RTX CORP (RTX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RTX - US75513E1010 - Common Stock
201.92 USD
+2.09 (+1.05%)
202.104 USD
+0.18 (+0.09%)
RTX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 72 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of RTX while its profitability can be described as average. RTX is valied quite expensively at the moment, while it does show a decent growth rate.
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
- Looking at the Return On Assets, with a value of 3.91%, RTX is in the better half of the industry, outperforming 61.97% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 10.22%, RTX is in the better half of the industry, outperforming 67.61% of the companies in the same industry.
- With a Return On Invested Capital value of 6.30%, RTX perfoms like the industry average, outperforming 56.34% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for RTX is below the industry average of 8.54%.
- 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
- The Profit Margin of RTX (7.67%) is better than 69.01% of its industry peers.
- RTX's Profit Margin has declined in the last couple of years.
- RTX has a Operating Margin of 10.02%. This is in the better half of the industry: RTX outperforms 61.97% of its industry peers.
- RTX's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 20.13%, RTX is not doing good in the industry: 61.97% of the companies in the same industry are doing better.
- 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
- 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.
- 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 2.71. 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.
- Looking at the Altman-Z score, with a value of 2.71, RTX is doing worse than 64.79% of the companies in the same industry.
- 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 (8.26) which is comparable to the rest of the industry.
- RTX has a Debt/Equity ratio of 0.60. This is a neutral value indicating RTX is somewhat dependend on debt financing.
- RTX has a worse Debt to Equity ratio (0.60) than 61.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 8.26 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.67
WACC9.37%
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.
- RTX has a worse Current ratio (1.07) than 90.14% of its industry peers.
- 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 amonst the worse of the industry: RTX underperforms 80.28% 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.
- Looking at the last year, RTX shows a quite strong growth in Revenue. The Revenue has grown by 8.79% in the last year.
- The Revenue has been growing by 12.23% on average over the past years. This is quite good.
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 Y9.22%
EPS Next 2Y9.17%
EPS Next 3Y9.86%
EPS Next 5Y8.26%
Revenue Next Year9.08%
Revenue Next 2Y7.65%
Revenue Next 3Y7.19%
Revenue Next 5Y5.22%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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 32.20, which means the current valuation is very expensive for RTX.
- Based on the Price/Earnings ratio, RTX is valued cheaper than 80.28% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.47. RTX is around the same levels.
- A Price/Forward Earnings ratio of 29.52 indicates a quite expensive valuation of RTX.
- 77.46% of the companies in the same industry are more expensive than RTX, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, RTX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.2 | ||
| Fwd PE | 29.52 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RTX is valued a bit cheaper than 67.61% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, RTX is valued a bit cheaper than the industry average as 63.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.28 | ||
| EV/EBITDA | 23.19 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.49
PEG (5Y)N/A
EPS Next 2Y9.17%
EPS Next 3Y9.86%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.36%, 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 0.35. RTX pays more dividend than 90.14% of the companies in the same industry.
- RTX's Dividend Yield is slightly below the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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 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 2Y9.17%
EPS Next 3Y9.86%
201.92
+2.09 (+1.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)10-21 2025-10-21/bmo
Earnings (Next)01-27 2026-01-27/bmo
Inst Owners81.59%
Inst Owner Change-0.03%
Ins Owners0.02%
Ins Owner Change-0.71%
Market Cap270.73B
Revenue(TTM)85.99B
Net Income(TTM)6.59B
Analysts77.14
Price Target195.96 (-2.95%)
Short Float %0.7%
Short Ratio2.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Yearly Dividend2.42
Dividend Growth(5Y)-3.08%
DP52.52%
Div Incr Years31
Div Non Decr Years34
Ex-DateN/A
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)1.25%
PT rev (3m)17.39%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-2.73%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)4.19%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.2 | ||
| Fwd PE | 29.52 | ||
| P/S | 3.15 | ||
| P/FCF | 57.28 | ||
| P/OCF | 34 | ||
| P/B | 4.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.19 |
EPS(TTM)6.27
EY3.11%
EPS(NY)6.84
Fwd EY3.39%
FCF(TTM)3.52
FCFY1.75%
OCF(TTM)5.94
OCFY2.94%
SpS64.13
BVpS48.12
TBVpS-15.71
PEG (NY)3.49
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 | 2.71 |
F-Score9
WACC9.37%
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 Y9.22%
EPS Next 2Y9.17%
EPS Next 3Y9.86%
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 2Y7.65%
Revenue Next 3Y7.19%
Revenue Next 5Y5.22%
EBIT growth 1Y48.43%
EBIT growth 3Y5.54%
EBIT growth 5Y4.21%
EBIT Next Year43.96%
EBIT Next 3Y19.68%
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.
What is the valuation status for RTX stock?
ChartMill assigns a valuation rating of 3 / 10 to RTX CORP (RTX). This can be considered as Overvalued.
What is the profitability of RTX stock?
RTX CORP (RTX) has a profitability rating of 5 / 10.
What are the PE and PB ratios of RTX CORP (RTX) stock?
The Price/Earnings (PE) ratio for RTX CORP (RTX) is 32.2 and the Price/Book (PB) ratio is 4.2.
Can you provide the expected EPS growth for RTX stock?
The Earnings per Share (EPS) of RTX CORP (RTX) is expected to grow by 9.22% in the next year.