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Raytheon

NYSE:RTN
Snowflake Description

Outstanding track record established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RTN
NYSE
$53B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Raytheon Company develops integrated products, services, and solutions for the defense and other government markets worldwide. The last earnings update was 8 days ago. More info.


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RTN Share Price and Events
7 Day Returns
2.3%
NYSE:RTN
2.7%
US Aerospace & Defense
1.4%
US Market
1 Year Returns
-13.9%
NYSE:RTN
-8.6%
US Aerospace & Defense
2.3%
US Market
RTN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Raytheon (RTN) 2.3% 13.2% 6.8% -13.9% 48.3% 90%
US Aerospace & Defense 2.7% 11.1% 3.8% -8.6% 47.1% 57.3%
US Market 1.4% 5.6% 5.7% 2.3% 44.2% 40.9%
1 Year Return vs Industry and Market
  • RTN underperformed the Aerospace & Defense industry which returned -8.6% over the past year.
  • RTN underperformed the Market in United States of America which returned 2.3% over the past year.
Price Volatility
RTN
Industry
5yr Volatility vs Market

Value

 Is Raytheon undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Raytheon to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our calculation method for this is changing soon.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Raytheon.

NYSE:RTN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:RTN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.3%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.914 (1 + (1- 21%) (9.56%))
0.983
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.983 * 7.27%)
9.88%

Discounted Cash Flow Calculation for NYSE:RTN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Raytheon is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:RTN DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 3,150.63 3,808.71 3,762.00 4,228.33 4,156.00
Source Analyst x8 Analyst x7 Analyst x5 Analyst x3 Analyst x2
Present Value
Discounted (@ 9.88%)
2,867.45 3,154.85 2,836.08 2,901.14 2,595.22
Present value of next 5 years cash flows $14,354.74
NYSE:RTN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $4,156.00 × (1 + 2.73%) ÷ (9.88% – 2.73%)
$59,751.77
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $59,751.77 ÷ (1 + 9.88%)5
$37,312.12
NYSE:RTN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $14,354.74 + $37,312.12
$51,666.86
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $51,666.86 / 282.24
$183.06
NYSE:RTN Discount to Share Price
Calculation Result
Value per share (USD) From above. $183.06
Current discount Discount to share price of $185.38
= -1 x ($185.38 - $183.06) / $183.06
-1.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Raytheon is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Raytheon's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Raytheon's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:RTN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $10.16
NYSE:RTN Share Price ** NYSE (2019-02-21) in USD $185.38
United States of America Aerospace & Defense Industry PE Ratio Median Figure of 41 Publicly-Listed Aerospace & Defense Companies 20.79x
United States of America Market PE Ratio Median Figure of 3,045 Publicly-Listed Companies 17.39x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Raytheon.

NYSE:RTN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:RTN Share Price ÷ EPS (both in USD)

= 185.38 ÷ 10.16

18.25x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Raytheon is good value based on earnings compared to the US Aerospace & Defense industry average.
  • Raytheon is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Raytheon's expected growth come at a high price?
Raw Data
NYSE:RTN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.25x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
8.9%per year
United States of America Aerospace & Defense Industry PEG Ratio Median Figure of 34 Publicly-Listed Aerospace & Defense Companies 1.76x
United States of America Market PEG Ratio Median Figure of 2,118 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

NYSE:RTN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.25x ÷ 8.9%

2.05x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Raytheon is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Raytheon's assets?
Raw Data
NYSE:RTN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $40.67
NYSE:RTN Share Price * NYSE (2019-02-21) in USD $185.38
United States of America Aerospace & Defense Industry PB Ratio Median Figure of 54 Publicly-Listed Aerospace & Defense Companies 2.63x
United States of America Market PB Ratio Median Figure of 5,129 Publicly-Listed Companies 1.87x
NYSE:RTN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:RTN Share Price ÷ Book Value per Share (both in USD)

