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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 46.3GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
10.3%
Sector: 8.9%
Dividend Analysis audit
GROWTH
1.57%
Trailing Yield
$1.57
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
61%MID
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, RAYTHEON TECHNOLOGIES CORP (RTX) receives a "Hold" rating with a composite score of 52.1/100, ranked #643 out of 4446 stocks. Key factor scores: Quality 46/100, Value 54/100, Momentum 62/100. This is quantitative analysis only — not investment advice.
RAYTHEON TECHNOLOGIES CORP (RTX) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does RAYTHEON TECHNOLOGIES CORP Do?
Raytheon Technologies Corporation, an aerospace and defense company, provides systems and services for the commercial, military, and government customers worldwide. It operates through four segments: Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space, and Raytheon Missiles & Defense. The Collins Aerospace Systems segment offers aerospace and defense products, and aftermarket service solutions for aircraft manufacturers and airlines, as well as regional, business, and general aviation; and for defense and commercial space operations. This segment also designs, produces, and supports cabin interior, communications and aviation systems, oxygen systems, food and beverage preparation, storage and galley systems, and lavatory and wastewater management systems; airborne intelligence, surveillance and reconnaissance systems, test and training range systems, crew escape systems, and simulation and training solutions; information management services; and aftermarket services that include spare parts, overhaul and repair, engineering and technical support, training and fleet management solutions, 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. The Raytheon Intelligence & Space segment develops and provides integrated space, communication, and sensor systems for missions, training, and cyber and software solutions to intelligence, defense, federal, and commercial customers. The Raytheon Missiles & Defense segment designs, develops, produces, and sustains integrated air and missile defense systems; defensive and combat solutions; land- and sea-based radars; command, control, communications, and intelligence solutions; and naval and undersea sensor solutions for the U.S. and foreign government customers. The company is headquartered in Waltham, Massachusetts. RAYTHEON TECHNOLOGIES CORP (RTX) is classified as a mega-cap stock in the Industrials sector, specifically within the Aircraft industry. The company is led by CEO Gregory J. Hayes and employs approximately 182,000 people, headquartered in Waltham, Virginia. With a market capitalization of $262.1B, RTX is one of the largest companies in the Industrials sector.
RAYTHEON TECHNOLOGIES CORP (RTX) Stock Rating — Hold (April 2026)
As of April 2026, RAYTHEON TECHNOLOGIES CORP receives a Hold rating with a composite score of 52.1/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.RTX ranks #643 out of 4,446 stocks in our coverage universe. Within the Industrials sector, RAYTHEON TECHNOLOGIES CORP ranks #112 of 752 stocks, placing it in the top quartile of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
RTX Stock Price and 52-Week Range
RAYTHEON TECHNOLOGIES CORP (RTX) currently trades at $202.30. The stock lost $0.89 (0.4%) in the most recent trading session. The 52-week high for RTX is $214.50, which means the stock is currently trading -5.7% from its annual peak. The 52-week low is $112.27, putting the stock 80.2% above its annual trough. Recent trading volume was 0 shares, suggesting relatively thin trading activity.
Is RTX Overvalued or Undervalued? — Valuation Analysis
RAYTHEON TECHNOLOGIES CORP (RTX) carries a value factor score of 54/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 38.66x, compared to the Industrials sector average of 28.33x — a premium of 36%. The price-to-book ratio stands at 3.97x, versus the sector average of 2.23x. The price-to-sales ratio is 3.15x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, RTX trades at 30.51x EV/EBITDA, versus 5.70x for the sector.
Overall, RTX's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
RAYTHEON TECHNOLOGIES CORP Profitability — ROE, Margins, and Quality Score
RAYTHEON TECHNOLOGIES CORP (RTX) earns a quality factor score of 46/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 10.3%, compared to the Industrials sector average of 8.9%, which is within a healthy range. Return on assets (ROA) comes in at 4.0% versus the sector average of 3.3%.
On a margin basis, RAYTHEON TECHNOLOGIES CORP reports gross margins of 20.4%, compared to 35.8% for the sector. The operating margin is 10.3% (sector: 6.2%). Net profit margin stands at 8.1%, versus 3.9% for the average Industrials stock. Revenue growth is running at 14.0% on a trailing basis, compared to 6.4% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
RTX Debt, Balance Sheet, and Financial Health
RAYTHEON TECHNOLOGIES CORP has a debt-to-equity ratio of 155.0%, compared to the Industrials sector average of 70.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.03x, suggesting adequate working capital coverage. Cash and equivalents stand at $5.97B.
RTX has a beta of 0.56, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for RAYTHEON TECHNOLOGIES CORP is 85/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
RAYTHEON TECHNOLOGIES CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, RAYTHEON TECHNOLOGIES CORP reported revenue of $84.45B and earnings per share (EPS) of $5.02. Net income for the quarter was $6.89B. Operating income came in at $8.73B.
In FY 2025, RAYTHEON TECHNOLOGIES CORP reported revenue of $88.60B and earnings per share (EPS) of $5.02. Net income for the quarter was $7.07B. Revenue grew 9.7% year-over-year compared to FY 2024. Operating income came in at $9.30B.
In Q3 2025, RAYTHEON TECHNOLOGIES CORP reported revenue of $22.48B and earnings per share (EPS) of $1.43. Net income for the quarter was $2.01B. Revenue grew 11.9% year-over-year compared to Q3 2024. Operating income came in at $2.52B.
In Q2 2025, RAYTHEON TECHNOLOGIES CORP reported revenue of $21.58B and earnings per share (EPS) of $1.24. Net income for the quarter was $1.73B. Revenue grew 9.4% year-over-year compared to Q2 2024. Operating income came in at $2.15B.
Over the past 8 quarters, RAYTHEON TECHNOLOGIES CORP has demonstrated a growth trajectory, with revenue expanding from $19.72B to $84.45B. Investors analyzing RTX stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
RTX Dividend Yield and Income Analysis
RAYTHEON TECHNOLOGIES CORP (RTX) currently pays a dividend yield of 1.6%. At this yield, a $10,000 investment in RTX stock would generate approximately $$157.00 in annual dividend income. The net margin of 8.1% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
RTX Momentum and Technical Analysis Profile
RAYTHEON TECHNOLOGIES CORP (RTX) has a momentum factor score of 62/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 28/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 33/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
RTX vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing RTX against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full RTX vs S&P 500 (SPY) comparison to assess how RAYTHEON TECHNOLOGIES CORP stacks up against the broader market across all factor dimensions.
RTX Next Earnings Date
No upcoming earnings date has been announced for RAYTHEON TECHNOLOGIES CORP (RTX) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy RTX? — Investment Thesis Summary
RAYTHEON TECHNOLOGIES CORP presents a balanced picture with arguments on both sides. Price momentum is positive at 62/100, suggesting the trend favors buyers. Low volatility (stability score 85/100) reduces downside risk.
In summary, RAYTHEON TECHNOLOGIES CORP (RTX) earns a Hold rating with a composite score of 52.1/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on RTX stock.
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Institutional Research Dossier
RAYTHEON TECHNOLOGIES CORP (RTX) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Raytheon Technologies (RTX) currently holds a BCR Action Rating of Hold, a position we believe is justified given the company's mixed financial performance and valuation. While RTX benefits from a strong position in the aerospace and defense industry, its current valuation appears stretched relative to its growth prospects and sector peers. The company's stability and momentum are positive indicators, but concerns regarding capital allocation and profitability warrant a cautious approach.
The primary takeaway is that while RTX is a fundamentally sound company operating in a resilient sector, its current price reflects a premium that may not be fully supported by its financial metrics. Investors should carefully weigh the company's growth opportunities against its valuation and potential risks before making an investment decision. A more attractive entry point may present itself if the valuation becomes more aligned with the company's underlying performance.
Business Strategy & Overview
Raytheon Technologies operates through four key segments: Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space, and Raytheon Missiles & Defense. This diversified structure allows RTX to capture revenue streams across various aspects of the aerospace and defense industries, from commercial aviation components to advanced military systems. The company's strategy revolves around providing integrated solutions and services to both commercial and government customers, fostering long-term relationships and recurring revenue streams.
