GuruFocus Manual of Stocks™  |  Jul 03, 2025
RTX Corp (NYSE:RTX)
www.gurufocus.com/stock/NYSE:RTX/summary
RTX Corp (NYSE:RTX)
[1]
Modestly Overvalued[5]$ 145.75
GF Score: 82/100Market Cap: $ 194,715 Mil
Industry: Industrials - Aerospace & Defense
IPO Date: 1951-05-25
RTX is an aerospace and defense manufacturer formed from the merger of United Technologies and Raytheon, with roughly equal exposure as a supplier to commercial aerospace and to the defense market across three segments: Collins Aerospace, a diversified aerospace supplier; Pratt & Whitney, a commercial and military aircraft engine manufacturer; and Raytheon, a defense prime contractor pro... read more
Latest FY Operating Revenue by Business Segment
Business Segment Name2024Percentage
Collins Aerospace28,28435.03%
Pratt & Whitney28,06634.76%
Raytheon26,71333.09%
Eliminations and other-2,325-2.88%
Financial Strength
Rank: 5 /10CurrentIndustry MedianHistorical Median
Cash-to-Debt0.120.690.22
Equity-to-Asset0.370.480.35
Interest Coverage3.278.1153.59
Piotroski F-Score756
Profitability Rank
Rank: 7 /10CurrentIndustry MedianHistorical Median
Operating Margin %8.207.088.25
Net Margin %5.634.657.68
ROE %7.615.7110.88
ROA %2.832.433.65
ROC (Joel Greenblatt) %47.2711.4140.93
Growth Rank(* per share data)
Rank: 7 /1010-Yr5-Yr1-Yr
Revenue Growth %-3.43.418.9
EBITDA Growth %-6.28.632.1
Oprt. Income Growth %-12.96.479.2
EPS w/o NRI Growth %-2.611.114.9
FCF Growth %-5.3-5.3-15.3
Book Value Growth %4.1-1.41.2
Momentum Rank
Rank: 6 /10CurrentIndustry MedianHistorical Median
5-Day RSI61.3753.40N/A
9-Day RSI59.9854.17N/A
14-Day RSI60.4155.52N/A
6-1M Momentum %18.6711.13N/A
12-1M Momentum %36.4923.12N/A
Quarterly
Mar24Jun24Sep24Dec24Mar25
Revenue19,30519,72120,08921,62320,306
Net Income1,709111.001,4721,4821,535
EPS1.280.081.091.101.14
Revenue YoY %12.157.6849.218.515.19
Net Income YoY %19.85-91.64-249.593.93-10.18
EPS YoY %31.96-91.11-260.294.76-10.94
Warning Signs
SEVEREGross Margin %: Declined
SEVERELong-Term Debt: Keep issuing new debt
Good Signs
GOODPiotroski F-Score: High
Insider Trades
InsiderPositionDateTradesCur. Shares
Williams Dantaya MEVP & Chief HR 06/03/25-1692221,464
Johnson Amy LCorporate VP an05/06/25-41469,165
Winnefeld James A JrDirector04/23/252008,000
Calio Christopher T.President and C02/27/25-2737985,781
Mitchill Neil G. JrEVP, CFO02/27/25-1611860,868
Maharajh RamsaranEVP and General02/25/25-1943118,496
Brunk Troy DPresident, Coll02/24/25-28727,665
Hayes GregoryExecutive Chair02/19/25-101668541,265
GF Value Rank
Rank: 6 /10CurrentIndustry MedianHistorical Median
PE Ratio42.7440.3314.62
Forward P/E24.4832.59N/A
PB Ratio3.173.491.93
PS Ratio2.393.261.75
P/FCF40.0231.37523.58
Shiller P/E27.8156.8612.84
PEG Ratio2.892.9253.54
Valuation Analysis
Current% of Price
NCAV-37.75-26
Tangible Book-18.45-13
EPV-5.39-4
Peter Lynch Value73.3850
Median PS Value104.8672
GF Value128.7988
Price145.75
Dividend & Ownership
Dividend Yield (TTM) %1.77
Dividend Yield (Forward) %1.87
Dividend Payout Ratio0.43
Dividend Growth (5Y) %-1.60
Yield on Cost (5Y) %1.63
Continuous Div. since2021
Insider Ownership %0.34
Institution Ownership %81.46
As of 07-03-2025
* All financial numbers are in millions except for per share data, ratios and percentage change. "Neg. E" means negative equity.
20152016201720182019202020212022202320242025Performance
%GainSP500
1W2.162.20
1M6.005.22
3M12.4916.86
6M27.076.27
YTD27.237.34
1Y47.7214.81
3Y17.2219.56
5Y21.6116.53
10Y11.1313.58
148.48
50.66
47.17
19M
9.5M
2015201620172018201920202021202220232024CurrentKey Data
78.1069.8480.6389.4194.8498.6991.86104.97104.66127.21149.26Highest Stock Price
54.6453.2868.0864.2365.1247.1765.5081.0069.3885.0299.42Lowest Stock Price
50,68455,78864,15557,72781,462108,655128,512147,973111,646154,153194,715Market Cap
883.2826.1799.1810.1863.91,3581,5091,4861,4351,3441,352Shares Outstanding-Diluted
7.0211.2514.0810.3114.70At Loss33.6228.8337.7332.6042.74PE Ratio
1.852.022.171.501.951.511.762.041.872.563.17PB Ratio
0.951.001.071.561.801.722.022.241.751.932.39PS Ratio
7.087.267.7517.8014.4042.0214.1415.3415.6615.4318.31EV-to-EBITDA
2015201620172018201920202021202220232024TTMPer Share Data
63.5269.2974.8842.8452.4941.6842.6845.1448.0160.0960.67Revenue per Share
8.616.135.706.506.41-2.592.563.502.233.553.41Earnings per Share
4.862.174.055.507.711.213.072.963.292.923.64Free Cash Flow per Share
2.562.622.722.842.942.162.012.162.322.482.52Dividends per Share
-18.54-18.75-17.75-41.89-22.34-14.91-13.32-12.30-22.08-19.58-18.45Tangible Book per Share
55.6461.6568.3042.1961.0444.3045.1049.7656.6595.01104.86Median PS Value
----------------------Graham Number
2015201620172018201920202021202220232024TTMIncome Statement
56,09857,24459,83734,70145,34956,58764,38867,07468,92080,73881,739Revenue
15,66715,77315,6367,23610,7518,53112,49113,66812,08915,41015,965Gross Profit
27.9327.5526.1320.8523.7115.0819.4020.3817.5419.0919.53Gross Margin %
8,3767,5527,4984,3595,8377,2377,3558,1648,5288,8729,262Total Operating Expense
7,2918,2218,1382,8774,9141,2945,1365,5043,5616,5386,703Operating Income
13.0014.3613.608.2910.842.297.988.215.178.108.20Operating Margin %
7,6085,0554,5525,2695,537-3,5193,8645,1973,1954,7744,600Net Income
13.568.837.6115.1812.21-6.226.007.754.645.915.63Net Margin %
7,4128,2948,7803,6865,863-945.006,4397,4175,4898,1648,353EBIT
9,27510,25610,9205,5828,5713,21110,99611,5259,70012,52812,710EBITDA
25.9818.4015.9215.4813.80-6.185.327.134.837.967.61ROE %
8.525.714.884.564.04-2.332.393.251.992.942.83ROA %
2015201620172018201920202021202220232024Mar25Balance Sheet
7,0757,1578,9856,1524,9378,8027,8326,2206,5875,5785,157Cash & Equivalents & MS
26,70628,55032,85835,50361,57743,37642,05042,44348,41751,13352,916Total Current Assets
87,48489,70696,920134,211139,615162,153161,404158,864161,869162,861164,864Total Assets
1,1052,2042,4964,3455,551797.00158.001,2201,4722,5353,056Short-Term Debt & CLO
22,61821,90624,39131,36846,59435,84835,44939,11446,76151,49952,624Total Current Liabilities
19,32021,69724,98941,19238,79432,54232,98432,28043,76740,35839,890Long-Term Debt & CLO
58,51860,24165,36893,49295,28988,26986,70584,650100,424100,903101,520Total Liabilities
27,35827,57929,61038,44641,77472,16373,06872,63259,79860,15661,516Total Stockholders Equity
28,96629,46531,55240,71944,32673,88474,69974,21461,44561,95863,344Total Equity
2015201620172018201920202021202220232024TTMCashflow Statement
6,3833,8805,6316,3228,8833,6067,0717,1687,8837,1598,122Cash Flow from Operations
6,206-2,503-3,019-16,973-3,0923,102-1,364-2,829-3,039-1,534-2,905Cash Flow from Investing
-10,785-1,188-993.007,965-4,564-5,274-6,685-5,859-4,527-6,617-5,666Cash Flow from Financing
1,63069.001,829-2,8061,2081,412-979.00-1,562335.00-1,020-453.00Net Change in Cash
7,0757,1578,9856,2124,9378,8027,8326,2206,5875,5785,157Ending Cash Position
-2,089-2,087-2,394-1,867-2,219-1,967-2,442-2,775-3,166-3,236-3,223Capital Expenditure
4,2941,7933,2374,4556,6641,6394,6294,3934,7173,9234,899Free Cash Flow
Competitor(* Up to 5 competitors are listed here. See full competitors list in the Competitive Comparison section below)
TickerCompanyMarket Cap
($M)
PE RatioGF Score
/100
Financial
Strength /10
Profitability
Rank /10
GF Value
Rank /10
Growth
Rank /10
Momentum
Rank /10
NYSE:GEGE Aerospace263,27038.406565149
NYSE:RTXRTX Corp194,71542.748257676
NYSE:BABoeing Co162,805At Loss73445610
XPAR:AIRAirbus SE162,06332.358366598
XPAR:SAFSafran SA130,919At Loss84775810
GuruFocus Manual of Stocks™  |  Jul 03, 2025
RTX Corp (NYSE:RTX)
www.gurufocus.com/stock/NYSE:RTX/summary

Financial Strength[2] (Quarterly data, as of Mar. 2025) : Fair (5/10)

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Cash-to-Debt : 0.12

Cash-to-Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. A high ratio indicates that a company is better able to pay back its debt, and is thus able to take on more debt if necessary.


