RTX Corp (NYSE: RTX)

Sector: Industrials Industry: Aerospace & Defense CIK: 0000101829
Market Cap 266.41 Bn
P/B 4.08
P/E 39.57
P/S 3.01
ROIC (Qtr) 6.22
Div Yield % 1.34
Rev 1y % (Qtr) 12.09
Total Debt (Qtr) 39.51 Bn
Debt/Equity (Qtr) 0.61

About

RTX Corporation, often recognized by its ticker symbol RTX, is a prominent player in the aerospace and defense industry. The company operates through three primary segments: Collins Aerospace, Pratt & Whitney, and Raytheon. It delivers advanced systems and services to commercial, military, and government customers worldwide. Collins Aerospace is a global leader in the provision of technologically advanced aerospace and defense products and aftermarket service solutions. This segment designs, manufactures, and supplies a wide array of systems, including...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 7.43B provide 2.06x coverage of short-term debt 3.62B, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 10.57B provides exceptional 31.36x coverage of minority interest expenses 337M, showing strong core operations.
  • Strong operating cash flow of 10.57B provides 1.73x coverage of SG&A expenses 6.09B, showing efficient operational cost management.
  • Robust free cash flow of 7.94B exceeds capital expenditure of 2.63B by 3.02x, indicating strong organic growth funding capability.
  • Retained earnings of 56.72B provide full 1.58x coverage of long-term debt 35.89B, indicating strong internal capital position.

Bear case

  • Operating cash flow of 10.57B barely covers its investment activities of (1.26B), with a coverage ratio of -8.35, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 10.57B provides thin coverage of dividend payments of (3.57B) with a -2.96 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (1.26B) provide weak support for R&D spending of 2.81B, which is -0.45x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 10.57B provides insufficient coverage of deferred revenue obligations of 21.61B, which is 0.49x, raising concerns about future service delivery capabilities.
  • Operating earnings of 10.14B show weak coverage of depreciation charges of 4.38B, with a 2.32 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2025)

Geographic Distribution Breakdown of Revenue (2025)

Peer comparison

Companies in the Aerospace & Defense
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GE General Electric Co 340.73 Bn 39.15 7.43 20.49 Bn
2 RTX RTX Corp 266.41 Bn 39.57 3.01 39.51 Bn
3 BA Boeing Co 184.47 Bn 97.60 2.06 54.10 Bn
4 LMT Lockheed Martin Corp 145.11 Bn 28.92 1.93 21.70 Bn
5 HWM Howmet Aerospace Inc. 107.72 Bn 167.79 15.89 3.19 Bn
6 GD General Dynamics Corp 104.16 Bn 30.88 2.67 8.01 Bn
7 NOC Northrop Grumman Corp /De/ 101.77 Bn 24.33 2.43 17.02 Bn
8 TDG TransDigm Group INC 74.73 Bn 41.34 8.20 30.05 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.76 3.14
EV to Cash from Ops. EV/CFO 28.50 76.41
EV to Debt EV to Debt 7.62 80.89
EV to EBIT EV/EBIT 29.68 11.31
EV to EBITDA EV/EBITDA 22.70 30.07
EV to Free Cash Flow [EV/FCF] EV/FCF 37.93 86.36
EV to Market Cap EV to Market Cap 1.13 1.07
EV to Revenue EV/Rev 3.40 10.58
Price to Book Value [P/B] P/B 4.08 5.81
Price to Earnings [P/E] P/E 39.57 18.35
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.88 -3.22
Dividend Payout Ratio % Div Payout % (Qtr) 53.20 19.41
Dividend per Basic Share Div per Share (Qtr) 2.67 0.73
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 45.11 11.64
Interest Coverage Int. cover (Qtr) 5.80 -13.61
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -0.08 -65.17
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 33.29 1,593.29
Dividend Growth (1y) % Div 1y % (Qtr) 7.66 1.86
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 29.80 -43.11
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 20.22 19.42
EBIT Growth (1y) % EBIT 1y % (Qtr) 29.78 -34.51
EBT Growth (1y) % EBT 1y % (Qtr) 40.99 -35.59
EPS Growth (1y) % EPS 1y % (Qtr) 40.22 -112.67
FCF Growth (1y) % FCF 1y % (Qtr) 75.12 27.64
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 15.44 -0.19
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.52 0.51
Cash Payout Ratio Cash Payout (Qtr) 0.27 0.03
Cash Ratio Cash Ratio (Qtr) 0.13 1.78
Current Ratio Curr Ratio (Qtr) 1.03 3.63
Debt to Equity Ratio Debt/Equity (Qtr) 0.61 0.29
Interest Cover Ratio Int Coverage (Qtr) 5.80 -13.61
Times Interest Earned Times Interest Earned (Qtr) 5.80 -13.61
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 16.40 -345.58
EBIT Margin % EBIT Margin % (Qtr) 11.45 -382.34
EBT Margin % EBT Margin % (Qtr) 9.48 -387.64
Gross Margin % Gross Margin % (Qtr) 20.10 -33.21
Net Profit Margin % Net Margin % (Qtr) 7.60 -388.96