RTX Corp
Exchange: NYSESector: IndustrialsIndustry: Aerospace & Defense
Raytheon Technologies is an aerospace and defense company that provides advanced systems and services for commercial, military and government customers worldwide. With four industry-leading businesses ― Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space and Raytheon Missiles & Defense ― the company delivers solutions that push the boundaries in avionics, cybersecurity, directed energy, electric propulsion, hypersonics, and quantum physics. The company, formed in 2020 through the combination of Raytheon Company and the United Technologies Corporation aerospace businesses, is headquartered in Waltham, Massachusetts.
Did you know?
Net income compounded at 3.3% annually over 6 years.
Current Price
$196.21
+0.77%GoodMoat Value
$170.06
13.3% overvaluedProfile
Valuation (TTM)
Market Cap$263.07B
P/E39.08
EV$293.28B
P/B4.03
Shares Out1.34B
P/Sales2.97
Revenue$88.60B
EV/EBITDA20.32
RTX Corp (RTX) Stock Analysis
GoodMoat Analysis
RTX Corp, a major aerospace and defense contractor, appears to have a strong competitive position but is currently priced at a premium. The stock's valuation is unfavourable relative to the GoodMoat target and its own growth profile, indicating a lack of margin of safety.
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RTX Corp is a leading industrial conglomerate in the aerospace and defense sector, operating through its Pratt & Whitney, Collins Aerospace, and Raytheon segments. Applying the GoodMoat framework, the company likely possesses a durable moat (estimated Moat Score ≥ 5), supported by high regulatory barriers, long-term government contracts creating switching costs, and significant scale privilege in a supply-constrained industry. Its strategic importance and technological complexity provide a strong competitive position.
However, the valuation assessment is concerning. The current price of $195 is approximately 15% above the GoodMoat target of $170.06, suggesting an unfavourable or negative margin of safety. This is corroborated by a high P/E of 38.8x, which is difficult to justify given a 12.1% revenue growth rate and a 10.3% Return on Equity. The 3.0% Free Cash Flow Yield is also modest. According to the Decision Framework, a stock with a strong moat but trading at a premium to intrinsic value with a marginal or negative margin of safety falls into the 'With Caution' or 'Unfavourable' category. While the underlying business is robust, the price does not offer the discount required for a value-oriented margin of safety. Further investigation would need to focus on justifying the premium multiple through sustained, accelerated growth or improved profitability metrics.
Analysis based on data as of 2024-05-15.
Market Cap$263.07B
Current Price$196.21
P/E Ratio39.08
Forward P/E—
PEG Ratio4.34
EPS$4.96
Book Value$48.66
P/B Ratio4.03
RTX Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 2.1% FCF growth (CAGR)
Cash vs Debt
Net Debt: 32.1B
Revenue
45.3B
FY19
56.6B
FY20
64.4B
FY21
67.1B
FY22
68.9B
FY23
80.7B
FY24
88.6B
FY25
Net Income
5.5B
FY19
—
FY20
3.9B
FY21
5.2B
FY22
3.2B
FY23
4.8B
FY24
6.7B
FY25
RTX 52-Week Range
$111.85
$212.16
50-Day MA: $199.93200-Day MA: $173.41
Did you know?
RTX's revenue grew at a 11.8% CAGR over the last 6 years.
RTX Corp (RTX) Financial Summary
RTX Corp (RTX) is a Industrials company in the Aerospace & Defense industry, listed on NYSE. The stock currently trades at $196.21 with a market capitalization of $263.07B.
Key valuation metrics include a P/E ratio of 39.08, price-to-book ratio of 4.03, and EPS of $4.96. The company reports a profit margin of 7.6% and return on equity of 10.3%.
RTX Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $263.07B |
| P/E Ratio | 39.08 |
| EPS | $4.96 |
| P/B Ratio | 4.03 |
| P/S Ratio | 2.97 |
| EV/EBITDA | 20.32 |
| Dividend Yield | 1.36% |
| Profit Margin | 7.6% |
| Return on Equity | 10.3% |
| Debt/Equity | 0.61 |
RTX Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $45.35B | $5.54B |
| FY20 | $56.59B | $-3.52B |
| FY21 | $64.39B | $3.86B |
| FY22 | $67.07B | $5.20B |
| FY23 | $68.92B | $3.19B |
| FY24 | $80.74B | $4.77B |
| FY25 | $88.60B | $6.73B |
RTX Corp (RTX) Valuation
Based on GoodMoat's DCF model, RTX Corp has a fair value estimate of $170.06. At the current price of $196.21, the stock appears 15.4% overvalued relative to our intrinsic value estimate.
RTX Quality Indicators
RTX Corp maintains a profit margin of 7.6% and an operating margin of 10.0%. Return on equity stands at 10.3%. The current ratio is 1.03. Debt-to-equity ratio is 0.61.
About RTX Corp
Raytheon Technologies is an aerospace and defense company that provides advanced systems and services for commercial, military and government customers worldwide. With four industry-leading businesses ― Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space and Raytheon Missiles & Defense ― the company delivers solutions that push the boundaries in avionics, cybersecurity, directed energy, electric propulsion, hypersonics, and quantum physics. The company, formed in 2020 through the combination of Raytheon Company and the United Technologies Corporation aerospace businesses, is headquartered in Waltham, Massachusetts.
RTX Free Cash Flow
RTX Corp generated $7.94B in trailing twelve-month free cash flow, representing an FCF yield of 3.02%. This moderate FCF yield indicates reasonable cash generation.
RTX Shares Outstanding
RTX Corp has 1.34 billion shares outstanding at a share price of $196.21, giving it a market capitalization of $263.07B.
RTX Recent Insider Trades
Recent insider transactions at RTX Corp include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Williams Dantaya M (EVP & Chief HR Officer) | SELL | 12,713 | $2.58M |
| Maharajh Ramsaran (EVP and General Counsel) | SELL | 15,124 | $3.10M |
| Mitchill Neil G. JR (EVP, Chief Financial Officer) | SELL | 5,921 | $1.22M |