Equity-to-Asset : 0.37

Equity-to-Asset ratio is calculated as total stockholders equity divided by its total assets. Equity-to-Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity-to-Asset ratio (more leveraged) may have higher ROE % because of the leverage.


Debt-to-Equity : 0.70

A high Debt-to-Equity ratio generally means that a company has been aggressive in financing its growth with debt.


Piotroski F-Score : 7

The Piotroski F-Score is used to determine the strength of a firm's financial position, with 9 being the best and 0 being the worst.

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WACC : 6.46% vs ROIC : 3.86%

The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. Return on invested capital (ROIC) measures how well a company generates cash flow relative to the capital it has invested in its business.


Dividend Yield : 1.90%

Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position.

GuruFocus Manual of Stocks™  |  Jul 03, 2025
RTX Corp (NYSE:RTX)
www.gurufocus.com/stock/NYSE:RTX/summary

Profitability[3] (Annual data, as of Dec. 2024) : Good (7/10)

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9

Revenue : $20,306 Mil vs Net Income : $1,535 Mil

Revenue is the amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. Net Income is a company's total profit. Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses.


Cash & Equivalents : $5,157 Mil vs Long-Term Debt* : $39,890 Mil

Cash & equivalents are the most liquid assets on the balance sheet. Cash equivalents are assets that are readily convertible into cash. Long-Term Debt* consists of loans and obligations lasting over one year.


Operating Margin % : 10.02%

Operating margin % measures how much profit a company makes on a dollar of sales. Operating Margin % is calculated as Operating Income divided by Revenue.


EPS without NRI : $1.47

Earnings Per Share without Non-Recurring Items is the amount of earnings without non-recurring items per outstanding share of the company's stock. In calculating earnings per share without non-recurring items, the dividends of preferred stocks and Non Operating Income need to subtracted from the total net income first.


Dividends per Share : $0.63

Dividends per Share is the amount of dividends that the shareholders of a company receive on a per-share basis. It is calculated using the total dividends paid out to shareholders over one fiscal year and the number of shares outstanding.


Free Cash Flow per Share : $0.51

Free Cash flow per Share is the amount of Free cash flow per outstanding share of the company's stock.

GuruFocus Manual of Stocks™  |  Jul 03, 2025
RTX Corp (NYSE:RTX)
www.gurufocus.com/stock/NYSE:RTX/summary

Valuation (Quarterly data, as of Mar. 2025)

These valuation metrics should give you a sense of reasonable prices, but be careful with them. Always seek to understand why a valuation is changing over time.


Valuation Chart (Current stock price : $145.75)


PE Ratio without NRI : 22.57

The price-to-earnings ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than regular PE Ratio.


PB Ratio : 2.88

The price-to-book ratio measures the valuation of the stock relative to the underlying asset of the company.


PS Ratio : 2.18

The price-to-sales ratio is a valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the value placed on each dollar of a company’s sales or revenues.


Price-to-Free-Cash-Flow : 36.38

Price-to-free-cash-flow is very similar to the valuation metric of price-to-operating-cash-flow but is considered a more exact measure, owing to the fact that it uses free cash flow, which subtracts capital expenditures from a company's total operating cash flow, thereby reflecting the actual cash flow available to fund non-asset-related growth.


EV-to-EBIT : 25.93

Enterprise value of a company divided by its trailing 12 months earnings before interest and taxes (EBIT).

GuruFocus Manual of Stocks™  |  Jul 03, 2025
RTX Corp (NYSE:RTX)
www.gurufocus.com/stock/NYSE:RTX/summary

Valuation Bands

In these charts the 10-year valuation bands of the price-to-earnings ratio (PE Ratio), price-to-book ratio (PB Ratio), price-to-sales ratio (PS Ratio) and price-to-operating-cash-flow ratio (POCF) are drawn together with the historical stock prices. For example, the upper line of the PE band is where the stock price would have been if it were always traded at the maximum PE ratio of the past 10 years. The lower line of the PE band is where the stock price would have been if it were always traded at the lowest PE ratio of the past 10 years. It is always better if the stock price is close to the lower line, which indicates a lower valuation.


Historical Price and PE Band


Historical Price and PS Band


Historical Price and PB Band


Historical Price and Price-to-Operating-Cash-Flow (POCF) Band

GuruFocus Manual of Stocks™  |  Jul 03, 2025
RTX Corp (NYSE:RTX)
www.gurufocus.com/stock/NYSE:RTX/summary

Warning Signs

GuruFocus conducted a thorough checkup using a checklist of 32 items that cover the areas of financial strength, profitability, growth, and valuation of each company. The purpose of Warning Signs is to warn you that the company may have red flags in certain areas, helping to avoid overlooking them. These warning signs do not necessarily mean you should not invest in the stock. But you should be aware of them before you invest.


Severe Warning Signs

Gross Margin % : Declined

RTX Corp gross margin has been in long-term decline. The average rate of decline per year is -1.7%.

Long-Term Debt : Keep issuing new debt

RTX Corp keeps issuing new debt. Over the past 3 years, it issued USD 9.9 billion of debt.

Good Signs

Piotroski F-Score : High

Piotroski F-Score is 7, indicates a very healthy situation.

Beneish M-Score : Unlikely manipulator

Beneish M-Score -2.56 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

Operating Margin % : Expansion

RTX Corp operating margin is expanding. Margin expansion is usually a good sign.

Insider Buy : Insider Buying

There were 1 insider buying transactions over the past 3 months. The total number of shares bought is 200.

Medium Warning Signs

Altman Z-Score : Grey

Altman Z-score of 2.27 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

Dividend Yield % : Close to 10-year low

RTX Corp stock Dividend Yield % is close to 10-year low.

Price : Close to 10-year high

RTX Corp stock Price is close to 10-year high.

PB Ratio : Close to 10-year high

RTX Corp stock PB Ratio (=3.14) is close to 10-year high of 3.18.

PS Ratio : Close to 5-year high

RTX Corp stock PS Ratio (=2.38) is close to 5-year high of 2.42.

Operating Income : Loss

RTX Corp has recorded a loss in operating income at least once over the past 3 years.

ROIC vs WACC : ROIC < WACC

Company's return on invested capital is less than the weighted average cost of capital. It might not be capital efficient
GuruFocus Manual of Stocks™  |  Jul 03, 2025
RTX Corp (NYSE:RTX)
www.gurufocus.com/stock/NYSE:RTX/summary

Competitive Comparison


5 Year Price Change Comparison



Financial Strength

CompanyFinancial StrengthCash-to-DebtEquity-to-AssetDebt-to-EquityInterest CoveragePiotroski F-ScoreAltman Z-ScoreBeneish M-ScoreWACC %ROIC %
NSE:BELBharat Electronics Ltd9/10159.830.490.00657.68810.32-1.9515.5817.93
BOM:541154Hindustan Aeronautics Ltd9/1034076.880.330.00955.3563.91-2.4318.2211.82
OSL:KOGKongsberg Gruppen ASA8/103.190.290.2513.8565.29-2.958.039.67
NYSE:GDGeneral Dynamics Corp7/100.110.390.5215.1973.72-2.425.838.40
NYSE:HWMHowmet Aerospace Inc7/100.150.450.7310.1899.18-2.4413.2916.13
XTER:RHMRheinmetall AG7/100.450.310.5410.3366.29-2.625.829.76
XPAR:SAFSafran SA7/101.310.190.5030.9361.82-2.839.865.64
XPAR:AIRAirbus SE6/101.600.170.515.5081.76-2.7110.143.59
NAS:AXONAxon Enterprise Inc6/101.160.420.802.46611.50-2.6613.781.16
NYSE:GEGE Aerospace6/100.690.161.028.0163.00-2.6812.905.53
NYSE:HEI.AHeico Corp6/100.110.490.576.6258.08-2.4511.0411.10
NYSE:NOCNorthrop Grumman Corp6/100.110.311.076.4062.88-2.573.567.45
LSE:RR.Rolls-Royce Holdings PLC6/101.04-0.03-5.637.5572.05-2.5114.0112.88
LSE:BA.BAE Systems PLC5/100.330.310.874.4062.30-2.644.346.78
NYSE:LHXL3Harris Technologies Inc5/100.040.460.643.4872.13-2.457.555.28
NYSE:LMTLockheed Martin Corp5/100.090.123.047.0363.40-2.325.9913.43
NYSE:RTXRTX Corp5/100.120.370.703.2772.27-2.566.463.86
XPAR:HOThales5/100.610.191.045.3971.59-2.495.373.95
NYSE:BABoeing Co4/100.44-0.02-16.130.0031.18-5.6610.54-10.16
NYSE:TDGTransDigm Group Inc4/100.10-0.26-4.422.7562.64-2.329.5817.57
GuruFocus Manual of Stocks™  |  Jul 03, 2025
RTX Corp (NYSE:RTX)
www.gurufocus.com/stock/NYSE:RTX/summary

Competitive Comparison - Cont.