= 185.38 ÷ 40.67

4.56x

* Primary Listing of Raytheon.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Raytheon is overvalued based on assets compared to the US Aerospace & Defense industry average.
X
Value checks
We assess Raytheon's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Raytheon has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Raytheon expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Raytheon expected to grow at an attractive rate?
  • Raytheon's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Raytheon's earnings growth is positive but not above the United States of America market average.
  • Raytheon's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:RTN Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:RTN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 8.9%
NYSE:RTN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 5.8%
United States of America Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 10.2%
United States of America Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:RTN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:RTN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 36,393 5,043 4,523 2
2022-12-31 34,093 5,040 4,300 3
2021-12-31 32,493 4,691 3,921 8
2020-12-31 30,757 4,705 3,570 17
2019-12-31 28,875 4,074 3,242 17
NYSE:RTN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 27,058 3,428 2,910
2018-09-30 26,481 2,619 2,470
2018-07-01 25,959 3,444 2,399
2018-04-01 25,615 3,070 2,153
2017-12-31 25,348 2,745 2,022
2017-10-01 24,844 2,263 2,184
2017-07-02 24,574 2,522 2,154
2017-04-02 24,322 2,485 2,319
2016-12-31 24,124 2,852 2,243
2016-10-02 24,173 2,537 2,246
2016-07-03 23,942 2,998 2,151
2016-04-03 23,761 2,629 1,937

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Raytheon's earnings are expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).
  • Raytheon's revenue is expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:RTN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Raytheon Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:RTN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 18.37 18.37 18.37 1.00
2022-12-31 16.60 16.60 16.60 1.00
2021-12-31 14.80 15.43 14.16 7.00
2020-12-31 13.14 13.60 12.34 15.00
2019-12-31 11.58 11.70 11.17 15.00
NYSE:RTN Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 10.16
2018-09-30 8.58
2018-07-01 8.30
2018-04-01 7.42
2017-12-31 6.95
2017-10-01 7.47
2017-07-02 7.34
2017-04-02 7.87
2016-12-31 7.56
2016-10-02 7.53
2016-07-03 7.16
2016-04-03 6.40

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Raytheon is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Raytheon's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Raytheon has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Raytheon performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Raytheon's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Raytheon's year on year earnings growth rate has been positive over the past 5 years.
  • Raytheon's 1-year earnings growth exceeds its 5-year average (43.9% vs 4.2%)
  • Raytheon's earnings growth has exceeded the US Aerospace & Defense industry average in the past year (43.9% vs 32.9%).
Earnings and Revenue History
Raytheon's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Raytheon Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:RTN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 27,058.00 2,910.00 4,177.00
2018-09-30 26,481.00 2,470.00 3,379.00
2018-07-01 25,959.00 2,399.00 3,069.00
2018-04-01 25,615.00 2,153.00 2,994.00
2017-12-31 25,348.00 2,022.00 3,690.00
2017-10-01 24,844.00 2,184.00 3,473.00
2017-07-02 24,574.00 2,154.00 3,225.00
2017-04-02 24,322.00 2,319.00 3,009.00
2016-12-31 24,124.00 2,243.00 3,322.00
2016-10-02 24,173.00 2,246.00 2,818.00
2016-07-03 23,942.00 2,151.00 2,781.00
2016-04-03 23,761.00 1,937.00 2,761.00
2015-12-31 23,321.00 2,097.00 2,614.00
2015-09-27 23,062.00 2,079.00 2,575.00
2015-06-28 22,753.00 2,146.00 2,442.00
2015-03-29 22,606.00 2,141.00 2,408.00
2014-12-31 22,826.00 2,179.00 2,352.00
2014-09-28 22,553.00 2,070.00 2,261.00
2014-06-29 22,921.00 2,042.00 2,272.00
2014-03-30 23,335.00 2,031.00 2,227.00
2013-12-31 23,706.00 1,932.00 2,236.00
2013-09-29 24,275.00 1,931.00 2,851.00 -543.00
2013-06-30 24,478.00 1,945.00 2,689.00 -362.00
2013-03-31 24,355.00 1,929.00 2,497.00 -168.00
2012-12-31 24,414.00 1,889.00 2,333.00
2012-09-30 24,397.00 1,962.00 1,559.00 714.00
2012-07-01 24,468.00 1,959.00 1,589.00 686.00
2012-04-01 24,677.00 1,917.00 1,598.00 654.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Raytheon has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Raytheon used its assets more efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.
  • Raytheon has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Raytheon's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Raytheon has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Raytheon's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Raytheon's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Raytheon is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Raytheon's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Raytheon's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Raytheon Company Filings, last reported 1 month ago.

