Stock · RTX · Industrials

RTX Corporation

United States · Large Cap · listed since 1970 · Revenue 12 mo. $96B

Price as of 11/06/2026

StockScorer score
2.7
of 10 3 of 11 points Low Match To the score
Price
$189.53
1 Y −1.4%
Market cap
$252B
Phase
Growth
revenue growing, core business profitable
Revenue +9.7% a year (3 years)EBIT margin 10.5%Payout 36.0% of operating cash flow

Summary

RTX Corporation is around the middle of the Industrials sector overall

48.9 of 100

Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.

Analysis

What the price requires

The price requires 15.5% FCF growth a year: more than over the last 10 years, less than over the last 5 years.

If free cash flow stays at €6.7B (2025), it supports €74.3B. The remaining €151.9B of the market value assume it grows 15.5% a year for 10 years and not at all afterwards.

Required FCF growth per year

15.5%

no growth afterwards

Market value breakdown€226.1B market value, price as of 11/06/2026

€74.3B without growth
€151.9B priced-in growth
  • 5 yrs achieved 17.4%
  • 10 yrs achieved 8.2%
  • priced in 15.5%

Valuation against its own history

Price to operating cash flow 20.9×, within its usual range.

Middle half of 20 quarters: 17.6× to 23.6×, median 21.2×.

Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.

1 sign supports the expectation, 1 speaks against it.

What supports it

with respect to the priced-in expectation

  • Low capital needs capex median 3.6% of revenue (10 years)

What speaks against it

with respect to the priced-in expectation

  • Volatile earnings 3 drops or sign changes in up to 10 years

AI summary of the 2025 annual report

The business of RTX Corporation according to its report

A language model selected and condensed statements from the report. Each statement carries a verbatim quote. The selection is not complete and shows the state of the report. It gives no rating and does not feed into the score.

Form 10-K, fiscal year ended 12/31/2025, filed 02/06/2026. Open the report at the SEC

Business model according to the report

  • Collins designs, makes and supplies electric power systems, environmental control systems and flight control systems.

    Quote
    Collins designs, manufactures, and supplies electric power generation, management and distribution systems, environmental control systems, flight control systems
  • Pratt & Whitney designs, makes and services large engines for wide-body, narrow-body and large regional aircraft for commercial customers, and for fighter, bomber, tanker and transport aircraft for military customers.

    Quote
    Pratt & Whitney designs, manufactures, and services large engines for widebody, narrowbody, and large regional aircraft for commercial customers and for fighter, bomber, tanker, and transport aircraft for military customers.
  • Raytheon designs, develops and provides air and missile defense, smart weapons, missiles, sensors and radars, interceptors, space-based systems and hypersonics.

    Quote
    Raytheon designs, develops, and provides advanced capabilities in integrated air and missile defense, smart weapons, missiles, advanced sensors and radars, interceptors, space-based systems, hypersonics, and missile defense across land, air, sea, and space.
  • Collins offers aftermarket services to civil and military aircraft makers, commercial airlines, regional, business and general aviation operators, and defense and commercial space operations.

    Quote
    Collins’ solutions include aftermarket services for civil and military aircraft manufacturers, commercial airlines, and regional, business, and general aviation, as well as for defense and commercial space operations.

Customers according to the report

  • Collins sells to aircraft makers, airlines, airports, other aircraft operators, the U.S. and foreign governments, defense contractors, repair providers and independent distributors.

    Quote
    Collins sells aerospace and defense products and services to aircraft manufacturers, airlines, airports and other aircraft operators, the U.S. and foreign governments, defense contractors, maintenance, repair, and overhaul providers, and independent distributors around the world.
  • Pratt & Whitney mainly sells to aircraft makers, airlines and other aircraft operators, aircraft leasing companies, and the U.S. and foreign governments.

    Quote
    Pratt & Whitney sells products and services principally to aircraft manufacturers, airlines and other aircraft operators, aircraft leasing companies, and the U.S. and foreign governments.

Competition according to the report

  • Many competitors have large financial resources and significant technology capabilities.

    Quote
    Many of our competitors have substantial financial resources and significant technological capabilities.
  • The company's businesses compete on factors such as price, delivery schedule, past performance, reliability, customer service, innovation and technology.