Profitability

CompanyProfitability RankOperating
Margin %
Net Margin %ROE %ROA %Price-to-Free-Cash-FlowROC (Joel Greenblatt) %3-Year Revenue Growth %3-Year EBITDA Growth %3-Year EPS w/o NRI Growth %
NSE:BELBharat Electronics Ltd10/1026.7822.3929.5913.290.00105.8716.4028.5030.20
NYSE:HEI.AHeico Corp9/1022.0114.5416.447.8346.7960.6626.7026.5018.40
BOM:541154Hindustan Aeronautics Ltd9/1026.7727.0026.329.2627.63155.808.3023.0016.70
OSL:KOGKongsberg Gruppen ASA9/1013.5512.3235.0510.1325.89100.3721.9026.1034.20
NYSE:LHXL3Harris Technologies Inc9/1010.637.558.433.8521.4586.308.502.600.40
NYSE:TDGTransDigm Group Inc9/1046.3222.66Neg. E8.4646.50112.1318.7023.9041.00
NYSE:GDGeneral Dynamics Corp8/1010.228.0817.967.0924.8281.428.004.405.70
NYSE:LMTLockheed Martin Corp8/1010.267.6683.289.9022.1187.597.102.507.10
NYSE:NOCNorthrop Grumman Corp8/1010.019.1925.237.6842.0542.777.90-10.700.60
XPAR:HOThales8/108.836.9019.693.6424.0141.779.506.2012.60
NAS:AXONAxon Enterprise Inc7/101.4614.8615.427.55175.50117.9526.700.0036.20
LSE:BA.BAE Systems PLC7/109.287.4317.555.4620.4448.6012.3010.2012.60
NYSE:HWMHowmet Aerospace Inc7/1023.2016.6428.2711.8672.9544.6816.6031.8038.60
NYSE:RTXRTX Corp7/108.205.637.612.8340.0247.2712.108.6010.30
XTER:RHMRheinmetall AG7/1014.017.1920.375.7561.4865.2916.9023.6025.70
XPAR:SAFSafran SA7/1014.40-2.41-6.07-1.2635.14-14.5924.20-29.6061.50
XPAR:AIRAirbus SE6/106.896.3323.163.5127.2736.009.705.80-1.30
NYSE:GEGE Aerospace5/1018.8417.6333.025.2964.05106.42-11.700.0039.10
NYSE:BABoeing Co4/10-14.70-16.580.00-7.910.00-75.91-1.00-241.10-29.20
LSE:RR.Rolls-Royce Holdings PLC3/1014.4613.33Neg. E7.5527.4257.3918.6052.70487.70

Valuation

CompanyPE RatioPB RatioPS RatioPrice-to-Intrinsic-Value-Projected-FCFPrice-to-Intrinsic-Value-DCF (Earnings Based)Price-to-Median-PS-ValuePrice-to-Peter-Lynch-Fair-ValuePrice-to-Graham-NumberEarnings Yield (Joel Greenblatt) %Forward Rate of Return (Yacktman) %
NYSE:BABoeing CoAt Loss0.002.110.000.001.240.000.00-4.681.42
XPAR:SAFSafran SAAt Loss10.914.053.870.001.510.000.00-0.66-12.69
NYSE:NOCNorthrop Grumman Corp19.914.851.822.291.281.030.000.005.914.55
NYSE:LMTLockheed Martin Corp19.9816.131.531.530.980.880.000.005.899.53
NYSE:GDGeneral Dynamics Corp20.443.561.651.671.771.070.0022.665.796.99
LSE:BA.BAE Systems PLC28.854.662.151.792.292.002.780.004.7213.11
NYSE:LHXL3Harris Technologies Inc30.342.512.271.361.150.983.230.004.0810.26
LSE:RR.Rolls-Royce Holdings PLC31.660.004.2137.740.004.410.000.003.30-7.76
XPAR:AIRAirbus SE32.356.492.054.800.001.410.006.265.00-10.04
XPAR:HOThales35.976.782.482.342.521.780.000.002.927.09
NYSE:GEGE Aerospace38.4013.686.774.980.006.100.009.443.29-8.66
BOM:541154Hindustan Aeronautics Ltd39.269.3910.603.041.510.001.574.233.7420.00
NYSE:RTXRTX Corp42.743.172.392.190.001.391.990.003.5914.37
OSL:KOGKongsberg Gruppen ASA50.9215.476.274.340.004.982.337.622.7721.36
NYSE:TDGTransDigm Group Inc51.420.0010.519.312.311.692.480.003.5918.57
NSE:BELBharat Electronics Ltd56.9415.1712.756.493.120.002.656.502.3520.00
NYSE:HWMHowmet Aerospace Inc58.9815.469.8110.380.000.003.4428.792.2918.25
NYSE:HEI.AHeico Corp59.328.908.623.482.971.292.960.002.2221.40
XTER:RHMRheinmetall AG104.7917.488.039.352.3711.427.5613.541.8112.35
NAS:AXONAxon Enterprise Inc192.1424.2328.4917.160.003.050.0017.500.56-29.81
GuruFocus Manual of Stocks™  |  Jul 03, 2025
RTX Corp (NYSE:RTX)
www.gurufocus.com/stock/NYSE:RTX/summary

Peter Lynch Chart[4]

GuruFocus Manual of Stocks™  |  Jul 03, 2025
RTX Corp (NYSE:RTX)
www.gurufocus.com/stock/NYSE:RTX/summary

Per Share Data


Per Share Data

Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Dec24
TTM Fiscal Period
56.44
56.65
61.48
63.65
61.85
63.52
63.52
69.29
74.88
42.84
52.49
41.68
42.68
45.14
48.01
60.09
60.67
Revenue per Share
8.32
8.99
10.24
10.29
11.39
12.76
10.50
12.42
13.67
6.89
9.92
2.37
7.29
7.76
6.76
9.32
9.43
EBITDA per Share
6.96
7.59
8.85
8.61
9.49
10.76
8.39
10.04
10.99
4.55
6.79
-0.70
4.27
4.99
3.82
6.08
6.20
EBIT per Share
4.12
4.74
5.49
5.66
6.25
6.82
8.61
6.13
5.70
6.50
6.41
-2.59
2.56
3.50
2.23
3.55
3.41
Earnings per Share (Diluted)
4.12
4.55
5.33
5.35
5.75
6.65
6.30
6.61
6.65
1.50
4.06
2.73
4.27
4.78
5.06
5.73
5.87
EPS without NRI
6.21
6.40
6.03
6.41
7.08
6.68
8.90
5.30
8.00
7.55
6.81
-0.28
4.16
4.29
4.79
4.30
4.59
Owner Earnings per Share (TTM)
4.87
5.49
6.24
4.10
5.01
5.63
4.86
2.17
4.05
5.50
7.71
1.21
3.07
2.96
3.29
2.92
3.64
Free Cash Flow per Share
5.76
6.40
7.27
7.33
7.52
8.03
7.23
4.70
7.05
7.80
10.28
2.66
4.69
4.82
5.49
5.33
6.03
Operating Cash Flow per Share
4.75
4.43
6.57
5.25
5.04
5.75
8.44
8.85
11.24
7.14
5.71
5.79
5.25
4.24
4.96
4.19
3.86
Cash per Share
1.54
1.70
1.87
2.03
2.20
2.36
2.56
2.62
2.72
2.84
2.94
2.16
2.01
2.16
2.32
2.48
2.52
Dividends per Share
21.42
23.21
24.12
28.20
34.76
34.32
32.63
34.10
37.05
44.63
48.33
47.49
48.93
49.54
45.07
45.16
46.05
Book Value per Share
0.25
-0.43
0.02
-18.58
-12.90
-12.94
-18.54
-18.75
-17.75
-41.89
-22.34
-14.91
-13.32
-12.30
-22.08
-19.58
-18.45
Tangible Book per Share
10.40
11.17
11.31
25.27
22.08
21.66
24.36
29.56
34.39
52.86
51.30
21.94
22.19
22.85
34.09
32.20
32.15
Total Debt per Share
43.68
49.54
46.00
51.61
71.62
72.37
60.46
68.98
80.28
67.01
94.25
71.51
86.06
101
84.14
116
146
Month End Stock Price
929
923
907
907
915
912
883
826
799
810
864
1,358
1,509
1,486
1,435
1,344
1,352
Shares Outstanding (Diluted Average)

