RTX CORP (RTX)
US75513E1010 - Common Stock
Overall RTX gets a fundamental rating of 4 out of 10. We evaluated RTX against 63 industry peers in the Aerospace & Defense industry. RTX may be in some trouble as it scores bad on both profitability and health. RTX has a correct valuation and a medium 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.
In the past 5 years RTX always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.17%, RTX perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
With a Return On Equity value of 5.75%, RTX perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
RTX has a Return On Invested Capital of 2.82%. This is comparable to the rest of the industry: RTX outperforms 46.03% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RTX is significantly below the industry average of 8.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 5.75% | ||
| ROIC | 2.82% |
ROA(3y)2.55%
ROA(5y)1.89%
ROE(3y)5.93%
ROE(5y)5.23%
ROIC(3y)3.43%
ROIC(5y)3.24%
1.3 Margins
RTX has a Profit Margin (4.90%) which is comparable to the rest of the industry.
RTX's Profit Margin has declined in the last couple of years.
RTX has a Operating Margin (5.22%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of RTX has declined.
RTX has a worse Gross Margin (17.01%) than 65.08% of its industry peers.
RTX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.22% | ||
| PM (TTM) | 4.9% | ||
| GM | 17.01% |
OM growth 3Y12.34%
OM growth 5Y-9.02%
PM growth 3YN/A
PM growth 5Y-21.12%
GM growth 3Y3.59%
GM growth 5Y-3.4%
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 less shares outstanding than it did 1 year ago.
Compared to 5 years ago, RTX has more shares outstanding
The debt/assets ratio for RTX is higher compared to a year ago.
2.2 Solvency
RTX has an Altman-Z score of 1.82. 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.
With a Altman-Z score value of 1.82, RTX perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
The Debt to FCF ratio of RTX is 7.18, which is on the high side as it means it would take RTX, 7.18 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.18, RTX is in the better half of the industry, outperforming 63.49% of the companies in the same industry.
A Debt/Equity ratio of 0.70 indicates that RTX is somewhat dependend on debt financing.
RTX's Debt to Equity ratio of 0.70 is on the low side compared to the rest of the industry. RTX is outperformed by 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.32
WACC8.77%
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.
Looking at the Current ratio, with a value of 1.07, RTX is doing worse than 74.60% of the companies in the same industry.
A Quick Ratio of 0.79 indicates that RTX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.79, RTX is doing worse than 79.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.38% over the past year.
RTX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.90% yearly.
Looking at the last year, RTX shows a small growth in Revenue. The Revenue has grown by 3.56% in the last year.
The Revenue has been growing by 14.71% on average over the past years. This is quite good.
EPS 1Y (TTM)6.38%
EPS 3Y13%
EPS 5Y-7.9%
EPS growth Q2Q9.84%
Revenue 1Y (TTM)3.56%
Revenue growth 3Y6.79%
Revenue growth 5Y14.71%
Revenue growth Q2Q12.15%
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 10.11% on average per year.
Based on estimates for the next years, RTX will show a small growth in Revenue. The Revenue will grow by 5.26% on average per year.
EPS Next Y7.78%
EPS Next 2Y10.56%
EPS Next 3Y10.71%
EPS Next 5Y10.11%
Revenue Next Year6.17%
Revenue Next 2Y6.16%
Revenue Next 3Y6.16%
Revenue Next 5Y5.26%
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.
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 19.71, which indicates a rather expensive current valuation of RTX.
Based on the Price/Earnings ratio, RTX is valued cheaper than 82.54% of the companies in the same industry.
When comparing the Price/Earnings ratio of RTX to the average of the S&P500 Index (28.06), we can say RTX is valued slightly cheaper.
RTX is valuated correctly with a Price/Forward Earnings ratio of 16.51.
RTX's Price/Forward Earnings ratio is rather cheap when compared to the industry. RTX is cheaper than 92.06% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.72, RTX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.71 | ||
| Fwd PE | 16.51 |
4.2 Price Multiples
RTX's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, RTX is valued cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.71 | ||
| EV/EBITDA | 21.72 |
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)2.53
PEG (5Y)N/A
EPS Next 2Y10.56%
EPS Next 3Y10.71%
5. Dividend
5.1 Amount
RTX has a Yearly Dividend Yield of 2.32%. Purely for dividend investing, there may be better candidates out there.
RTX's Dividend Yield is rather good when compared to the industry average which is at 1.31. RTX pays more dividend than 95.24% of the companies in the same industry.
RTX's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
The dividend of RTX decreases each year by -2.37%.
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)-2.37%
Div Incr Years17
Div Non Decr Years17
5.3 Sustainability
92.52% of the earnings are spent on dividend by RTX. This is not a sustainable payout ratio.
DP92.52%
EPS Next 2Y10.56%
EPS Next 3Y10.71%
RTX CORP
NYSE:RTX (5/2/2024, 7:17:34 PM)
After market: 101.85 -0.04 (-0.04%)101.89
+0.67 (+0.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap135.48B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.71 | ||
| Fwd PE | 16.51 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.53
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 5.75% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.22% | ||
| PM (TTM) | 4.9% | ||
| GM | 17.01% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)6.38%
EPS 3Y13%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.56%
Revenue growth 3Y6.79%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y