Raytheon Technologies
Market Cap
US$85.5b
Last Updated
2020/08/03 00:07 UTC
Data Sources
Company Financials +
Executive Summary
Raytheon Technologies Corporation, an aerospace and defense company, provides advanced systems and services for commercial, military, and government customers worldwide.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-7.2%
RTX
-1.3%
US Aerospace & Defense
1.3%
US Market
1 Year Return
-54.9%
RTX
-25.9%
US Aerospace & Defense
14.9%
US Market
Return vs Industry: RTX underperformed the US Aerospace & Defense industry which returned -27.5% over the past year.
Return vs Market: RTX underperformed the US Market which returned 12.5% over the past year.
Shareholder returns
| RTX | Industry | Market | |
|---|---|---|---|
| 7 Day | -7.2% | -1.3% | 1.3% |
| 30 Day | -8.3% | -0.3% | 4.7% |
| 90 Day | -3.9% | 0.3% | 17.1% |
| 1 Year | -21.7%-54.9% | -11.5%-25.9% | 17.3%14.9% |
| 3 Year | -13.0%-52.2% | 7.0%-15.0% | 38.9%29.9% |
| 5 Year | 8.9%-43.1% | 48.8%11.5% | 71.3%52.8% |
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
4 months ago | Simply Wall St
Can We See Significant Institutional Ownership On The United Technologies Corporation (NYSE:UTX) Share Register?4 months ago | Simply Wall St
How Does United Technologies's (NYSE:UTX) P/E Compare To Its Industry, After The Share Price Drop?5 months ago | Simply Wall St
Is United Technologies Corporation (NYSE:UTX) An Attractive Dividend Stock?Valuation
Is Raytheon Technologies undervalued compared to its fair value and its price relative to the market?
37.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RTX ($56.68) is trading below our estimate of fair value ($90.36)
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 (249.9x) compared to the US Aerospace & Defense industry average (20.4x).
PE vs Market: RTX is poor value based on its PE Ratio (249.9x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: RTX is poor value based on its PEG Ratio (5.4x)
Price to Book Ratio
PB vs Industry: RTX is good value based on its PB Ratio (1.3x) compared to the US Aerospace & Defense industry average (2.2x).
Next Steps
Future Growth
How is Raytheon Technologies forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
46.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RTX's forecast earnings growth (46.3% per year) is above the savings rate (2.2%).
Earnings vs Market: RTX's earnings (46.3% per year) are forecast to grow faster than the US market (22.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: RTX's revenue (5.1% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: RTX's revenue (5.1% 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 (7.9%).
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 (-0.2%).
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?
3.35%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: RTX's dividend (3.35%) is higher than the bottom 25% of dividend payers in the US market (1.66%).
High Dividend: RTX's dividend (3.35%) is low compared to the top 25% of dividend payers in the US market (4.51%).
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 (45.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.2yrs
Average management tenure
CEO
Greg Hayes (59 yo)
5.75yrs
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 ($USD11.35M).
Compensation vs Earnings: Greg's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.75yrs | US$21.54m | 0.014% $ 11.7m | |
| President & CEO of Otis | 2.83yrs | US$6.96m | 0.000010% $ 8.5k | |
| Special Advisor to the President & CEO of Carrier | no data | US$10.04m | 0.0011% $ 949.0k | |
| Corporate VP of Financial Planning & Analysis and Investor Relations | no data | US$3.59m | 0.00055% $ 470.2k | |
| Executive Chairman | 0.33yr | no data | 0.023% $ 19.5m | |
| Executive VP & CFO | no data | no data | 0.0066% $ 5.6m | |
| Executive VP of Operations & Strategy | 3.58yrs | no data | 0.0021% $ 1.8m | |
| Chief Investment Officer & VP of Pension Investments | no data | no data | no data | |
| Interim Chief Technology Officer | 0.92yr | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| Executive VP & General Counsel | 13.33yrs | US$4.47m | 0.0037% $ 3.2m | |
| Corporate Vice President of Global Ethics & Compliances | no data | no data | no data |
3.2yrs
Average Tenure
56yo
Average Age
Experienced Management: RTX's management team is considered experienced (3.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.75yrs | US$21.54m | 0.014% $ 11.7m | |
| Executive Chairman | 0.33yr | no data | 0.023% $ 19.5m | |
| Independent Director | 7.92yrs | US$316.18k | 0.00036% $ 307.8k | |
| Independent Director | 4.58yrs | US$376.18k | 0.00033% $ 282.1k | |
| Independent Director | 1.67yrs | US$341.18k | no data | |
| Independent Director | 4.58yrs | US$351.18k | 0.0015% $ 1.3m | |
| Director | 0.33yr | no data | 0.00070% $ 598.5k | |
| Director | 0.33yr | no data | 0.0011% $ 923.3k | |
| Director | 0.58yr | US$10.16m | 0.0055% $ 4.7m | |
| Director | 0.33yr | no data | 0.00021% $ 179.5k | |
| Independent Director | 2.75yrs | US$346.00k | no data | |
| Independent Director | 3.92yrs | US$351.18k | no data |
2.2yrs
Average Tenure
63yo
Average Age
Experienced Board: RTX's board of directors are not considered experienced ( 2.2 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: Insufficient data to determine if 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$85.494b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RTX | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| 5UR | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| 0R2N | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
| RTX * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1968 |
| RTX | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jan 1968 |
| RTX | BASE (Buenos Aires Stock Exchange) | CEDEARS EACH REP 1/5 COM USD1 (USD) | AR | ARS | Jul 2001 | |
| RYTT34 | BOVESPA (Bolsa de Valores de Sao Paulo) | EACH BDR REPR 1 COM USD1 | BR | BRL | Dec 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/08/03 00:07 |
| End of Day Share Price | 2020/07/31 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.