Ratios

Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Dec24
TTM Fiscal Period
21.37
21.10
23.02
21.47
19.80
19.72
25.98
18.40
15.92
15.48
13.80
-6.18
5.32
7.13
4.83
7.96
7.61
ROE %
10.48
9.91
12.05
11.73
9.61
9.35
14.04
9.11
7.34
10.32
7.08
-4.09
3.02
3.50
2.58
3.11
2.40
ROE % Adjusted to Book Value
6.80
7.65
8.30
6.80
6.36
6.84
8.52
5.71
4.88
4.56
4.04
-2.33
2.39
3.25
1.99
2.94
2.83
ROA %
Neg. E
Neg. E
Neg. E
Neg. E
Neg. E
Neg. E
Neg. E
Neg. E
Neg. E
Neg. E
Neg. E
--
Neg. E
Neg. E
Neg. E
Neg. E
Neg. E Return-on-Tangible-Equity
10.35
12.04
13.05
11.93
12.26
13.08
16.39
11.04
9.10
9.34
8.01
-4.83
5.69
7.61
4.53
6.39
6.10
Return-on-Tangible-Asset
73.85
82.65
109
97.45
91.62
94.38
73.76
84.71
76.30
30.14
33.50
-4.78
38.13
43.72
31.93
46.20
47.27
ROC (Joel Greenblatt) %
17.27
17.81
19.19
14.39
13.02
14.48
11.18
12.50
12.51
4.20
5.99
-0.86
5.11
6.04
4.67
7.21
7.42
ROCE %
7.74
6.88
7.73
4.56
12.68
11.05
14.63
2.07
-2.70
-1.30
-11.62
-93.35
-50.65
-67.18
-560
-359
-1,677
5-Year RORE %
-2,317
23.34
10.85
0.07
41.52
50.01
42.32
97.32
-32.48
-9.14
35.64
-23.72
713
-58.42
3,868
232
38.33
1-Year ROIIC %
13.27
13.90
13.95
10.33
9.06
10.03
7.13
9.36
7.42
1.79
3.88
1.27
3.07
3.54
2.33
3.92
3.86
ROIC %
8.85
8.55
7.85
7.04
8.51
7.96
7.37
7.11
6.74
6.89
7.45
8.13
8.80
8.39
5.67
5.81
6.46
WACC %
6.64
7.50
6.55
5.33
4.75
5.50
4.71
5.24
3.96
3.24
3.81
3.62
4.00
3.90
4.20
4.47
4.72
Effective Interest Rate on Debt %
25.87
27.40
27.59
26.95
28.50
29.36
27.93
27.55
26.13
20.85
23.71
15.08
19.40
20.38
17.54
19.09
19.53
Gross Margin %
12.16
13.20
14.07
13.32
15.10
16.57
13.00
14.36
13.60
8.29
10.84
2.29
7.98
8.21
5.17
8.10
8.20
Operating Margin %
7.30
8.37
8.93
8.89
10.11
10.74
13.56
8.83
7.61
15.18
12.21
-6.22
6.00
7.75
4.64
5.91
5.63
Net Margin %
14.73
15.88
16.66
16.16
18.41
20.09
16.53
17.92
18.25
16.09
18.90
5.67
17.08
17.18
14.07
15.52
15.55
EBITDA Margin %
8.64
9.69
10.15
6.44
8.10
8.87
7.65
3.13
5.41
12.84
14.69
2.90
7.19
6.55
6.84
4.86
5.99
FCF Margin %
0.49
0.48
0.47
0.90
0.64
0.63
0.75
0.87
0.93
1.18
1.06
0.46
0.45
0.46
0.76
0.71
0.70
Debt-to-Equity
0.36
0.37
0.36
0.29
0.35
0.34
0.31
0.31
0.31
0.29
0.30
0.45
0.45
0.46
0.37
0.37
0.37
Equity-to-Asset
0.18
0.18
0.17
0.26
0.22
0.22
0.23
0.27
0.28
0.34
0.32
0.21
0.21
0.21
0.28
0.26
0.26
Debt-to-Asset
0.62
0.61
0.62
0.70
0.63
0.64
0.67
0.67
0.67
0.70
0.68
0.54
0.54
0.53
0.62
0.62
0.62
Liabilities-to-Assets
24.09
25.07
25.65
20.62
17.92
18.70
17.54
17.80
16.76
6.26
7.85
5.65
7.72
8.54
7.54
9.49
9.81
Gross-Profit-to-Asset %
1.05
1.98
1.06
-1.06
0.97
0.87
-1.23
-2.52
-1.12
-0.26
-0.03
1.21
0.27
2.54
1.42
1.20
0.69
Degree of Financial Leverage
0.93
0.92
0.93
0.77
0.63
0.64
0.63
0.65
0.64
0.30
0.33
0.38
0.40
0.42
0.43
0.50
0.50
Asset Turnover
0.37
0.37
0.35
0.38
0.38
0.36
0.41
0.40
0.41
1.89
0.72
0.79
0.47
0.45
0.46
0.43
0.43
Dividend Payout Ratio
62.48
60.73
60.46
65.29
72.73
69.05
68.65
70.57
73.43
141
92.62
58.04
53.61
51.07
52.82
49.31
47.36
Days Sales Outstanding
48.03
47.32
48.72
51.96
60.41
58.97
59.24
63.18
70.45
137
99.67
62.49
61.15
63.72
66.13
65.91
66.19
Days Payable
74.43
73.45
70.36
75.05
89.59
80.20
71.22
74.10
76.73
133
101
70.10
65.37
67.64
71.91
68.57
72.46
Days Inventory
88.88
86.86
82.10
88.38
102
90.28
80.63
81.49
79.71
137
93.86
65.65
57.83
54.99
58.60
51.97
53.63
Cash Conversion Cycle
5.84
6.01
6.04
5.59
5.02
5.29
5.32
5.17
4.97
2.58
3.94
6.29
6.81
7.15
6.91
7.40
7.71
Receivables Turnover
4.90
4.97
5.19
4.86
4.07
4.55
5.13
4.93
4.76
2.75
3.62
5.21
5.58
5.40
5.08
5.32
5.04
Inventory Turnover
0.74
0.73
0.72
0.73
0.71
0.71
0.72
0.72
0.74
0.79
0.76
0.85
0.81
0.80
0.82
0.81
0.80
COGS-to-Revenue
0.15
0.15
0.14
0.15
0.18
0.16
0.14
0.15
0.16
0.29
0.21
0.16
0.14
0.15
0.16
0.15
0.16
Inventory-to-Revenue
0.02
0.02
0.02
0.05
0.04
0.04
0.04
0.04
0.04
0.05
0.05
0.04
0.04
0.04
0.05
0.04
0.04
Capex-to-Revenue
0.13
0.12
0.12
0.38
0.27
0.23
0.29
0.25
0.29
0.65
0.45
1.52
0.48
0.50
0.89
0.50
0.48
Capex-to-Operating-Income
0.15
0.14
0.14
0.44
0.33
0.30
0.33
0.54
0.43
0.30
0.25
0.55
0.35
0.39
0.40
0.45
0.40
Capex-to-Operating-Cash-Flow
* All financial numbers are in millions except for per share data, ratios and percentage change. When Return-on-Tangible-Equity displays Neg. E, it means the the tangible equity is negative. When ROE % or ROE % Adjusted to Book Value displays Neg. E, it means the the total shareholders equity is negative.
GuruFocus Manual of Stocks™  |  Jul 03, 2025
RTX Corp (NYSE:RTX)
www.gurufocus.com/stock/NYSE:RTX/summary

