RTX CORP (RTX) Stock Fundamental Analysis
NYSE:RTX - New York Stock Exchange, Inc. - US75513E1010 - Common Stock - Currency: USD
Overall RTX gets a fundamental rating of 4 out of 10. We evaluated RTX against 65 industry peers in the Aerospace & Defense industry. RTX has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, RTX is valued expensive at the moment.
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.
RTX had positive earnings in 4 of the past 5 years.
RTX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.79%, RTX perfoms like the industry average, outperforming 52.31% of the companies in the same industry.
With a Return On Equity value of 7.48%, RTX perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
The Return On Invested Capital of RTX (4.66%) is comparable to the rest of the industry.
RTX had an Average Return On Invested Capital over the past 3 years of 3.68%. This is below the industry average of 8.44%.
The 3 year average ROIC (3.68%) for RTX is below the current ROIC(4.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | 7.48% | ||
| ROIC | 4.66% |
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 5.63%. This is comparable to the rest of the industry: RTX outperforms 58.46% of its industry peers.
In the last couple of years the Profit Margin of RTX has declined.
RTX has a Operating Margin (7.59%) which is in line with its industry peers.
In the last couple of years the Operating Margin of RTX has declined.
With a Gross Margin value of 19.53%, RTX is not doing good in the industry: 64.62% 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 | 7.59% | ||
| PM (TTM) | 5.63% | ||
| GM | 19.53% |
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.
RTX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.22 indicates that RTX is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of RTX (2.22) is worse than 64.62% of its industry peers.
RTX has a debt to FCF ratio of 8.43. This is a slightly negative value and a sign of low solvency as RTX would need 8.43 years to pay back of all of its debts.
RTX has a Debt to FCF ratio (8.43) which is comparable to the rest of the industry.
RTX has a Debt/Equity ratio of 0.63. This is a neutral value indicating RTX is somewhat dependend on debt financing.
RTX's Debt to Equity ratio of 0.63 is in line compared to the rest of the industry. RTX outperforms 43.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 8.43 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.46
WACC10.18%
2.3 Liquidity
RTX has a Current Ratio of 1.01. This is a normal value and indicates that RTX is financially healthy and should not expect problems in meeting its short term obligations.
RTX's Current ratio of 1.01 is on the low side compared to the rest of the industry. RTX is outperformed by 87.69% of its industry peers.
RTX has a Quick Ratio of 1.01. 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 0.75. This is amonst the worse of the industry: RTX underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.54% over the past year.
The Earnings Per Share has been decreasing by -7.02% on average over the past years.
Looking at the last year, RTX shows a quite strong growth in Revenue. The Revenue has grown by 15.11% in the last year.
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)13.54%
EPS 3Y10.36%
EPS 5Y-7.02%
EPS Q2Q%9.7%
Revenue 1Y (TTM)15.11%
Revenue growth 3Y7.83%
Revenue growth 5Y12.23%
Sales Q2Q%5.19%
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 7.26% on average per year.
Based on estimates for the next years, RTX will show a small growth in Revenue. The Revenue will grow by 4.45% on average per year.
EPS Next Y4.86%
EPS Next 2Y8.63%
EPS Next 3Y9.33%
EPS Next 5Y7.26%
Revenue Next Year5.69%
Revenue Next 2Y5.82%
Revenue Next 3Y5.81%
Revenue Next 5Y4.45%
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
The Price/Earnings ratio is 25.02, which means the current valuation is very expensive for RTX.
78.46% of the companies in the same industry are more expensive than RTX, based on the Price/Earnings ratio.
RTX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.68, which indicates a rather expensive current valuation of RTX.
Based on the Price/Forward Earnings ratio, RTX is valued a bit cheaper than 75.38% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, RTX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.02 | ||
| Fwd PE | 21.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RTX is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
RTX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RTX is cheaper than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.05 | ||
| EV/EBITDA | 21.92 |
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)5.15
PEG (5Y)N/A
EPS Next 2Y8.63%
EPS Next 3Y9.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.86%, 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 1.23. RTX pays more dividend than 90.77% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.35, RTX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
The dividend of RTX decreases each year by -3.09%.
