RTX Corporation (RTX) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Industrials · Aerospace & Defense
Is RTX Corporation a safe investment right now?
RTX Corporation's Altman Z-Score of 2.6 places it in the gray zone. Our fair value estimate is $166.75 (Fairly Valued). Moat rating: 2.6/5 stars.
Could RTX Corporation go bankrupt? Altman Z-Score analysis
Z-Score of 2.6 places the company in the gray zone (1.8-3.0), warranting closer scrutiny.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives RTX's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.009 | 1.2 | 0.01 |
| B · Retained Earnings / Total Assets | RE / TA | 0.3315 | 1.4 | 0.46 |
| C · EBIT / Total Assets | EBIT / TA | 0.0618 | 3.3 | 0.2 |
| D · Market Cap / Total Liabilities | MCap / TL | 2.3439 | 0.6 | 1.41 |
| E · Revenue / Total Assets | Rev / TA | 0.5179 | 1.0 | 0.52 |
How has RTX's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 2.79 | Gray |
| 2023 | 2.46 | Gray |
| 2024 | 2.57 | Gray |
| 2025 | 2.6 | Gray |
Source: Calculated from RTX's latest 10-K filing on SEC EDGAR.
What is RTX Corporation actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $5.79 | Proprietary blend of reported actuals (1Q actual) + analyst consensus, weighted by α |
| Last Year EPS | $4.96 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $6.84 | 22 analysts consensus |
| Trailing P/E | 33.9x | Current market pricing |
| Fair P/E (β discount) | 28.8x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Growing | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $216.02 (22 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does RTX Corporation have a durable competitive advantage?
Moat rating: 2.6/5.
What makes up RTX's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 2/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 3/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is RTX's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 7.1% | — |
| 2023 | 5.3% | Declining |
| 2024 | 8.1% | Rising |
| 2025 | 10.2% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is RTX Corporation's dividend safe?
Can RTX Corporation afford its dividend?
Payout ratio is 51.0%. FCF covers the dividend 1.4x. 65 consecutive years of payments.
RTX Corporation's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $88.6B | $80.7B | $67.1B | Rising |
| Net Income | $6.7B | $4.8B | $5.2B | Rising |
| Free Cash Flow | $7.4B | $3.9B | $4.4B | Rising |
| Gross Margin | 20.1% | 19.1% | 20.4% | Stable |
Recent events that affect our RTX analysis
RTX earnings report scheduled
Upcoming report. Consensus EPS estimate: $1.66. Revenue estimate: $22.68B. Our current Fair Value: $166.75 — a significant beat or miss could shift this estimate.
RTX analyst consensus: 61% bullish (14 of 23 analysts)
4 Strong Buy, 10 Buy, 6 Hold, 2 Sell, 1 Strong Sell. Consensus target: $216.02 (19.4% upside). Compare with our independent Fair Value: $166.75.
RTX beat EPS estimates by 16.9%
Reported EPS: $1.78 vs estimate $1.52. Earnings strength supports our Fair Value of $166.75 (7.8% below current price).
RTX filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
RTX filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
RTX filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
RTX paid $0.6800/share dividend
Dividend Safety Grade: A. Payout ratio: 51.0%.
RTX filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
RTX beat EPS estimates by 5.3%
Reported EPS: $1.55 vs estimate $1.47. Earnings strength supports our Fair Value of $166.75 (7.8% below current price).
RTX filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
RTX paid $0.6800/share dividend
Dividend Safety Grade: A. Payout ratio: 51.0%.
RTX filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
RTX beat EPS estimates by 20.6%
Reported EPS: $1.70 vs estimate $1.41. Earnings strength supports our Fair Value of $166.75 (7.8% below current price).
RTX filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
RTX filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
RTX filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
RTX paid $0.6800/share dividend
Dividend Safety Grade: A. Payout ratio: 51.0%.
RTX beat EPS estimates by 9.5%
Reported EPS: $1.56 vs estimate $1.43. Earnings strength supports our Fair Value of $166.75 (7.8% below current price).