Financial Statement

Income Statement

Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Dec24
TTM Fiscal Period
52,425
52,275
55,754
57,708
56,600
57,900
56,098
57,244
59,837
34,701
45,349
56,587
64,388
67,074
68,920
80,738
81,739
Revenue
38,861
37,954
40,369
42,153
40,468
40,898
40,431
41,471
44,201
27,465
34,598
48,056
51,897
53,406
56,831
65,328
65,774
Cost of Goods Sold
13,564
14,321
15,385
15,555
16,132
17,002
15,667
15,773
15,636
7,236
10,751
8,531
12,491
13,668
12,089
15,410
15,965
Gross Profit
25.87
27.40
27.59
26.95
28.50
29.36
27.93
27.55
26.13
20.85
23.71
15.08
19.40
20.38
17.54
19.09
19.53
Gross Margin %
6,036
5,798
6,161
6,452
6,364
6,172
5,886
5,958
6,429
2,864
3,711
5,540
5,046
5,573
5,809
5,806
5,860
Selling, General, & Admin. Expense
1,558
1,656
1,951
2,371
2,342
2,475
2,279
2,376
2,427
1,878
2,452
2,582
2,732
2,711
2,805
2,934
2,902
Research & Development
-407
-31.00
-573
-952
-1,123
-1,238
211
-782
-1,358
-383
-326
-885
-423
-120
-86.00
132
500
Other Operating Expense
7,187
7,423
7,539
7,871
7,583
7,409
8,376
7,552
7,498
4,359
5,837
7,237
7,355
8,164
8,528
8,872
9,262
Total Operating Expense
6,377
6,898
7,846
7,684
8,549
9,593
7,291
8,221
8,138
2,877
4,914
1,294
5,136
5,504
3,561
6,538
6,703
Operating Income
12.16
13.20
14.07
13.32
15.10
16.57
13.00
14.36
13.60
8.29
10.84
2.29
7.98
8.21
5.17
8.10
8.20
Operating Margin %
88.00
101
177
120
137
218
121
122
108
150
120
42.00
36.00
70.00
100.00
102
142
  Interest Income
-705
-751
-673
-893
-1,032
-1,099
-945
-1,161
-1,017
-1,182
-1,711
-1,408
-1,330
-1,300
-1,653
-1,970
-2,052
  Interest Expense
-617
-650
-496
-773
-895
-881
-824
-1,039
-909
-1,032
-1,591
-1,366
-1,294
-1,230
-1,553
-1,868
-1,910
Net Interest Income
--
--
--
--
--
--
--
-49.00
534
659
829
-2,281
1,267
1,843
1,828
1,524
1,508
Other Income (Expense)
5,760
6,248
7,350
6,911
7,654
8,712
6,467
7,133
7,763
2,504
4,152
-2,353
5,109
6,117
3,836
6,194
6,301
Pre-Tax Income
-1,581
-1,725
-2,134
-1,711
-1,999
-2,244
-2,111
-1,697
-2,843
-1,098
-421
-575
-964
-790
-456
-1,181
-1,406
Tax Provision
27.45
27.61
29.03
24.76
26.12
25.76
32.64
23.79
36.62
43.85
10.14
-24.44
18.87
12.91
11.89
19.07
22.31
Tax Rate %
--
188
148
283
456
154
3,612
-10.00
--
4,053
2,217
-367
-33.00
-19.00
--
--
-- Other Net Income (Loss)
4,179
4,711
5,364
5,483
6,111
6,622
7,968
5,426
4,920
5,459
5,948
-3,295
4,112
5,308
3,380
5,013
4,895
Net Income Including Noncontrolling Interests
4,179
4,523
5,216
5,200
5,655
6,468
4,356
5,436
4,920
1,406
3,731
-2,928
4,145
5,327
3,380
5,013
4,895
  Net Income (Continuing Operations)
--
188
148
283
456
154
3,612
-10.00
--
4,053
2,217
-367
-33.00
-19.00
--
--
--   Net Income (Discontinued Operations)
-350
-338
-385
-353
-390
-402
-360
-371
-368
-190
-411
-224
-248
-111
-185
-239
-295
Other Income (Minority Interest)
3,829
4,373
4,979
5,130
5,721
6,220
7,608
5,055
4,552
5,269
5,537
-3,519
3,864
5,197
3,195
4,774
4,600
Net Income
7.30
8.37
8.93
8.89
10.11
10.74
13.56
8.83
7.61
15.18
12.21
-6.22
6.00
7.75
4.64
5.91
5.63
Net Margin %
4.17
4.82
5.58
5.73
6.35
6.92
8.72
6.18
5.76
6.58
6.48
-2.59
2.57
3.52
2.24
3.58
3.44
EPS (Basic)
4.12
4.74
5.49
5.66
6.25
6.82
8.61
6.13
5.70
6.50
6.41
-2.59
2.56
3.50
2.23
3.55
3.41
EPS (Diluted)
929
923
907
907
915
912
883
826
799
810
864
1,358
1,509
1,486
1,435
1,344
1,352
Shares Outstanding (Diluted Average)
6,465
6,999
8,023
7,804
8,686
9,811
7,412
8,294
8,780
3,686
5,863
-945
6,439
7,417
5,489
8,164
8,353
EBIT
1,258
1,300
1,263
1,524
1,735
1,820
1,863
1,962
2,140
1,896
2,708
4,156
4,557
4,108
4,211
4,364
4,357
Depreciation, Depletion and Amortization
7,723
8,299
9,286
9,328
10,421
11,631
9,275
10,256
10,920
5,582
8,571
3,211
10,996
11,525
9,700
12,528
12,710
EBITDA
14.73
15.88
16.66
16.16
18.41
20.09
16.53
17.92
18.25
16.09
18.90
5.67
17.08
17.18
14.07
15.52
15.55
EBITDA Margin %
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Jul 03, 2025
RTX Corp (NYSE:RTX)
www.gurufocus.com/stock/NYSE:RTX/summary

Financial Statement

Cashflow Statement

Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Dec24
TTM Fiscal Period
4,179
4,523
5,216
5,200
5,655
6,468
4,356
5,436
4,920
1,406
3,731
-2,928
4,145
5,327
3,380
5,013
4,895
Net Income From Continuing Operations
1,258
1,300
1,263
1,524
1,735
1,820
1,863
1,962
2,140
1,896
2,708
4,156
4,557
4,108
4,211
4,364
4,357
Depreciation, Depletion and Amortization
955
-313
-697
-165
-476
111
-438
-941
-448
-1,798
-591
1,381
-2,164
203
-2,558
-2,589
-3,120
  Change In Receivables
695
-259
-330
-539
-465
-636
-766
-719
-1,074
-417
-1,267
412
163
-1,575
-1,104
-1,474
-1,641
  Change In Inventory
-582
1,168
760
811
1,023
-89.00
490
450
1,571
2,738
1,111
-1,666
917
2,075
4,016
1,508
2,123
  Change In Payables And Accrued Expense
-3.00
-20.00
-24.00
-4.00
72.00
-115
-55.00
49.00
1,478
-320
250
684
806
-181
1,161
1,470
1,997
  Change In Other Working Capital
1,065
576
-291
103
154
-729
-769
-1,161
1,527
203
-497
811
-278
522
1,515
-1,085
-641
Change In Working Capital
451
425
334
120
268
403
662
398
62.00
763
38.00
-99.00
-88.00
-1,663
-402
-47.00
134
Deferred Tax
153
148
221
210
250
219
158
152
192
169
268
330
442
420
425
437
521
Stock Based Compensation
--
--
--
--
--
--
--
--
--
--
--
3,183
--
--
--
--
-- Asset Impairment Charge
--
186
130
41.00
-437
342
-372
-2,532
--
3,652
3,062
-728
-71.00
--
--
--
-- Cash from Discontinued Operating Activities
-1,753
-1,252
-283
-552
-748
-1,202
485
-375
-3,210
-1,767
-427
-1,119
-1,636
-1,546
-1,246
-1,523
-1,144
Cash Flow from Others
5,353
5,906
6,590
6,646
6,877
7,321
6,383
3,880
5,631
6,322
8,883
3,606
7,071
7,168
7,883
7,159
8,122
Cash Flow from Operations
-826
-838
-929
-1,389
-1,569
-1,594
-1,652
-1,699
-2,014
-1,467
-1,868
-1,795
-2,134
-2,288
-2,415
-2,625
-2,671
Purchase Of Property, Plant, Equipment
-703
-2,742
-357
-16,026
-151
-402
-538
-710
-231
-15,039
-9.00
-419
-1,088
-66.00
--
--
-- Purchase Of Business
158
205
494
425
1,560
344
200
211
666
74.00
134
5,764
1,879
94.00
6.00
1,795
-- Sale Of Business
--
-219
-42.00
-100.00
-565
-202
-364
-438
-1,514
-988
-787
-312
-247
-355
-117
-360
-47.00
Purchase Of Investment
--
162
92.00
75.00
108
424
277
466
222
744
470
368
389
179
226
202
-- Sale Of Investment
--
--
--
-1,543
-722
-593
-437
-388
-380
-400
-351
-172
-308
-487
-751
-611
-552
Net Intangibles Purchase And Sale
--
-37.00
-35.00
2,974
210
-113
9,000
6.00
--
286
-416
-241
--
--
--
--
-- Cash From Discontinued Investing Activities
267
282
70.00
-237
16.00
56.00
-280
49.00
232
-183
-265
-91.00
145
94.00
12.00
65.00
365
Cash From Other Investing Activities
-1,104
-3,187
-707
-15,821
-1,113
-2,080
6,206
-2,503
-3,019
-16,973
-3,092
3,102
-1,364
-2,829
-3,039
-1,534
-2,905
Cash Flow from Investing
342
386
226
--
--
--
1,100
--
--
--
--
--
--
--
--
--
-- Issuance of Stock
-1,100
-2,200
-2,175
--
-1,200
-1,500
-10,000
-2,254
-1,453
-325
-151
-47.00
-2,327
-2,803
-12,870
-444
-438
Repurchase of Stock
37.00
2,362
621
10,899
89.00
98.00
2,539
6,469
4,954
13,337
896
2,004
4,062
490
22,914
--
93.00
  Issuance of Debt
-1,774
-1,892
-616
-1,056
-2,977
-650
-1,764
-2,783
-1,875
-2,890
-2,712
-18,123
-4,367
-3.00
-11,015
-2,504
-1,606
  Payments of Debt
-1,737
470
5.00
9,843
-2,888
-552
775
3,686
3,079
10,447
-1,816
-16,119
-305
487
11,899
-2,504
-1,513
Net Issuance of Debt
-1,356
-1,482
-1,602
-1,752
-1,908
-2,048
-2,184
-2,069
-2,074
-2,170
-2,442
-2,732
-2,957
-3,128
-3,239
-3,217
-3,288
Cash Flow for Dividends
-340
-327
-459
-70.00
56.00
-161
-476
-551
-545
13.00
-155
13,624
-1,096
-415
-317
-452
-427
Other Financing
-4,191
-3,153
-4,005
8,021
-5,940
-4,261
-10,785
-1,188
-993
7,965
-4,564
-5,274
-6,685
-5,859
-4,527
-6,617
-5,666
Cash Flow from Financing
4,327
4,449
4,083
5,960
4,836
4,405
5,445
7,088
7,156
9,018
3,729
7,390
8,811
7,782
6,252
6,598
5,610
Beginning Cash Position
64.00
68.00
-1.00
30.00
-41.00
-156
-174
-120
210
-120
-19.00
-22.00
-1.00
-42.00
18.00
-28.00
-4.00
  Effect of Exchange Rate Changes
122
-366
1,877
-1,124
-217
824
1,630
69.00
1,829
-2,806
1,208
1,412
-979
-1,562
335
-1,020
-453
Net Change in Cash
4,449
4,083
5,960
4,836
4,619
5,229
7,075
7,157
8,985
6,212
4,937
8,802
7,832
6,220
6,587
5,578
5,157
Ending Cash Position
-826
-838
-929
-2,932
-2,291
-2,187
-2,089
-2,087
-2,394
-1,867
-2,219
-1,967
-2,442
-2,775
-3,166
-3,236
-3,223
Capital Expenditure
4,527
5,068
5,661
3,714
4,586
5,134
4,294
1,793
3,237
4,455
6,664
1,639
4,629
4,393
4,717
3,923
4,899
Free Cash Flow
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Jul 03, 2025
RTX Corp (NYSE:RTX)
www.gurufocus.com/stock/NYSE:RTX/summary

