RTX CORP (RTX) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:RTX • US75513E1010
195.97 USD
-0.77 (-0.39%)
At close: Feb 5, 2026
195.25 USD
-0.72 (-0.37%)
After Hours: 2/5/2026, 7:06:05 PM
RTX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 72 industry peers in the Aerospace & Defense industry. RTX has an excellent profitability rating, but there are some minor 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.
- RTX had a positive operating cash flow in the past year.
- Each year in the past 5 years RTX has been profitable.
- In the past 5 years RTX always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 3.94%, RTX is doing good in the industry, outperforming 63.89% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 10.32%, RTX is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
- RTX has a Return On Invested Capital of 6.62%. This is comparable to the rest of the industry: RTX outperforms 56.94% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for RTX is below the industry average of 8.66%.
- The last Return On Invested Capital (6.62%) for RTX is above the 3 year average (4.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 10.32% | ||
| ROIC | 6.62% |
ROA(3y)2.95%
ROA(5y)2.9%
ROE(3y)7.87%
ROE(5y)7.21%
ROIC(3y)4.52%
ROIC(5y)4.11%
1.3 Margins
- RTX's Profit Margin of 7.60% is fine compared to the rest of the industry. RTX outperforms 70.83% of its industry peers.
- RTX's Profit Margin has been stable in the last couple of years.
- RTX has a Operating Margin of 10.38%. This is in the better half of the industry: RTX outperforms 66.67% of its industry peers.
- RTX's Operating Margin has improved in the last couple of years.
- RTX has a Gross Margin (20.08%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of RTX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.38% | ||
| PM (TTM) | 7.6% | ||
| GM | 20.08% |
OM growth 3Y8.55%
OM growth 5Y23.56%
PM growth 3Y-0.65%
PM growth 5YN/A
GM growth 3Y-0.49%
GM growth 5Y4.94%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RTX is destroying value.
- The number of shares outstanding for RTX has been increased compared to 1 year ago.
- RTX has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for RTX has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.67 indicates that RTX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- RTX has a Altman-Z score of 2.67. This is comparable to the rest of the industry: RTX outperforms 40.28% of its industry peers.
- The Debt to FCF ratio of RTX is 5.09, which is a neutral value as it means it would take RTX, 5.09 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of RTX (5.09) is better than 69.44% of its industry peers.
- RTX has a Debt/Equity ratio of 0.53. This is a neutral value indicating RTX is somewhat dependend on debt financing.
- RTX has a Debt to Equity ratio (0.53) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.09 | ||
| Altman-Z | 2.67 |
ROIC/WACC0.65
WACC10.23%
2.3 Liquidity
- A Current Ratio of 1.03 indicates that RTX should not have too much problems paying its short term obligations.
- RTX's Current ratio of 1.03 is on the low side compared to the rest of the industry. RTX is outperformed by 88.89% of its industry peers.
- A Quick Ratio of 0.80 indicates that RTX may have some problems paying its short term obligations.
- RTX's Quick ratio of 0.80 is on the low side compared to the rest of the industry. RTX is outperformed by 80.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.41% over the past year.
- RTX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.40% yearly.
- Looking at the last year, RTX shows a quite strong growth in Revenue. The Revenue has grown by 9.74% in the last year.
- RTX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.38% yearly.
EPS 1Y (TTM)9.41%
EPS 3Y9.45%
EPS 5Y12.4%
EPS Q2Q%0.65%
Revenue 1Y (TTM)9.74%
Revenue growth 3Y9.72%
Revenue growth 5Y9.38%
Sales Q2Q%12.09%
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 7.97% on average per year.
- The Revenue is expected to grow by 3.07% on average over the next years.
EPS Next Y9.36%
EPS Next 2Y9.76%
EPS Next 3Y9.5%
EPS Next 5Y7.97%
Revenue Next Year7.25%
Revenue Next 2Y6.95%
Revenue Next 3Y6.6%
Revenue Next 5Y3.07%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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 31.21 indicates a quite expensive valuation of RTX.
- RTX's Price/Earnings ratio is rather cheap when compared to the industry. RTX is cheaper than 81.94% of the companies in the same industry.
- When comparing the Price/Earnings ratio of RTX to the average of the S&P500 Index (27.67), we can say RTX is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 28.53, the valuation of RTX can be described as expensive.
- 75.00% of the companies in the same industry are more expensive than RTX, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 27.20. RTX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.21 | ||
| Fwd PE | 28.53 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RTX is valued a bit cheaper than 69.44% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, RTX is valued cheaply inside the industry as 81.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.28 | ||
| EV/EBITDA | 21.66 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- RTX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.33
PEG (5Y)2.52
EPS Next 2Y9.76%
EPS Next 3Y9.5%
5. Dividend
5.1 Amount
- RTX has a Yearly Dividend Yield of 1.38%. 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 0.35. RTX pays more dividend than 93.06% of the companies in the same industry.
- RTX's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
5.2 History
- The dividend of RTX has a limited annual growth rate of 3.13%.
- 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)3.13%
Div Incr Years31
Div Non Decr Years34
5.3 Sustainability
- RTX pays out 53.09% of its income as dividend. This is a bit on the high side, but may be sustainable.
