RTX Corporation
RTX Corporation Fundamental Analysis
RTX Corporation (RTX) shows moderate financial fundamentals with a PE ratio of 40.45, profit margin of 7.60%, and ROE of 10.62%. The company generates $88.4B in annual revenue with strong year-over-year growth of 17.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RTX's fundamental strength across five key dimensions:
Efficiency Score
WeakRTX struggles to generate sufficient returns from assets.
Valuation Score
WeakRTX trades at a premium to fair value.
Growth Score
ExcellentRTX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentRTX maintains a strong and stable balance sheet.
Profitability Score
WeakRTX struggles to sustain strong margins.
Key Financial Metrics
Is RTX Expensive or Cheap?
P/E Ratio
RTX trades at 40.45 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RTX's PEG of 19.94 indicates potential overvaluation.
Price to Book
The market values RTX Corporation at 4.17 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.04 times EBITDA. This signals the market has high growth expectations.
How Well Does RTX Make Money?
Net Profit Margin
For every $100 in sales, RTX Corporation keeps $7.60 as profit after all expenses.
Operating Margin
Core operations generate 10.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.62 in profit for every $100 of shareholder equity.
ROA
RTX Corporation generates $3.94 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
RTX Corporation produces operating cash flow of $10.55B, showing steady but balanced cash generation.
Free Cash Flow
RTX Corporation produces free cash flow of $7.92B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.90 in free cash annually.
FCF Yield
RTX converts 2.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
19.94
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.61
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How RTX Stacks Against Its Sector Peers
| Metric | RTX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.45 | 26.49 | Worse (Expensive) |
| ROE | 10.62% | 1307.00% | Weak |
| Net Margin | 7.60% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.61 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.03 | 10.48 | Neutral |
| ROA | 3.94% | -1549793.00% (disorted) | Weak |
RTX outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews RTX Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
14.14%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-44.66%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-48.27%
Industry Style: Cyclical, Value, Infrastructure
Declining