Financial Satement

Balance Sheet

Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Dec24
TTM Fiscal Period
4,449
4,083
5,960
4,819
4,619
5,229
7,075
7,157
8,985
6,152
4,937
8,802
7,832
6,220
6,587
5,578
5,157
  Cash And Cash Equivalents
4,449
4,083
5,960
4,819
4,619
5,229
7,075
7,157
8,985
6,152
4,937
8,802
7,832
6,220
6,587
5,578
5,157
Cash, Cash Equivalents, Marketable Securities
8,469
8,925
9,546
11,099
11,458
10,448
10,653
11,481
12,595
14,271
8,743
9,254
9,661
9,108
10,838
10,976
11,426
  Accounts Receivable
--
--
1,662
1,611
1,964
1,923
--
--
--
3,486
4,462
9,931
11,361
11,534
12,139
14,570
15,241
  Other Current Receivables
8,469
8,925
11,208
12,710
13,422
12,371
10,653
11,481
12,595
17,757
13,205
19,185
21,022
20,642
22,977
25,546
26,667
Total Receivables
1,281
1,221
1,321
1,861
1,983
1,948
2,037
2,040
2,038
3,052
2,984
3,015
3,024
3,477
3,911
4,164
4,491
  Inventories, Raw Materials & Components
9,576
9,599
10,074
11,505
12,529
10,282
11,090
12,182
13,571
2,673
2,586
2,924
3,085
3,839
4,162
4,493
4,870
  Inventories, Work In Process
-6,237
-6,080
-6,676
-7,034
-7,542
-7,563
-8,175
-8,823
-9,573
--
--
--
--
--
--
--
--   Inventories, Inventories Adjustments
2,889
3,026
3,078
3,205
3,360
2,975
3,183
3,305
3,845
4,358
3,477
3,472
3,069
3,301
3,704
4,111
4,257
  Inventories, Finished Goods
7,509
7,766
7,797
9,537
10,330
7,642
8,135
8,704
9,881
10,083
9,047
9,411
9,178
10,617
11,777
12,768
13,618
Total Inventories
2,767
2,736
793
2,544
1,071
6,241
843
1,208
1,397
1,511
34,388
5,978
4,018
4,964
7,076
7,241
7,474
Other Current Assets
23,194
23,510
25,758
29,610
29,442
31,483
26,706
28,550
32,858
35,503
61,577
43,376
42,050
42,443
48,417
51,133
52,916
Total Current Assets
--
--
1,035
1,150
1,156
958
1,018
1,398
2,372
3,023
3,463
3,144
2,848
2,603
2,392
2,246
2,135
Investments And Advances
345
342
335
433
434
392
384
392
412
425
292
773
765
744
743
695
--   Land And Improvements
4,898
4,908
4,885
5,436
5,633
5,098
5,030
5,180
5,727
6,486
4,978
7,067
7,271
7,519
8,151
8,615
--   Buildings And Improvements
9,941
10,010
9,994
10,880
11,353
11,398
11,717
12,471
13,476
15,119
12,936
15,994
16,729
17,479
18,904
19,738
--   Machinery, Furniture, Equipment
493
654
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--   Construction In Progress
--
--
766
1,316
1,241
1,181
1,363
1,426
1,749
2,054
3,123
4,392
4,830
5,203
5,232
5,599
35,247
  Other Gross PPE
15,677
15,914
15,980
18,065
18,661
18,069
18,494
19,469
21,364
24,084
21,329
28,226
29,595
30,945
33,030
34,647
35,247
Gross Property, Plant and Equipment
-9,313
-9,634
-9,779
-9,547
-9,795
-9,477
-9,762
-10,311
-11,178
-11,787
-9,755
-11,384
-12,665
-13,946
-15,644
-16,694
-17,213
  Accumulated Depreciation
6,364
6,280
6,201
8,518
8,866
8,592
8,732
9,158
10,186
12,297
11,574
16,842
16,930
16,999
17,386
17,953
18,034
Property, Plant and Equipment
19,836
21,781
21,861
42,990
43,689
42,976
42,904
42,743
43,793
74,536
61,082
94,824
92,952
90,663
89,098
86,232
86,161
Intangible Assets
16,298
17,721
17,943
27,801
28,168
27,448
27,301
27,059
27,910
48,112
36,609
54,285
54,436
53,840
53,699
52,789
53,045
  Goodwill
6,368
6,922
6,597
7,141
7,441
7,197
8,124
7,857
7,711
8,852
1,919
3,967
6,624
6,156
4,576
5,297
5,618
Other Long Term Assets
32,568
34,983
35,694
59,799
61,152
59,723
60,778
61,156
64,062
98,708
78,038
118,777
119,354
116,421
113,452
111,728
111,948
Total Long-Term Assets
55,762
58,493
61,452
89,409
90,594
91,206
87,484
89,706
96,920
134,211
139,615
162,153
161,404
158,864
161,869
162,861
164,864
Total Assets
4,634
5,206
5,570
6,431
6,965
6,250
6,875
7,483
9,579
11,080
7,816
8,639
8,751
9,896
10,698
12,897
13,444
  Accounts Payable
--
--
744
1,434
820
585
2,790
671
543
737
--
--
--
--
--
--
--   Total Tax Payable
11,792
12,247
6,300
7,707
7,853
7,486
7,684
7,123
7,022
9,304
8,417
10,517
10,162
10,999
14,917
14,831
15,219
  Current Accrued Expense
16,426
17,453
12,614
15,572
15,638
14,321
17,349
15,277
17,144
21,121
16,233
19,156
18,913
20,895
25,615
27,728
28,663
Accounts Payable & Accrued Expense
1,487
279
759
1,624
500
1,917
1,105
2,204
2,496
4,345
5,551
797
158
1,220
1,472
2,535
3,056
  Short-Term Debt
1,487
279
759
1,624
500
1,917
1,105
2,204
2,496
4,345
5,551
797
158
1,220
1,472
2,535
3,056
Short-Term Debt & Capital Lease Obligation
--
--
5,028
5,936
6,444
4,241
3,952
4,217
4,547
5,720
9,014
12,889
13,720
14,598
17,183
18,616
19,038
  Current Deferred Revenue
--
--
5,028
5,936
6,444
4,241
3,952
4,217
4,547
5,720
9,014
12,889
13,720
14,598
17,183
18,616
19,038
DeferredTaxAndRevenue
--
--
215
654
218
2,996
212
208
204
182
15,796
3,006
2,658
2,401
2,491
2,620
1,867
Other Current Liabilities
17,913
17,732
18,616
23,786
22,800
23,475
22,618
21,906
24,391
31,368
46,594
35,848
35,449
39,114
46,761
51,499
52,624
Total Current Liabilities
8,257
10,010
9,501
21,597
19,741
17,784
19,320
21,697
24,989
41,192
37,701
31,026
31,327
30,694
42,355
38,726
38,244
  Long-Term Debt
--
--
--
--
--
--
--
--
--
--
1,093
1,516
1,657
1,586
1,412
1,632
1,646
  Long-Term Capital Lease Obligation
8,257
10,010
9,501
21,597
19,741
17,784
19,320
21,697
24,989
41,192
38,794
32,542
32,984
32,280
43,767
40,358
39,890
Long-Term Debt & Capital Lease Obligation
0.49
0.48
0.47
0.90
0.64
0.63
0.75
0.87
0.93
1.18
1.06
0.46
0.45
0.46
0.76
0.71
0.70
Debt-to-Equity
4,150
3,592
5,007
7,520
3,444
6,681
6,022
5,612
3,036
4,018
2,487
10,342
7,855
4,807
2,385
2,104
2,060
PensionAndRetirementBenefit
--
--
--
--
--
--
--
--
--
5,069
--
--
--
--
--
--
-- NonCurrent Deferred Liabilities
4,054
4,510
5,150
9,199
11,279
10,562
10,558
11,026
12,952
11,845
7,414
9,537
10,417
8,449
7,511
6,942
6,946
Other Long-Term Liabilities
16,461
18,112
19,658
38,316
34,464
35,027
35,900
38,335
40,977
62,124
48,695
52,421
51,256
45,536
53,663
49,404
48,896
Total Long-Term Liabilities
34,374
35,844
38,274
62,102
57,264
58,502
58,518
60,241
65,368
93,492
95,289
88,269
86,705
84,650
100,424
100,903
101,520
Total Liabilities
11,746
12,597
13,445
13,976
14,764
15,300
16,033
17,285
17,574
22,514
23,019
36,930
37,483
37,939
37,055
37,434
37,515
Common Stock
27,396
30,191
33,487
36,776
40,539
44,611
49,956
52,873
55,242
57,823
61,594
49,423
50,265
52,269
52,154
53,589
54,277
Retained Earnings
-3,487
-3,769
-5,490
-5,448
-2,880
-6,661
-7,619
-8,334
-7,525
-9,333
-10,149
-3,734
-1,915
-2,018
-2,419
-3,755
-3,207
Accumulated other comprehensive income (loss)
-15,408
-17,468
-19,410
-19,251
-20,431
-21,922
-30,907
-34,150
-35,596
-32,482
-32,626
-10,407
-12,727
-15,530
-26,977
-27,112
-27,069
Treasury Stock
-181
-166
-152
-139
-126
-115
-105
-95.00
-85.00
-76.00
-64.00
-49.00
-38.00
-28.00
-15.00
--
-- Other Stockholders Equity
20,066
21,385
21,880
25,914
31,866
31,213
27,358
27,579
29,610
38,446
41,774
72,163
73,068
72,632
59,798
60,156
61,516
Total Stockholders Equity
1,322
1,264
1,298
1,393
1,464
1,491
1,608
1,886
1,942
2,273
2,552
1,721
1,631
1,582
1,647
1,802
1,828
Minority Interest
21,388
22,649
23,178
27,307
33,330
32,704
28,966
29,465
31,552
40,719
44,326
73,884
74,699
74,214
61,445
61,958
63,344
Total Equity
0.36
0.37
0.36
0.29
0.35
0.34
0.31
0.31
0.31
0.29
0.30
0.45
0.45
0.46
0.37
0.37
0.37
Equity-to-Asset
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Jul 03, 2025
RTX Corp (NYSE:RTX)
www.gurufocus.com/stock/NYSE:RTX/summary

