QualityDipStocks / Industrials · Aerospace
RTX RTX
Not in a dip by our rules: 11% below its 52-week high.
A quality company trading above our fair value estimate.
- Fair value est.
- $160.39−20%
- Market Value
- $195.59price +2%
- Off 52-wk high
- −11%
- Risk vs market
- Lowbeta 0.25
5 bullish · 5 bearish See why
Key levels
Every level vs today’s $199.80
- Fair value est.base case$160.39−19.7%
- 52-wk lowlowest close, 1 year$168.02−15.9%
- Market Valueavg paid since Oct 20$195.59−2.1%
- PriceFri Oct 30 close$199.80you are here
- 52-wk highhighest close, 1 year$225.49+12.9%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 9.7% ±2 points. Bear = 10.5% and 7.7%; bull = 8.5% and 11.7% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
What the price implies To be worth today’s price, RTX’s free cash flow would need to grow about 14% a year for five years; our estimate uses 10%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much RTX moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Has moved mostly independently of the market, but its own price swings are 2.0× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.25
- Volatility
- 25% vs 13% SPY
- Correlation SPY
- 0.13
- Correlation QQQ
- −0.02
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
Cash returnsFree cash flow grew 81% over the last 12 months vs the 12 months before.
GrowthDiluted EPS grew 40% to $4.96 in FY2025.
ProfitabilityOperating margin widened to 10.5% in FY2025 from 5.2% in FY2023 (SEC filings).
GrowthSales grew 12% to $96.0B over the last 12 months vs the 12 months before (SEC filings).
QualityPasses all four of our quality checks: cash generation, returns on capital, growth and balance sheet.
Top bearish points 5 of 5
ValuationOur DCF fair value estimate is $160.39, 20% below the price.
Cash returnsShare count up 0.7% over 12 months, above the −0.8% median for the 137 Industrials companies we cover.
ValuationP/E of 32.5×, above the 27.5× median for the 130 Industrials companies we cover.
ValuationEV/EBITDA of 19.2×, above the 16.6× median for the 96 Industrials companies we cover.
ProfitabilityReturn on invested capital of 9.5%, below the 13% median for the 102 Industrials companies we cover.
Who’s talking about it
Notable investors, executives, analysts and public figures on RTX in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Aerospace
All fundamentals
P/E 32.5 · FCF yield 3.5% · ROE 13%
Valuation
- P/E
- 32.5×3-yr-end avg 35.8× · Industrials median 27.5×
- Price / FCF
- 28.8×
- FCF yield
- 3.5%
- EV / EBITDA
- 19.2×
- Price / sales
- 2.85×
- Price / book
- 3.95×
- Market cap
- $273Bprice × diluted shares
- Enterprise value
- $301B
Growth
- Revenue, 12 months
- $96.0B
- Sales growth, 12 months
- +11.6%vs the 12 months before
- Sales growth, 3 yrs
- +9.7%/yrfrom FY2022
- Diluted EPS, 12 months
- $6.15
- EPS growth, last FY
- +39.7%
- Net income, 12 months
- $8.4B
- Net income growth
- +27%12 months vs before
Profitability
- Gross margin
- n/agross profit isn't reported (common for service and financial companies)
- Operating margin
- 11.8%
- Net margin
- 8.8%
- FCF margin
- 9.9%
- Return on equity
- 13%
- Return on invested capital
- 9%
Balance sheet
- Cash & short-term inv.
- $9.9B
- Total debt
- $37.4B
- Net cash
- −$27.5B
- Debt / equity
- 0.54×
- Interest coverage
- n/ainterest expense not tagged in SEC data
Cash flow & returns
- Free cash flow, 12 months
- $9.5B
- FCF growth, 12 months
- +81%
- Dividend yield
- 1.39%$3.8B paid
- Payout ratio
- 45%
- Buybacks, 12 months
- $0
- Share count, 1 year
- +0.7%diluted shares vs a year ago
- Stock-based comp
- $637M
Trailing 12 months to Sep 30, 2026; balance sheet at Sep 30, 2026. From RTX’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $160.39 · MV $195.59 · FCF value $169.47
Assumes 9.7% growth for 5 years (revenue grew 9.7% a year FY22–FY25), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $6.94 a share (trailing 12 months to Sep 30, 2026), from the 10-Q filed Oct 20, 2026.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only arm once a company is in a dip.
Momentum & 52-week range
RSI 61 · 5 days +4.6%
The business
FCF $9.1B · Sales +11%
- Free cash flow, 12 months$9.1B
- Free-cash-flow yield3.4%
- Free-cash-flow margin10%
- Gross margin21%
- Operating margin12%
- Return on invested capital8%
- Return on equity13%
- Sales growth (latest quarter vs year-ago quarter)+11%
- Net debt / EBITDA1.8×
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
Get a text when RTX fires a reversal signal
One text when a published rule fires on RTX or any of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.