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United Technologies

NYSE:UTX
Snowflake Description

Established dividend payer with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
UTX
NYSE
$110B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

United Technologies Corporation provides technology products and services to building systems and aerospace industries worldwide. The last earnings update was 11 days ago. More info.


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UTX Share Price and Events
7 Day Returns
4.1%
NYSE:UTX
2.1%
US Aerospace & Defense
1.2%
US Market
1 Year Returns
-1.2%
NYSE:UTX
-8.8%
US Aerospace & Defense
0.9%
US Market
UTX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
United Technologies (UTX) 4.1% 12.2% 1.4% -1.2% 38.3% 9.7%
US Aerospace & Defense 2.1% 10.1% -0.7% -8.8% 50.5% 57.3%
US Market 1.2% 6.6% 1.2% 0.9% 44.3% 41.3%
1 Year Return vs Industry and Market
  • UTX outperformed the Aerospace & Defense industry which returned -8.8% over the past year.
  • UTX underperformed the Market in United States of America which returned 0.9% over the past year.
Price Volatility
UTX
Industry
5yr Volatility vs Market

Value

 Is United Technologies undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of United Technologies to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for United Technologies.

NYSE:UTX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 18 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:UTX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.3%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.911 (1 + (1- 21%) (41.36%))
1.209
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.21
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.209 * 7.27%)
11.52%

Discounted Cash Flow Calculation for NYSE:UTX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for United Technologies is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:UTX DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 5,175.27 6,408.50 8,637.83 8,833.00 9,348.00
Source Analyst x11 Analyst x8 Analyst x6 Analyst x3 Analyst x2
Present Value
Discounted (@ 11.52%)
4,640.68 5,152.92 6,228.03 5,710.88 5,419.53
Present value of next 5 years cash flows $27,152.04
NYSE:UTX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $9,348.00 × (1 + 2.73%) ÷ (11.52% – 2.73%)
$109,255.80
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $109,255.80 ÷ (1 + 11.52%)5
$63,341.39
NYSE:UTX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $27,152.04 + $63,341.39
$90,493.43
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $90,493.43 / 861.75
$105.01
NYSE:UTX Discount to Share Price
Calculation Result
Value per share (USD) From above. $105.01
Current discount Discount to share price of $127.76
= -1 x ($127.76 - $105.01) / $105.01
-21.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of United Technologies is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for United Technologies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are United Technologies's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:UTX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $6.58
NYSE:UTX Share Price ** NYSE (2019-02-15) in USD $127.76
United States of America Aerospace & Defense Industry PE Ratio Median Figure of 41 Publicly-Listed Aerospace & Defense Companies 20.49x
United States of America Market PE Ratio Median Figure of 3,045 Publicly-Listed Companies 16.97x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of United Technologies.

NYSE:UTX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:UTX Share Price ÷ EPS (both in USD)

= 127.76 ÷ 6.58

19.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • United Technologies is good value based on earnings compared to the US Aerospace & Defense industry average.
  • United Technologies is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does United Technologies's expected growth come at a high price?
Raw Data
NYSE:UTX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.41x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts
11.1%per year
United States of America Aerospace & Defense Industry PEG Ratio Median Figure of 34 Publicly-Listed Aerospace & Defense Companies 1.74x
United States of America Market PEG Ratio Median Figure of 2,115 Publicly-Listed Companies 1.36x

*Line of best fit is calculated by linear regression .

NYSE:UTX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.41x ÷ 11.1%

1.75x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • United Technologies is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on United Technologies's assets?
Raw Data
NYSE:UTX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $45.12
NYSE:UTX Share Price * NYSE (2019-02-15) in USD $127.76
United States of America Aerospace & Defense Industry PB Ratio Median Figure of 54 Publicly-Listed Aerospace & Defense Companies 2.54x
United States of America Market PB Ratio Median Figure of 5,122 Publicly-Listed Companies 1.82x
NYSE:UTX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:UTX Share Price ÷ Book Value per Share (both in USD)