Collins Aerospace focuses on providing aerospace and defense products, including cabin interiors, communication systems, and aftermarket services. Pratt & Whitney specializes in aircraft engines for commercial and military applications, as well as auxiliary power units. Raytheon Intelligence & Space develops integrated space, communication, and sensor systems, catering to intelligence, defense, and commercial clients. Raytheon Missiles & Defense designs and produces integrated air and missile defense systems, radars, and command and control solutions for the U.S. and foreign governments.
RTX's strategic positioning is strengthened by its focus on innovation and technological advancement. The company invests heavily in research and development to maintain its competitive edge and develop cutting-edge solutions for its customers. This commitment to innovation is crucial in the rapidly evolving aerospace and defense industries, where technological superiority is paramount. Furthermore, RTX benefits from its strong relationships with government agencies and defense contractors, which provide a stable source of revenue and opportunities for growth.
The company's product pipeline includes next-generation aircraft engines, advanced missile defense systems, and innovative space and communication technologies. These products are designed to meet the evolving needs of the aerospace and defense industries and drive future growth for RTX. The company's industry context is characterized by increasing demand for air travel, growing defense budgets, and the rising importance of space exploration and communication. These trends provide a favorable backdrop for RTX's business and support its long-term growth prospects.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
14.0%
Sector: 6.4%
+119% VS SCTR
Economic Moat Analysis
Raytheon Technologies possesses a Narrow economic moat, primarily derived from its intangible assets and switching costs. The company's extensive portfolio of patents, proprietary technologies, and established relationships with government agencies and defense contractors create a barrier to entry for potential competitors. These intangible assets provide RTX with a competitive advantage in developing and delivering advanced aerospace and defense solutions.
Switching costs also contribute to RTX's moat. Customers, particularly government agencies and large commercial airlines, often face significant costs and complexities when switching to alternative suppliers. The integration of RTX's products and services into existing systems and infrastructure creates a lock-in effect, making it difficult and expensive for customers to switch to competitors. This provides RTX with a degree of pricing power and customer loyalty.
However, the moat is not wide due to the presence of strong competitors and the cyclical nature of the aerospace and defense industries. Companies like Boeing, Airbus, Lockheed Martin, and Northrop Grumman also possess significant intangible assets and established relationships, creating intense competition for contracts and market share. Furthermore, defense spending is subject to political and economic factors, which can impact RTX's revenue and profitability.
While RTX benefits from its technological expertise and customer relationships, its moat is not impenetrable. Competitors are constantly innovating and developing new solutions, and government agencies are always seeking to diversify their supplier base. Therefore, RTX must continue to invest in research and development and maintain its competitive edge to protect its market share and profitability. The company's ability to innovate and adapt to changing market conditions will be crucial in sustaining its narrow economic moat.
Financial Health & Profitability
Raytheon Technologies exhibits a mixed financial profile. The company's revenue has shown strong growth, with TTM revenue reaching $88.60 billion, a significant increase from $80.74 billion in FY2024 and $68.92 billion in FY2023. This growth is indicative of strong demand for RTX's products and services across its various segments. However, the gross margin of 20.4% is significantly lower than the sector average of 35.8%, suggesting potential inefficiencies or pricing pressures.
Operating margin, while improving, still warrants attention. The TTM operating margin stands at 10.3%, exceeding the sector average of 6.2%. This indicates that RTX is effectively managing its operating expenses. Net margin is also strong at 8.1%, compared to the sector average of 3.7%. However, the quarterly financial history reveals some volatility in net income and operating margin, particularly in Q3 2023, where the company reported a net loss and a negative operating margin.
The company's ROE of 10.3% is slightly above the sector average of 9.2%, indicating decent profitability relative to equity. However, the high debt-to-equity ratio of 155.00, significantly higher than the sector average of 70.00, raises concerns about leverage. While RTX has a current ratio of 1.03, suggesting adequate liquidity, the high debt level could constrain its financial flexibility and increase its vulnerability to economic downturns.
