NYSE · Industrials

RTX Corporation

RTX · Aerospace & Defense

$172.90

▼ -1.09 (-0.63%)

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Mr. Market is currently offering RTX Corporation at $172.90.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

Overall Grade

Defensive

Enterprising

Profitability D

Gross Profit Margin 20.1%

Operating Margin 10.5%

Net Income Margin 7.6%

Fin. Health C

Years to Pay Off Debt 5.9 yrs

Working Capital vs Long-Term Debt -$32.7B

Working Capital $1.5B

Valuation F

Margin of Safety 0.0%

Price-to-Book 3.57x

Cash Flow C

Free Cash Flow $7.4B

CapEx % of Net Income 46.3%

Owner Earnings $14.2B

4/7

Graham Score

Enterprising

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $232.8B

Enterprise Value $268.2B

P/E (TTM) 32.50

Dividend Yield 1.56%

Exchange NYSE

Key Margins

Gross Profit 20.1%

Operating Margin 10.5%

Net Margin 7.6%

Company Info

Sector Industrials

Industry Aerospace & Defense

Employees 180000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering RTX Corporation at $172.90.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

At $172.90, the stock trades at a 135% premium to its Graham Number of $73.53. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

About RTX Corporation

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.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	20.1% ▲	19.1%	17.5%	20.4%	N/A
Operating Margin %	10.5% ▲	8.1%	5.2%	8.2%	N/A
Net Income %	7.6% ▲	5.9%	4.6%	7.7%	N/A
Diluted EPS	4.96 ▲	3.55	2.23	3.50	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$171.1B	$162.9B	$161.9B	$158.9B	N/A
Total Debt	$39.5B ↓	$42.9B	$45.2B	$33.5B	N/A
Working Capital	$1.5B ▲	-$366M	$1.7B	$3.3B	N/A
Years to Pay Debt	5.87	8.98	14.16	6.45	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$7.4B ▲	$3.9B	$4.7B	$4.4B	N/A
Owner Earnings	$14.2B	$12.4B	$10.6B	$12.1B	N/A
CapEx % of Net Income	46.3%	67.8%	99.1%	53.4%	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	14,946,000	12,528,000	9,700,000	11,525,000
Total Unusual Items			0	0	-649,000
Total Unusual Items Excluding Goodwill			0	0	-649,000
Net Income From Continuing Operation Net Minority Interest	6,732,000	4,774,000	3,195,000	5,216,000
Reconciled Depreciation	4,378,000	4,364,000	4,211,000	4,108,000
Reconciled Cost Of Revenue	70,814,000	65,328,000	56,831,000	53,406,000
EBITDA	14,946,000	12,528,000	9,700,000	11,525,000
EBIT	10,568,000	8,164,000	5,489,000	7,417,000
Net Interest Income	-1,737,000	-1,868,000	-1,553,000	-1,230,000
Interest Expense	1,835,000	1,970,000	1,653,000	1,300,000
Interest Income	98,000	102,000	100,000	70,000
Normalized Income	6,732,000	4,774,000	3,195,000	5,216,000
Net Income From Continuing And Discontinued Operation	6,732,000	4,774,000	3,195,000	5,197,000
Total Expenses	79,303,000	74,200,000	65,359,000	61,570,000
Total Operating Income As Reported	9,300,000	6,538,000	3,561,000	5,504,000
Diluted Average Shares	1,356,400	1,343,600	1,435,400	1,485,900
Basic Average Shares	1,341,400	1,332,100	1,426,000	1,475,500
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	6,732,000	4,774,000	3,195,000	5,197,000
Net Income Common Stockholders	6,732,000	4,774,000	3,195,000	5,197,000
Net Income	6,732,000	4,774,000	3,195,000	5,197,000
Minority Interests	-337,000	-239,000	-185,000	-111,000
Net Income Including Noncontrolling Interests	7,069,000	5,013,000	3,380,000	5,308,000
Net Income Discontinuous Operations		0	0	-19,000	-33,000
Net Income Continuous Operations	7,069,000	5,013,000	3,380,000	5,327,000
Tax Provision	1,664,000	1,181,000	456,000	790,000
Pretax Income	8,733,000	6,194,000	3,836,000	6,117,000
Other Income Expense	1,170,000	1,524,000	1,828,000	1,843,000
Other Non Operating Income Expenses	1,170,000	1,524,000	1,828,000	1,843,000
Special Income Charges			0	0	-649,000
Other Special Charges					649,000
Net Non Operating Interest Income Expense	-1,737,000	-1,868,000	-1,553,000	-1,230,000
Interest Expense Non Operating	1,835,000	1,970,000	1,653,000	1,300,000
Interest Income Non Operating	98,000	102,000	100,000	70,000
Operating Income	9,300,000	6,538,000	3,561,000	5,504,000
Operating Expense	8,489,000	8,872,000	8,528,000	8,164,000
Other Operating Expenses	-413,000	132,000	-86,000	-120,000
Research And Development	2,807,000	2,934,000	2,805,000	2,711,000
Selling General And Administration	6,095,000	5,806,000	5,809,000	5,573,000
General And Administrative Expense			4,029,000	3,684,000	3,102,000
Other Gand A			5,809,000	5,573,000	5,046,000
Salaries And Wages			-1,780,000	-1,889,000	-1,944,000
Gross Profit	17,789,000	15,410,000	12,089,000	13,668,000
Cost Of Revenue	70,814,000	65,328,000	56,831,000	53,406,000
Total Revenue	88,603,000	80,738,000	68,920,000	67,074,000
Operating Revenue	88,603,000	80,738,000	68,920,000	67,074,000

