RTX Corp (RTX) stock analysis

P/E below its 5-year median

RTX's P/E of 32.7 is below its own 5-year median of 36.3.

P/E above the industry

RTX's P/E of 32.7 is above the Aircraft and Parts median of 27.6.

EV/EBITDA below its 5-year median

RTX's EV/EBITDA of 19.2 is below its 5-year median of 19.5.

P/B above the industry

RTX's price-to-book of 3.92 is above the Aircraft and Parts median of 2.88.

Trading above fair value

The share price of $201.29 is above our fair value estimate of $167.39.

Margin of safety under 20%

The price is 20.3% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 9.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 12.3% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 11.6% over the last twelve months; the Aircraft and Parts median is 16.9%.

Guidance raised

RTX raised its full year 2026 Free cash flow outlook on Jul 23, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 12.6% over the last twelve months and averaged 7.2% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 9.5%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

RTX's return on equity of 12.6% is above the Aircraft and Parts median of 9.1%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 8.8% over the last twelve months, against a 5-year average of 6.4%.

Net margin above the industry

RTX's net margin of 8.8% is above the Aircraft and Parts median of 5.5%.

High debt

Debt is 54.0% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 44.1% five years ago to 54.0%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 33.3% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.05 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.80; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

RTX paid dividends worth 1.4% of the share price over the last twelve months.

Yield below Treasuries

The 1.4% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; RTX yields 1.4%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 45.2% of net income.

Covered by free cash flow

Dividends take 40.0% of free cash flow.