RTX CORP (RTX) Stock Fundamental Analysis
NYSE:RTX - US75513E1010 - Common Stock
156.24 USD
-0.08 (-0.05%)
156.25 USD
+0.01 (+0.01%)
RTX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 68 industry peers in the Aerospace & Defense industry. RTX has a medium profitability rating, but doesn't score so well on its financial health evaluation. RTX is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RTX was profitable.
RTX had a positive operating cash flow in the past year.
Of the past 5 years RTX 4 years were profitable.
In the past 5 years RTX always reported a positive cash flow from operatings.
1.2 Ratios
RTX has a Return On Assets of 3.68%. This is in the better half of the industry: RTX outperforms 60.29% of its industry peers.
RTX's Return On Equity of 9.85% is fine compared to the rest of the industry. RTX outperforms 66.18% of its industry peers.
With a Return On Invested Capital value of 6.07%, RTX perfoms like the industry average, outperforming 57.35% of the companies in the same industry.
RTX had an Average Return On Invested Capital over the past 3 years of 3.68%. This is below the industry average of 8.59%.
The last Return On Invested Capital (6.07%) for RTX is above the 3 year average (3.68%), which is a sign of increasing profitability.
| 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
The Profit Margin of RTX (7.35%) is better than 70.59% of its industry peers.
In the last couple of years the Profit Margin of RTX has declined.
RTX has a Operating Margin of 9.83%. This is in the better half of the industry: RTX outperforms 67.65% of its industry peers.
RTX's Operating Margin has declined in the last couple of years.
The Gross Margin of RTX (20.05%) is worse than 60.29% of its industry peers.
In the last couple of years the Gross Margin of RTX has declined.
| 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
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.
RTX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RTX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.32 indicates that RTX is not a great score, but indicates only limited risk for bankruptcy at the moment.
RTX has a worse Altman-Z score (2.32) than 63.24% 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.
RTX has a Debt to FCF ratio (15.76) which is comparable to the rest of the industry.
RTX has a Debt/Equity ratio of 0.64. This is a neutral value indicating RTX is somewhat dependend on debt financing.
The Debt to Equity ratio of RTX (0.64) is worse than 63.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 15.76 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.62
WACC9.73%
2.3 Liquidity
A Current Ratio of 1.01 indicates that RTX should not have too much problems paying its short term obligations.
RTX's Current ratio of 1.01 is on the low side compared to the rest of the industry. RTX is outperformed by 85.29% of its industry peers.
RTX has a Quick Ratio of 1.01. This is a bad value and indicates that RTX is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.75, RTX is doing worse than 77.94% of the companies in the same industry.
| 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.
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 15.44% in the last year.
RTX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.23% yearly.
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
Based on estimates for the next years, RTX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.01% on average per year.
The Revenue is expected to grow by 4.99% on average over the next years.
EPS Next Y4.5%
EPS Next 2Y8.47%
EPS Next 3Y9.22%
EPS Next 5Y8.01%
Revenue Next Year7.36%
Revenue Next 2Y6.64%
Revenue Next 3Y6.36%
Revenue Next 5Y4.99%
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
Based on the Price/Earnings ratio of 25.95, the valuation of RTX can be described as expensive.
Based on the Price/Earnings ratio, RTX is valued a bit cheaper than the industry average as 77.94% of the companies are valued more expensively.
RTX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 23.13, the valuation of RTX can be described as rather expensive.
67.65% 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 34.91, RTX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.95 | ||
| Fwd PE | 23.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RTX is valued a bit cheaper than the industry average as 67.65% of the companies are valued more expensively.
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 | 78.5 | ||
| EV/EBITDA | 19.46 |
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)5.77
PEG (5Y)N/A
EPS Next 2Y8.47%
EPS Next 3Y9.22%
5. Dividend
5.1 Amount
RTX has a Yearly Dividend Yield of 1.75%.
Compared to an average industry Dividend Yield of 1.19, RTX pays a better dividend. On top of this RTX pays more dividend than 91.18% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.36, RTX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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 2Y8.47%
EPS Next 3Y9.22%
156.24
-0.08 (-0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners82.89%
Inst Owner Change0.58%
Ins Owners0.02%
Ins Owner Change-9.07%
Market Cap209.13B
Analysts76.55
Price Target163.42 (4.6%)
Short Float %1.06%
Short Ratio2.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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)14.58%
PT rev (3m)18.74%
EPS NQ rev (1m)-2.54%
EPS NQ rev (3m)-9.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)1.29%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)1.62%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.95 | ||
| Fwd PE | 23.13 | ||
| P/S | 2.5 | ||
| P/FCF | 78.5 | ||
| P/OCF | 35.77 | ||
| P/B | 3.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.46 |
EPS(TTM)6.02
EY3.85%
EPS(NY)6.75
Fwd EY4.32%
FCF(TTM)1.99
FCFY1.27%
OCF(TTM)4.37
OCFY2.8%
SpS62.46
BVpS46.62
TBVpS-17.69
PEG (NY)5.77
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 | 2.32 |
F-Score8
WACC9.73%
ROIC/WACC0.62
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 Y4.5%
EPS Next 2Y8.47%
EPS Next 3Y9.22%
EPS Next 5Y8.01%
Revenue 1Y (TTM)15.44%
Revenue growth 3Y7.83%
Revenue growth 5Y12.23%
Sales Q2Q%9.04%
Revenue Next Year7.36%
Revenue Next 2Y6.64%
Revenue Next 3Y6.36%
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%