RTX RTX Corporation - Fundamental Analysis
NEUTRAL
RTX Stock | Fundamental Analysis & Investment Insights
NYSE
•
Industrials
•
Aerospace & Defense
Current Price
$175.57
Analyst Target
$192.06
+9.4% Upside
52W High
$181.31
52W Low
$112.27
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
RTX Corporation trades at a premium valuation with solid top- and bottom-line growth, outpacing sector averages in revenue and earnings momentum. However, its elevated P/E of 36.13 and forward P/E of 28.73 exceed both sector and peer medians, tempering near-term upside despite strong 1Y and 3Y price performance. Profitability metrics are stable but unexceptional, with ROE of 10.70% lagging peers like GE and CAT, while insider selling over the past six months signals caution at current levels. Analysts maintain a 'buy' recommendation with a $192.06 target, implying ~9% upside, but recent earnings misses and weak quarterly surprise history constrain conviction.
Key Strengths
Revenue growth of 11.90% YoY exceeds sector average of 7.18% and positions RTX favorably within the aerospace & defense subsector
Earnings growth of 29.40% YoY reflects strong operating leverage and cost discipline, outpacing most peers except GE and BA
Debt/Equity of 0.61 is well below sector average of 1.76, indicating conservative capital structure and low refinancing risk
Dividend yield of 1.55% is supported by a sustainable 53.80% payout ratio, offering income appeal in a low-yield environment
Market cap of $235.40B underscores dominant scale and pricing power in defense and aerospace systems
Key Risks
P/E of 36.13 is significantly above sector average of 26.79 and peer CAT (28.48), creating valuation sensitivity to growth deceleration
ROE of 10.70% lags peer group (CAT: 46.28%, GE: 42.13%, DE: 21.40%), suggesting suboptimal capital efficiency
Insider selling of $13.51M over last 6 months, including executive sales, implies lack of confidence at current price levels
Profit margin of 7.67% trails sector average of 9.41%, indicating margin pressure from supply chain or program execution
Zero earnings beats over last 4 quarters with average surprise of 0.00%, signaling deteriorating forecasting accuracy or execution risk
AI Fair Value Estimate
Based on comprehensive analysis
$192.06
+9.4% above current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare RTX against industry averages and similar companies
Insider Trading & Analyst Ratings
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