RTX CORP (RTX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RTX - US75513E1010 - Common Stock
169.68 USD
-3.05 (-1.77%)
169.68 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to RTX. RTX was compared to 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. RTX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
RTX had positive earnings in the past year.
In the past year RTX had a positive cash flow from operations.
Of the past 5 years RTX 4 years were profitable.
Each year in the past 5 years RTX had a positive operating cash flow.
1.2 Ratios
RTX has a Return On Assets of 3.91%. This is in the better half of the industry: RTX outperforms 61.97% of its industry peers.
Looking at the Return On Equity, with a value of 10.22%, RTX is in the better half of the industry, outperforming 70.42% of the companies in the same industry.
The Return On Invested Capital of RTX (6.30%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for RTX is below the industry average of 8.47%.
The 3 year average ROIC (3.68%) for RTX is below the current ROIC(6.30%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 7.67%, RTX is doing good in 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 64.79% of its industry peers.
RTX's Operating Margin has declined in the last couple of years.
The Gross Margin of RTX (20.13%) is worse than 61.97% of its industry peers.
In the last couple of years the Gross Margin of RTX has declined.
| 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
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 increased compared to 5 years ago.
RTX has a better debt/assets ratio than last year.
2.2 Solvency
RTX has an Altman-Z score of 2.48. 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's Altman-Z score of 2.48 is on the low side compared to the rest of the industry. RTX is outperformed by 61.97% of its industry peers.
The Debt to FCF ratio of RTX is 8.26, which is on the high side as it means it would take RTX, 8.26 years of fcf income to pay off all of its debts.
RTX has a Debt to FCF ratio of 8.26. This is in the better half of the industry: RTX outperforms 60.56% of its industry peers.
RTX has a Debt/Equity ratio of 0.60. This is a neutral value indicating 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: 60.56% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 8.26 | ||
| Altman-Z | 2.48 |
ROIC/WACC0.67
WACC9.45%
2.3 Liquidity
A Current Ratio of 1.07 indicates that RTX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.07, RTX is not doing good in the industry: 85.92% of the companies in the same industry are doing better.
A Quick Ratio of 0.81 indicates that RTX may have some problems paying its short term obligations.
RTX has a Quick ratio of 0.81. This is in the lower half of the industry: RTX underperforms 77.46% 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.
Measured over the past years, RTX shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.02% on average per year.
The Revenue has grown by 8.79% in the past year. This is quite good.
Measured over the past years, RTX shows a quite strong growth in Revenue. The Revenue has been growing by 12.23% on average per year.
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
The Earnings Per Share is expected to grow by 8.26% on average over the next years. This is quite good.
RTX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.22% yearly.
EPS Next Y9.14%
EPS Next 2Y9.39%
EPS Next 3Y9.99%
EPS Next 5Y8.26%
Revenue Next Year9.09%
Revenue Next 2Y7.58%
Revenue Next 3Y7.09%
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
A Price/Earnings ratio of 27.06 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 77.46% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.45. RTX is around the same levels.
The Price/Forward Earnings ratio is 24.70, which indicates a rather expensive current valuation of RTX.
Based on the Price/Forward Earnings ratio, RTX is valued a bit cheaper than the industry average as 74.65% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, RTX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.06 | ||
| Fwd PE | 24.7 |
4.2 Price Multiples
71.83% of the companies in the same industry are more expensive than RTX, based on the Enterprise Value to EBITDA ratio.
RTX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RTX is cheaper than 61.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.06 | ||
| EV/EBITDA | 20.04 |
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)2.96
PEG (5Y)N/A
EPS Next 2Y9.39%
EPS Next 3Y9.99%
5. Dividend
5.1 Amount
RTX has a Yearly Dividend Yield of 1.57%.
RTX's Dividend Yield is rather good when compared to the industry average which is at 1.15. RTX pays more dividend than 90.14% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.42, RTX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
5.2 History
The dividend of RTX decreases each year by -3.08%.
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)-3.08%
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 2Y9.39%
EPS Next 3Y9.99%
169.68
-3.05 (-1.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners83.31%
Inst Owner Change-74.92%
Ins Owners0.02%
Ins Owner Change-1.64%
Market Cap227.12B
Revenue(TTM)85.99B
Net Income(TTM)6.59B
Analysts76.15
Price Target189.46 (11.66%)
Short Float %0.93%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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)14.73%
PT rev (3m)15.94%
EPS NQ rev (1m)-2.57%
EPS NQ rev (3m)-3.01%
EPS NY rev (1m)4.19%
EPS NY rev (3m)4.11%
Revenue NQ rev (1m)0.59%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)1.66%
Revenue NY rev (3m)1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.06 | ||
| Fwd PE | 24.7 | ||
| P/S | 2.64 | ||
| P/FCF | 48.06 | ||
| P/OCF | 28.52 | ||
| P/B | 3.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.04 |
EPS(TTM)6.27
EY3.7%
EPS(NY)6.87
Fwd EY4.05%
FCF(TTM)3.53
FCFY2.08%
OCF(TTM)5.95
OCFY3.51%
SpS64.24
BVpS48.2
TBVpS-15.73
PEG (NY)2.96
PEG (5Y)N/A
Graham Number82.46
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 | 2.48 |
F-Score9
WACC9.45%
ROIC/WACC0.67
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 Y9.14%
EPS Next 2Y9.39%
EPS Next 3Y9.99%
EPS Next 5Y8.26%
Revenue 1Y (TTM)8.79%
Revenue growth 3Y7.83%
Revenue growth 5Y12.23%
Sales Q2Q%11.89%
Revenue Next Year9.09%
Revenue Next 2Y7.58%
Revenue Next 3Y7.09%
Revenue Next 5Y5.22%
EBIT growth 1Y48.43%
EBIT growth 3Y5.54%
EBIT growth 5Y4.21%
EBIT Next Year39.27%
EBIT Next 3Y18.46%
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 4 / 10 to RTX CORP (RTX). This can be considered as Fairly Valued.
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%.