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)-3.09%
Div Incr Years31
Div Non Decr Years34
5.3 Sustainability
RTX pays out 71.48% of its income as dividend. This is not a sustainable payout ratio.
DP71.48%
EPS Next 2Y8.63%
EPS Next 3Y9.33%
146.87
+0.47 (+0.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners82.87%
Inst Owner Change0.05%
Ins Owners0.02%
Ins Owner Change-0.04%
Market Cap196.21B
Analysts77.24
Price Target142.63 (-2.89%)
Short Float %0.86%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend2.42
Dividend Growth(5Y)-3.09%
DP71.48%
Div Incr Years31
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.06%
Min EPS beat(2)7.43%
Max EPS beat(2)10.7%
EPS beat(4)4
Avg EPS beat(4)8.24%
Min EPS beat(4)7.07%
Max EPS beat(4)10.7%
EPS beat(8)8
Avg EPS beat(8)6.76%
EPS beat(12)12
Avg EPS beat(12)5.85%
EPS beat(16)16
Avg EPS beat(16)6.97%
Revenue beat(2)2
Avg Revenue beat(2)2.9%
Min Revenue beat(2)1.58%
Max Revenue beat(2)4.23%
Revenue beat(4)4
Avg Revenue beat(4)1.92%
Min Revenue beat(4)0.21%
Max Revenue beat(4)4.23%
Revenue beat(8)7
Avg Revenue beat(8)1.82%
Revenue beat(12)8
Avg Revenue beat(12)0.7%
Revenue beat(16)8
Avg Revenue beat(16)0.12%
PT rev (1m)3.64%
PT rev (3m)-0.42%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)-3.32%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-2.82%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.02 | ||
| Fwd PE | 21.68 | ||
| P/S | 2.4 | ||
| P/FCF | 40.05 | ||
| P/OCF | 24.16 | ||
| P/B | 3.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.92 |
EPS(TTM)5.87
EY4%
EPS(NY)6.77
Fwd EY4.61%
FCF(TTM)3.67
FCFY2.5%
OCF(TTM)6.08
OCFY4.14%
SpS61.18
BVpS46.05
TBVpS-18.45
PEG (NY)5.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | 7.48% | ||
| ROCE | 5.53% | ||
| ROIC | 4.66% | ||
| ROICexc | 4.89% | ||
| ROICexgc | 24.81% | ||
| OM | 7.59% | ||
| PM (TTM) | 5.63% | ||
| GM | 19.53% | ||
| FCFM | 5.99% |
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 | 0.63 | ||
| Debt/FCF | 8.43 | ||
| Debt/EBITDA | 3.64 | ||
| Cap/Depr | 73.97% | ||
| Cap/Sales | 3.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.91% | ||
| Profit Quality | 106.5% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.22 |
F-Score8
WACC10.18%
ROIC/WACC0.46
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)13.54%
EPS 3Y10.36%
EPS 5Y-7.02%
EPS Q2Q%9.7%
EPS Next Y4.86%
EPS Next 2Y8.63%
EPS Next 3Y9.33%
EPS Next 5Y7.26%
Revenue 1Y (TTM)15.11%
Revenue growth 3Y7.83%
Revenue growth 5Y12.23%
Sales Q2Q%5.19%
Revenue Next Year5.69%
Revenue Next 2Y5.82%
Revenue Next 3Y5.81%
Revenue Next 5Y4.45%
EBIT growth 1Y67.24%
EBIT growth 3Y5.54%
EBIT growth 5Y4.21%
EBIT Next Year37.99%
EBIT Next 3Y18.06%
EBIT Next 5Y10.74%
FCF growth 1Y70.76%
FCF growth 3Y-6.17%
FCF growth 5Y-10.06%
OCF growth 1Y39.34%
OCF growth 3Y0.41%
OCF growth 5Y-4.22%