RTX Corporation (RTX) is a publicly traded company in the Industrials — Aerospace & Defense industry listed on NYSE. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
RTX Corporation, a major player in the aerospace and defense sectors, provides sophisticated systems and extensive services to a diverse global clientele. This includes commercial entities, military organizations, and government agencies, both within the United States and internationally. The company's operations are divided into three primary business units: Collins Aerospace, Pratt & Whitney, and Raytheon.
Is RTX Corporation stock overvalued or undervalued in 2026?
RTX Corporation (RTX) trades at 32.4× earnings (P/E), above the median of the 297 industrials companies over $2bn in Kaplio's universe. At the decade median (22.5×) $139 (-30 %); at its sector median (25.8×) $159 (-20 %).
Kaplio overview: RTX Corporation
Market cap $270B · 52 weeks $168 – $225 (11 % below the high) · P/E 32.4× · 2027 expected P/E 24.7× · Dividend 1.4 % · 4 years rising · Next earnings January 26, 2027 · expected EPS $1.83 · Closing price, Oct 30 · accounts published Oct 20.
- Valuation: P/E 32.4× (expensive).
- Business: ROIC 8 % (weak).
- Balance sheet: Net debt/EBITDA 2.1× (solid).
- Earnings: 8 of 8 (on track).
What would it be worth at its usual multiples?
At the decade median (22.5×) $139 (-30 %); at its sector median (25.8×) $159 (-20 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in industrials: 6 of 10 pass
- Operating margin 10.5 %, fails.
- ROIC 7.7 %, fails.
- Capex / Revenue 3.0 %, fails.
- P/E vs own 10y history 32.4×, fails.
- 5y revenue growth 9.6 %, passes.
- FCF conversion 117.9 %, passes.
- Net debt / EBITDA 2.1×, passes.
- Altman Z-Score 2.6, passes.
- Piotroski F-Score 8 de 9, passes.
- Cycle-adjusted EV/EBITDA 17.8×, passes.
Against its peers (reference peers) — RTX Corporation: P/E 32.4×; EV/EBITDA 17.8×; ROIC 7.7 %; $270B. GE Aerospace (P/E 34.9×; EV/EBITDA 25.2×; ROIC 10.0 %; $313B), Lockheed Martin Corporation (P/E 22.6×; EV/EBITDA 15.4×; ROIC 19.8 %; $147B), The Boeing Company (P/E 18.7×; EV/EBITDA 14.3×; ROIC -0.2 %; $136B).
Expensive or cheap against its last ten years?
P/E at each close: today 32.4× · median 22.6× · minimum 6.9× · maximum 59.4× · cheap below 12.1× · expensive above 39.9×. It has been cheaper than today 65% of the time over its last ten years.
Dividend
solid · Yield 1.4 % ($2.66 per share in 2025) · Years raising it 4 · 5-year growth +6 % a year · Free cash flow coverage 1.7× · With $1,000 invested today you'd collect $14.00 a year ($1.17 a month).
Kaplio's reading: RTX Corporation
Updated on October 21, 2026 · accounts published on October 20, 2026
A growing industrial with improving margins and modest returns on capital
RTX trades at a P/E of 32.4× over the last 12 months, 44 % above its ten-year median, while EPS grew 40 % in the same period.
- Is RTX expensive or cheap? At a P/E of 32.4× over the last 12 months, RTX trades 44 % above its ten-year median and 26 % above its sector median.
- How is the business doing? Operating margin reached 11.8 % over the last 12 months, above the 9.4 % average of fiscal 2014-2025, with EPS up 40 %.
- How strong is the balance sheet? Net debt was 2.1× EBITDA in fiscal 2025, under the 3.0× healthy level for industrials, and the dividend rose four years running.
- What to expect from the next earnings? Analysts expect EPS of $1.80 for the quarter due January 26, 2027; RTX beat EPS estimates in all of the last 8 quarters.
- Does RTX turn its margin into cash, and at what multiple of the cycle does it trade? Free cash flow was 118 % of net income in fiscal 2025, well above the 85 % mark considered healthy for industrials.
Is RTX expensive or cheap?
RTX trades at a P/E of 32.4× over the last 12 months. That is 44 % above its ten-year median of 22.5× and 26 % above the 25.8× median of its sector. Over the past decade it traded at a lower P/E 65 % of the time, within a range of 6.9× to 59.4×. EV/EBITDA is less stretched: 17.3× over the last 12 months sits below its seven-year average of 18.7×. The stock is up 14 % in a year while EPS rose 40 %, so earnings grew faster than the share price, but the P/E premium to its own history remains wide.
How is the business doing?
Over the last 12 months revenue rose 9.7 % and EPS 39.7 %, so profit grew about four times faster than sales. The operating margin of 11.8 % beats both fiscal 2025 (10.5 %) and the 9.4 % average of fiscal 2014-2025, which points to a clear upward trend. The weak spot is return on capital. ROIC of 7.7 % over the last 12 months sits 1.3 points below the 9.0 % sector median, and it has not cleared 10 % in any of the last ten fiscal years. ROE of 12.8 % fits a business that earns decently but ties up a lot of capital to do it.
How strong is the balance sheet?
Net debt was $25.28 per share in fiscal 2025. That equals 13 % of the current share price and 2.1× EBITDA, comfortably under the 3.0× level considered healthy for industrials. Debt to equity of 0.56 over the last 12 months is moderate. Liquidity is tighter: the current ratio is 1.05, and the Altman Z of 2.6 is in the grey zone between 1.81 and 2.99, short of the safe zone. A Piotroski score of 8 of 9 points to improving fundamentals. The dividend yields 1.4 %, has grown for four consecutive fiscal years and took 53 % of fiscal 2025 earnings.
What to expect from the next earnings?
On October 20, 2026 RTX reported EPS of $2.26 against $1.78 expected. That 27 % beat is the largest surprise, in absolute terms, of the last eight quarters, and it extends a run of eight beats in eight quarters. The 2026 EPS consensus barely moved in the last 30 days, from $7.25 to $7.26 across 15 analysts, and the revenue consensus was flat too. The next-quarter estimate of $1.80 sits well below the $2.26 just delivered, which looks like a modest bar given the track record. Of 26 analysts, 17 say buy, 9 say hold and none say sell.
Does RTX turn its margin into cash, and at what multiple of the cycle does it trade?
Industrials are semi-cyclical, so a single year's profit can mislead. What matters is the operating margin across the cycle and how much of it turns into cash. RTX passes on conversion: free cash flow equalled 118 % of net income in fiscal 2025, above the healthy 85 %. It falls short on margin, with 10.5 % in fiscal 2025 against a healthy 12 %, and on ROIC, with 7.7 % against 15 %. Capex was 3.0 % of revenue in fiscal 2025, below the usual 4 % to 8 % range. On a cycle-adjusted basis, EV/EBITDA of 17.8× sits below its seven-year average of 18.7×.
How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.
Investor methods verdict
Would Buffett approve RTX today?
The Buffett Method would not approve RTX today: it fails its quality rules. Business quality: 49 out of 100 (price not included). Kaplio assessment with data from the week of 2026-10-26; not investment advice.
Profitability
| Return on Equity | 12.77% |
| Return on Invested Capital | 7.70% |
| Return on Assets | 4.83% |
| Gross Margin | 21.10% |
| Operating Margin | 11.77% |
| Net Margin | 8.88% |
Financial Health
| Debt / Equity | 0.56 |
| Current Ratio | 1.05 |
| Piotroski F-Score | 8 |
| Altman Z-Score | 2.59 |
Compare it with
Price Performance
| 1 month | +8.19% |
| 3 months | -7.78% |
| Year-to-date | +8.94% |
| 1 year | +11.93% |
| 3 years | +141.36% |
| 5 years | +127.56% |
| 10 years | +235.23% |
Dividend History
Paid in the last 12 months: $2.8200 per share in 4 payments.
| Date | Amount |
|---|---|
| 2026-11-20 | $0.7300 |
| 2026-08-14 | $0.7300 |
| 2026-05-22 | $0.7300 |
| 2026-02-20 | $0.6800 |
| 2025-11-21 | $0.6800 |
| 2025-08-15 | $0.6800 |
| 2025-05-23 | $0.6800 |
| 2025-02-21 | $0.6300 |
| 2024-11-15 | $0.6300 |
| 2024-08-16 | $0.6300 |
Amounts adjusted for stock splits.
Related companies: GE · BA · LMT · NOC · GD · TDG · LHX · HEI
Explore sector: Industrials · Aerospace & Defense
More sections of RTX: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
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