= 127.76 ÷ 45.12

2.83x

* Primary Listing of United Technologies.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • United Technologies is overvalued based on assets compared to the US Aerospace & Defense industry average.
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Value checks
We assess United Technologies's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. United Technologies has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is United Technologies expected to grow at an attractive rate?
  • United Technologies's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • United Technologies's earnings growth is positive but not above the United States of America market average.
  • United Technologies's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:UTX Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:UTX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts 11.1%
NYSE:UTX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 6.5%
United States of America Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 10.1%
United States of America Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:UTX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:UTX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 92,816 11,410 8,862 2
2022-12-31 87,036 11,003 8,490 3
2021-12-31 84,106 10,642 8,079 8
2020-12-31 80,560 8,691 7,213 16
2019-12-31 77,029 7,718 6,400 18
NYSE:UTX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 66,501 6,322 5,269
2018-09-30 64,137 6,838 4,980
2018-06-30 62,689 5,047 5,072
2018-03-31 61,264 5,091 4,463
2017-12-31 59,837 5,631 4,552
2017-09-30 58,816 4,909 5,179
2017-06-30 58,108 6,876 5,292
2017-03-31 57,702 6,302 5,279
2016-12-31 57,244 3,880 5,065
2016-09-30 56,885 4,719 3,785
2016-06-30 56,319 3,678 3,769
2016-03-31 56,135 3,644 3,804

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • United Technologies's earnings are expected to grow by 11.1% yearly, however this is not considered high growth (20% yearly).
  • United Technologies's revenue is expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:UTX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below

All data from United Technologies Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:UTX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 10.28 10.28 10.28 1.00
2022-12-31 9.75 9.75 9.75 1.00
2021-12-31 9.24 10.01 8.62 6.00
2020-12-31 8.30 8.93 7.38 11.00
2019-12-31 7.44 7.95 5.64 12.00
NYSE:UTX Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 6.58
2018-09-30 6.30
2018-06-30 6.42
2018-03-31 5.66
2017-12-31 5.76
2017-09-30 6.53
2017-06-30 6.61
2017-03-31 6.51
2016-12-31 6.19
2016-09-30 4.57
2016-06-30 4.47
2016-03-31 4.44

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • United Technologies is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess United Technologies's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
United Technologies has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has United Technologies performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare United Technologies's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • United Technologies's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • United Technologies's 1-year earnings growth exceeds its 5-year average (15.8% vs -4.1%)
  • United Technologies's earnings growth has not exceeded the US Aerospace & Defense industry average in the past year (15.8% vs 27.2%).
Earnings and Revenue History
United Technologies's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from United Technologies Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:UTX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 66,501.00 5,269.00 6,029.00 2,462.00
2018-09-30 64,137.00 4,980.00 6,226.00 2,319.00
2018-06-30 62,689.00 5,072.00 6,195.00 2,325.00
2018-03-31 61,264.00 4,463.00 6,125.00 2,355.00
2017-12-31 59,837.00 4,552.00 5,856.00 2,427.00
2017-09-30 58,816.00 5,179.00 6,185.00 2,423.00
2017-06-30 58,108.00 5,292.00 6,124.00 2,413.00
2017-03-31 57,702.00 5,279.00 6,111.00 2,382.00
2016-12-31 57,244.00 5,065.00 6,007.00 2,376.00
2016-09-30 56,885.00 3,785.00 5,829.00 2,322.00
2016-06-30 56,319.00 3,769.00 5,798.00 2,286.00
2016-03-31 56,135.00 3,804.00 5,773.00 2,256.00
2015-12-31 56,098.00 3,996.00 5,886.00 2,279.00
2015-09-30 56,778.00 5,530.00 5,881.00 2,292.00
2015-06-30 57,603.00 5,858.00 6,023.00 2,386.00
2015-03-31 56,475.00 6,217.00 6,052.00 2,415.00
2014-12-31 57,900.00 6,066.00 6,172.00 2,475.00
2014-09-30 59,679.00 6,237.00 6,273.00 2,509.00
2014-06-30 60,528.00 5,897.00 6,405.00 2,499.00
2014-03-31 62,972.00 5,629.00 6,687.00 2,543.00
2013-12-31 56,600.00 5,265.00 6,364.00 2,342.00
2013-09-30 62,310.00 5,182.00 6,933.00 2,583.00
2013-06-30 61,890.00 5,014.00 6,872.00 2,543.00
2013-03-31 59,691.00 4,928.00 6,599.00 2,437.00
2012-12-31 57,708.00 4,847.00 6,452.00 2,371.00
2012-09-30 55,642.00 5,180.00 5,990.00 2,183.00
2012-06-30 54,835.00 5,220.00 5,930.00 2,058.00
2012-03-31 55,497.00 5,039.00 6,042.00 2,027.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • United Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • United Technologies used its assets less efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.
  • United Technologies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess United Technologies's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
United Technologies has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is United Technologies's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up United Technologies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • United Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • United Technologies's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of United Technologies's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from United Technologies Company Filings, last reported 1 month ago.