RTX filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
RTX filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
RTX paid $0.6800/share dividend
Dividend Safety Grade: A. Payout ratio: 51.0%.
RTX filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
RTX beat EPS estimates by 7.5%
Reported EPS: $1.47 vs estimate $1.37. Earnings strength supports our Fair Value of $166.75 (7.8% below current price).
RTX filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
RTX filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
RTX paid $0.6300/share dividend
Dividend Safety Grade: A. Payout ratio: 51.0%.
RTX filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
RTX filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
RTX beat EPS estimates by 11.8%
Reported EPS: $1.54 vs estimate $1.38. Earnings strength supports our Fair Value of $166.75 (7.8% below current price).
RTX filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about RTX Corporation
What is RTX Corporation stock price today?
RTX Corporation (RTX) stock price is $180.91 as of the latest market close, traded on the NYSE exchange.
What does RTX Corporation do?
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.
What is RTX Corporation market cap?
RTX Corporation has a market capitalization of $243.63B, classifying it as a mega-cap stock in the Industrials sector.
What sector and industry is RTX in?
RTX Corporation operates in the Industrials sector, specifically within the Aerospace & Defense industry. It trades on the NYSE under the ticker symbol RTX.
Is RTX stock overvalued or undervalued?
Based on our valuation model, RTX Corporation trades 8.5% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $166.75
- Current Price: $180.91
- Valuation Zone: Fairly Valued
What is RTX stock forecast and analyst target price?
Based on 22 Wall Street analysts, the consensus price target for RTX Corporation is $216.02, implying upside of 19.4% from the current price.
- Analyst High Target: $242.00
- Analyst Low Target: $179.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is RTX Corporation revenue and earnings growing?
Here are the analyst consensus growth estimates for RTX Corporation:
- Revenue growth (current year est.): 5.2%
- EPS growth (current year est.): 8.7%
- Revenue growth (next year est.): 7.1%
- EPS growth (next year est.): 10.1%
What are RTX Corporation's key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $88.6B | Rising |
| Net Income | $6.7B | Rising |
| Free Cash Flow | $7.4B | Rising |
| Gross Margin | 20.1% | Stable |
What is RTX's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 33.9x
- Forward P/E (next 12 months est.): 24.0x
- FairValueLabs Fair P/E: 28.8x
How volatile is RTX stock?
RTX Corporation has a beta of 0.43, meaning it is less volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does RTX Corporation have?
RTX Corporation's balance sheet shows:
- Total Cash: $6.82B
- Total Debt: $38.93B
- Net Cash Position: $-32.12B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is RTX Corporation's free cash flow?
RTX Corporation generated $7.23B in trailing twelve-month free cash flow (from $11.12B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does RTX Corporation pay a dividend, and is it safe?
Yes, RTX Corporation pays a regular dividend. Here are the key metrics:
- Dividend Yield: 1.5%
- Payout Ratio: 51.0%
- Consecutive Years Paid: 65
- 5-Year Dividend Growth: -19.4%
- FairValueLabs Safety Grade: A
Is RTX Corporation at risk of going bankrupt?
RTX Corporation's Altman Z-Score is 2.60, placing it in the gray zone (1.8–3.0) — some financial uncertainty. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does RTX Corporation have a durable competitive advantage?
RTX Corporation scores 2.6/5 stars (Narrow moat · eroding) in our moat analysis:
- ROIC Stability: 2/5
- Gross Margin Trend: 3/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is RTX's return on equity (ROE)?
RTX Corporation's return on equity is 11.6%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy RTX stock?
RTX shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol RTX
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is RTX a value stock or speculative?
FairValueLabs classifies RTX Corporation as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of RTX Corporation?
The current CEO of RTX Corporation is Mr. Christopher T. Calio J.D..
What is RTX's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $5.34
- Forward EPS (next 12 months est.): $7.54
- Analyst consensus EPS (this year): $6.84
- Analyst consensus EPS (next year): $7.53
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FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
RTX analysis methodology: How we calculate fair value, Z-Scores, and moat ratings