(RTX) Raytheon Technologies - Overview
Sector: Industrials | Industry: Aerospace & Defense | Exchange: NYSE (USA) | Market Cap: 235.468m USD | Total Return: 34% in 12m
Avg Turnover: 1.03B
EPS Trend: 97.1%
Qual. Beats: 1
Rev. Trend: 97.0%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
No distinct edge detected
RTX Corporation is a diversified aerospace and defense firm operating through three primary business units: Collins Aerospace, Pratt & Whitney, and Raytheon. The company manufactures integrated systems for commercial aviation, produces aircraft engines for military and civil use, and develops advanced defense technologies including missile defense and satellite sensors. Its business model relies heavily on long-term aftermarket service contracts and government procurement cycles, which provide recurring revenue streams beyond initial hardware sales.
The aerospace and defense sector is characterized by high barriers to entry due to intensive capital requirements and strict regulatory oversight. As a major defense contractor, RTX operates within an oligopolistic market where revenue is often tied to national defense budgets and global air travel demand. Investors may find it useful to examine ValueRay for deeper insights into the companys valuation metrics.
Headquartered in Arlington, Virginia, the company rebranded from Raytheon Technologies to RTX Corporation in 2023. It maintains a global footprint, supplying critical infrastructure for the connected battlespace and commercial cabin interiors while providing comprehensive fleet management services to airlines and government agencies worldwide.
- Pratt & Whitney GTF engine inspections impact free cash flow and airline reliability
- Global geopolitical instability drives increased demand for Raytheon missile defense systems
- Commercial aerospace aftermarket services fuel margin growth at Collins Aerospace
- Department of Defense budget allocations dictate long-term military contract procurement volume
- Supply chain labor shortages and material costs pressure aerospace manufacturing margins
| Net Income: 7.26b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 1.77 > 1.0 |
| NWC/Revenue: 1.58% < 20% (prev 0.36%; Δ 1.23% < -1%) |
| CFO/TA 0.07 > 3% & CFO 11.1b > Net Income 7.26b |
| Net Debt (33.6b) to EBITDA (13.8b): 2.44 < 3 |
| Current Ratio: 1.02 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.36b) vs 12m ago 0.95% < -2% |
| Gross Margin: 20.21% > 18% (prev 0.20%; Δ 2.00k% > 0.5%) |
| Asset Turnover: 53.91% > 50% (prev 49.58%; Δ 4.33% > 0%) |
| Interest Coverage Ratio: 5.58 > 6 (EBITDA TTM 13.8b / Interest Expense TTM 1.69b) |
| A: 0.01 (Total Current Assets 60.0b - Total Current Liabilities 58.6b) / Total Assets 170b |
| B: 0.34 (Retained Earnings 57.9b / Total Assets 170b) |
| C: 0.06 (EBIT TTM 9.41b / Avg Total Assets 168b) |
| D: 0.91 (Book Value of Equity 93.1b / Total Liabilities 102b) |
| Altman-Z'' = 2.49 = A |
| DSRI: 1.05 (Receivables 31.0b/26.7b, Revenue 90.4b/81.7b) |
| GMI: 0.97 (GM 20.21% / 19.53%) |
| AQI: 0.95 (AQ_t 0.54 / AQ_t-1 0.57) |
| SGI: 1.11 (Revenue 90.4b / 81.7b) |
| TATA: -0.02 (NI 7.26b - CFO 11.1b) / TA 170b) |
| Beneish M = -2.99 (Cap -4..+1) = A |
As of May 26, 2026, the stock is trading at USD 177.01 with a total of 4,320,322 shares traded.
Over the past week, the price has changed by +3.84%,
over one month by +2.52%,
over three months by -9.30% and
over the past year by +34.01%.
Raytheon Technologies has received a consensus analysts rating of 4.17. Therefore, it is recommended to buy RTX.