NYSE:UTX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 40,719.00 45,537.00 6,152.00
2018-09-30 34,375.00 39,943.00 13,799.00
2018-06-30 33,476.00 28,309.00 11,068.00
2018-03-31 32,627.00 27,347.00 7,667.00
2017-12-31 31,552.00 27,485.00 8,985.00
2017-09-30 32,120.00 27,260.00 8,523.00
2017-06-30 30,561.00 26,626.00 9,345.00
2017-03-31 29,579.00 24,582.00 7,156.00
2016-12-31 29,465.00 23,901.00 7,157.00
2016-09-30 31,079.00 22,665.00 7,107.00
2016-06-30 30,962.00 22,537.00 6,785.00
2016-03-31 30,030.00 23,051.00 7,215.00
2015-12-31 28,966.00 20,425.00 7,075.00
2015-09-30 32,183.00 22,667.00 5,477.00
2015-06-30 32,072.00 22,443.00 5,933.00
2015-03-31 30,302.00 21,993.00 5,281.00
2014-12-31 32,704.00 19,701.00 5,229.00
2014-09-30 35,530.00 19,998.00 5,035.00
2014-06-30 35,339.00 20,072.00 4,962.00
2014-03-31 33,832.00 20,043.00 4,477.00
2013-12-31 33,330.00 20,241.00 4,619.00
2013-09-30 30,043.00 21,188.00 4,621.00
2013-06-30 28,543.00 21,656.00 4,909.00
2013-03-31 27,818.00 22,824.00 4,767.00
2012-12-31 27,307.00 23,221.00 4,819.00
2012-09-30 26,324.00 28,700.00 6,242.00
2012-06-30 23,963.00 20,721.00 5,966.00
2012-03-31 23,792.00 9,791.00 6,285.00
  • United Technologies's level of debt (111.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (60.7% vs 111.8% today).
  • Debt is not well covered by operating cash flow (13.9%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.5x coverage).
X
Financial health checks
We assess United Technologies's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. United Technologies has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.3%
Current annual income from United Technologies dividends. Estimated to be 2.41% next year.
If you bought $2,000 of United Technologies shares you are expected to receive $46 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • United Technologies's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • United Technologies's dividend is below the markets top 25% of dividend payers in United States of America (3.59%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:UTX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
United States of America Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1998 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:UTX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 2.92 1.00
2021-12-31 3.24 4.00
2020-12-31 3.13 10.00
2019-12-31 2.99 11.00
NYSE:UTX Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-04 2.940 2.396
2019-01-23 2.940 2.505
2018-06-13 2.800 2.219
2018-04-30 2.800 2.247
2018-02-05 2.800 2.206
2017-10-11 2.800 2.246
2017-06-14 2.800 2.371
2017-04-25 2.640 2.190
2017-02-06 2.640 2.347
2016-10-12 2.640 2.466
2016-06-08 2.640 2.538
2016-04-25 2.640 2.604
2016-02-08 2.560 2.639
2015-10-14 2.560 2.729
2015-06-10 2.560 2.579
2015-04-27 2.560 2.186
2015-02-02 2.560 2.149
2014-10-08 2.360 2.139
2014-06-11 2.360 2.152
2014-04-28 2.360 2.019
2014-02-03 2.360 2.047
2013-10-09 2.356 2.143
2013-06-12 2.140 2.097
2013-04-29 2.140 2.266
2013-02-04 2.140 2.329
2012-10-10 2.140 2.641
2012-06-13 2.140 2.784
2012-04-11 1.920 2.497
2012-02-06 1.920 2.311
2011-10-12 1.920 2.533
2011-06-08 1.920 2.477
2011-04-13 1.920 2.215
2011-02-07 1.700 2.042
2010-10-13 1.700 2.190
2010-06-09 1.700 2.466
2010-04-14 1.700 2.402
2010-02-08 1.700 2.397
2009-10-14 1.540 2.269
2009-06-10 1.540 2.723
2009-04-08 1.540 3.038
2009-02-19 1.540 3.662