Valuation Ratios

Valuation Ratios

Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Dec24
TTM Fiscal Period
10.60
10.45
8.38
9.12
11.46
10.61
7.02
11.25
14.08
10.31
14.70
At Loss
33.62
28.83
37.73
32.60
42.74
PE Ratio
10.60
10.89
8.63
9.65
12.45
10.88
9.60
10.44
12.07
44.67
23.21
26.19
20.15
21.11
16.63
20.20
24.83
PE Ratio without NRI
7.03
7.74
7.63
8.06
10.12
10.83
6.80
13.01
10.03
8.88
13.83
--
20.67
23.53
17.57
26.89
31.75
Price-to-Owner-Earnings
2.04
2.13
1.91
1.83
2.06
2.11
1.85
2.02
2.17
1.50
1.95
1.51
1.76
2.04
1.87
2.56
3.17
PB Ratio
178
--
2,190
--
--
--
--
--
--
--
--
--
--
--
--
--
-- Price-to-Tangible-Book
8.96
9.02
7.37
12.60
14.29
12.85
12.43
31.79
19.82
12.19
12.22
59.25
28.04
34.14
25.61
39.63
40.02
Price-to-Free-Cash-Flow
7.58
7.74
6.33
7.04
9.53
9.01
8.37
14.69
11.39
8.59
9.17
26.92
18.36
20.92
15.32
21.72
24.15
Price-to-Operating-Cash-Flow
0.77
0.87
0.75
0.81
1.16
1.14
0.95
1.00
1.07
1.56
1.80
1.72
2.02
2.24
1.75
1.93
2.39
PS Ratio
0.66
1.43
1.72
2.36
1.99
1.46
1.61
4.70
3.94
42.14
--
--
--
--
4.43
2.73
2.89
PEG Ratio
0.91
1.02
0.85
1.16
1.46
1.41
1.17
1.30
1.41
2.86
2.72
2.38
2.41
2.64
2.20
2.39
2.85
EV-to-Revenue
6.15
6.40
5.10
7.21
7.94
7.03
7.08
7.26
7.75
17.80
14.40
42.02
14.14
15.34
15.66
15.43
18.31
EV-to-EBITDA
7.35
7.59
5.90
8.61
9.53
8.34
8.86
8.97
9.64
26.96
21.05
-143
24.14
23.84
27.68
23.67
27.86
EV-to-EBIT
10.50
10.48
8.36
18.10
18.04
15.93
15.29
41.50
26.13
22.31
18.52
82.31
33.58
40.25
32.21
49.27
47.50
EV-to-FCF
13.61
13.18
16.95
11.61
10.49
11.99
11.29
11.15
10.37
3.71
4.75
-0.70
4.14
4.19
3.61
4.22
3.59
Earnings Yield (Joel Greenblatt) %
25.67
16.99
16.36
14.26
13.58
14.73
14.59
8.76
8.54
7.97
-4.15
-11.64
-17.26
-8.87
8.35
10.01
14.37
Forward Rate of Return (Yacktman) %
12.26
12.81
10.73
11.11
15.09
13.85
10.49
11.39
12.85
10.39
13.96
11.85
14.24
16.66
14.86
21.94
27.81
Shiller PE Ratio
2.81
2.91
2.44
2.51
3.16
2.91
2.28
2.43
2.66
2.07
2.65
1.88
2.02
2.16
1.71
2.30
2.83
Cyclically Adjusted PB Ratio
0.99
1.05
0.90
0.94
1.23
1.17
0.95
1.04
1.17
1.00
1.39
1.08
1.27
1.48
1.25
1.74
2.17
Cyclically Adjusted PS Ratio
12.73
12.90
10.69
11.46
14.96
14.07
11.48
13.44
15.59
12.92
17.14
14.19
17.45
20.12
17.27
25.40
31.84
Cyclically Adjusted Price-to-FCF
2.22
2.16
2.55
2.48
1.93
2.05
2.66
2.39
2.13
2.66
1.96
3.02
2.33
2.14
2.76
2.14
1.77
Dividend Yield %
11.06
11.10
13.57
7.83
6.99
7.80
8.47
3.21
5.05
7.72
8.18
1.51
3.60
2.97
4.22
2.54
2.52
FCF Yield %

