RTX
RTX Corporation · Industrials · Aerospace & Defense
$209.22
52w 150.61 – 226.88
20y monthly, adjusted
Mkt cap
$282.0B
P/E
42.0
P/FCF
35.6
FCF yield
2.8%
ROE
10.3%
Shldr yield
1.3%
div 1.3% + bb 0.0%
What today's price assumes
At $282.0B, the market is pricing in 15.6% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 4.5% per year — the price asks for acceleration beyond the historical record.
Simple DCF per-share range: $90 · $93 · $116 (4% / base / optimistic growth). An estimate, not a target.
Historical multiple lens
At its own median P/OCF of 7.1× across 19 years, RTX would trade near $56/share (25th–75th percentile: $44–$140); it trades at 26.7× today.
Assumes the historical multiple regime persists — re-ratings can be permanent.
Growth record
Compound annual growth rates from as-filed 10-K data, split-adjusted
Rev 3y
+9.7%
Rev 5y
+9.4%
Rev 10y
+4.7%
EPS 5y
—
EPS 10y
−5.4%
FCF 5y
+25.6%
FCF 10y
+4.5%
Fundamentals
Fiscal 2007–2025, from SEC filings
Revenue
Net income
Free cash flow
Diluted shares (lower is better)
Margins
Capital returned (dividends + buybacks)
Cash vs long-term debt
Quarterly
Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.
Revenue by quarter
Net income by quarter
| Quarter | Revenue | YoY | Net income | YoY | EPS | OCF |
|---|---|---|---|---|---|---|
| Q2'26 | $24.7B | +14.5% | $2.1B | +29.1% | 1.57 | $3.5B |
| Q1'26 | $22.1B | +8.7% | $2.1B | +34.1% | 1.51 | $1.9B |
| Q4'25 * | $24.2B | +12.1% | $1.6B | +9.4% | 1.19 | $4.2B |
| Q3'25 | $22.5B | +11.9% | $1.9B | +30.3% | 1.41 | $4.6B |
| Q2'25 | $21.6B | +9.4% | $1.7B | +1392.8% | 1.22 | $458.0M |
| Q1'25 | $20.3B | +5.2% | $1.5B | −10.2% | 1.14 | $1.3B |
| Q4'24 * | $21.6B | +8.5% | $1.5B | +3.9% | 1.10 | $1.6B |
| Q3'24 | $20.1B | +49.2% | $1.5B | — | 1.09 | $2.5B |
| Q2'24 | $19.7B | +7.7% | $111.0M | −91.6% | 0.08 | $2.7B |
| Q1'24 | $19.3B | +12.1% | $1.7B | +19.8% | 1.28 | $342.0M |
| Q4'23 * | $19.9B | +10.1% | $1.4B | +0.3% | 1.04 | $4.7B |
| Q3'23 | $13.5B | −20.6% | −$984.0M | −170.9% | -0.68 | $3.3B |
| Q2'23 | $18.3B | +12.3% | $1.3B | +1.8% | 0.90 | $719.0M |
Track record
Compound annual growth by period. For debt and share count, negative is the good direction.