NYSE:RTN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 11,883.00 5,055.00 3,608.00
2018-09-30 11,870.00 5,053.00 2,073.00
2018-07-01 11,119.00 5,052.00 3,094.00
2018-04-01 10,729.00 5,051.00 2,748.00
2017-12-31 10,475.00 5,050.00 3,400.00
2017-10-01 11,246.00 5,049.00 2,311.00
2017-07-02 11,164.00 5,047.00 2,577.00
2017-04-02 10,733.00 5,337.00 2,585.00
2016-12-31 10,606.00 5,335.00 3,403.00
2016-10-02 10,833.00 5,334.00 2,804.00
2016-07-03 10,659.00 5,333.00 2,719.00
2016-04-03 10,640.00 5,332.00 2,645.00
2015-12-31 10,685.00 5,330.00 3,200.00
2015-09-27 10,692.00 5,334.00 3,061.00
2015-06-28 10,598.00 5,333.00 2,494.00
2015-03-29 9,906.00 5,331.00 4,140.00
2014-12-31 9,721.00 5,325.00 4,719.00
2014-09-28 11,954.00 4,737.00 4,114.00
2014-06-29 11,894.00 4,736.00 4,176.00
2014-03-30 11,583.00 4,735.00 4,531.00
2013-12-31 11,197.00 4,734.00 4,297.00
2013-09-29 9,011.00 4,733.00 3,897.00
2013-06-30 8,737.00 4,732.00 3,462.00
2013-03-31 8,460.00 4,731.00 4,012.00
2012-12-31 8,190.00 4,731.00 4,044.00
2012-09-30 9,225.00 4,609.00 3,646.00
2012-07-01 8,799.00 4,607.00 2,906.00
2012-04-01 8,499.00 4,606.00 3,541.00
  • Raytheon's level of debt (42.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (42.3% vs 42.5% today).
  • Debt is well covered by operating cash flow (67.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 21.6x coverage).
X
Financial health checks
We assess Raytheon's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Raytheon has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Raytheon's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.87%
Current annual income from Raytheon dividends. Estimated to be 2.21% next year.
If you bought $2,000 of Raytheon shares you are expected to receive $37 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Raytheon's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
  • Raytheon's dividend is below the markets top 25% of dividend payers in United States of America (3.54%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:RTN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
United States of America Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 1.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2001 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:RTN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 5.70 1.00
2022-12-31 4.70 2.00
2021-12-31 4.41 8.00
2020-12-31 4.08 13.00
2019-12-31 3.73 13.00
NYSE:RTN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-11-14 3.470 2.074
2018-09-27 3.470 1.826
2018-05-31 3.470 1.736
2018-03-21 3.470 1.625
2017-11-15 3.190 1.607
2017-09-28 3.190 1.716
2017-05-25 3.190 1.860
2017-03-29 3.190 2.048
2016-11-16 2.930 1.971
2016-09-22 2.930 2.113
2016-05-26 2.930 2.129
2016-03-23 2.930 2.305
2015-11-18 2.680 2.159
2015-07-23 2.680 2.441
2015-05-28 2.680 2.684
2015-03-18 2.680 2.483
2014-11-19 2.420 2.262
2014-07-23 2.420 2.472
2014-05-29 2.420 2.541
2014-03-19 2.420 2.484
2013-11-20 2.200 2.393
2013-07-24 2.200 2.829
2013-05-30 2.200 3.269
2013-03-20 2.200 3.620
2012-11-14 2.000 3.557
2012-09-19 2.000 3.565
2012-05-31 2.000 3.622
2012-03-21 2.000 3.833
2011-11-16 1.720 3.563
2011-09-22 1.720 4.040
2011-05-27 1.720 3.854
2011-03-23 1.720 3.463
2010-12-07 1.500 3.041
2010-09-23 1.500 3.221
2010-05-27 1.500 3.144
2010-03-24 1.500 2.633
2009-12-09 1.240 2.287
2009-09-24 1.240 2.578
2009-05-28 1.240 2.702
2009-03-25 1.240 2.862
2009-02-23 1.120 3.041

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Raytheon's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.4x coverage).
X
Income/ dividend checks
We assess Raytheon's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Raytheon afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Raytheon has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Raytheon's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tom Kennedy
COMPENSATION $24,883,870
AGE 62
TENURE AS CEO 4.8 years
CEO Bio