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	383,025	386,633	385,810	244,720
Ordinary Shares Number	1,342,288	1,332,123	1,326,907	1,466,240
Share Issued	1,725,313	1,718,756	1,712,717	1,710,960
Net Debt	30,469,000	35,683,000	37,240,000	25,694,000
Total Debt	39,506,000	42,893,000	45,239,000	33,500,000
Tangible Book Value	-19,943,000	-26,076,000	-29,300,000	-18,031,000
Invested Capital	103,149,000	101,417,000	103,625,000	104,546,000
Working Capital	1,548,000	-366,000	1,656,000	3,329,000
Net Tangible Assets	-19,943,000	-26,076,000	-29,300,000	-18,031,000
Capital Lease Obligations	1,602,000	1,632,000	1,412,000	1,586,000
Common Stock Equity	65,245,000	60,156,000	59,798,000	72,632,000
Total Capitalization	99,533,000	98,882,000	102,153,000	103,326,000
Total Equity Gross Minority Interest	67,138,000	61,958,000	61,445,000	74,214,000
Minority Interest	1,893,000	1,802,000	1,647,000	1,582,000
Stockholders Equity	65,245,000	60,156,000	59,798,000	72,632,000
Other Equity Interest			-15,000	-28,000	-38,000
Gains Losses Not Affecting Retained Earnings	-2,718,000	-3,755,000	-2,419,000	-2,018,000
Other Equity Adjustments	-2,718,000	-3,755,000	-2,419,000	-2,018,000
Treasury Stock	26,881,000	27,112,000	26,977,000	15,530,000
Retained Earnings	56,718,000	53,589,000	52,154,000	52,269,000
Capital Stock	38,126,000	37,434,000	37,055,000	37,939,000
Common Stock	38,126,000	37,434,000	37,055,000	37,939,000
Total Liabilities Net Minority Interest	103,941,000	100,903,000	100,424,000	84,650,000
Total Non Current Liabilities Net Minority Interest	45,157,000	49,404,000	53,663,000	45,536,000
Other Non Current Liabilities	7,200,000	6,942,000	7,511,000	8,449,000
Employee Benefits	2,067,000	2,104,000	2,385,000	4,807,000
Non Current Pension And Other Postretirement Benefit Plans	2,067,000	2,104,000	2,385,000	4,807,000
Long Term Debt And Capital Lease Obligation	35,890,000	40,358,000	43,767,000	32,280,000
Long Term Capital Lease Obligation	1,602,000	1,632,000	1,412,000	1,586,000
Long Term Debt	34,288,000	38,726,000	42,355,000	30,694,000
Current Liabilities	58,784,000	51,499,000	46,761,000	39,114,000
Current Deferred Liabilities	21,615,000	18,616,000	17,183,000	14,598,000
Current Deferred Revenue	21,615,000	18,616,000	17,183,000	14,598,000
Current Debt And Capital Lease Obligation	3,616,000	2,535,000	1,472,000	1,220,000
Current Debt	3,616,000	2,535,000	1,472,000	1,220,000
Other Current Borrowings				696,000	158,000
Commercial Paper				524,000	0
Pensionand Other Post Retirement Benefit Plans Current	3,308,000	2,620,000	2,491,000	2,401,000
Payables And Accrued Expenses	30,245,000	27,728,000	25,615,000	20,895,000
Current Accrued Expenses	14,350,000	14,831,000	14,917,000	10,999,000
Payables	15,895,000	12,897,000	10,698,000	9,896,000
Accounts Payable	15,895,000	12,897,000	10,698,000	9,896,000
