RTX CORP (RTX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RTX - US75513E1010 - Common Stock
182.11 USD
+3.45 (+1.93%)
182.25 USD
+0.14 (+0.08%)
Overall RTX gets a fundamental rating of 4 out of 10. We evaluated RTX against 71 industry peers in the Aerospace & Defense industry. While RTX is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
Each year in the past 5 years RTX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RTX (3.91%) is better than 60.56% of its industry peers.
RTX's Return On Equity of 10.22% is fine compared to the rest of the industry. RTX outperforms 67.61% of its industry peers.
RTX's Return On Invested Capital of 6.30% is in line compared to the rest of the industry. RTX outperforms 56.34% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RTX is below the industry average of 8.60%.
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
Looking at the Profit Margin, with a value of 7.67%, RTX is in the better half of the industry, outperforming 69.01% of the companies in the same industry.
In the last couple of years the Profit Margin of RTX has declined.
The Operating Margin of RTX (10.02%) is better than 61.97% of its industry peers.
In the last couple of years the Operating Margin of RTX has declined.
RTX has a worse Gross Margin (20.13%) than 64.79% of its industry peers.
RTX's Gross Margin has declined in the last couple of years.
| 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
RTX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, RTX has more shares outstanding
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 2.55. 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.
RTX has a worse Altman-Z score (2.55) than 66.20% of its industry peers.
RTX has a debt to FCF ratio of 8.26. This is a slightly negative value and a sign of low solvency as RTX would need 8.26 years to pay back of all of its debts.
RTX's Debt to FCF ratio of 8.26 is fine compared to the rest of the industry. RTX outperforms 60.56% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that RTX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.60, RTX is not doing good in the industry: 64.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 8.26 | ||
| Altman-Z | 2.55 |
ROIC/WACC0.63
WACC9.92%
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 91.55% 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's Quick ratio of 0.81 is on the low side compared to the rest of the industry. RTX is outperformed by 81.69% 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.
The Earnings Per Share has been decreasing by -7.02% on average over the past years.
The Revenue has grown by 8.79% in the past year. This is quite good.
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)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
Based on estimates for the next years, RTX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.26% on average per year.
The Revenue is expected to grow by 5.22% on average over the next years.
EPS Next Y9.26%
EPS Next 2Y9.28%
EPS Next 3Y9.92%
EPS Next 5Y8.26%
Revenue Next Year9.08%
Revenue Next 2Y7.61%
Revenue Next 3Y7.14%
Revenue Next 5Y5.22%
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
RTX is valuated quite expensively with a Price/Earnings ratio of 29.04.
Based on the Price/Earnings ratio, RTX is valued a bit cheaper than the industry average as 77.46% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RTX to the average of the S&P500 Index (26.55), we can say RTX is valued inline with the index average.
A Price/Forward Earnings ratio of 26.57 indicates a quite expensive valuation of RTX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RTX indicates a somewhat cheap valuation: RTX is cheaper than 76.06% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, RTX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.04 | ||
| Fwd PE | 26.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RTX is valued a bit cheaper than the industry average as 67.61% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RTX indicates a somewhat cheap valuation: RTX is cheaper than 63.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.66 | ||
| EV/EBITDA | 21 |
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)3.14
PEG (5Y)N/A
EPS Next 2Y9.28%
EPS Next 3Y9.92%
5. Dividend
5.1 Amount
RTX has a Yearly Dividend Yield of 1.53%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.40, RTX pays a better dividend. On top of this RTX pays more dividend than 90.14% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, RTX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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 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
52.52% of the earnings are spent on dividend by RTX. This is a bit on the high side, but may be sustainable.
DP52.52%
EPS Next 2Y9.28%
EPS Next 3Y9.92%
182.11
+3.45 (+1.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners81.57%
Inst Owner Change-2.61%
Ins Owners0.02%
Ins Owner Change-0.71%
Market Cap244.17B
Revenue(TTM)85.99B
Net Income(TTM)6.59B
Analysts76.3
Price Target191.47 (5.14%)
Short Float %0.76%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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)1.06%
PT rev (3m)16.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.01%
EPS NY rev (1m)0.11%
EPS NY rev (3m)4.22%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.46%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.04 | ||
| Fwd PE | 26.57 | ||
| P/S | 2.84 | ||
| P/FCF | 51.66 | ||
| P/OCF | 30.66 | ||
| P/B | 3.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21 |
EPS(TTM)6.27
EY3.44%
EPS(NY)6.85
Fwd EY3.76%
FCF(TTM)3.52
FCFY1.94%
OCF(TTM)5.94
OCFY3.26%
SpS64.13
BVpS48.12
TBVpS-15.71
PEG (NY)3.14
PEG (5Y)N/A
Graham Number82.39
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
WACC9.92%
ROIC/WACC0.63
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 Y9.26%
EPS Next 2Y9.28%
EPS Next 3Y9.92%
EPS Next 5Y8.26%
Revenue 1Y (TTM)8.79%
Revenue growth 3Y7.83%
Revenue growth 5Y12.23%
Sales Q2Q%11.89%
Revenue Next Year9.08%
Revenue Next 2Y7.61%
Revenue Next 3Y7.14%
Revenue Next 5Y5.22%
EBIT growth 1Y48.43%
EBIT growth 3Y5.54%
EBIT growth 5Y4.21%
EBIT Next Year42.11%
EBIT Next 3Y19.16%
EBIT Next 5Y12.3%
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%.