- RTX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP53.09%
EPS Next 2Y9.76%
EPS Next 3Y9.5%
195.97
-0.77 (-0.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-02 2026-02-02/bmo
Earnings (Next)04-20 2026-04-20/bmo
Inst Owners81.59%
Inst Owner Change-1.96%
Ins Owners0.02%
Ins Owner Change-0.15%
Market Cap262.75B
Revenue(TTM)88.60B
Net Income(TTM)6.73B
Analysts77.14
Price Target210.64 (7.49%)
Short Float %0.72%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Yearly Dividend2.67
Dividend Growth(5Y)3.13%
DP53.09%
Div Incr Years31
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.02%
Min EPS beat(2)4.58%
Max EPS beat(2)19.47%
EPS beat(4)4
Avg EPS beat(4)9.61%
Min EPS beat(4)4.58%
Max EPS beat(4)19.47%
EPS beat(8)8
Avg EPS beat(8)8.97%
EPS beat(12)12
Avg EPS beat(12)7.68%
EPS beat(16)16
Avg EPS beat(16)7.08%
Revenue beat(2)2
Avg Revenue beat(2)4.99%
Min Revenue beat(2)4.42%
Max Revenue beat(2)5.56%
Revenue beat(4)4
Avg Revenue beat(4)3.79%
Min Revenue beat(4)1.58%
Max Revenue beat(4)5.56%
Revenue beat(8)8
Avg Revenue beat(8)3.13%
Revenue beat(12)11
Avg Revenue beat(12)2.38%
Revenue beat(16)11
Avg Revenue beat(16)1.28%
PT rev (1m)1.08%
PT rev (3m)3.43%
EPS NQ rev (1m)-1.07%
EPS NQ rev (3m)-0.26%
EPS NY rev (1m)-0.74%
EPS NY rev (3m)1.29%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.21 | ||
| Fwd PE | 28.53 | ||
| P/S | 2.97 | ||
| P/FCF | 35.28 | ||
| P/OCF | 24.87 | ||
| P/B | 4.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.66 |
EPS(TTM)6.28
EY3.2%
EPS(NY)6.87
Fwd EY3.5%
FCF(TTM)5.56
FCFY2.83%
OCF(TTM)7.88
OCFY4.02%
SpS66.08
BVpS48.66
TBVpS-14.87
PEG (NY)3.33
PEG (5Y)2.52
Graham Number82.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 10.32% | ||
| ROCE | 8.19% | ||
| ROIC | 6.62% | ||
| ROICexc | 7.09% | ||
| ROICexgc | 37.46% | ||
| OM | 10.38% | ||
| PM (TTM) | 7.6% | ||
| GM | 20.08% | ||
| FCFM | 8.41% |
ROA(3y)2.95%
ROA(5y)2.9%
ROE(3y)7.87%
ROE(5y)7.21%
ROIC(3y)4.52%
ROIC(5y)4.11%
ROICexc(3y)4.81%
ROICexc(5y)4.37%
ROICexgc(3y)25.78%
ROICexgc(5y)22.54%
ROCE(3y)5.6%
ROCE(5y)5.09%
ROICexgc growth 3Y25.93%
ROICexgc growth 5Y39.07%
ROICexc growth 3Y22.45%
ROICexc growth 5Y38.27%
OM growth 3Y8.55%
OM growth 5Y23.56%
PM growth 3Y-0.65%
PM growth 5YN/A
GM growth 3Y-0.49%
GM growth 5Y4.94%
F-Score9
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 5.09 | ||
| Debt/EBITDA | 2.54 | ||
| Cap/Depr | 71.24% | ||
| Cap/Sales | 3.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.82% | ||
| Profit Quality | 110.64% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 2.67 |
F-Score9
WACC10.23%
ROIC/WACC0.65
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)9.41%
EPS 3Y9.45%
EPS 5Y12.4%
EPS Q2Q%0.65%
EPS Next Y9.36%
EPS Next 2Y9.76%
EPS Next 3Y9.5%
EPS Next 5Y7.97%
Revenue 1Y (TTM)9.74%
Revenue growth 3Y9.72%
Revenue growth 5Y9.38%
Sales Q2Q%12.09%
Revenue Next Year7.25%
Revenue Next 2Y6.95%
Revenue Next 3Y6.6%
Revenue Next 5Y3.07%
EBIT growth 1Y52.37%
EBIT growth 3Y19.11%
EBIT growth 5Y35.16%
EBIT Next Year41.27%
EBIT Next 3Y17.29%
EBIT Next 5Y12.68%
FCF growth 1Y89.85%
FCF growth 3Y19.24%
FCF growth 5Y35.36%
OCF growth 1Y47.6%
OCF growth 3Y13.81%
OCF growth 5Y23.99%
RTX CORP / RTX 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.
What is the profitability of RTX stock?
RTX CORP (RTX) has a profitability rating of 7 / 10.
What are the PE and PB ratios of RTX CORP (RTX) stock?
The Price/Earnings (PE) ratio for RTX CORP (RTX) is 31.21 and the Price/Book (PB) ratio is 4.03.
Can you provide the expected EPS growth for RTX stock?
The Earnings per Share (EPS) of RTX CORP (RTX) is expected to grow by 9.36% in the next year.