RTX CORP (RTX) Fundamental Analysis & Valuation
NYSE:RTX • US75513E1010
Current stock price
173.38 USD
-0.88 (-0.5%)
At close:
173.38 USD
0 (0%)
After Hours:
This RTX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. RTX Profitability Analysis
1.1 Basic Checks
- RTX had positive earnings in the past year.
- In the past year RTX had a positive cash flow from operations.
- In the past 5 years RTX has always been profitable.
- Each year in the past 5 years RTX had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 4.26%, RTX perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 10.95%, RTX is in the better half of the industry, outperforming 67.50% of the companies in the same industry.
- RTX has a Return On Invested Capital of 6.80%. This is comparable to the rest of the industry: RTX outperforms 57.50% of its industry peers.
- RTX had an Average Return On Invested Capital over the past 3 years of 4.43%. This is below the industry average of 9.35%.
- The last Return On Invested Capital (6.80%) for RTX is above the 3 year average (4.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.26% | ||
| ROE | 10.95% | ||
| ROIC | 6.8% |
ROA(3y)2.95%
ROA(5y)2.9%
ROE(3y)7.87%
ROE(5y)7.21%
ROIC(3y)4.43%
ROIC(5y)4.06%
1.3 Margins
- RTX has a better Profit Margin (8.03%) than 76.25% of its industry peers.
- In the last couple of years the Profit Margin of RTX has remained more or less at the same level.
- The Operating Margin of RTX (10.42%) is better than 68.75% of its industry peers.
- RTX's Operating Margin has improved in the last couple of years.
- RTX's Gross Margin of 20.21% is in line compared to the rest of the industry. RTX outperforms 41.25% of its industry peers.
- RTX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.42% | ||
| PM (TTM) | 8.03% | ||
| GM | 20.21% |
OM growth 3Y6.97%
OM growth 5Y22.48%
PM growth 3Y-0.65%
PM growth 5YN/A
GM growth 3Y-0.49%
GM growth 5Y4.94%
2. RTX Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RTX is destroying value.
- RTX has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for RTX has been reduced compared to 5 years ago.
- Compared to 1 year ago, RTX has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.55 indicates that RTX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- RTX has a worse Altman-Z score (2.55) than 66.25% of its industry peers.
- RTX has a debt to FCF ratio of 4.69. This is a neutral value as RTX would need 4.69 years to pay back of all of its debts.
- RTX has a better Debt to FCF ratio (4.69) than 73.75% of its industry peers.
- A Debt/Equity ratio of 0.50 indicates that RTX is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.50, RTX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.69 | ||
| Altman-Z | 2.55 |
ROIC/WACC0.7
WACC9.66%
2.3 Liquidity
- A Current Ratio of 1.02 indicates that RTX should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.02, RTX is not doing good in the industry: 88.75% of the companies in the same industry are doing better.
- A Quick Ratio of 0.78 indicates that RTX may have some problems paying its short term obligations.
- With a Quick ratio value of 0.78, RTX is not doing good in the industry: 85.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.78 |
3. RTX Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 12.27% 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 10.56%.
- The Revenue has been growing by 9.38% on average over the past years. This is quite good.
EPS 1Y (TTM)12.27%
EPS 3Y9.45%
EPS 5Y12.4%
EPS Q2Q%21.09%
Revenue 1Y (TTM)10.56%
Revenue growth 3Y9.72%
Revenue growth 5Y9.38%
Sales Q2Q%8.72%
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 6.95% on average per year.
- 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 Y9.52%
EPS Next 2Y9.99%
EPS Next 3Y9.9%
EPS Next 5Y6.95%
Revenue Next Year7.35%
Revenue Next 2Y7.03%
Revenue Next 3Y6.83%
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. RTX Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 26.31 indicates a quite expensive valuation of RTX.
- Compared to the rest of the industry, the Price/Earnings ratio of RTX indicates a somewhat cheap valuation: RTX is cheaper than 78.75% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.42. RTX is around the same levels.
- The Price/Forward Earnings ratio is 22.82, which indicates a rather expensive current valuation of RTX.
- RTX's Price/Forward Earnings ratio is rather cheap when compared to the industry. RTX is cheaper than 81.25% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 22.29, RTX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.31 | ||
| Fwd PE | 22.82 |
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 71.25% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, RTX is valued cheaper than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.28 | ||
| EV/EBITDA | 19.17 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of RTX may justify a higher PE ratio.
PEG (NY)2.76
PEG (5Y)2.12
EPS Next 2Y9.99%
EPS Next 3Y9.9%
5. RTX Dividend Analysis
5.1 Amount
- RTX has a Yearly Dividend Yield of 1.56%.
- RTX's Dividend Yield is rather good when compared to the industry average which is at 0.38. RTX pays more dividend than 95.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, RTX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
- The dividend of RTX has a limited annual growth rate of 3.12%.
- 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)3.12%
Div Incr Years32
Div Non Decr Years34
5.3 Sustainability
- RTX pays out 50.29% 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.
