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RTX (RTX) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NYSE•Industrials•Aerospace & Defense
B
GoodMetricSide Score: 77/100
ProfitabilityProfit15/30
GrowthGrowth25/25
Balance SheetBalance21/25
Cash QualityCash16/20
Price & Volume
Market Cap $268.59B

RTX Corporation, an aerospace and defense company, provides systems and services for commercial, military, and government customers worldwide. It operates through three segments: Collins Aerospace (Collins), Pratt & Whitney, and Raytheon. The Collins segment offers aerospace and defense products, and aftermarket services for civil and military aircraft manufacturers and commercial airlines, as well as regional, business, and general aviation, defense, and commercial space operations. This segment designs, manufactures, and supplies electric power generation and management and distribution, environmental control, flight control, air data and aircraft sensing, engine control, and engine nacelle systems, as well as engine components; cabin interiors, including seating, oxygen, food and beverage preparation, storage and galley, lavatory, and wastewater management systems; connected aviation solutions and services; and systems solutions for connected battlespace, test and training range systems, crew escape systems, and simulation and training. It also provides spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, and asset and information management services. The Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers; and produces, sells, and services military and commercial auxiliary power units, as well as offers fleet management and aftermarket maintenance, repair, and overhaul services. The Raytheon segment provides defensive and offensive threat detection, tracking, and mitigation capabilities for government and commercial customers. This segment offers sensors, mission orchestration and satellite control products, and software. The company was formerly known as Raytheon Technologies Corporation and changed its name to RTX Corporation in July 2023. RTX Corporation was incorporated in 1934 and is headquartered in Arlington, Virginia.

Moat Signals

Competitive analysis based on 69 quarters of fundamental data

Pricing Power

Moderate Moat

Operating margins are positive at ~9.5% on average, but show some variability — pricing power may be sensitive to market conditions.

Competitive Advantage

Moderate Moat

ROE is positive at ~8.5% on average, adequate but below the threshold typically associated with wide moats.

Cash Generation

Strong Moat

Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.

Demand Durability

Strong Moat

TTM revenue has grown consistently (7 of 7 quarters up), with ~24.8% growth over the period. Strong demand durability.

Risk Signals

Data-driven red flags and warnings across 69 quarters

Low Risk

Margin Pressure

Healthy

Margins are stable or improving at ~10.9% — no sign of cost or pricing stress.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Leverage Risk

Healthy

D/E ratio is 0.5 — conservative capital structure with low financial risk.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Healthy

Free cash flow is consistently positive — the business self-funds without external capital reliance.

Share Dilution

Healthy

Share count is stable — no significant dilution or buyback activity.

Metrics at a Glance

as of March 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$90.37B
10.6%
Q. Revenue
$22.08B
TTM EBITDA
$14.22B
7.5%
TTM Op. Income
$9.82B
46.5%
Q. Op. Income
$2.56B
TTM Net Income
$7.26B
57.7%
Q. Net Income
$2.06B
EPS
$1.53
Shares Out.
$1.35B
0.8%
$90.37B in TTM revenue grew 10.6% YoY, reaching $22.08B last quarter. TTM EBITDA of $14.22B and TTM operating income of $9.82B shows growth is flowing through. Net income of $7.26B TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin
16.4%
Op. Margin
11.6%
15.5%
Net Margin
9.3%
23.4%
Op. margin of 11.6% is up 1.6% YoY — cost efficiency is improving. Net margin at 9.3%.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
37.0x
P/S Ratio
3.0x
P/B Ratio
4.1x
At 37.0x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 3.0x and P/B of 4.1x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$170.43B
Cash
$6.82B
Long-Term Debt
$32.97B
Book Value
$66.28B
D/E Ratio
0.5
Debt/EBITDA
9.1
With $170.43B in assets and $32.97B in long-term debt, the D/E of 0.5and book value of $66.28B — shows a conservative capital structure — the company has a strong financial cushion to weather downturns.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$1.85B
Free Cash Flow
$1.31B
65.3%
FCF Margin
1.4%
FCF / Net Income
0.6
FCF of $1.31B on $1.85B in operating cash flow. The FCF / Net Income ratio of 0.2x indicates partial cash conversion — earnings quality needs attention.

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