RTX (RTX) Stock Analysis
Here is a fundamental analysis of RTX (RTX), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: RTX | Industry group median |
|---|---|---|
| 1-Year Return | 32.26% | 25.11% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: RTX | Industry group median |
|---|---|---|
| 1-Year Volatility | 24.30% | 41.58% |
| Beta | 0.31 | 1.19 |
Company Profile
| Profile Item | RTX |
|---|---|
| Name | RTX Corporation |
| Country/Region | United States |
| GICS Sector | Industrials |
| GICS Industry Group | Capital Goods |
| GICS Industry | Aerospace & Defense |
| GICS Sub-Industry | Aerospace & Defense |
| Market Capitalization | 247.16 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | April 2, 1962 |
| Security Type | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
RTX (RTX) trades at P/E ratio of 34.50, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
RTX
Capital Goods industry group
34.50
Group distribution
- Max
- 89.57
- Q3
- 49.59
- RTX
- 34.50
- Median
- 32.68
- Q1
- 22.67
- Min
- 6.05
Largest peers
- BA
- 86.92
- CAT
- 45.26
- GE
- 41.65
- ETN
- 38.30
- RTX
- 34.50
- DE
- 32.68
- GEV
- 27.47
Price-to-Sales Ratio (TTM)
RTX (RTX) trades at 2.73 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.
RTX
Capital Goods industry group
2.73
Group distribution
- Max
- 10.21
- Q3
- 4.95
- RTX
- 2.73
- Median
- 2.70
- Q1
- 1.31
- Min
- 0.05
Largest peers
- GE
- 7.25
- GEV
- 6.42
- CAT
- 5.93
- ETN
- 5.33
- DE
- 3.29
- RTX
- 2.73
- BA
- 1.87
Price-to-Book Ratio (MRQ)
RTX (RTX) trades at 3.73 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.
RTX
Capital Goods industry group
3.73
Group distribution
- Max
- 14.00
- Q3
- 7.07
- Median
- 3.83
- RTX
- 3.73
- Q1
- 2.13
- Min
- -4.80
Largest peers
- BA
- 28.86
- CAT
- 22.48
- GE
- 18.83
- GEV
- 18.16
- ETN
- 7.71
- DE
- 5.69
- RTX
- 3.73
Valuation at a Glance
| Metric | Current stock: RTX | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 34.50 | 32.68 |
| Price-to-Sales Ratio (TTM) | 2.73 | 2.70 |
| Price-to-Book Ratio (MRQ) | 3.73 | 3.83 |
| Free Cash Flow Yield | 2.93% | 2.07% |
Profitability
Return on Equity (TTM)
RTX (RTX) posts ROE of 11.57%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.
RTX
Capital Goods industry group
11.57%
Group distribution
- Max
- 46.13%
- Q3
- 20.05%
- RTX
- 11.57%
- Median
- 11.19%
- Q1
- 2.17%
- Min
- -23.78%
Largest peers
- BA
- 169.95%
- GEV
- 75.71%
- CAT
- 51.33%
- GE
- 45.43%
- ETN
- 20.85%
- DE
- 18.35%
- RTX
- 11.57%
Net Profit Margin (TTM)
RTX (RTX) keeps 8.03% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.
RTX
Capital Goods industry group
8.03%
Group distribution
- Max
- 24.69%
- Q3
- 11.55%
- RTX
- 8.03%
- Median
- 5.77%
- Q1
- 0.30%
- Min
- -13.94%
Largest peers
- GEV
- 23.81%
- GE
- 17.86%
- ETN
- 13.99%
- CAT
- 13.33%
- DE
- 10.10%
- RTX
- 8.03%
- BA
- 2.46%
Operating Profit Margin (TTM)
RTX (RTX) turns 13.18% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.
RTX
Capital Goods industry group
13.18%
Group distribution
- Max
- 29.84%
- Q3
- 15.85%
- RTX
- 13.18%
- Median
- 8.19%
- Q1
- 1.80%
- Min
- -17.50%
Largest peers
- GE
- 20.21%
- CAT
- 18.18%
- DE
- 17.48%
- ETN
- 16.11%
- RTX
- 13.18%
- GEV
- 5.46%
- BA
- 1.72%
Profitability at a Glance
| Metric | Current stock: RTX | Industry group median |
|---|---|---|
| Return on Equity (TTM) | 11.57% | 11.19% |
| Return on Assets (TTM) | 4.05% | 5.15% |
| Net Profit Margin (TTM) | 8.03% | 5.77% |
| Operating Profit Margin (TTM) | 13.18% | 8.19% |
| Gross Profit Margin (TTM) | 20.21% | 29.80% |
Financial Strength
Current Ratio (MRQ)
RTX (RTX) has current ratio of 1.02, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.
RTX
Capital Goods industry group
1.02
Group distribution
- Max
- 5.24
- Q3
- 2.98
- Median
- 2.12
- Q1
- 1.45
- RTX
- 1.02
- Min
- 0.71
Largest peers
- DE
- 2.21
- CAT
- 1.35
- ETN
- 1.19
- BA
- 1.18
- RTX
- 1.02
- GE
- 1.01
- GEV
- 0.89
Debt-to-Equity Ratio (MRQ)
RTX (RTX) has debt-to-equity ratio of 0.57, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.
RTX
Capital Goods industry group
0.57
Group distribution
- Max
- 2.29
- Q3
- 1.08
- Median
- 0.62
- RTX
- 0.57
- Q1
- 0.27
- Min
- 0.00
Largest peers
- BA
- 8.29
- DE
- 3.76
- CAT
- 2.31
- GE
- 1.17
- ETN
- 1.10
- RTX
- 0.57
- GEV
- 0.25
Financial Strength at a Glance
| Metric | Current stock: RTX | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.02 | 2.12 |
| Debt-to-Equity Ratio (MRQ) | 0.57 | 0.62 |
| Net Debt / EBITDA | 2.10 | 2.03 |
Dividends
Dividend Yield (TTM)
RTX (RTX) has dividend yield of 1.51%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.
RTX
Capital Goods industry group
1.51%
Group distribution
- Max
- 2.69%
- RTX
- 1.51%
- Q3
- 1.09%
- Median
- 0.20%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- RTX
- 1.51%
- DE
- 1.12%
- ETN
- 1.12%
- CAT
- 0.72%
- GE
- 0.56%
- GEV
- 0.21%
- BA
- 0.00%
Dividend Payout Ratio (TTM)
RTX (RTX) has payout ratio of 51.03%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.
RTX
Capital Goods industry group
51.03%
Group distribution
- Max
- 72.02%
- RTX
- 51.03%
- Q3
- 29.49%
- Median
- 6.03%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- RTX
- 51.03%
- ETN
- 41.29%
- DE
- 36.71%
- CAT
- 29.58%
- GE
- 19.25%
- GEV
- 5.11%
- BA
- 0.00%
Dividends at a Glance
| Metric | Current stock: RTX | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 1.51% | 0.20% |
| Dividend Payout Ratio (TTM) | 51.03% | 6.03% |