DP50.29%
EPS Next 2Y9.99%
EPS Next 3Y9.9%
RTX Fundamentals: All Metrics, Ratios and Statistics
173.38
-0.88 (-0.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)04-21 2026-04-21/bmo
Earnings (Next)07-20 2026-07-20/bmo
Inst Owners80.88%
Inst Owner Change-0.75%
Ins Owners0.02%
Ins Owner Change1.23%
Market Cap233.36B
Revenue(TTM)90.37B
Net Income(TTM)7.26B
Analysts72.67
Price Target211.87 (22.2%)
Short Float %1.02%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend2.67
Dividend Growth(5Y)3.12%
DP50.29%
Div Incr Years32
Div Non Decr Years34
Ex-Date02-20 2026-02-20 (0.68)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.38%
Min EPS beat(2)4.58%
Max EPS beat(2)16.19%
EPS beat(4)4
Avg EPS beat(4)11.8%
Min EPS beat(4)4.58%
Max EPS beat(4)19.47%
EPS beat(8)8
Avg EPS beat(8)10.02%
EPS beat(12)12
Avg EPS beat(12)8.44%
EPS beat(16)16
Avg EPS beat(16)7.34%
Revenue beat(2)2
Avg Revenue beat(2)3.74%
Min Revenue beat(2)1.92%
Max Revenue beat(2)5.56%
Revenue beat(4)4
Avg Revenue beat(4)3.87%
Min Revenue beat(4)1.92%
Max Revenue beat(4)5.56%
Revenue beat(8)8
Avg Revenue beat(8)2.9%
Revenue beat(12)11
Avg Revenue beat(12)2.51%
Revenue beat(16)12
Avg Revenue beat(16)1.49%
PT rev (1m)-0.31%
PT rev (3m)8.12%
EPS NQ rev (1m)0.53%
EPS NQ rev (3m)0.3%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)1.3%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.31 | ||
| Fwd PE | 22.82 | ||
| P/S | 2.58 | ||
| P/FCF | 29.28 | ||
| P/OCF | 20.99 | ||
| P/B | 3.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.17 |
EPS(TTM)6.59
EY3.8%
EPS(NY)7.6
Fwd EY4.38%
FCF(TTM)5.92
FCFY3.42%
OCF(TTM)8.26
OCFY4.76%
SpS67.14
BVpS49.24
TBVpS-13.73
PEG (NY)2.76
PEG (5Y)2.12
Graham Number85.4491 (-50.72%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.26% | ||
| ROE | 10.95% | ||
| ROCE | 8.42% | ||
| ROIC | 6.8% | ||
| ROICexc | 7.24% | ||
| ROICexgc | 37.19% | ||
| OM | 10.42% | ||
| PM (TTM) | 8.03% | ||
| GM | 20.21% | ||
| FCFM | 8.82% |
ROA(3y)2.95%
ROA(5y)2.9%
ROE(3y)7.87%
ROE(5y)7.21%
ROIC(3y)4.43%
ROIC(5y)4.06%
ROICexc(3y)4.71%
ROICexc(5y)4.31%
ROICexgc(3y)25.23%
ROICexgc(5y)22.22%
ROCE(3y)5.48%
ROCE(5y)5.02%
ROICexgc growth 3Y24.1%
ROICexgc growth 5Y37.85%
ROICexc growth 3Y20.67%
ROICexc growth 5Y37.06%
OM growth 3Y6.97%
OM growth 5Y22.48%
PM growth 3Y-0.65%
PM growth 5YN/A
GM growth 3Y-0.49%
GM growth 5Y4.94%
F-Score8
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.69 | ||
| Debt/EBITDA | 2.4 | ||
| Cap/Depr | 71.55% | ||
| Cap/Sales | 3.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.46% | ||
| Profit Quality | 109.85% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 2.55 |
F-Score8
WACC9.66%
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)12.27%
EPS 3Y9.45%
EPS 5Y12.4%
EPS Q2Q%21.09%
EPS Next Y9.52%
EPS Next 2Y9.99%
EPS Next 3Y9.9%
EPS Next 5Y6.95%
Revenue 1Y (TTM)10.56%
Revenue growth 3Y9.72%
Revenue growth 5Y9.38%
Sales Q2Q%8.72%
Revenue Next Year7.35%
Revenue Next 2Y7.03%
Revenue Next 3Y6.83%
Revenue Next 5Y5.72%
EBIT growth 1Y42.66%
EBIT growth 3Y17.37%
EBIT growth 5Y33.97%
EBIT Next Year42.52%
EBIT Next 3Y19.01%
EBIT Next 5Y11.68%
FCF growth 1Y33.61%
FCF growth 3Y19.24%
FCF growth 5Y35.36%
OCF growth 1Y22.33%
OCF growth 3Y13.81%
OCF growth 5Y23.99%
RTX CORP / RTX Fundamental Analysis 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.
Can you provide the profitability details for RTX CORP?
RTX CORP (RTX) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for RTX stock?
The Price/Earnings (PE) ratio for RTX CORP (RTX) is 26.31 and the Price/Book (PB) ratio is 3.52.
How sustainable is the dividend of RTX CORP (RTX) stock?
The dividend rating of RTX CORP (RTX) is 7 / 10 and the dividend payout ratio is 50.29%.