NYSE:UTX

Stock Analysis Report

Executive Summary

United Technologies Corporation provides technology products and services to building systems and aerospace industries worldwide.

Snowflake

Fundamentals

Established dividend payer and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.8%

UTX

-1.4%

US Aerospace & Defense

1.0%

US Market


1 Year Return

9.5%

UTX

7.5%

US Aerospace & Defense

8.0%

US Market

Return vs Industry: UTX exceeded the US Aerospace & Defense industry which returned 7.5% over the past year.

Return vs Market: UTX exceeded the US Market which returned 8% over the past year.


Shareholder returns

UTXIndustryMarket
7 Day1.8%-1.4%1.0%
30 Day2.1%-2.8%-0.07%
90 Day2.5%1.6%-1.0%
1 Year12.0%9.5%9.6%7.5%10.4%8.0%
3 Year49.0%39.0%59.1%50.3%46.2%36.7%
5 Year49.5%32.8%92.0%73.6%64.3%46.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

19.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UTX ($138.35) is trading below our estimate of fair value ($170.93)

Significantly Below Fair Value: UTX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: UTX is good value based on its PE Ratio (22.3x) compared to the Aerospace & Defense industry average (21.6x).

PE vs Market: UTX is poor value based on its PE Ratio (22.3x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: UTX is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: UTX is overvalued based on its PB Ratio (2.9x) compared to the US Aerospace & Defense industry average (2.5x).


Next Steps

Future Growth

How is United Technologies forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UTX's forecast earnings growth (11.9% per year) is above the savings rate (2.7%).

Earnings vs Market: UTX's earnings (11.9% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: UTX's earnings are forecast to grow, but not significantly.

Revenue vs Market: UTX's revenue (4.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: UTX's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UTX's Return on Equity is forecast to be low in 3 years time (17%).


Next Steps

Past Performance

How has United Technologies performed over the past 5 years?

-3.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: UTX's earnings have declined by -3% per year over the past 5 years.

Accelerating Growth: UTX's earnings growth over the past year (1.9%) exceeds its 5-year average (-3% per year).

Earnings vs Industry: UTX earnings growth over the past year (1.9%) underperformed the Aerospace & Defense industry 10.5%.


Return on Equity

High ROE: UTX's Return on Equity (12.9%) is considered low.


Return on Assets

ROA vs Industry: UTX's Return on Assets is below or equal to the Aerospace & Defense industry average last year.


Return on Capital Employed

ROCE Improving: UTX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is United Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: UTX's short term assets ($37.1B) exceeds its short term liabilities ($35.4B)

Long Term Liabilities: UTX's short term assets (37.1B) do not cover its long term liabilities (60.5B)


Debt to Equity History and Analysis

Debt Level: UTX's debt to equity ratio (104.8%) is considered high

Reducing Debt: UTX's debt to equity ratio has increased from 56.8% to 104.8% over the past 5 years.

Debt Coverage: UTX's debt is not well covered by operating cash flow (16.3%).

Interest Coverage: UTX's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet

Inventory Level: UTX has a low level of unsold assets or inventory.

Debt Coverage by Assets: UTX's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

2.13%

Current Dividend Yield


Upcoming Dividend Payment

Purchase United Technologies before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.1%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years2.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: UTX's dividend (2.13%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: UTX's dividend (2.13%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: UTX's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.8%), UTX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UTX's dividends in 3 years are forecast to be well covered by earnings (32.7% payout ratio).


Next Steps

Management

What is the CEO of United Technologies's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

Greg Hayes (58yo)

4.9yrs

Tenure

US$18,418,315

Compensation

Mr. Gregory J. Hayes, also known as Greg, has been the Chief Executive Officer and President at United Technologies Corporation since November 23, 2014 and has been its Chairman of the Board since Septembe ...


CEO Compensation Analysis

Compensation vs. Market: Greg's total compensation ($USD18.42M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

0.9yrs

Average Tenure

55yo

Average Age

Experienced Management: UTX's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

3.8yrs

Average Tenure

66.5yo

Average Age

Experienced Board: UTX's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$178,95218 Mar 19
Robert Bailey
EntityIndividual
Shares1,418
Max PriceUS$126.20
SellUS$2,099,78801 Mar 19
Robert Ortberg
EntityIndividual
Role
Unit CEO
Chief Executive Officer of Collins Aerospace
Shares16,587
Max PriceUS$126.59
SellUS$923,48922 Feb 19
David Gitlin
EntityIndividual
Role
Unit President
President & CEO of Carrier
Shares7,200
Max PriceUS$128.26
SellUS$1,249,43515 Feb 19
Elizabeth Amato
EntityIndividual
Shares10,089
Max PriceUS$123.84
SellUS$104,91607 Feb 19
Robert Bailey
EntityIndividual
Shares862
Max PriceUS$121.71

Ownership Breakdown


Management Team

  • Judy Marks (55yo)

    President & CEO of Otis

    • Tenure: 0.3yrs
    • Compensation: US$6.51m
  • Greg Hayes (58yo)

    Chairman

    • Tenure: 4.9yrs
    • Compensation: US$18.42m
  • Mike Dumais (52yo)

    Executive VP of Operations & Strategy

    • Tenure: 2.8yrs
  • Kelly Ortberg (59yo)

    Chief Executive Officer of Collins Aerospace

    • Tenure: 0.9yrs
    • Compensation: US$10.31m
  • Dave Gitlin (50yo)

    President & CEO of Carrier

    • Tenure: 0.9yrs
    • Compensation: US$6.44m
  • Akhil Johri (58yo)

    Executive VP & CFO

    • Tenure: 4.8yrs
    • Compensation: US$6.45m
  • Robin Diamonte (54yo)

    Chief Investment Officer & VP of Pension Investments

    • Tenure: 0yrs
  • Carroll Lane

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Sharat Dua

    Head of Finance

    • Tenure: 0yrs
  • Nicolas Pujet

    Interim Chief Technology Officer

    • Tenure: 0.08yrs

Board Members

  • Marshall Larsen (71yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$331.24k
  • John Faraci (69yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$326.24k
  • Terry McGraw (71yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$301.24k
  • Brian Rogers (64yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$326.24k
  • JP Garnier (72yo)

    Independent Director

    • Tenure: 22.8yrs
    • Compensation: US$326.24k
  • Fred Reynolds (68yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$341.24k
  • Greg Hayes (58yo)

    Chairman

    • Tenure: 4.9yrs
    • Compensation: US$18.42m
  • Ellen Kullman (63yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$381.24k
  • Diane Bryant (57yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$330.86k
  • Lloyd Austin (65yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$336.24k

Company Information

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


Key Information

  • Name: United Technologies Corporation
  • Ticker: UTX
  • Exchange: NYSE
  • Founded: 1934
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$118.109b
  • Shares outstanding: 853.70m
  • Website: https://www.utc.com

Number of Employees


Location

  • United Technologies Corporation
  • 10 Farm Springs Road
  • Farmington
  • Connecticut
  • 6032
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UTXNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
UTC1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
UTXSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
0R2NLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
UTX *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
UTC1XTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
UTXSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
UTXWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
UTXBASE (Buenos Aires Stock Exchange)CEDEARS EACH REP 1/5 COM USD1ARARSJul 2001
UTEC34BOVESPA (Bolsa de Valores de Sao Paulo)EACH BDR REPR 1 COM USD1BRBRLDec 2014

Biography

United Technologies Corporation provides technology products and services to building systems and aerospace industries worldwide. Its Otis segment designs, manufactures, sells, and installs passenger and f ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:44
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.