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of United Technologies's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3x coverage).
X
Income/ dividend checks
We assess United Technologies's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can United Technologies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. United Technologies has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Greg Hayes
COMPENSATION $17,027,493
AGE 57
TENURE AS CEO 4.3 years
CEO Bio

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 September 14, 2016. He is the Chief Executive Officer of United Technologies Corporation and President of United Technologies Corporation at Sikorsky Aircraft Corporation. Mr. Hayes served as the Chief Financial Officer at United Technologies Corporation from September, 2008 to November 23, 2014. Mr. Hayes served as a Senior Vice President at United Technologies Corporation from September 2008 to November 23, 2014. He served as a Vice President of Accounting & Finance for United Technologies Corp., from 2006 to September 2008, Vice President of Accounting & Control since February 2004 and Controller from April 1, 2003 to August 15, 2007. He served as a Vice President of Financial Planning and Analysis at United Technologies Corp. since January 2002 and its Vice President since April 1, 2003. He served as Treasury of Hamilton Sundstrand, Director of Financial Planning & Controller of Aerospace, Hamilton Sundstrand and Vice President of Finance, Sundstrand Aerospace at United Technologies Corp. He joined United Technologies Corp., in 1989 and served as its Chief Accounting Officer from 2006 to December 31, 2010. He has been an Independent Director of United Technologies Corporation since November 23, 2014. His Various senior positions since joining UTC in 1999 through the merger with Sundstrand Corporation, including Vice President, Accounting and Finance, and responsibility for UTC’s Corporate Strategy group. He was also employed at Arthur Andersen & Co. Mr. Hayes is a Certified Public Accountant and holds a Bachelor's Degree in Economics from Purdue University in 1982. He was Independent Director of Nucor Corporation from February 2014 to May 10, 2018.

CEO Compensation
  • Greg's compensation has been consistent with company performance over the past year.
  • Greg's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the United Technologies management team in years:

3.1
Average Tenure
55
Average Age
  • The tenure for the United Technologies management team is about average.
Management Team

Greg Hayes

TITLE
Chairman & CEO
COMPENSATION
$17M
AGE
57
TENURE
4.3 yrs

Akhil Johri

TITLE
Executive VP & CFO
COMPENSATION
$6M
AGE
57
TENURE
4.1 yrs

Bob Leduc

TITLE
President of Pratt & Whitney
COMPENSATION
$6M
AGE
62
TENURE
3.1 yrs

Bob McDonough

TITLE
President of Carrier
COMPENSATION
$6M
AGE
59
TENURE
3.4 yrs

Dave Gitlin

TITLE
President & COO of Collins Aerospace
COMPENSATION
$10M
AGE
49
TENURE
0.3 yrs

Mike Dumais

TITLE
Executive VP of Operations & Strategy
AGE
51
TENURE
2.1 yrs

Robin Diamonte

TITLE
Chief Investment Officer & VP of Pension Investments
AGE
53

Bob Bailey

TITLE
Corporate VP & Controller
AGE
53

Paul Eremenko

TITLE
Senior VP & CTO
TENURE
1.1 yrs

Carroll Lane

TITLE
Vice President of Investor Relations
Board of Directors Tenure

Average tenure and age of the United Technologies board of directors in years:

6.4
Average Tenure
67.5
Average Age
  • The tenure for the United Technologies board of directors is about average.
Board of Directors