    Quote
    Our businesses compete on a variety of factors such as price, delivery schedule, past performance, reliability, customer service, innovation, and technology.
  • Some non-U.S. competitors receive government research and development help, marketing subsidies and other aid that goes beyond the aid that may be available to the company as a U.S. company.

    Quote
    Some non-U.S. competitors receive government research and development assistance, marketing subsidies, and other assistance for their products beyond the assistance that may be available to us as a U.S. company.

Risks according to the report

  • In 2023 Pratt & Whitney found a rare condition in powder metal used in some engine parts. It requires faster inspections of the PW1100 GTF engine fleet, which powers the A320neo family.

    Quote
    In particular, in 2023, Pratt & Whitney determined that a rare condition in powder metal used to manufacture certain engine parts requires accelerated inspection of the PW1100 GTF fleet, which powers the A320neo family of aircraft.
  • The negative effects of the powder metal issue could increase if other engine models are found to be materially affected by the rare powder metal condition.

    Quote
    The negative impacts arising from the Powder Metal Matter could increase if any other engine models are found to be materially impacted by this rare condition.
  • If the company cannot meet the requirements of the Consent Agreement within three years, as determined by the DOS, it may face a continuation of the agreement, more fines or other negative effects.

    Quote
    If the Company is unable to satisfy the requirements of the CA within three years as determined by the DOS, it may face a continuation of the CA, additional fines, or other adverse impacts.
  • If the company does not get the required licenses in time, sales tied to those approvals may be blocked or delayed, and revenue and profit already recognized may be reversed.

    Quote
    If we are not successful in obtaining or maintaining the necessary licenses or authorizations in a timely manner, our sales relating to those approvals may be prevented or delayed, and revenue and profit previously recognized may be reversed.
  • In recent years the company had supply chain disruptions that affected its ability to get raw materials, such as rare earth elements, microelectronics and certain commodities, causing delays and higher costs.

    Quote
    In recent years, we have experienced supply chain disruptions that have impacted our ability to procure raw materials, including certain rare earth elements, microelectronics, and certain commodities, resulting in delays and increased costs.

Since the last quarter

Q2 → Q3 2026

Mostly worse than the previous quarter: 2 of 2 changes for the worse.

  • FCF, 12 mo.$11.0B → $9.1B−16.9%worse
  • FCF margin11.8% → 9.5%−2.2 ppworse

6 more unchanged: Revenue, 12 mo., Gross margin, EBIT margin, Net debt, Shares outstanding, Return on equity

Derivation

How the sector comparison is derived

Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.

Price as of 11/06/2026.

Profitability48.3around the middleEarns about as much as the sector.
MetricStockSector medianPosition in sector
Return on equity10.32%13.10%Rank 35
Return on capital (Greenblatt)45.81%19.33%Rank 78
EBIT margin10.50%11.28%Rank 47
FCF margin8.41%8.50%Rank 50
Gross margin20.08%28.98%Rank 31
Growth59.8around the middleGrows about as fast as the sector.
MetricStockSector medianPosition in sector
Revenue growth, 1 year9.74%5.15%Rank 75
Earnings growth, 3 years per year12.37%8.01%Rank 60
Earnings growth, 5 years per yeardoes not count towards the rank–12.89%
Sustainable growth (ROE × retained earnings)3.52%4.02%Rank 45
Valuation25.6below the middleValued higher than the sector: Earnings yield 2.62%, sector 4.42%.
MetricStockSector medianPosition in sector
Earnings yield2.62%4.42%Rank 17
FCF yield2.96%3.98%Rank 34
EV/saleslower is better3.212.08Rank 34
EV/EBITlower is better30.5419.47Rank 18
Momentum49.1around the middleShare price moving about like the sector.
MetricStockSector medianPosition in sector
Share price, 1 year−1.37%−0.01%Rank 48
Share price, 6 months8.12%−1.43%Rank 69
Share price, 3 months−9.89%0.53%Rank 27
Distance from 52-week high−15.95%−16.36%Rank 52
Quality59.1around the middleQuality about like the sector.
MetricStockSector medianPosition in sector
Accruals (Sloan)lower is better−1.54%1.39%Rank 79
Change in share countlower is better0.95%−0.44%Rank 10
Dividend streak in years335Rank 98
Price reaction to results, market-adjusted0.28%0.27%Rank 50
Balance sheet & risk51.5around the middleRisk about like the sector.
MetricStockSector medianPosition in sector
Equity ratio38.14%39.65%Rank 46
Net debt/EBITDAlower is better2.151.38Rank 32
Debt to equitylower is better0.610.61Rank 51
Volatility, 1 yearlower is better25.20%32.95%Rank 78

Ten years in figures

Revenue from $57.2B (2016) to $88.6B (2025), 5.0% a year.