Valuation and Quality

Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Dec24
TTM Fiscal Period
40,917
45,639
41,729
47,421
65,649
65,812
50,684
55,788
64,155
57,727
81,462
108,655
128,512
147,973
111,646
154,153
194,715
Market Cap
47,534
53,109
47,327
67,216
82,735
81,775
65,642
74,418
84,597
99,385
123,422
134,913
155,453
176,835
151,945
193,270
232,689
Enterprise Value
43.68
49.54
46.00
51.61
71.62
72.37
60.46
68.98
80.28
67.01
94.25
71.51
86.06
101
84.14
116
146
Month End Stock Price
-33.36
-35.85
-37.05
-63.86
-59.03
-60.22
-63.28
-67.97
-72.99
-104
-107
-53.43
-53.91
-54.57
-71.96
-72.91
-73.50
Net Cash per Share
-13.35
-14.76
-15.23
-36.88
-31.95
-31.35
-39.86
-41.52
-43.11
-69.95
-41.95
-30.68
-31.00
-29.86
-40.44
-38.71
-37.75
Net Current Asset Value
-22.57
-24.37
-24.86
-49.61
-44.02
-47.40
-48.90
-51.94
-54.98
-85.75
-94.66
-45.77
-45.99
-46.29
-61.40
-61.94
-61.99
Net-Net Working Capital
79.28
72.90
73.53
73.79
77.69
80.51
78.62
77.17
76.26
81.54
86.82
62.68
63.65
66.23
67.48
66.76
66.44
Intrinsic Value: Projected FCF
48.95
48.26
52.46
54.81
53.84
58.69
55.64
61.65
68.30
42.19
61.04
44.30
45.10
49.76
56.65
95.01
105
Median PS Value
66.41
34.58
25.96
--
39.00
49.86
37.61
--
--
--
--
--
--
--
--
41.98
73.38
Peter Lynch Fair Value
4.78
--
1.59
--
--
--
--
--
--
--
--
--
--
--
--
--
-- Graham Number
55.00
58.59
64.65
48.00
48.88
53.70
53.14
51.44
48.74
18.14
12.78
14.70
11.27
9.21
-5.47
-5.88
-5.39
Earnings Power Value (EPV)
2.84
2.89
2.89
2.05
2.34
2.49
2.30
2.41
2.41
1.36
1.80
1.55
1.90
2.11
1.67
2.04
2.27
Altman Z-Score
6.00
8.00
9.00
4.00
6.00
8.00
5.00
5.00
6.00
4.00
7.00
4.00
6.00
8.00
5.00
7.00
7.00
Piotroski F-Score
-2.64
-2.57
-2.40
-2.37
-2.50
-2.57
-2.55
-2.36
-2.48
-1.35
-2.90
-1.69
-2.61
-2.66
-2.58
-2.52
-2.56
Beneish M-Score
0.47
0.52
0.47
0.74
0.55
0.52
0.46
0.53
0.56
0.83
0.62
0.71
0.62
0.63
0.63
0.61
0.62
Scaled Net Operating Assets
-0.75
2.83
-1.47
16.00
-0.05
1.07
-5.69
4.10
2.00
11.86
-0.18
-6.31
-1.14
0.54
-1.02
-0.52
-0.37
Sloan Ratio %
1.29
1.33
1.38
1.24
1.29
1.34
1.18
1.30
1.35
1.13
1.32
1.21
1.19
1.09
1.04
0.99
1.01
Current Ratio
0.88
0.89
0.96
0.84
0.84
1.02
0.82
0.91
0.94
0.81
1.13
0.95
0.93
0.81
0.78
0.74
0.75
Quick Ratio
0.25
0.23
0.32
0.20
0.20
0.22
0.31
0.33
0.37
0.20
0.11
0.25
0.22
0.16
0.14
0.11
0.10
Cash Ratio
9.05
9.19
11.66
8.60
8.28
8.73
7.72
7.08
8.00
2.43
2.87
0.92
3.86
4.23
2.15
3.32
3.27
Interest Coverage
44.36
50.04
57.51
54.68
71.62
75.57
78.10
69.84
80.63
89.41
94.84
98.69
91.86
105
105
127
149
Highest Stock Price
23.64
39.78
42.44
44.61
52.58
62.41
54.64
53.28
68.08
64.23
65.12
47.17
65.50
81.00
69.38
85.02
99.42
Lowest Stock Price
0.59
1.65
1.52
-1.28
0.24
0.80
7.81
3.54
1.18
-7.80
-0.33
-75.79
1.72
1.81
9.50
-0.39
-0.48
Shares Buyback Ratio %
1.85
3.97
4.67
--
1.83
2.28
17.56
4.04
2.26
0.56
0.19
0.04
1.81
1.89
11.53
0.29
0.23
Buyback Yield %
-9.70
0.37
8.53
3.53
-2.83
2.69
--
9.10
8.06
-42.80
22.55
-20.61
2.42
5.76
6.37
25.15
18.88
YoY Rev. per Sh. Growth
-15.92
15.05
15.82
3.10
10.42
9.12
26.25
-28.80
-7.01
14.04
-1.38
-140
199
36.72
-36.29
59.19
33.73
YoY EPS Growth
-11.15
8.17
13.85
0.48
10.68
12.04
-17.69
18.22
10.07
-49.57
43.97
-76.16
208
6.41
-12.87
37.97
32.15
YoY EBITDA Growth
16.12
7.60
5.03
4.09
6.27
7.43
5.98
2.22
3.06
1.06
-9.43
-17.74
-22.31
-13.11
3.75
7.39
8.60
5-Year EBITDA Growth Rate
917
908
892
895
901
898
873
818
790
800
855
1,358
1,502
1,476
1,426
1,332
1,337
Shares Outstanding (Basic Average)
937
921
907
919
917
909
838
809
799
861
864
1,519
1,493
1,466
1,327
1,332
1,336
Shares Outstanding (EOP)
1.01
1.04
1.14
1.10
1.19
1.16
1.16
0.99
1.01
1.18
1.32
1.47
1.45
0.94
0.40
0.31
0.47
Beta
02/11/10
02/10/11
02/09/12
02/07/13
02/06/14
02/05/15
02/11/16
02/09/17
02/09/18
02/07/19
02/06/20
02/08/21
02/11/22
02/07/23
02/05/24
02/03/25
  Filing Date
02/10/11
02/07/13
02/06/14
02/05/15
02/11/16
02/09/17
02/09/18
02/07/19
02/06/20
02/08/21
02/11/22
02/11/22
02/05/24
02/03/25
02/03/25
02/03/25
  Restated Filing Date
01/27/10
01/26/11
01/25/12
01/23/13
01/22/14
01/26/15
01/27/16
01/25/17
01/24/18
01/23/19
01/28/20
01/26/21
01/25/22
01/24/23
01/23/24
01/28/25
  Earnings Release Date
--
24,784
23,633
22,210
21,364
20,639
--
--
18,393
--
30,010
45,151
43,342
41,554
39,627
37,447
37,447
Number of Shareholders
206,700
208,200
199,900
218,000
212,000
211,500
197,000
202,000
204,700
240,000
243,200
181,000
174,000
182,000
185,000
186,000
186,000
Number of Employees
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Jul 03, 2025
RTX Corp (NYSE:RTX)
www.gurufocus.com/stock/NYSE:RTX/summary

Business & Geographic Segmentation

Business Segments

Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Dec24
TTM Fiscal Period
--
--
--
--
--
--
--
14,465
14,691
16,634
26,028
19,288
21,152
23,052
26,253
28,284
28,828
Collins Aerospace
--
--
--
--
--
--
--
14,894
16,160
19,397
20,902
16,799
18,150
20,530
18,296
28,066
28,976
Pratt & Whitney
--
--
--
--
--
--
--
--
--
--
--
--
26,611
25,176
26,350
26,713
26,394
Raytheon
--
--
--
--
--
--
--
-859
-1,167
-1,356
-1,581
-1,965
-1,525
-1,684
-1,979
-2,325
-2,459
Eliminations and other
--
--
--
--
--
--
--
--
--
--
--
11,396
15,539
14,863
--
--
-- Raytheon Missiles & Defense
--
--
--
--
--
--
--
--
--
--
--
11,069
15,180
14,312
--
--
-- Raytheon Intelligence & Space
--
--
--
--
--
--
--
16,851
17,812
18,922
18,608
--
--
--
--
--
-- Carrier
--
--
--
--
--
--
--
11,893
12,341
12,904
13,113
--
--
--
--
--
-- Otis

Geographic Segments

Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Dec24
TTM Fiscal Period
--
--
--
--
--
--
--
21,508
33,912
39,481
48,288
48,560
55,837
41,190
44,881
46,087
-- United States
--
--
--
--
--
--
--
16,216
11,879
12,857
13,664
3,696
3,630
11,111
13,501
15,975
-- Europe
--
--
--
--
--
--
--
11,709
8,770
8,847
9,391
1,574
1,748
8,057
9,049
10,893
-- Asia Pacific
--
--
--
--
--
--
--
7,792
5,262
6,672
7,298
2,654
3,037
3,117
3,653
4,325
-- Other regions
--
--
--
--
--
--
--
--
--
--
--
103
136
3,599
3,237
3,458
-- Middle East and North Africa
--
--
--
--
--
--
--
--
--
--
--
--
--
--
-5,401
--
-- Powder Metal Matter
--
--
--
--
--
--
--
19.00
14.00
-1,356
-1,595
--
--
--
--
--
-- Eliminations and other
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Jul 03, 2025
RTX Corp (NYSE:RTX)
www.gurufocus.com/stock/NYSE:RTX/summary

Explanation

1. Predictability Rank

GuruFocus Predictability Rank is a proprietary ranking of the consistency of a business. We rank the predictability of companies based on the consistency of their revenue per share and EBITDA (earnings before interest, tax, depreciation and amortization) per share over the past 10 fiscal years. Our study found that there is a strong correlation between the stock performance and the predictability of a business. Over the long term, companies with higher predictability also have better stock performance.

The rank is from 1-star to 5-star, with 5-star as the best.

2. Financial Strength

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

  1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
  2. Debt to revenue ratio. The lower, the better.
  3. Altman Z-Score.

The rank is from 1 to 10, with 10 as the highest.

A Financial Strength rank of 8 or above indicates good financial strength; between 4-7 indicates fair financial strength; 3 or below means poor financial strength.

3. Profitability Rank

GuruFocus Profitability Rank indicates how profitable a company is and how likely it is that the company's business will stay that way. It is based on these factors:

  1. Operating Margin %.
  2. Piotroski F-Score.
  3. Trend of the Operating Margin percentage (five-year average). A company with an uptrend in profit margin will have a higher rank.
  4. Consistency of the profitability.
  5. Predictability Rank.

The rank is from 1 to 10, with 10 as the highest.

A Profitability Rank of 8 or above indicates good profitability; between 4-7 indicates fair profitability; 3 or below means poor profitability.

4. Peter Lynch Chart

In Peter Lynch's excellent book, "One Up on Wall Street," he used many charts to illustrate the valuation of stocks. “A quick way to tell if a stock is overpriced is to compare the price line to the earnings line. If you bought familiar growth companies – such as Shoney’s, The Limited, or Marriott – when the stock price fell well below the earnings line, and sold them when the stock price rose dramatically above it, the chances are you’d do pretty well.”

The original Peter Lynch Chart does have limitations due to the right side price scale is pre-set at 15 times the earnings scale on the left side. When the stock price and earnings line coincide, the price-to-earnings ratio is always 15 times. Instead of using the fixed PE Ratio of 15, our approach is using 15-year historical median PE without NRI Ratio for each stock.

The Peter Lynch Chart with earnings line at median PE without NRI ratio works well for the companies with steady growth and earnings trends, or the stalwarts, as coined by Lynch. These companies tend to be found in sectors such as consumer staples, healthcare, and utilities, where the consumption of the product or service is relatively independent of economic conditions. It does not work well with the sectors that are cyclical: industrials, chemicals, durable goods, and so forth.

5. GF Value

Based on the relationship between the current stock price and the GF Value, GuruFocus provides the following 6 evaluations:

  1. Possible Value Trap, Think Twice
  2. Significantly Overvalued
  3. Modestly Overvalued
  4. Fairly Valued
  5. Modestly Undervalued
  6. Significantly Undervalued
There is only a sufficient margin of safety when the stock is undervalued.

Disclaimer

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