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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: RTX's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-0.9%

RTX

2.4%

US Aerospace & Defense

-0.9%

US Market


1 Year Return

-55.2%

RTX

-28.5%

US Aerospace & Defense

19.6%

US Market

Return vs Industry: RTX underperformed the US Aerospace & Defense industry which returned -27.3% over the past year.

Return vs Market: RTX underperformed the US Market which returned 21% over the past year.


Shareholder returns

RTXIndustryMarket
7 Day-0.9%2.4%-0.9%
30 Day-1.9%0.8%3.0%
90 Day12.1%7.5%11.5%
1 Year-21.8%-55.2%-13.6%-28.5%22.3%19.6%
3 Year-7.2%-49.1%2.7%-18.7%45.3%35.7%
5 Year53.6%-19.9%75.9%32.9%124.8%99.9%

Long-Term 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?

26.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RTX ($69.2) is trading below our estimate of fair value ($94.48)

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


Price To Earnings Ratio

PE vs Industry: RTX is unprofitable, so we can't compare its PE Ratio to the US Aerospace & Defense industry average.

PE vs Market: RTX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RTX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RTX is good value based on its PB Ratio (1.5x) compared to the US Aerospace & Defense industry average (2.8x).


Next Steps

Future Growth

How is Raytheon Technologies forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

48.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RTX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: RTX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RTX's is expected to become profitable in the next 3 years.

Revenue vs Market: RTX's revenue (4.9% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: RTX's revenue (4.9% 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?

-9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RTX is currently unprofitable.

Growing Profit Margin: RTX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RTX is unprofitable, and losses have increased over the past 5 years at a rate of 9.8% per year.

Accelerating Growth: Unable to compare RTX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RTX is unprofitable, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (-6.7%).


Return on Equity

High ROE: RTX has a negative Return on Equity (-0.28%), as it is currently unprofitable.


Next Steps

Financial Health

How is Raytheon Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: RTX's short term assets ($43.5B) exceed its short term liabilities ($35.6B).

Long Term Liabilities: RTX's short term assets ($43.5B) do not cover its long term liabilities ($56.7B).


Debt to Equity History and Analysis

Debt Level: RTX's debt to equity ratio (45.9%) is considered high.

Reducing Debt: RTX's debt to equity ratio has reduced from 70.4% to 45.9% over the past 5 years.

Debt Coverage: RTX's debt is not well covered by operating cash flow (15.7%).

Interest Coverage: RTX is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

2.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RTX's dividend (2.75%) is higher than the bottom 25% of dividend payers in the US market (1.38%).

High Dividend: RTX's dividend (2.75%) is low compared to the top 25% of dividend payers in the US market (3.84%).


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: RTX is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: RTX's dividends in 3 years are forecast to be well covered by earnings (39.8% payout ratio).


Next Steps

Management

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

0.3yrs

Average management tenure


CEO

Greg Hayes (59 yo)

6.17yrs

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) (Diversified Manufacturer)...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD21.54M) is above average for companies of similar size in the US market ($USD10.54M).

Compensation vs Earnings: Greg's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Gregory Hayes
President6.17yrsUS$21.54m0.023%
$ 23.9m
Robert Ortberg
Director & Special Advisor to the Office of the CEO0.25yrUS$10.16m0.0083%
$ 8.7m
Robert McDonough
Special Advisor to the President & CEO of Carrierno dataUS$10.04m0.0011%
$ 1.2m
Neil Mitchill
Corporate VP of Financial Planning & Analysis and Investor Relationsno dataUS$3.59m0.00055%
$ 574.1k
Thomas Kennedy
Executive Chairman0.75yrno data0.024%
$ 25.1m
Anthony O'Brien
Executive VP & CFOno datano data0.0066%
$ 6.9m
Paolo Dal Cin
Head of Operations & Supply Chain0.25yrno datano data
Robin Diamonte
Chief Investment Officer & VP of Pension Investmentsno datano datano data
Mark Russell
Head of Technology0.25yrno datano data
Kelsey DeBriyn
Vice President of Investor Relationsno datano datano data
Christopher McDavid
Corporate Vice President of Global Ethics & Compliancesno datano datano data
Frank Jimenez
Executive VP & General Counsel0.25yrno data0.0040%
$ 4.2m

0.3yrs

Average Tenure

58yo

Average Age

Experienced Management: RTX's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Gregory Hayes
President6.17yrsUS$21.54m0.023%
$ 23.9m
Robert Ortberg
Director & Special Advisor to the Office of the CEO0.25yrUS$10.16m0.0083%
$ 8.7m
Thomas Kennedy
Executive Chairman0.75yrno data0.024%
$ 25.1m
Marshall Larsen
Independent Director8.33yrsUS$316.18k0.00036%
$ 375.8k
Brian Rogers
Independent Director5yrsUS$376.18k0.00033%
$ 344.5k
Denise Ramos
Independent Director2.08yrsUS$341.18k0%
$ 0
Fredric Reynolds
Independent Director5yrsUS$351.18k0.0015%
$ 1.5m
Dinesh Paliwal
Director0.75yrno data0.0014%
$ 1.4m
George Oliver
Director0.75yrno data0.0011%
$ 1.1m
Ellen Pawlikowski
Director0.75yrno data0.00021%
$ 219.2k
Margaret O'Sullivan
Independent Director3.17yrsUS$346.00k0%
$ 0
Lloyd Austin
Independent Director4.33yrsUS$351.18k0%
$ 0

2.6yrs

Average Tenure

63yo

Average Age

Experienced Board: RTX's board of directors are not considered experienced ( 2.6 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$104.379b
  • 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
UTC1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0R2NLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
RTX *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
RTXSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
UTXWBAG (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 Analysis2021/01/16 00:42
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
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.