Dr. Thomas A. Kennedy, also known as Tom, Ph.D., has served as Chairman of the Board of Raytheon Company since October 2014, Chief Executive Officer since April 2014 and a Director since January 2014. From April 2013 to March 2014, he served as Executive Vice President and Chief Operating Officer of Raytheon Company. From June 2010 to March 2013, he served as Vice President of Raytheon Company and President of the Integrated Defense Systems (IDS) business unit. From July 2007 to June 2010, he was Vice President of the Tactical Airborne Systems product line within the Space and Airborne Systems (SAS) business unit, and from May 2003 to July 2007, he was Vice President of the Mission System Integration product line within SAS. Dr. Kennedy joined Raytheon in 1983 and has held positions of increasing responsibility as a new business leader and program manager for several radar and electronic warfare systems development programs

CEO Compensation
  • Tom's compensation has increased by more than 20% in the past year.
  • Tom's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Raytheon management team in years:

4.5
Average Tenure
55
Average Age
  • The tenure for the Raytheon management team is about average.
Management Team

Tom Kennedy

TITLE
Chairman & CEO
COMPENSATION
$25M
AGE
62
TENURE
4.8 yrs

Toby O'Brien

TITLE
VP & CFO
COMPENSATION
$6M
AGE
53
TENURE
3.9 yrs

Dave Wajsgras

TITLE
VP and President of Intelligence
COMPENSATION
$7M
AGE
58
TENURE
3.9 yrs

Taylor Lawrence

TITLE
VP & President of the Missiles Systems Business Unit
COMPENSATION
$5M
AGE
54
TENURE
10.6 yrs

Mike Wood

TITLE
VP, Controller & Chief Accounting Officer
AGE
50
TENURE
12.3 yrs

Mark Russell

TITLE
Vice President of Engineering
AGE
56
TENURE
10.6 yrs

Kevin Neifert

TITLE
Chief Information Officer
AGE
57
TENURE
3.1 yrs

Kelsey DeBriyn

TITLE
Vice President of Investor Relations
TENURE
1 yrs

Fran Jimenez

TITLE
VP, General Counsel & Corporate Secretary
COMPENSATION
$5M
AGE
53
TENURE
4.1 yrs

Pam Wickham

TITLE
Vice President of Corporate Affairs & Communications
AGE
55
TENURE
13.9 yrs
Board of Directors Tenure

Average tenure and age of the Raytheon board of directors in years:

4.5
Average Tenure
61
Average Age
  • The tenure for the Raytheon board of directors is about average.
Board of Directors

Tom Kennedy

TITLE
Chairman & CEO
COMPENSATION
$25M
AGE
62
TENURE
4.3 yrs

Bill Spivey

TITLE
Independent Director
COMPENSATION
$291K
AGE
71
TENURE
20.1 yrs

Steve Hadley

TITLE
Independent Director
COMPENSATION
$299K
AGE
71
TENURE
9.6 yrs

Tracy Atkinson

TITLE
Independent Director
COMPENSATION
$298K
AGE
54
TENURE
4.6 yrs

Tish Long

TITLE
Independent Director
COMPENSATION
$307K
AGE
59
TENURE
3.9 yrs

Vern Clark

TITLE
Lead Director
COMPENSATION
$367K
AGE
73
TENURE
5.8 yrs

George Oliver

TITLE
Independent Director
COMPENSATION
$295K
AGE
58
TENURE
5.3 yrs

Bob Beauchamp

TITLE
Independent Director
COMPENSATION
$331K
AGE
58
TENURE
3.6 yrs

Dinesh Paliwal

TITLE
Independent Director
COMPENSATION
$275K
AGE
60
TENURE
2.4 yrs

Sandy Winnefeld

TITLE
Independent Director
COMPENSATION
$324K
AGE
62
TENURE
2.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
31. May 18 Sell Vernon Clark Individual 30. May 18 30. May 18 -1,000 $212.52 $-212,517
02. May 18 Buy Dinesh Paliwal Individual 30. Apr 18 30. Apr 18 1,219 $205.00 $249,895
X
Management checks
We assess Raytheon's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Raytheon has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Investors Should Know About Raytheon Company's (NYSE:RTN) Financial Strength

Raytheon Company (NYSE:RTN), a large-cap worth US$51b, comes to mind for investors seeking a strong and reliable stock investment. … Big corporations are much sought after by risk-averse investors who find diversified revenue streams and strong capital returns attractive. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis

Simply Wall St -

How Do Analysts See Raytheon Company (NYSE:RTN) Performing In The Year Ahead?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … On 31 December 2018, Raytheon Company (NYSE:RTN) released its earnings update.