Fiscal years, amounts in USD
YearRevenue, $BEBIT marginFCF, $BSharesNet debt, $B
201657.214.4%1.8826M16.7
201759.813.6%3.2799M18.5
201834.78.3%4.0810M39.4
201945.310.8%6.3864M40.0
202056.6−3.3%1.61.36B24.5
202164.48.0%4.71.51B25.3
202267.18.2%4.41.49B27.3
202368.95.2%5.51.44B38.7
202480.78.1%4.51.34B37.3
202588.610.5%7.41.36B32.1
2.7 / 10Low MatchStockScorer score3 of 11 points

2 of 7 StockScorer Score rules met · How the score is built

RTX Corporation mainly meets criteria in the Growth category. Result from 18 strategies checked.

This stock · Profitability: 33%This stock · Growth: 50%This stock · Valuation: 0%This stock · Momentum: 0%Median of all stocks · Profitability: 33%Median of all stocks · Growth: 0%Median of all stocks · Valuation: 0%Median of all stocks · Momentum: 0%50%100%ProfitabilityGrowthValuationMomentumThis stockMedian of all stocks

How RTX Corporation's score is built

RTX Corporation is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.

2 of 7 rules met

3 of 11 points

  1. Free cash flow yield above the sector mediannot met0 of 2 points
  2. Return on capital (Greenblatt ROC) above the sector medianmet2 of 2 points
  3. Return on equity above the sector mediannot met0 of 1 point
  4. Free cash flow margin above the sector mediannot met0 of 2 points
  5. Revenue growth above 15%not met0 of 2 points
  6. 3-year earnings growth above 12% p.a.met1 of 1 point
  7. 12-month share price more than 20 percentage points ahead of the marketnot met0 of 1 point
  8. Exclusion: financial and real estate stocksdoes not apply

Detail data

How does RTX Corporation stock perform across 18 strategies?

Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.

12 more strategies locked

With a free account, you can see the match across all strategies checked in one complete overview.

  • Magic Formula: Value + Quality
  • StockScorer Score
  • Growth Momentum (CAN SLIM principle)
  • Altman Z-Score: Stress Test
  • Moat Quality
  • Undervalued Stocks: Multi-Factor Check
  • Levermann Strategy (13 Criteria)
  • Acquirer's Multiple: EV/EBIT Deep Value
  • Balanced GARP
  • High-Growth / Rule of 40
  • PEG Strategy (inspired by Peter Lynch)
  • Trending Value: Value + Momentum

RTX Corporation key metrics: P/E, P/B and equity ratio

Selected fundamental metrics for RTX Corporation.

MetricStockSector
P/E ratio38.222.5
P/B ratio3.92.9
Return on equity (ROE)10.3%13.1%
Equity ratio38.1%39.7%
Debt-to-equity (D/E)0.610.61
Dividend yield1.5%2.0%

Similar stocks in Industrials

How comparable stocks in the same sector score in the StockScorer model.

SymbolCompanyRating
RTXRTX Corporationthis page
GEGE AerospaceHigh7.3
BAThe Boeing CompanyLow2.7
LMTLockheed Martin CorporationHigh6.4
GDGeneral Dynamics Corporationlocked
HWMHowmet Aerospace Inclocked

Frequently asked questions about RTX Corporation stock

How does RTX Corporation stock (RTX) score in the StockScorer model?
RTX Corporation stock reaches a StockScorer score of 2.7 out of 10, which is a low match with the rule-based strategies. 2 out of 7 flagship profile rules are met.
What is RTX Corporation's P/E ratio?
RTX Corporation's P/E ratio is 38.2. The Industrials sector median is 22.5.
What sector is RTX Corporation in?
RTX Corporation is assigned to the Industrials sector. Its rank within the sector is 48.9 out of 100: 100 means the stock leads its peer group of large and mid-cap sector stocks in every measured area.

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