| Series | 3y | 5y | 10y | 15y |
|---|---|---|---|---|
| Revenue | +9.7% | +9.4% | +4.7% | +3.6% |
| Operating cash flow | +13.8% | +19.5% | +4.6% | +4.2% |
| Free cash flow | +17.6% | +25.6% | +4.5% | +3.3% |
| EPS (diluted) | +12.3% | −4.2% | −5.4% | +0.3% |
| Equity | −3.5% | −2.0% | +9.1% | +7.7% |
| LT debt | +3.1% | +1.7% | +5.8% | +8.4% |
| Diluted shares | −3.0% | −0.0% | +4.4% | +2.6% |
| Stock price | +37.0% | +22.3% | +14.6% | +13.1% |
$100, 3 years ago
$257vs $176 in SPY
37.0% vs 20.7%/yr
$100, 5 years ago
$274vs $181 in SPY
22.3% vs 12.6%/yr
$100, 10 years ago
$391vs $412 in SPY
14.6% vs 15.2%/yr
$100, 15 years ago
$631vs $813 in SPY
13.1% vs 15.0%/yr
The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)
Last 5 years
$24.89
$190.3B created / $7.6B retained
Last 10 years
$17.80
$232.3B created / $13.1B retained
Quality & capital discipline
Cash-based returns and how management deploys capital
Cash ROIC
10.6%
OCF ÷ (equity + debt)
OCF / EV yield
3.4%
MC vs 10× OCF
2.68
≤1 = priced under 10× OCF
Debt / FCF
4.3y
SBC / FCF
6.5%
Owner earnings
$7.4B
OCF − capex − SBC
OE yield
2.6%
Share count 5y
+1.8%
per year; negative = buybacks
Capital intensity
19.0%
net PP&E ÷ revenue
Sales efficiency
$0.06
new PP&E per $1 new revenue, 5y
Checklist
13 of 24 checks pass · 54%. Checks with structurally missing inputs are excluded.
Growth & Consistency
6/6
- pass
Revenue growth
9.4% · 5y CAGR ≥ 5%
- na
EPS growth
— · 5y CAGR ≥ 5%
- pass
FCF growth
25.6% · 5y CAGR ≥ 5%
- pass
Revenue rises consistently
8 of 9 · up in ≥ 7 of last 10 years
- pass
FCF consistently positive
10 of 10 · positive in ≥ 8 of last 10 years
- pass
Profitable every year
9 of 10 · net income > 0 in ≥ 8 of last 10
- pass
Cash flow keeps up with sales
19.5% vs 9.4% · OCF CAGR ≥ 0.9× revenue CAGR
Profitability
3/6
- fail
Net margin
7.6% · ≥ 8%
- pass
Operating margin
10.5% · ≥ 10%
- na
Gross margin stable or rising
— · no drop > 2 pts over 3y
- fail
Return on equity
10.3% · ≥ 12%
- fail
Cash ROIC
10.6% · ≥ 12%
- pass
FCF margin
9.0% · ≥ 5%
- pass
Earnings back their cash
OCF $10.6B vs NI $6.7B · OCF ≥ net income (latest FY)
Balance Sheet
1/4
- fail
Debt payable from cash flow
4.3y · LT debt ≤ 3× FCF
- fail
Cash cushion
22% · cash ≥ 50% of LT debt
- pass
Leverage
0.53 · LT debt ≤ 1.5× equity
- fail
Equity positive and compounding
$65.2B · equity > 0 and grew over ~5y
- na
Interest burden
— · interest ≤ 15% of operating income
Capital Allocation
3/4
- fail
Share count flat or shrinking
1.8% · ≤ +0.5%/yr over ~5y
- pass
Stock comp restrained
7% · SBC ≤ 15% of FCF
- pass
Distributions funded by FCF
46% · dividends + buybacks ≤ 100% of FCF
- pass
Repurchases are a habit
10 of 10 · buybacks in ≥ 5 of last 10 years
Valuation Discipline
0/4
- fail
FCF yield
2.8% · ≥ 3%
- fail
Earnings multiple
42.0 · P/E ≤ 25
- fail
Price asks less than history delivered
15.6% vs 4.5% · implied FCF growth ≤ historical FCF CAGR
- fail
Shareholder yield
1.3% · dividends + buybacks ≥ 2% of market cap
Financial data
As filed in 10-Ks; per-share figures split-adjusted. $ in millions.