Greg Hayes

TITLE
Chairman & CEO
COMPENSATION
$17M
AGE
57
TENURE
2.4 yrs

JP Garnier

TITLE
Independent Director
COMPENSATION
$326K
AGE
71
TENURE
22.1 yrs

John Faraci

TITLE
Independent Director
COMPENSATION
$351K
AGE
68
TENURE
13.2 yrs

Ellen Kullman

TITLE
Lead Director
COMPENSATION
$356K
AGE
62

Christine Whitman

TITLE
Independent Director
COMPENSATION
$301K
AGE
71
TENURE
15.2 yrs

Terry McGraw

TITLE
Independent Director
COMPENSATION
$301K
AGE
70
TENURE
15.2 yrs

Marshall Larsen

TITLE
Independent Director
COMPENSATION
$331K
AGE
70
TENURE
6.4 yrs

Brian Rogers

TITLE
Independent Director
COMPENSATION
$303K
AGE
63
TENURE
3.1 yrs

Fred Reynolds

TITLE
Independent Director
COMPENSATION
$333K
AGE
67
TENURE
3.1 yrs

Lloyd Austin

TITLE
Independent Director
COMPENSATION
$338K
AGE
64
TENURE
2.4 yrs
Who owns this company?
Recent Insider Trading
  • United Technologies insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
15. Feb 19 Sell Elizabeth Amato Individual 14. Feb 19 14. Feb 19 -10,089 $123.84 $-1,249,435
07. Feb 19 Sell Robert Bailey Individual 06. Feb 19 06. Feb 19 -862 $121.71 $-104,916
24. May 18 Sell Charles Gill Individual 22. May 18 22. May 18 -9,700 $128.47 $-1,246,204
01. May 18 Buy Fredric Reynolds Individual 27. Apr 18 27. Apr 18 9,000 $121.58 $1,094,251
27. Apr 18 Sell Elizabeth Amato Individual 26. Apr 18 26. Apr 18 -2,274 $123.85 $-281,641
23. Feb 18 Sell Robert Bailey Individual 22. Feb 18 22. Feb 18 -419 $133.73 $-56,034
X
Management checks
We assess United Technologies's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. United Technologies has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Was United Technologies Corporation's (NYSE:UTX) Earnings Decline Part Of A Broader Industry Downturn?

After reading United Technologies Corporation's (NYSE:UTX) most recent earnings announcement (30 September 2018), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of -4.3%, indicating the rate at which UTX is growing has slowed down

Simply Wall St -

With A Return On Equity Of 16%, Has United Technologies Corporation's (NYSE:UTX) Management Done Well?

By way of learning-by-doing, we'll look at ROE to gain a better understanding United Technologies Corporation (NYSE:UTX). … That means that for every $1 worth of shareholders' equity, it generated $0.16 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Does United Technologies Corporation (NYSE:UTX)'s Capital Return Make The Cut?

and want to better understand how you can grow your money by investing in United Technologies Corporation (NYSE:UTX). … Thus, to understand how your money can grow by investing in United Technologies, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE) … Calculating Return On Capital Employed for UTX

Simply Wall St -

Should You Be Concerned About United Technologies Corporation's (NYSE:UTX) Earnings Growth?

In this commentary, I will examine United Technologies Corporation's (NYSE:UTX) latest earnings update (30 June 2018) and compare these figures against its performance over the past couple of years, as well as how the rest of the aerospace & defense industry performed. … View our latest analysis for United Technologies? … UTX's trailing twelve-month earnings (from 30 June 2018) of US$5.07b has

Simply Wall St -

Should You Expect United Technologies Corporation (NYSE:UTX) To Continue Delivering An ROE Of 14.77%?

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden. … Check out our latest analysis for United Technologies

Simply Wall St -

Estimating The Fair Value Of United Technologies Corporation (NYSE:UTX)

by projecting its future cash flows and then discounting them to today's value. … discounted cash flows (DCF). … If you are reading this and its not July 2018 then I highly recommend you check out the latest calculation for United Technologies by following the link below.

Simply Wall St -

Should United Technologies Corporation (NYSE:UTX) Be Part Of Your Dividend Portfolio?

