About RTX Corporation
RTX Corporation, an aerospace and defense company, provides systems and services for commercial, military, and government customers worldwide. It operates through three segments: Collins Aerospace (Collins), Pratt & Whitney, and Raytheon. The Collins segment offers aerospace and defense products, and aftermarket services for civil and military aircraft manufacturers and commercial airlines, as well as regional, business, and general aviation, defense, and commercial space operations. This segment designs, manufactures, and supplies electric power generation and management and distribution, environmental control, flight control, air data and aircraft sensing, engine control, and engine nacelle systems, as well as engine components; cabin interiors, including seating, oxygen, food and beverage preparation, storage and galley, lavatory, and wastewater management systems; connected aviation solutions and services; and systems solutions for connected battlespace, test and training range systems, crew escape systems, and simulation and training. It also provides spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and asset and information management services. The Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers; and produces, sells, and services military and commercial auxiliary power units, as well as offers fleet management and aftermarket maintenance, repair, and overhaul services. The Raytheon segment provides defensive and offensive threat detection, tracking, and mitigation capabilities for government and commercial customers. This segment offers sensors, mission orchestration and satellite control products, and software. The company was formerly known as Raytheon Technologies Corporation and changed its name to RTX Corporation in July 2023. RTX Corporation was incorporated in 1934 and is headquartered in Arlington, Virginia.
RTX Corporation (RTX) is a Industrials company in the Aerospace & Defense industry with a market capitalisation of $266.4B. The stock trades at 34.86x trailing earnings and yields 1.47%.
- Sector
- Industrials
- Industry
- Aerospace & Defense
- Market cap
- $266.4B
- P/E ratio
- 34.86
- Forward P/E
- 25.16
- EPS (TTM)
- $5.67
- Revenue (TTM)
- $93.5B
- Free cash flow
- $9.9B
- Profit margin
- 8.3%
- Dividend yield
- 1.47%
- Beta
- 0.29
- Shares outstanding
- 1.3B
Financial health: Fair7.3/10
6 strengths, 1 concern. Weakest points: peg ratio.
- Debt to equity: 0.00 (Strong, benchmark < 0.5) — Debt of 0.00x equity is conservative against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 0.0y (Strong, benchmark < 4 years) — Holds more cash than debt ($7.2B net cash).
- Current ratio: 1.03 (Watch, benchmark > 1.5) — Short-term assets cover 1.03x short-term liabilities, against Graham's 1.5x floor. It has been broadly flat over the last 4 years.
- Return on equity: 12.3% (Watch, benchmark > 15%) — Earns 12.3% on shareholder equity, short of the > 15% mark.
- Gross margin: 20.3% (Watch, benchmark > 40%) — Keeps 20.3% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 8.3% (Watch, benchmark > 10%) — Turns 8.3% of revenue into profit, short of the > 10% mark.
- Free cash flow: $7.9B (Strong, benchmark positive) — Generated $7.9B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 14.5% (Strong, benchmark > 10%) — Revenue changed 14.5% year on year, comfortably past the > 10% mark.
- Earnings growth: 28.7% (Strong, benchmark > 10%) — Earnings changed 28.7% year on year, comfortably past the > 10% mark.
- PEG ratio: 2.29 (Concern, benchmark < 1) — At 2.29, the price looks expensive relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 48.8% (Strong, benchmark < 60%) — Pays out 48.8% of earnings as dividends, leaving room to keep paying.