Total Assets	171,079,000	162,861,000	161,869,000	158,864,000
Total Non Current Assets	110,747,000	111,728,000	113,452,000	116,421,000
Other Non Current Assets	4,672,000	5,297,000	4,576,000	6,156,000
Investments And Advances	2,132,000	2,246,000	2,392,000	2,603,000
Investmentin Financial Assets	2,132,000	2,246,000	2,392,000	2,603,000
Available For Sale Securities	2,132,000	2,246,000	2,392,000	2,603,000
Goodwill And Other Intangible Assets	85,188,000	86,232,000	89,098,000	90,663,000
Other Intangible Assets	31,845,000	33,443,000	35,399,000	36,823,000
Goodwill	53,343,000	52,789,000	53,699,000	53,840,000
Net PPE	18,755,000	17,953,000	17,386,000	16,999,000
Accumulated Depreciation	-18,467,000	-16,694,000	-15,644,000	-13,946,000
Gross PPE	37,222,000	34,647,000	33,030,000	30,945,000
Construction In Progress	3,865,000	3,735,000
Other Properties	1,887,000	1,864,000	5,232,000	5,203,000
Machinery Furniture Equipment	21,572,000	19,738,000	18,904,000	17,479,000
Buildings And Improvements	9,188,000	8,615,000	8,151,000	7,519,000
Land And Improvements	710,000	695,000	743,000	744,000
Current Assets	60,332,000	51,133,000	48,417,000	42,443,000
Other Current Assets	7,740,000	7,241,000	7,076,000	4,964,000
Inventory	13,364,000	12,768,000	11,777,000	10,617,000
Finished Goods	4,137,000	4,111,000	3,704,000	3,301,000
Work In Process	4,554,000	4,493,000	4,162,000	3,839,000
Raw Materials	4,673,000	4,164,000	3,911,000	3,477,000
Receivables	31,793,000	25,546,000	22,977,000	20,642,000
Other Receivables	17,092,000	14,570,000	12,139,000	11,534,000
Accounts Receivable	14,701,000	10,976,000	10,838,000	9,108,000
Allowance For Doubtful Accounts Receivable	-340,000	-289,000	-316,000	-452,000
Gross Accounts Receivable	15,041,000	11,265,000	11,154,000	9,560,000
Cash Cash Equivalents And Short Term Investments	7,435,000	5,578,000	6,587,000	6,220,000
Cash And Cash Equivalents	7,435,000	5,578,000	6,587,000	6,220,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	7,448,000	3,923,000	4,717,000	4,393,000
Repurchase Of Capital Stock	-50,000	-444,000	-12,870,000	-2,803,000
Repayment Of Debt	-3,429,000	-2,500,000	-10,578,000	-3,000
Issuance Of Debt	0	0	22,914,000	1,000
Capital Expenditure	-3,119,000	-3,236,000	-3,166,000	-2,775,000
Interest Paid Supplemental Data	1,858,000	1,942,000	1,464,000	1,263,000
Income Tax Paid Supplemental Data	1,607,000	1,176,000	1,527,000	2,400,000
End Cash Position	7,435,000	5,578,000	6,587,000	6,220,000
Other Cash Adjustment Outside Changein Cash	-35,000	-28,000	-39,000	-71,000
Beginning Cash Position	5,606,000	6,626,000	6,291,000	7,853,000
Effect Of Exchange Rate Changes	48,000	-28,000	18,000	-42,000
Changes In Cash	1,816,000	-992,000	317,000	-1,520,000
Financing Cash Flow	-7,486,000	-6,617,000	-4,527,000	-5,859,000