There is a lot to be liked about United Technologies Corporation (NYSE:UTX) as an income stock, over the past 10 years it has returned an average of 2.00% per year. … The company currently pays out a dividend yield of 2.25% to shareholders, making it a relatively attractive dividend stock. … Does United Technologies tick all the boxes of a great dividend stock?

Simply Wall St -

Is It The Right Time To Buy United Technologies Corporation (NYSE:UTX)?

This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price? … A question to answer is whether United Technologies's current trading price of $125.05 reflective of the actual value of the? … Let’s take a look at United Technologies’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

What Do Expectations Tell Us About United Technologies Corporation's (NYSE:UTX) Margins In The Next Few Years?

United Technologies Corporation's (NYSE:UTX) … growth of 9.65% annualised … but it's critical to take a step back

Simply Wall St -

Does United Technologies Corporation's (NYSE:UTX) PE Ratio Signal A Buying Opportunity?

United Technologies Corporation (NYSE:UTX) is currently trading at a trailing P/E of 22.3x, which is lower than the industry average of 22.4x. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for UTX Price per share = $126.2 Earnings per share = $5.656 ∴ Price-Earnings Ratio = $126.2 ÷ $5.656 = 22.3x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … UTX’s P/E of 22.3x is lower than its industry peers (22.4x), which implies that each dollar of UTX’s earnings is being undervalued by investors.

Simply Wall St -

Company Info

Map
Description

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 freight elevators, escalators, and moving walkways; and offers modernization products to upgrade elevators and escalators, as well as maintenance and repair services. The company’s Carrier segment provides heating, ventilating, air conditioning, refrigeration, fire, security, and building automation products, solutions, and services for commercial, government, infrastructure, residential, and refrigeration and transportation applications. This segment also offers building services, including audit, design, installation, system integration, repair, maintenance, and monitoring. Its Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation markets; and provides aftermarket maintenance, repair, and overhaul, as well as fleet management services. The company’s Collins Aerospace Systems segment provides electric power generation, power management, and distribution systems; air data and aircraft sensing systems; engine control, intelligence, surveillance, and reconnaissance systems; engine components; environmental control systems; fire and ice detection, and protection systems; propeller systems; engine nacelle systems; aircraft lighting, seating, and cargo systems; actuation and landing systems; space products and subsystems; avionics systems; flight controls, communications, navigation, oxygen, and training systems; food and beverage preparation, and storage and galley systems; and lavatory and wastewater management systems. The company offers its services through manufacturers’ representatives, distributors, wholesalers, dealers, retail outlets, and sales representatives, as well as directly to customers. United Technologies Corporation was founded in 1934 and is headquartered in Farmington, Connecticut.

Details
Name: United Technologies Corporation
UTX
Exchange: NYSE
Founded: 1934
$110,097,026,304
861,748,797
Website: http://www.utc.com
Address: United Technologies Corporation
10 Farm Springs Road,
Farmington,
Connecticut, 06032,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE UTX Common Stock New York Stock Exchange US USD 02. Jan 1968
DB UTC1 Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
XTRA UTC1 Common Stock XETRA Trading Platform DE EUR 02. Jan 1968
LSE 0R2N Common Stock London Stock Exchange GB USD 02. Jan 1968
SWX UTX Common Stock SIX Swiss Exchange CH CHF 02. Jan 1968
WBAG UTX Common Stock Wiener Boerse AG AT EUR 02. Jan 1968
SNSE UTX Common Stock Santiago Stock Exchange CL USD 02. Jan 1968
BMV UTX * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
BOVESPA UTEC34 EACH BDR REPR 1 COM USD1 Bolsa de Valores de Sao Paulo BR BRL 29. Dec 2014
BASE UTX CEDEARS EACH REP 1/5 COM USD1 Buenos Aires Stock Exchange AR ARS 19. Jul 2001
Number of employees
Current staff
Staff numbers
240,200
United Technologies employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/18 01:38
End of day share price update: 2019/02/15 00:00
Last estimates confirmation: 2019/02/15
Last earnings filing: 2019/02/07
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.