| FY | Revenue | Gross profit | Op income | Net income | EPS | OCF | CapEx | FCF | Dividends | Buybacks | SBC | Cash | LT debt | Equity | Shares |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 88,603 | — | 9,300 | 6,732 | 4.96 | 10,567 | 2,627 | 7,940 | 3,574 | 50 | 519 | 7,435 | 34,288 | 65,245 | 1,356 |
| 2024 | 80,738 | — | 6,538 | 4,774 | 3.55 | 7,159 | 2,625 | 4,534 | 3,217 | 444 | 437 | 5,578 | 41,078 | 60,156 | 1,344 |
| 2023 | 68,920 | — | 3,561 | 3,195 | 2.23 | 7,883 | 2,415 | 5,468 | 3,239 | 12,870 | 425 | 6,587 | 43,638 | 59,798 | 1,435 |
| 2022 | 67,074 | — | 5,504 | 5,197 | 3.50 | 7,168 | 2,288 | 4,880 | 3,128 | 2,803 | 420 | 6,220 | 31,289 | 72,632 | 1,486 |
| 2021 | 64,388 | — | 5,136 | 3,864 | 2.56 | 7,142 | 2,134 | 5,008 | 2,957 | 2,327 | 442 | 7,832 | 31,351 | 73,068 | 1,509 |
| 2020 | 56,587 | — | -1,889 | -3,519 | -2.59 | 4,334 | 1,795 | 2,539 | 2,732 | 47 | 330 | 8,802 | 31,576 | 72,163 | 1,358 |
| 2019 | 45,349 | — | 4,914 | 5,537 | 6.41 | 5,821 | 1,868 | 3,953 | 2,442 | 151 | 268 | 4,937 | 40,959 | 41,774 | 864 |
| 2018 | 34,701 | — | 2,877 | 5,269 | 6.50 | 2,670 | 1,467 | 1,203 | 2,170 | 325 | 169 | 3,693 | 44,068 | 38,446 | 810 |
| 2017 | 59,837 | — | 8,138 | 4,552 | 5.70 | 5,631 | 2,014 | 3,617 | 2,074 | 1,453 | 192 | 8,985 | 27,093 | 29,610 | 799 |
| 2016 | 57,244 | — | 8,221 | 5,055 | 6.12 | 6,412 | 1,699 | 4,713 | 2,069 | 2,254 | 152 | 7,157 | 23,300 | 27,579 | 826 |
| 2015 | 56,098 | — | 7,291 | 7,608 | 8.61 | 6,755 | 1,652 | 5,103 | 2,184 | 10,000 | 158 | 7,075 | 19,499 | 27,358 | 883 |
| 2014 | 57,900 | — | 9,593 | 6,220 | 6.82 | 7,336 | 1,594 | 5,742 | 2,048 | 1,500 | 219 | 5,229 | 19,575 | 31,213 | 912 |
| 2013 | 56,600 | — | 8,549 | 5,721 | 6.25 | 7,505 | 1,569 | 5,936 | 1,908 | 1,200 | 250 | 4,607 | 19,853 | 31,866 | 915 |
| 2012 | 57,708 | — | 7,684 | 5,130 | 5.66 | 6,605 | 1,389 | 5,216 | 1,752 | 0 | 210 | — | 22,718 | 25,914 | 907 |
| 2011 | 55,754 | — | 7,846 | 4,979 | 5.49 | 6,460 | 929 | 5,531 | 1,602 | 2,175 | 221 | — | 9,630 | 21,880 | 907 |
| 2010 | 52,275 | — | 6,898 | 4,373 | 4.74 | 5,720 | 838 | 4,882 | 1,482 | 2,200 | 148 | — | 10,173 | 21,385 | 923 |
| 2009 | 52,920 | — | 6,377 | 3,829 | 4.12 | 5,353 | 826 | 4,527 | 1,356 | 1,100 | 153 | — | 9,490 | 20,066 | 929 |
| 2008 | 59,757 | — | 7,509 | 4,689 | 4.90 | 6,161 | 1,216 | 4,945 | 1,210 | 3,160 | 211 | — | 9,337 | 15,763 | 956 |
| 2007 | 55,716 | — | 7,050 | 4,224 | 4.27 | 5,330 | — | 5,330 | 1,080 | 2,001 | — | — | — | 22,064 | 989 |
Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.