Raytheon Company develops integrated products, services, and solutions for the defense and other government markets worldwide.
Outstanding track record with flawless balance sheet and pays a dividend.
Share Price & News
How has Raytheon's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RTN's share price has been volatile over the past 3 months.
7 Day Return
US Aerospace & Defense
1 Year Return
US Aerospace & Defense
Return vs Industry: RTN underperformed the US Aerospace & Defense industry which returned -23.1% over the past year.
Return vs Market: RTN underperformed the US Market which returned -15.1% over the past year.
Price Volatility Vs. Market
How volatile is Raytheon's share price compared to the market and industry in the last 5 years?
Simply Wall St News
10 months ago | Simply Wall StBoasting A 25% Return On Equity, Is Raytheon Company (NYSE:RTN) A Top Quality Stock?
10 months ago | Simply Wall StDoes Raytheon Company (NYSE:RTN) Have A Good P/E Ratio?
10 months ago | Simply Wall StRaytheon Company (NYSE:RTN): Time For A Financial Health Check
Is Raytheon undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RTN ($116.96) is trading below our estimate of fair value ($357.98)
Significantly Below Fair Value: RTN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RTN is good value based on its PE Ratio (9.8x) compared to the Aerospace & Defense industry average (12.8x).
PE vs Market: RTN is good value based on its PE Ratio (9.8x) compared to the US market (12.4x).
Price to Earnings Growth Ratio
PEG Ratio: RTN is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: RTN is overvalued based on its PB Ratio (2.7x) compared to the US Aerospace & Defense industry average (1.7x).
How is Raytheon forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RTN's forecast earnings growth (7.6% per year) is above the savings rate (1.7%).
Earnings vs Market: RTN's earnings (7.6% per year) are forecast to grow slower than the US market (13.4% per year).
High Growth Earnings: RTN's earnings are forecast to grow, but not significantly.
Revenue vs Market: RTN's revenue (5.4% per year) is forecast to grow slower than the US market (7.1% per year).
High Growth Revenue: RTN's revenue (5.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RTN's Return on Equity is forecast to be high in 3 years time (21.5%)
How has Raytheon performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RTN has high quality earnings.
Growing Profit Margin: RTN's current net profit margins (11.5%) are higher than last year (10.8%).
Past Earnings Growth Analysis
Earnings Trend: RTN's earnings have grown by 9.5% per year over the past 5 years.
Accelerating Growth: RTN's earnings growth over the past year (14.8%) exceeds its 5-year average (9.5% per year).
Earnings vs Industry: RTN earnings growth over the past year (14.8%) exceeded the Aerospace & Defense industry 3%.
Return on Equity
High ROE: RTN's Return on Equity (27.2%) is considered high.
How is Raytheon's financial position?
Financial Position Analysis
Short Term Liabilities: RTN's short term assets ($13.1B) exceed its short term liabilities ($9.8B).
Long Term Liabilities: RTN's short term assets ($13.1B) exceed its long term liabilities ($12.5B).
Debt to Equity History and Analysis
Debt Level: RTN's debt to equity ratio (38.8%) is considered satisfactory.
Reducing Debt: RTN's debt to equity ratio has reduced from 54.8% to 38.8% over the past 5 years.
Debt Coverage: RTN's debt is well covered by operating cash flow (94.1%).
Interest Coverage: RTN's interest payments on its debt are well covered by EBIT (30x coverage).
What is Raytheon's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RTN's dividend (3.22%) is higher than the bottom 25% of dividend payers in the US market (2.05%).
High Dividend: RTN's dividend (3.22%) is low compared to the top 25% of dividend payers in the US market (5.71%).
Stability and Growth of Payments
Stable Dividend: RTN's dividends per share have been stable in the past 10 years.
Growing Dividend: RTN's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (31.6%), RTN's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RTN's dividends in 3 years are forecast to be well covered by earnings (28.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tom Kennedy (63yo)
Dr. Thomas A. Kennedy, also known as Tom, Ph.D., has served as Chairman of the Board of Raytheon Company since October 2014, Chief Executive Officer since April 2014 and a Director since January 2014. From ...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD22.42M) is above average for companies of similar size in the US market ($USD11.95M).
Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.
|Chairman & CEO||6yrs||US$22.42m||0.051% $16.6m|
|VP & CFO||5.08yrs||US$6.11m||0.016% $5.1m|
|VP and President of Intelligence||no data||US$5.49m||0.042% $13.8m|
|VP & President of Missile Systems||4.75yrs||US$5.34m||0.012% $3.8m|
|VP, Controller & Chief Accounting Officer||13.5yrs||no data||0.0046% $1.5m|
|Vice President of Investor Relations||2.17yrs||no data||no data|
|VP, General Counsel & Corporate Secretary||5.25yrs||US$5.49m||0.0096% $3.1m|
|Vice President of Corporate Affairs & Communications||15.08yrs||no data||no data|
|Vice President of Corporate Development||1.25yrs||no data||no data|
|Vice President of Human Resources & Global Security||5.25yrs||no data||0.0071% $2.3m|
Experienced Management: RTN's management team is seasoned and experienced (5.3 years average tenure).
|Chairman & CEO||6yrs||US$22.42m||0.051% $16.6m|
|Independent Director||4.75yrs||US$373.45k||0.0021% $683.9k|
|Independent Director||21.25yrs||US$294.95k||0.0083% $2.7m|
|Independent Director||3.58yrs||US$273.45k||0.0010% $328.9k|
|Independent Director||6.42yrs||US$292.45k||0.0025% $814.2k|
|Independent Director||5.75yrs||US$307.95k||0.0016% $511.3k|
|Independent Director||10.75yrs||US$304.95k||0.0025% $801.1k|
|Independent Director||5.08yrs||US$314.45k||0.00072% $234.5k|
|Independent Director||2.67yrs||US$294.45k||no data|
|Independent Director||3.25yrs||US$292.45k||0.0010% $328.9k|
Experienced Board: RTN's board of directors are considered experienced (5.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: RTN insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Raytheon Company's company bio, employee growth, exchange listings and data sources
- Name: Raytheon Company
- Ticker: RTN
- Exchange: NYSE
- Founded: 1922
- Industry: Aerospace and Defense
- Sector: Capital Goods
- Market Cap: US$32.566b
- Shares outstanding: 278.44m
- Website: https://www.raytheon.com
Number of Employees
- Raytheon Company
- 870 Winter Street
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|RTN||NYSE (New York Stock Exchange)||Yes||Common Stock Par Value 0.01||US||USD||May 2001|
|RTN1||DB (Deutsche Boerse AG)||Yes||Common Stock Par Value 0.01||DE||EUR||May 2001|
|RTN1||XTRA (XETRA Trading Platform)||Yes||Common Stock Par Value 0.01||DE||EUR||May 2001|
|0KU4||LSE (London Stock Exchange)||Yes||Common Stock Par Value 0.01||GB||USD||May 2001|
|RTN1||ETLX (Eurotlx)||Yes||Common Stock Par Value 0.01||IT||EUR||May 2001|
|RTN1 *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock Par Value 0.01||MX||MXN||May 2001|
|RATN||WBAG (Wiener Boerse AG)||Yes||Common Stock Par Value 0.01||AT||EUR||May 2001|
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, space and weather solutions, cybersecurity, analytics, training, logistics, mission support, software-based 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.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/04 03:56|
|End of Day Share Price||2020/04/02 00:00|
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.