- StrongBuy: 12
- Buy: 4
- Hold: 8
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 215.3 | 21.6% |
P/E Trailing = 32.8049
P/E Forward = 25.1889
P/S = 2.6055
P/B = 3.5453
P/EG = 2.4015
Revenue TTM = 90.4b USD
EBIT TTM = 9.41b USD
EBITDA TTM = 13.8b USD
Long Term Debt = 33.0b USD (from longTermDebt, last quarter)
Short Term Debt = 4.44b USD (from shortTermDebt, last quarter)
Debt = 40.5b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.52b
Net Debt = 33.6b USD (calculated: Debt 40.5b - CCE 6.82b)
Enterprise Value = 269b USD (235b + Debt 40.5b - CCE 6.82b)
Interest Coverage Ratio = 5.58 (Ebit TTM 9.41b / Interest Expense TTM 1.69b)
EV/FCF = 32.19x (Enterprise Value 269b / FCF TTM 8.36b)
FCF Yield = 3.11% (FCF TTM 8.36b / Enterprise Value 269b)
FCF Margin = 9.25% (FCF TTM 8.36b / Revenue TTM 90.4b)
Net Margin = 8.03% (Net Income TTM 7.26b / Revenue TTM 90.4b)
Gross Margin = 20.21% ((Revenue TTM 90.4b - Cost of Revenue TTM 72.1b) / Revenue TTM)
Gross Margin QoQ = 20.81% (prev 19.46%)
Tobins Q-Ratio = 1.58 (Enterprise Value 269b / Total Assets 170b)
Interest Expense / Debt = 4.17% (Interest Expense 1.69b / Debt 40.5b)
Taxrate = 14.40% (363.0m / 2.52b)
NOPAT = 8.06b (EBIT 9.41b * (1 - 14.40%))
Current Ratio = 1.02 (Total Current Assets 60.0b / Total Current Liabilities 58.6b)
Debt / Equity = 0.61 (Debt 40.5b / totalStockholderEquity, last quarter 66.3b)
Debt / EBITDA = 2.44 (Net Debt 33.6b / EBITDA 13.8b)
Debt / FCF = 4.02 (Net Debt 33.6b / FCF TTM 8.36b)
Total Stockholder Equity = 64.6b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.33% (Net Income 7.26b / Total Assets 170b)
RoE = 11.23% (Net Income TTM 7.26b / Total Stockholder Equity 64.6b)
RoCE = 9.64% (EBIT 9.41b / Capital Employed (Equity 64.6b + L.T.Debt 33.0b))
RoIC = 6.96% (NOPAT 8.06b / Invested Capital 116b)
WACC = 6.81% (E(235b)/V(276b) * Re(7.37%) + D(40.5b)/V(276b) * Rd(4.17%) * (1-Tc(0.14)))
Discount Rate = 7.37% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 67.42 | Cagr: 0.09%
[DCF] Terminal Value 77.97% ; FCFF base≈7.08b ; Y1≈8.12b ; Y5≈11.9b
[DCF] Fair Price = 108.5 (EV 180b - Net Debt 33.6b = Equity 146b / Shares 1.35b; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 97.14 | EPS CAGR: 8.78% | SUE: 2.61 | # QB: 1
Revenue Correlation: 96.98 | Revenue CAGR: 11.80% | SUE: 0.95 | # QB: 1
EPS current Quarter (2026-06-30): EPS=1.66 | Chg30d=+0.34% | Revisions=+6% | Analysts=18
EPS next Quarter (2026-09-30): EPS=1.73 | Chg30d=-2.81% | Revisions=-79% | Analysts=18
EPS current Year (2026-12-31): EPS=6.90 | Chg30d=+0.90% | Revisions=+57% | GrowthEPS=+9.7% | GrowthRev=+6.1%
EPS next Year (2027-12-31): EPS=7.56 | Chg30d=+0.40% | Revisions=+43% | GrowthEPS=+9.6% | GrowthRev=+7.0%
[Analyst] Revisions Ratio: -79%