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RTX Corp RTX

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Stock XNYS Rating as of
$101.71 +0.69 (0.68%)
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As of Delayed Price Closed
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Company Report

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RTX Earnings: Turbine Disks Will Take Time to Fix, Progress Seems Steady; Valuation Up $3 to $115

Nicolas Owens

RTX announced first-quarter 2024 results that were very close to our expectations, with one exception: revenue at Pratt & Whitney outpaced our forecast because the firm accelerated deliveries of new GTF engines in the quarter. So far, wide-moat RTX seems to have contained the financial fallout from its metallurgy-related recall of GTF engines, though the maintenance plan won't conclude for a few more years. We haven't altered our long-term forecasts, and our fair value estimate has increased to $115 from $112, primarily for the time value of money and the firm's slightly lower share count since the end of 2023.

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Price vs Fair Value

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RTX is trading at a 12% discount.
Price
$101.38
Fair Value
$432.00
Uncertainty
Medium
1-Star Price
$741.34
5-Star Price
$92.80
Economic Moat
Tkvt
Capital Allocation
Tzrcktbws

Bulls Say, Bears Say

Bulls

Pratt & Whitney’s placement on the A320 family and A220 aircraft should substantially increase the company’s installed base of engines in coming years, unlocking decades of high-margin servicing revenue.

Bears

One of the driving factors behind the breakup of United Technologies was to create more-focused businesses. While the combined RTX is more focused on aerospace and defense, it is still large and difficult to manage.

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Trading Information

Previous Close Price
$101.02
Day Range
$100.59–101.88
52-Week Range
$68.56–103.89
Bid/Ask
$101.01 / $101.83
Market Cap
$135.22 Bil
Volume/Avg
6.2 Mil / 8.1 Mil

Key Statistics

Price/Earnings (Normalized)
19.54
Price/Sales
1.99
Dividend Yield (Trailing)
2.32%
Dividend Yield (Forward)
2.32%
Total Yield
11.46%

Company Profile

RTX is a diversified aerospace and defense industrial company formed from the merger of United Technologies and Raytheon, with roughly equal exposure as a supplier to commercial aerospace manufacturers and to the defense market. The company operates in three segments: Collins Aerospace, a diversified aerospace supplier; Pratt & Whitney, an aircraft engine manufacturer; and Raytheon, a defense prime contractor providing a mix of missiles, missile defense systems, sensors, hardware, and communications technology to the military.
Sector
Industrials
Industry
Aerospace & Defense
Stock Style Box
Large Value
Total Number of Employees
185,000
Website
https://www.rtx.com

Competitors

Valuation

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Metric
RTX
TXT
BA
Price/Earnings (Normalized)
 19.5416.79—
Price/Book Value
 2.222.60—
Price/Sales
 1.991.391.33
Price/Cash Flow
 21.5414.5454.48
Price/Earnings
RTX
TXT
BA

Financial Strength

Metric
RTX
TXT
BA
Quick Ratio
 0.640.670.28
Current Ratio
 1.071.811.14
Interest Coverage
 3.1515.250.18
Quick Ratio
RTX
TXT
BA

Profitability

Metric
RTX
TXT
BA
Return on Assets (Normalized)
 2.51%6.36%−1.22%
Return on Equity (Normalized)
 6.05%15.00%—
Return on Invested Capital (Normalized)
 5.17%10.52%0.74%
Return on Assets
RTX
TXT
BA
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