NYSE
RTX
Last Price
US $189.73
KEY FIGURES
MKT CAP
$253.2B
EPS
TTM
$5.38
PEG
TTM
0.61x
P/E
TTM
34.75x
P/S
TTM
2.86x
YIELD
1.47%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
11.23%
Return on equity
ROIC: 6.91%
Valuation History
34.8X
Price to Earnings
EV/EBITDA: 18.5X
Cash flow
Profit margin
9.38%
(FY vs FY)
EBITDA Y/Y
36.01%
(FY vs FY)
Cash flow Y/Y
37.10%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $189.73
-57.37%
Default assumptions
EBITDA Multiple
Fair Value
Market $189.73
-77.23%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
RTX Corporation cash flow to debt ratio of 26.75% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial stability - Healthy cash flow growth.
RTX Corporation's free cash flow has increased 75.12% from $4.53G last year to $7.94G, signaling increasing performance
Financial stability - Healthy debt to equity ratio.
RTX Corporation's debt to equity ratio is 0.59, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial stability - Healthy debt to equity ratio development.
RTX Corporation's debt has decreased relative to shareholder equity from 0.71 last year to 0.59 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
RTX Corporation has a net debt to EBITDA ratio of 2.15x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
RTX Corporation's interest coverage ratio of 5.65 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
RTX Corporation's profit margin has increased (35.78%) in the last year from 5.91% to 8.03%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
RTX Corporation's short-term assets of $60.33G exceed its short-term liabilities of $58.78G
Decreasing performance - ROA.
RTX Corporation's return on assets of 4.26% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
RTX Corporation's return on equity of 11.23%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
RTX Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
RTX Corporation had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
RTX Corporation has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
RTX Corporation has a free cash flow yield of 3.14%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
RTX Corporation's yearly earnings has increased 41.01% since last year from $4.77G to $6.73G, signaling increasing performance
Increasing performance - Healthy revenue growth.
RTX Corporation's yearly revenue has increased 9.74% since last year from $80.74G to $88.60G, signaling increasing performance
Increasing performance - ROIC.
ROIC 6.91% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
RTX Corporation's 3-year revenue CAGR of 9.72% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
RTX Corporation had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
RTX Corporation had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
RTX Corporation is overvalued relative to its fair value price of 80.89 based on Discounted Cash Flow model
Overvalued - Earnings yield.
RTX Corporation has an earnings yield of 2.86%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
RTX Corporation is overvalued relative to its fair value price of 43.20 based on EBITDA multiple model
Undervalued - EV/EBITDA.
RTX Corporation has an EV/EBITDA ratio of 18.49x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
RTX Corporation has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
RTX Corporation has a price-to-book ratio of 3.82x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
RTX Corporation has a price-to-sales ratio of 2.80x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue