Raytheon Technologies
Market Cap
US$125.0b
Last Updated
2021/09/19 22:14 UTC
Data Sources
Company Financials +
Executive Summary
Raytheon Technologies Corporation, an aerospace and defense company, provides systems and services for the commercial, military, and government customers worldwide. More Details
Rewards
Risk Analysis
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 less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: RTX's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
0.5%
RTX
-1.4%
US Aerospace & Defense
-0.6%
US Market
1 Year Return
33.7%
RTX
16.7%
US Aerospace & Defense
33.8%
US Market
Return vs Industry: RTX exceeded the US Aerospace & Defense industry which returned 16.7% over the past year.
Return vs Market: RTX matched the US Market which returned 33.8% over the past year.
Shareholder returns
| RTX | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.5% | -1.4% | -0.6% |
| 30 Day | -0.8% | -2.3% | 1.0% |
| 90 Day | -5.2% | -6.5% | 3.4% |
| 1 Year | 37.2%33.7% | 19.2%16.7% | 35.8%33.8% |
| 3 Year | 7.2%-41.3% | 11.1%-12.4% | 60.0%50.1% |
| 5 Year | 55.5%-18.7% | 67.0%25.5% | 123.0%98.7% |
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
2 weeks ago | Simply Wall St
Should You Investigate Raytheon Technologies Corporation (NYSE:RTX) At US$84.10?Valuation
Is Raytheon Technologies undervalued compared to its fair value and its price relative to the market?
42.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RTX ($83.39) is trading below our estimate of fair value ($144.44)
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 (59.3x) compared to the US Aerospace & Defense industry average (21.1x).
PE vs Market: RTX is poor value based on its PE Ratio (59.3x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: RTX is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: RTX is good value based on its PB Ratio (1.8x) compared to the US Aerospace & Defense industry average (3.1x).
Future Growth
How is Raytheon Technologies forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
22.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RTX's forecast earnings growth (22.7% per year) is above the savings rate (2%).
Earnings vs Market: RTX's earnings (22.7% per year) are forecast to grow faster than the US market (14.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: RTX's revenue (6.9% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: RTX's revenue (6.9% 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 (11.2%).
Past Performance
How has Raytheon Technologies performed over the past 5 years?
-35.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RTX has high quality earnings.
Growing Profit Margin: RTX became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: RTX's earnings have declined by 35.3% per year over the past 5 years.
Accelerating Growth: RTX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: RTX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (2.5%).
Return on Equity
High ROE: RTX's Return on Equity (3.2%) is considered low.
Financial Health
How is Raytheon Technologies's financial position?
Financial Position Analysis
Short Term Liabilities: RTX's short term assets ($40.9B) exceed its short term liabilities ($34.8B).
Long Term Liabilities: RTX's short term assets ($40.9B) do not cover its long term liabilities ($51.3B).
Debt to Equity History and Analysis
Debt Level: RTX's debt to equity ratio (43.1%) is considered high.
Reducing Debt: RTX's debt to equity ratio has reduced from 72.8% to 43.1% over the past 5 years.
Debt Coverage: RTX's debt is not well covered by operating cash flow (15.8%).
Interest Coverage: RTX's interest payments on its debt are well covered by EBIT (3.3x coverage).
Balance Sheet
Dividend
What is Raytheon Technologies's current dividend yield, its reliability and sustainability?
2.45%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RTX's dividend (2.45%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: RTX's dividend (2.45%) is low compared to the top 25% of dividend payers in the US market (3.6%).
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 (137.6%), 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 (37.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.9yrs
Average management tenure
CEO
Greg Hayes (60 yo)
6.83yrs
Tenure
US$20,970,890
Compensation
Mr. Gregory J. Hayes, also known as Greg, is the Chairman of the Board of Directors at Raytheon Technologies Corporation since June 01, 2021. He has been the Chief Executive Officer and President at Raythe...
CEO Compensation Analysis
Compensation vs Market: Greg's total compensation ($USD20.97M) is above average for companies of similar size in the US market ($USD11.33M).
Compensation vs Earnings: Greg's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: RTX's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.
Board Members
Experienced Board: RTX's board of directors are not considered experienced ( 1.4 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 only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
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: NaN
- Industry: Aerospace and Defense
- Sector: Capital Goods
- Market Cap: US$125.017b
- Shares outstanding: 1.50b
- Website: https://www.rtx.com
Number of Employees
Location
- Raytheon Technologies Corporation
- 870 Winter Street
- Waltham
- Massachusetts
- 2451
- United States
Listings
Biography
Raytheon Technologies Corporation, an aerospace and defense company, provides systems and services for the commercial, military, and government customers worldwide. It operates through four segments: Colli...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/19 22:14 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.