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand Raytheon Company (NYSE:RTN)

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Raytheon has a price to earnings ratio of 19.95, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Raytheon Company's (NYSE:RTN) Most Important Factor To Consider

If you are currently a shareholder in Raytheon Company (NYSE:RTN), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … I will take you through Raytheon’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Raytheon’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure

Simply Wall St -

Is Raytheon Company (NYSE:RTN) Struggling With Its 14% Return On Capital Employed?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

A Closer Look At Raytheon Company's (NYSE:RTN) Impressive ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.21 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

A Look At The Intrinsic Value Of Raytheon Company (NYSE:RTN)

I am going to run you through how I calculated the intrinsic value of Raytheon Company (NYSE:RTN). … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Raytheon Company (NYSE:RTN)'s Return on Capital

and want to begin learning the link between Raytheon Company (NYSE:RTN)’s return fundamentals and stock market performance. … This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … Therefore, looking at how efficiently Raytheon is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

With An ROE Of 19.81%, Has Raytheon Company's (NYSE:RTN) Management Done Well?

I am writing today to help inform people who are new to the stock market. … If RTN borrows debt to invest in its business, its profits will be higher. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface

Simply Wall St -

2 Days Left To Raytheon Company (NYSE:RTN)’s Ex-Dividend Date, Should Investors Buy?

Have you been keeping an eye on Raytheon Company's (NYSE:RTN) upcoming dividend of US$0.87 per share payable on the 02 August 2018? … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Raytheon's latest financial data to analyse its dividend characteristics. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

Simply Wall St -

Company Info

Map
Description

Raytheon Company develops integrated products, services, and solutions for the defense and other government markets worldwide. It operates through five segments: Integrated Defense Systems (IDS); Intelligence, Information and Services (IIS); Missile Systems (MS); Space and Airborne Systems (SAS); and Forcepoint. The IDS segment offers integrated air and missile defense; land- and sea-based radar solutions; command, control, communications, computers, cyber, and intelligence solutions; naval combat and ship electronic and sensing systems; and undersea sensing and effects solutions. The IIS segment provides technical and professional services, such as navigation, DoD space and weather solutions, cybersecurity, analytics, training, logistics, mission support, software-based complex systems, automation and sustainment solutions, and air traffic management systems, as well as intelligence, surveillance, and reconnaissance solutions. The MS segment develops and supports weapon systems comprising missiles, smart munitions, close-in weapon systems, projectiles, kinetic kill vehicles, directed energy effectors, and combat sensor solutions. The SAS segment provides civil and military electro-optical/infrared sensors; airborne radars for surveillance and fire control applications; lasers; precision guidance systems; signals intelligence systems; processors; electronic warfare systems; tactical and strategic communications; and space-qualified systems. The Forcepoint segment offers cyber security products that include risk adaptive data loss prevention; user and entity behavior analytics and cloud access security broker capabilities; insider threat solutions; firewall technology; cloud and on premise Web and email security; and cross domain transfer products. The company was founded in 1922 and is headquartered in Waltham, Massachusetts.

Details
Name: Raytheon Company
RTN
Exchange: NYSE
Founded: 1922
$52,860,542,310
282,239,000
Website: http://www.raytheon.com
Address: Raytheon Company
870 Winter Street,
Waltham,
Massachusetts, 02451,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE RTN Common Stock Par Value 0.01 New York Stock Exchange US USD 15. May 2001
DB RTN1 Common Stock Par Value 0.01 Deutsche Boerse AG DE EUR 15. May 2001
XTRA RTN1 Common Stock Par Value 0.01 XETRA Trading Platform DE EUR 15. May 2001
LSE 0KU4 Common Stock Par Value 0.01 London Stock Exchange GB USD 15. May 2001
Number of employees
Current staff
Staff numbers
67,000
Raytheon employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/21 23:45
End of day share price update: 2019/02/21 00:00
Last estimates confirmation: 2019/02/20
Last earnings filing: 2019/02/13
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.