RTX CORP (RTX) Stock Fundamental Analysis
USA - NYSE:RTX - US75513E1010 - Common Stock
166.58 USD
-0.05 (-0.03%)
166.48 USD
-0.1 (-0.06%)
Taking everything into account, RTX scores 4 out of 10 in our fundamental rating. RTX was compared to 68 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of RTX while its profitability can be described as average. While showing a medium growth rate, RTX is valued expensive at the moment.
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 3.68%, RTX is in the better half of the industry, outperforming 60.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.85%, RTX is in the better half of the industry, outperforming 67.65% of the companies in the same industry.
RTX has a Return On Invested Capital of 6.07%. This is comparable to the rest of the industry: RTX outperforms 55.88% of its industry peers.
RTX had an Average Return On Invested Capital over the past 3 years of 3.68%. This is below the industry average of 8.27%.
The 3 year average ROIC (3.68%) for RTX is below the current ROIC(6.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 9.85% | ||
| ROIC | 6.07% |
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
RTX's Profit Margin of 7.35% is fine compared to the rest of the industry. RTX outperforms 69.12% of its industry peers.
In the last couple of years the Profit Margin of RTX has declined.
RTX's Operating Margin of 9.83% is fine compared to the rest of the industry. RTX outperforms 66.18% of its industry peers.
In the last couple of years the Operating Margin of RTX has declined.
Looking at the Gross Margin, with a value of 20.05%, RTX is doing worse than 61.76% of the companies in the same industry.
RTX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.83% | ||
| PM (TTM) | 7.35% | ||
| GM | 20.05% |
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
RTX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, RTX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.40 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 2.40. This is in the lower half of the industry: RTX underperforms 64.71% of its industry peers.
RTX has a debt to FCF ratio of 15.76. This is a negative value and a sign of low solvency as RTX would need 15.76 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.76, RTX is in line with its industry, outperforming 52.94% of the companies in the same industry.
RTX has a Debt/Equity ratio of 0.64. This is a neutral value indicating RTX is somewhat dependend on debt financing.
RTX's Debt to Equity ratio of 0.64 is on the low side compared to the rest of the industry. RTX is outperformed by 63.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 15.76 | ||
| Altman-Z | 2.4 |
ROIC/WACC0.64
WACC9.43%
2.3 Liquidity
A Current Ratio of 1.01 indicates that RTX should not have too much problems paying its short term obligations.
The Current ratio of RTX (1.01) is worse than 85.29% of its industry peers.
A Quick Ratio of 0.75 indicates that RTX may have some problems paying its short term obligations.
With a Quick ratio value of 0.75, RTX is not doing good in the industry: 80.88% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
RTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.80%, which is quite good.
RTX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.02% yearly.
Looking at the last year, RTX shows a quite strong growth in Revenue. The Revenue has grown by 15.44% in the last year.
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)13.8%
EPS 3Y10.36%
EPS 5Y-7.02%
EPS Q2Q%10.64%
Revenue 1Y (TTM)15.44%
Revenue growth 3Y7.83%
Revenue growth 5Y12.23%
Sales Q2Q%9.04%
3.2 Future
The Earnings Per Share is expected to grow by 8.01% on average over the next years. This is quite good.
Based on estimates for the next years, RTX will show a small growth in Revenue. The Revenue will grow by 4.99% on average per year.
EPS Next Y4.83%
EPS Next 2Y8.05%
EPS Next 3Y9.26%
EPS Next 5Y8.01%
Revenue Next Year7.24%
Revenue Next 2Y6.54%
Revenue Next 3Y6.26%
Revenue Next 5Y4.99%
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
Based on the Price/Earnings ratio of 27.67, the valuation of RTX can be described as expensive.
Based on the Price/Earnings ratio, RTX is valued a bit cheaper than 79.41% of the companies in the same industry.
RTX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.86.
RTX is valuated rather expensively with a Price/Forward Earnings ratio of 24.86.
RTX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RTX is cheaper than 72.06% of the companies in the same industry.
