RTX Corp (RTX) Stock Analysis

Analysis from 10-Q filed 2025-10-21. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 8.1%. FCF margin 11.7%. D/E 0.6x. Source: 10-Q filed 2025-10-21.

Metric	Value	Context
ROIC	8.1%	Near cost of capital
FCF Margin	11.7%	Healthy cash flow
Debt/Equity	0.6x	Moderate leverage

ROIC 8.1% — Top 50% of sector peers. FCF margin 11.7% — Top 25%.

Explore RTX Corp: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for RTX: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: RTX Corp earns 8.1% ROIC, Top 50% in Industrials

ROIC TTM 8.1%, sector median 7.2%, Top 50%. DuPont: NOPAT margin 9.1% × asset turnover 0.5x. Gross margin 20.3%. Operating margin 11.2%. Source: 10-Q filed 2025-10-21.

Metric	RTX	Rating	Context
Return on Invested Capital (ROIC)	8.1%	Adequate	Above sector median of 7.2%
Return on Equity (ROE)	11.9%	Adequate	Moderate equity returns
Gross Margin	20.3%	Adequate	Competitive pricing environment
Operating Margin	11.2%	Good	Moderate operational efficiency

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Cash Flow: RTX Corp generates $11.0B FCF at 11.7% margin, positive NaN/8 quarters

FCF TTM $11.0B. FCF margin 11.7%, Top 25%. OCF/Net income 1.8x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-21.

Metric	RTX	Rating	Context
Free Cash Flow Margin	11.7%	Good	Healthy cash generation
Free Cash Flow (TTM)	$11.0B	Good	Positive cash generation
OCF/Net Income	1.8x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: RTX Corp at 0.6x leverage

Debt/Equity 0.6x. Total debt $37.2B, cash & investments $9.0B. Source: 10-Q filed 2025-10-21.

Metric	RTX	Rating	Context
Debt to Equity	0.6x	Good	Moderate leverage
Net Cash Position	$-28.1B	Warning	Net debt position

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Valuation: RTX Corp trades at 33.0x earnings

P/E 33.0x. EV/Sales 2.9x. FCF yield 4.3%. Dividend yield 1.4%. Source: 10-Q filed 2025-10-21.

Metric	RTX	Rating	Context
P/E Ratio	33.0x	Adequate	Premium valuation
EV/Sales	2.9x	Good	Attractive revenue multiple
FCF Yield	4.3%	Good	Lower cash yield
Dividend Yield	1.4%	Adequate	Growth focus over income

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Capital Allocation: RTX Corp returns 1.4% shareholder yield

Total shareholder yield 1.4% (div 1.4%). Capital returned $3.6B TTM. Source: 10-Q filed 2025-10-21.

Metric	RTX	Rating	Context
Total Shareholder Yield	1.4%	Adequate	Dividend + buyback yield combined
Buyback Yield	0.0%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$3.6B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	8.1%	Top 50%	1.1x above
Free Cash Flow Margin	11.7%	Top 25%	2.4x above
Gross Margin	20.3%	Bottom 50%	0.6x below
Operating Margin	11.2%	Top 50%	1.6x above
Return on Equity (ROE)	11.9%	Top 50%	1.3x above
P/E Ratio	33.0x	N/A	-

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Financial Scorecard

Metric	RTX	Rating	Sector Context
Return on Invested Capital (ROIC)	8.1%	Adequate	Top 50% of sector (median: 7.2%)
Free Cash Flow Margin	11.7%	Good	Top 25% of sector (median: 4.8%)
Gross Margin	20.3%	Adequate	Bottom 50% of sector (median: 32.7%)
Debt to Equity Ratio	56.0%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	33.0x	Adequate	Growth premium
Free Cash Flow Yield	4.3%	Adequate	Moderate yield

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Frequently Asked Questions

Q: What is RTX Corp's Return on Invested Capital (ROIC)?

RTX Corp (RTX) has a trailing twelve-month Return on Invested Capital (ROIC) of 8.1%. Sector median 7.2%. Source: 10-Q filed 2025-10-21.

Q: What is RTX Corp's Free Cash Flow Margin?

RTX Corp (RTX) has a free cash flow margin of 11.7%, generating $11.0 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-21.

Q: What is RTX Corp's P/E ratio and how does it compare to peers?

RTX Corp (RTX) trades at a P/E ratio of 33.0x, which is above the sector median of N/A. EV/Sales 2.9x. FCF yield 4.3%. Source: 10-Q filed 2025-10-21.

Q: Does RTX Corp pay a dividend?

RTX Corp (RTX) currently pays a dividend yield of 1.4%. Total shareholder yield (dividend + buybacks) 1.4%. Source: 10-Q filed 2025-10-21.

Q: How much debt does RTX Corp have?

RTX Corp (RTX) has a debt-to-equity ratio of 0.6x with total debt of $37.2 billion. Net debt $28.1 billion. Source: 10-Q filed 2025-10-21.

Q: What is RTX Corp's revenue and earnings growth?

RTX Corp (RTX) grew revenue by 11.8% year-over-year. EPS +24.8% YoY. Source: 10-Q filed 2025-10-21.

Q: How does RTX Corp compare to competitors in Industrials?

Compared to other companies in Industrials, RTX Corp (RTX) shows: ROIC 8.1%, sector median 7.2% (Top 50%). FCF margin 11.7%, sector median 4.8% (Top 25%). Gross margin 20.3%, 12.3pp below sector median. These rankings are based on MetricDuck's analysis of all Industrials companies with available SEC filings.

Q: What warning signs should I watch for with RTX Corp?

No quantitative warning flags fired for RTX Corp (RTX) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-21.

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Data Source: Data sourced from 10-Q filed 2025-10-21. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.