Cash Flow From Continuing Financing Activities	-7,486,000	-6,617,000	-4,527,000	-5,859,000
Net Other Financing Charges	-433,000	-456,000	-230,000	-415,000
Proceeds From Stock Option Exercised					7,000
Cash Dividends Paid	-3,574,000	-3,217,000	-3,239,000	-3,128,000
Common Stock Dividend Paid	-3,574,000	-3,217,000	-3,239,000	-3,128,000
Net Common Stock Issuance	-50,000	-444,000	-12,870,000	-2,803,000
Common Stock Payments	-50,000	-444,000	-12,870,000	-2,803,000
Net Issuance Payments Of Debt	-3,429,000	-2,500,000	11,812,000	487,000
Net Short Term Debt Issuance	0	0	-524,000	489,000
Net Long Term Debt Issuance	-3,429,000	-2,500,000	12,336,000	-2,000
Long Term Debt Payments	-3,429,000	-2,500,000	-10,578,000	-3,000
Long Term Debt Issuance	0	0	22,914,000	1,000
Investing Cash Flow	-1,265,000	-1,534,000	-3,039,000	-2,829,000
Cash Flow From Continuing Investing Activities	-1,265,000	-1,534,000	-3,039,000	-2,829,000
Net Other Investing Changes	-123,000	65,000	12,000	94,000
Net Investment Purchase And Sale	46,000	-158,000	109,000	-176,000
Sale Of Investment	279,000	202,000	226,000	179,000
Purchase Of Investment	-233,000	-360,000	-117,000	-355,000
Net Business Purchase And Sale	1,931,000	1,795,000	6,000	28,000
Sale Of Business	1,931,000	1,795,000	6,000	94,000
Purchase Of Business		0	0	-66,000	-1,088,000
Net Intangibles Purchase And Sale	-492,000	-611,000	-751,000	-487,000
Purchase Of Intangibles	-492,000	-611,000	-751,000	-487,000
Capital Expenditure Reported	-2,627,000	-2,625,000	-2,415,000	-2,288,000
Operating Cash Flow	10,567,000	7,159,000	7,883,000	7,168,000
Cash From Discontinued Operating Activities			0	0	-71,000
Cash Flow From Continuing Operating Activities	10,567,000	7,159,000	7,883,000	7,168,000
Change In Working Capital	-1,274,000	-1,085,000	1,515,000	522,000
Change In Other Working Capital	2,773,000	1,872,000	2,322,000	846,000
Change In Other Current Assets	-1,055,000	-402,000	-1,161,000	-1,027,000
Change In Payables And Accrued Expense	3,418,000	1,508,000	4,016,000	2,075,000
Change In Inventory	-532,000	-1,474,000	-1,104,000	-1,575,000
Change In Receivables	-5,878,000	-2,589,000	-2,558,000	203,000
Changes In Account Receivables	-3,235,000	-175,000	-1,805,000	437,000
Other Non Cash Items	-476,000	-135,000	48,000	-133,000
Stock Based Compensation	1,092,000	790,000	686,000	420,000
Deferred Tax	789,000	-47,000	-402,000	-1,663,000
Deferred Income Tax	789,000	-47,000	-402,000	-1,663,000
Depreciation Amortization Depletion	4,378,000	4,364,000	4,211,000	4,108,000
Depreciation And Amortization	4,378,000	4,364,000	4,211,000	4,108,000
Operating Gains Losses	-1,011,000	-1,741,000	-1,555,000	-1,413,000
Pension And Employee Benefit Expense	-1,011,000	-1,326,000	-1,555,000	-1,413,000
Gain Loss On Sale Of Business	0	-415,000	0	0
Net Income From Continuing Operations	7,069,000	5,013,000	3,380,000	5,327,000