RTX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.67 | ||
| Fwd PE | 24.86 |
4.2 Price Multiples
RTX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RTX is cheaper than 66.18% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RTX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 83.7 | ||
| EV/EBITDA | 20.55 |
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)5.73
PEG (5Y)N/A
EPS Next 2Y8.05%
EPS Next 3Y9.26%
5. Dividend
5.1 Amount
RTX has a Yearly Dividend Yield of 1.63%. 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 1.20. RTX pays more dividend than 92.65% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.44, RTX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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
54.91% of the earnings are spent on dividend by RTX. This is a bit on the high side, but may be sustainable.
DP54.91%
EPS Next 2Y8.05%
EPS Next 3Y9.26%
166.58
-0.05 (-0.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners83.31%
Inst Owner Change-0.04%
Ins Owners0.02%
Ins Owner Change-1.56%
Market Cap222.97B
Analysts76.15
Price Target165.14 (-0.86%)
Short Float %1.11%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Yearly Dividend2.42
Dividend Growth(5Y)-3.08%
DP54.91%
Div Incr Years31
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.19%
Min EPS beat(2)6.96%
Max EPS beat(2)7.43%
EPS beat(4)4
Avg EPS beat(4)8.04%
Min EPS beat(4)6.96%
Max EPS beat(4)10.7%
EPS beat(8)8
Avg EPS beat(8)6.59%
EPS beat(12)12
Avg EPS beat(12)6.23%
EPS beat(16)16
Avg EPS beat(16)6.8%
Revenue beat(2)2
Avg Revenue beat(2)2.59%
Min Revenue beat(2)1.58%
Max Revenue beat(2)3.6%
Revenue beat(4)4
Avg Revenue beat(4)2.4%
Min Revenue beat(4)0.21%
Max Revenue beat(4)4.23%
Revenue beat(8)7
Avg Revenue beat(8)1.95%
Revenue beat(12)9
Avg Revenue beat(12)1.22%
Revenue beat(16)9
Avg Revenue beat(16)0.39%
PT rev (1m)1.05%
PT rev (3m)15.78%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)-3.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.67 | ||
| Fwd PE | 24.86 | ||
| P/S | 2.67 | ||
| P/FCF | 83.7 | ||
| P/OCF | 38.13 | ||
| P/B | 3.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.55 |
EPS(TTM)6.02
EY3.61%
EPS(NY)6.7
Fwd EY4.02%
FCF(TTM)1.99
FCFY1.19%
OCF(TTM)4.37
OCFY2.62%
SpS62.46
BVpS46.62
TBVpS-17.69
PEG (NY)5.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 9.85% | ||
| ROCE | 7.29% | ||
| ROIC | 6.07% | ||
| ROICexc | 6.34% | ||
| ROICexgc | 29.46% | ||
| OM | 9.83% | ||
| PM (TTM) | 7.35% | ||
| GM | 20.05% | ||
| FCFM | 3.19% |
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%
ROICexcg growth 3Y14.66%
ROICexcg 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-Score8
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 15.76 | ||
| Debt/EBITDA | 3.17 | ||
| Cap/Depr | 72.99% | ||
| Cap/Sales | 3.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 46.47% | ||
| Profit Quality | 43.35% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.4 |
F-Score8
WACC9.43%
ROIC/WACC0.64
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)13.8%
EPS 3Y10.36%
EPS 5Y-7.02%
EPS Q2Q%10.64%
EPS Next Y4.83%
EPS Next 2Y8.05%
EPS Next 3Y9.26%
EPS Next 5Y8.01%
Revenue 1Y (TTM)15.44%
Revenue growth 3Y7.83%
Revenue growth 5Y12.23%
Sales Q2Q%9.04%
Revenue Next Year7.24%
Revenue Next 2Y6.54%
Revenue Next 3Y6.26%
Revenue Next 5Y4.99%
EBIT growth 1Y245.38%
EBIT growth 3Y5.54%
EBIT growth 5Y4.21%
EBIT Next Year39.27%
EBIT Next 3Y18.46%
EBIT Next 5Y11.96%
FCF growth 1Y24.72%
FCF growth 3Y-6.17%
FCF growth 5Y-10.06%
OCF growth 1Y11.12%
OCF growth 3Y0.41%
OCF growth 5Y-4.22%