The absence of free cash flow data makes it difficult to assess the company's cash generation capabilities. However, the company's total cash balance of $5.97 billion provides a buffer against short-term obligations. Overall, RTX's financial health is characterized by strong revenue growth and profitability, but also by high leverage and margin volatility. Investors should carefully monitor the company's debt levels and cash flow generation to assess its long-term financial stability.
Valuation Assessment
Raytheon Technologies' valuation presents a mixed picture. The company's P/E ratio of 39.5x is significantly higher than the sector average of 27.7x, suggesting that the stock is relatively expensive compared to its peers. Similarly, the EV/EBITDA ratio of 7.2x is higher than the sector average of 5.7x, further indicating a premium valuation. This premium could be attributed to RTX's strong market position, growth prospects, and stability in the aerospace and defense industries.
However, the high valuation multiples raise concerns about the stock's potential for future appreciation. Investors may be pricing in overly optimistic growth expectations, which could lead to disappointment if the company fails to meet those expectations. Furthermore, the high valuation leaves little room for error, making the stock vulnerable to negative news or market sentiment.
Given the absence of free cash flow data, it is difficult to assess the company's valuation using FCF-based metrics. However, the high P/E and EV/EBITDA ratios suggest that the stock is not undervalued. A more attractive entry point may present itself if the valuation becomes more aligned with the company's underlying performance and growth prospects.
Overall, RTX's valuation appears stretched relative to its growth and sector peers. While the company's strong market position and stability warrant a premium, the current valuation may not fully reflect the potential risks and uncertainties facing the aerospace and defense industries. Investors should carefully consider the company's valuation before making an investment decision.
Risk & Uncertainty
Raytheon Technologies faces several specific risks that could impact its business and financial performance. One significant risk is its reliance on government contracts, particularly from the U.S. Department of Defense. Changes in government spending priorities, budget cuts, or political factors could negatively affect RTX's revenue and profitability. The cyclical nature of defense spending adds to this uncertainty.
Another risk is the intense competition in the aerospace and defense industries. RTX competes with other large and well-established companies, such as Boeing, Airbus, Lockheed Martin, and Northrop Grumman. These competitors are constantly innovating and developing new solutions, which could erode RTX's market share and pricing power. The company's ability to maintain its competitive edge through innovation and technological advancement is crucial to its long-term success.
Supply chain disruptions also pose a risk to RTX's operations. The company relies on a complex network of suppliers to provide components and materials for its products. Disruptions to the supply chain, whether due to geopolitical events, natural disasters, or other factors, could delay production, increase costs, and negatively impact RTX's financial performance. The ongoing global supply chain challenges exacerbate this risk.
Furthermore, RTX faces risks related to cybersecurity and data breaches. The company handles sensitive information and operates critical infrastructure, making it a target for cyberattacks. A successful cyberattack could compromise sensitive data, disrupt operations, and damage RTX's reputation. The company must invest heavily in cybersecurity measures to protect its systems and data.
Bulls Say / Bears Say
The Bull Case
BULL VIEWRaytheon Technologies benefits from consistent government defense spending, providing a stable revenue stream and predictable growth.
BULL VIEWRTX's diversified business segments across commercial and military aerospace offer resilience against economic downturns in specific sectors.
BULL VIEWThe company's strong backlog and established relationships with key customers provide a solid foundation for future revenue growth and profitability.
The Bear Case
BEAR VIEWRaytheon Technologies' high debt levels and stretched valuation multiples leave little room for error and increase vulnerability to market corrections.
BEAR VIEWThe company's reliance on government contracts exposes it to political risks and potential budget cuts, which could negatively impact its revenue and profitability.
BEAR VIEWIntense competition in the aerospace and defense industries could erode RTX's market share and pricing power, limiting its growth potential.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score RTX and 4,400+ other equities.
RAYTHEON TECHNOLOGIES CORP exhibits a 270% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
4.0%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
20.4%
Sector: 35.8%
Operating Margin
Core business profitability
10.3%
Sector: 6.2%
Net Margin
Bottom-line profitability
8.1%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $157 annually in dividends at the current trailing rate.
