NYSE:RTX

Stock Analysis Report

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Executive Summary

Raytheon Technologies Corporation, an aerospace and defense company, provides advanced systems and services for commercial, military, and government customers worldwide. More Details


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Raytheon Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RTX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.0%

RTX

0.4%

US Aerospace & Defense

-0.7%

US Market


1 Year Return

-55.4%

RTX

-26.2%

US Aerospace & Defense

19.9%

US Market

Return vs Industry: RTX underperformed the US Aerospace & Defense industry which returned -26.2% over the past year.

Return vs Market: RTX underperformed the US Market which returned 19.9% over the past year.


Shareholder returns

RTXIndustryMarket
7 Day2.0%0.4%-0.7%
30 Day-1.0%-1.9%5.8%
90 Day-2.1%2.4%8.3%
1 Year-22.3%-55.4%-11.2%-26.2%22.7%19.9%
3 Year-7.0%-48.9%3.4%-17.3%43.5%33.9%
5 Year18.0%-38.4%56.0%16.3%86.9%65.8%

Price Volatility Vs. Market

How volatile is Raytheon Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Raytheon Technologies undervalued compared to its fair value and its price relative to the market?

40.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RTX ($61.75) is trading below our estimate of fair value ($103.14)

Significantly Below Fair Value: RTX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RTX is poor value based on its PE Ratio (272.3x) compared to the US Aerospace & Defense industry average (22x).

PE vs Market: RTX is poor value based on its PE Ratio (272.3x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: RTX is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: RTX is good value based on its PB Ratio (1.4x) compared to the US Aerospace & Defense industry average (2.4x).


Next Steps

Future Growth

How is Raytheon Technologies forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

52.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RTX's forecast earnings growth (52.8% per year) is above the savings rate (2.2%).

Earnings vs Market: RTX's earnings (52.8% per year) are forecast to grow faster than the US market (22.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RTX's revenue (5.5% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: RTX's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RTX's Return on Equity is forecast to be low in 3 years time (8.3%).


Next Steps

Past Performance

How has Raytheon Technologies performed over the past 5 years?

-5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RTX has a large one-off loss of $4.0B impacting its June 30 2020 financial results.

Growing Profit Margin: RTX's current net profit margins (0.3%) are lower than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: RTX's earnings have declined by 5% per year over the past 5 years.

Accelerating Growth: RTX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RTX had negative earnings growth (-93.8%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (1.6%).


Return on Equity

High ROE: RTX's Return on Equity (0.9%) is considered low.


Next Steps

Financial Health

How is Raytheon Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: RTX's short term assets ($42.3B) exceed its short term liabilities ($35.3B).

Long Term Liabilities: RTX's short term assets ($42.3B) do not cover its long term liabilities ($57.3B).


Debt to Equity History and Analysis

Debt Level: RTX's debt to equity ratio (46.6%) is considered high.

Reducing Debt: RTX's debt to equity ratio has reduced from 70% to 46.6% over the past 5 years.

Debt Coverage: RTX's debt is not well covered by operating cash flow (18.5%).

Interest Coverage: RTX's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet


Next Steps

Dividend

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

3.08%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: RTX's dividend (3.08%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: RTX's dividend (3.08%) is low compared to the top 25% of dividend payers in the US market (4.66%).


Stability and Growth of Payments

Stable Dividend: RTX's dividend payments have been volatile in the past 10 years.

Growing Dividend: RTX's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (1181.7%), RTX's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RTX's dividends in 3 years are forecast to be well covered by earnings (40.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Greg Hayes (59 yo)

5.92yrs

Tenure

US$21,538,847

Compensation

Mr. Gregory J. Hayes, also known as Greg, has been the Chief Executive Officer and President at Raytheon Technologies Corporation (Formerly known United Technologies Corporation) since November 23, 2014 an ...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD21.54M) is above average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Greg's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gregory Hayes
President5.92yrsUS$21.54m0.014%
$ 12.9m
Judith Marks
President & CEO of Otis1.33yrsUS$6.96m0.000010%
$ 9.3k
Robert McDonough
Special Advisor to the President & CEO of Carrierno dataUS$10.04m0.0011%
$ 1.0m
Neil Mitchill
Corporate VP of Financial Planning & Analysis and Investor Relationsno dataUS$3.59m0.00055%
$ 512.3k
Thomas Kennedy
Executive Chairman0.50yrno data0.023%
$ 21.2m
Anthony O'Brien
Executive VP & CFOno datano data0.0066%
$ 6.1m
Michael Dumais
Executive VP of Operations & Strategy3.75yrsno data0.0021%
$ 1.9m
Robin Diamonte
Chief Investment Officer & VP of Pension Investmentsno datano datano data
Nicolas Pujet
Interim Chief Technology Officer1.08yrsno datano data
Kelsey DeBriyn
Vice President of Investor Relationsno datano datano data
Charles Gill
Executive VP & General Counsel13.5yrsUS$4.47m0.0037%
$ 3.5m
Christopher McDavid
Corporate Vice President of Global Ethics & Compliancesno datano datano data

2.5yrs

Average Tenure

56yo

Average Age

Experienced Management: RTX's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gregory Hayes
President5.92yrsUS$21.54m0.014%
$ 12.9m
Thomas Kennedy
Executive Chairman0.50yrno data0.023%
$ 21.2m
Marshall Larsen
Independent Director8.08yrsUS$316.18k0.00036%
$ 335.3k
Brian Rogers
Independent Director4.75yrsUS$376.18k0.00033%
$ 307.4k
Denise Ramos
Independent Director1.83yrsUS$341.18k0%
$ 0
Fredric Reynolds
Independent Director4.75yrsUS$351.18k0.0015%
$ 1.4m
Dinesh Paliwal
Director0.50yrno data0.00070%
$ 652.0k
George Oliver
Director0.50yrno data0.0011%
$ 1.0m
Robert Ortberg
Director0.75yrUS$10.16m0.0076%
$ 7.1m
Ellen Pawlikowski
Director0.50yrno data0.00021%
$ 195.6k
Margaret O'Sullivan
Independent Director2.92yrsUS$346.00k0%
$ 0
Lloyd Austin
Independent Director4.08yrsUS$351.18k0%
$ 0

2.4yrs

Average Tenure

63yo

Average Age

Experienced Board: RTX's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RTX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 76.7%.


Top Shareholders

Company Information

Raytheon Technologies Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Raytheon Technologies Corporation
  • Ticker: RTX
  • Exchange: NYSE
  • Founded:
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$93.142b
  • Shares outstanding: 1.51b
  • Website: https://www.rtx.com

Number of Employees


Location

  • Raytheon Technologies Corporation
  • 870 Winter Street
  • Waltham
  • Massachusetts
  • 2451
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RTXNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
5URDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0R2NLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
RTX *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
RTXWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
RTXBASE (Buenos Aires Stock Exchange)CEDEARS EACH REP 1/5 COM USD1ARARSJul 2001
RYTT34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 ORD UNSPONBRBRLDec 2014

Biography

Raytheon Technologies Corporation, an aerospace and defense company, provides advanced systems and services for commercial, military, and government customers worldwide. It operates in four businesses: Col ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 06:22
End of Day Share Price2020/10/16 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.