
- Based on the Price/Forward Earnings ratio of 29.50, the valuation of RTX can be described as expensive.
- RTX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RTX is cheaper than 76.00% of the companies in the same industry.
- RTX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 28.05, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.26 | ||
| Fwd PE | 29.5 |
4.2 Price Multiples
- RTX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RTX is cheaper than 69.33% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, RTX is valued cheaply inside the industry as 82.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.52 | ||
| EV/EBITDA | 22.26 |
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)3.45
PEG (5Y)2.6
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.
- RTX's Dividend Yield is rather good when compared to the industry average which is at 0.33. RTX pays more dividend than 93.33% of the companies 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 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 2Y9.76%
EPS Next 3Y9.5%
202.62
+4.99 (+2.52%)
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 Change5.3%
Ins Owners0.02%
Ins Owner Change5.92%
Market Cap271.97B
Revenue(TTM)88.60B
Net Income(TTM)6.73B
Analysts75.17
Price Target212.53 (4.89%)
Short Float %0.78%
Short Ratio1.89
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 | 32.26 | ||
| Fwd PE | 29.5 | ||
| P/S | 3.07 | ||
| P/FCF | 36.52 | ||
| P/OCF | 25.74 | ||
| P/B | 4.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.26 |
EPS(TTM)6.28
EY3.1%
EPS(NY)6.87
Fwd EY3.39%
FCF(TTM)5.55
FCFY2.74%
OCF(TTM)7.87
OCFY3.89%
SpS66.01
BVpS48.61
TBVpS-14.86
PEG (NY)3.45
PEG (5Y)2.6
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 | 2.71 |
F-Score9
WACC9.46%
ROIC/WACC0.7
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 5 / 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 32.26 and the Price/Book (PB) ratio is 4.17.
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.