These metrics estimate what RTX Corporation is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$73.53

Margin of Safety

Market Cap ÷ Company Value

1.48

P/B Ratio

3.57

Warren's Owner Earnings

$14.2B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

4/7 — Enterprising Investor

✅ Adequate Size

$88.6B

vs > $1.5B revenue

❌ Strong Financial Condition

1.03x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

1.56%

vs Uninterrupted dividends

✅ Earnings Growth

+41.7% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

32.5x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

3.57x P/B (P/E×P/B: 116.0)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-32.38

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$76.73

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	46.3%	67.8%	99.1%	53.4%	N/A
Repurchase of Capital Stock	-$50M	-$444M	-$12.9B	-$2.8B	N/A
Free Cash Flow	$7.4B ▲	$3.9B ▼	$4.7B ▲	$4.4B •	N/A •
Warren's Owner Earnings	$14.2B	$12.4B	$10.6B	$12.1B	N/A

Peers & Industry Comparison

Aerospace & Defense — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
RTX	$172.90	$232.8B	32.50	20.1%	7.6%	$88.6B
BA Boeing Company (The)	$221.30	$174.5B	87.8	4.8%	2.5%	$92.2B
LMT Lockheed Martin Corporation	$518.15	$119.5B	25.1	9.9%	6.4%	$75.1B
NOC Northrop Grumman Corporation	$567.00	$80.5B	17.8	20.5%	10.8%	$42.4B
GD General Dynamics Corporation	$349.08	$94.4B	22.0	15.2%	8.1%	$53.8B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.07%

Low — management has little skin in the game

Return on Equity (ROE)

10.3%

Adequate — returns are moderate

Return on Assets (ROA)

3.9%

Fair — average asset utilization

Share Buybacks (Latest Year)

$50M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-7.9% YoY

Debt is declining — management is deleveraging

Leadership Team

Christopher Calio

Chairman & CEO

Age 51

Pay: $7,169,269

0.106% of net income

Neil Mitchill Jr.

Executive VP & CFO

Age 49

Pay: $3,925,302

0.058% of net income

Shane Eddy

President of Pratt & Whitney

Age 60

Pay: $2,489,045

0.037% of net income

Philip Jasper

President of Raytheon

Age 57

Pay: $2,597,293

0.039% of net income

Troy Brunk

President of Collins Aerospace

Age 55

Pay: $2,272,771

0.034% of net income

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	9.28%	124,986,171
Blackrock Inc.	7.79%	104,920,146
State Street Corporation	6.82%	91,884,588
Capital Research Global Investors	5.65%	76,140,352
Capital International Investors	3.31%	44,512,309
Dodge & Cox Inc.	2.79%	37,571,811
JPMORGAN CHASE & CO	2.38%	32,110,396
Geode Capital Management, LLC	2.25%	30,319,882

Risk Analysis

Beta (Market Risk)

0.30

Low volatility — more stable than the market

Short Interest

1.0% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.57x

Conservative balance sheet — low financial risk

Current Ratio

1.02x

Adequate liquidity

52-Week Price Range

Low: $126.03 Current: $172.90 High: $214.50

Currently at 53% of 52-week range

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