Will investors pick up Raytheon Technologies August?

Macroaxis Story

Raytheon Technologies is generating negative expected returns assuming volatility of 1.9704% on return distribution over 60 days investment horizon. While some risk-seeking investors are getting worried about industrials space, it is reasonable to break down Raytheon Technologies Corp as a possible investment alternative. We will inspect how risky is to take a position in Raytheon Technologies at this time. Raytheon Technologies' very low volatility may have no significant impact on the stock's value as we estimate Raytheon Technologies as currently overvalued. The real value, based on our calculations, is getting close to 83.24 per share.

Published over a year ago

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Reviewed by Michael Smolkin

Raytheon Technologies Corp has roughly 6.04 B in cash with 6.83 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.06.

Will investors pick up Raytheon Technologies August?

Volatility is a rate at which the price of Raytheon Technologies or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Raytheon Technologies may increase or decrease. In other words, similar to Raytheon's beta indicator, it measures the risk of Raytheon Technologies and helps estimate the fluctuations that may happen in a short period of time. So if prices of Raytheon Technologies fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.

How important is Raytheon Technologies's Liquidity

Raytheon Technologies financial leverage refers to using borrowed capital as a funding source to finance Raytheon Technologies Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Raytheon Technologies financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Raytheon Technologies' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Raytheon Technologies' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Raytheon Technologies's total debt and its cash.

Raytheon Technologies Gross Profit

Raytheon Technologies Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Raytheon Technologies previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Raytheon Technologies Gross Profit growth over the last 10 years. Please check Raytheon Technologies' gross profit and other fundamental indicators for more details.

Raytheon Technologies Volatility Drivers

Raytheon Technologies unsystematic risk is unique to Raytheon Technologies and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Raytheon Technologies you can also buy Novocure. You can also mitigate this risk by investing in the industrials sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Raytheon Technologies important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Raytheon Technologies income statement and balance sheet. Here are more details about Raytheon volatility.

	Total Assets	Net Debt	Total Liab	Common Stock	Good Will	Capital Stock	Total Revenue	Gross Profit	Net Income	Tax Provision	Ptb Ratio	Pb Ratio	Ev To Sales	Payout Ratio	Pfcf Ratio	Pe Ratio	Current Ratio	Graham Number	Ebt Per Ebit	Quick Ratio	Cash Ratio	Debt Ratio	Market Cap
Total Assets		0.87	0.96	0.95	0.89	0.78	0.58	0.07	-0.12	-0.69	0.16	0.16	0.95	0.17	0.76	0.26	-0.71	0.18	-0.34	-0.41	-0.54	0.22	0.22
Net Debt	0.87		0.95	0.74	0.75	0.51	0.52	0.18	0.04	-0.41	0.05	0.05	0.73	0.34	0.45	0.37	-0.65	0.21	-0.07	-0.53	-0.62	0.5	0.06
Total Liab	0.96	0.95		0.85	0.84	0.61	0.64	0.23	0.01	-0.53	0.2	0.2	0.85	0.23	0.67	0.29	-0.74	0.3	-0.22	-0.44	-0.52	0.41	0.26
Common Stock	0.95	0.74	0.85		0.82	0.93	0.38	-0.18	-0.28	-0.87	0.05	0.05	0.98	0.18	0.76	0.31	-0.56	-0.08	-0.4	-0.41	-0.54	-0.03	0.04
Good Will	0.89	0.75	0.84	0.82		0.68	0.68	0.09	-0.12	-0.53	0.18	0.18	0.82	-0.01	0.69	0.1	-0.85	0.32	-0.33	-0.17	-0.46	0.41	0.29
Capital Stock	0.78	0.51	0.61	0.93	0.68		0.13	-0.46	-0.46	-0.96	-0.1	-0.1	0.89	0.14	0.66	0.29	-0.36	-0.37	-0.44	-0.41	-0.55	-0.29	-0.15
Total Revenue	0.58	0.52	0.64	0.38	0.68	0.13		0.76	0.51	-0.02	0.73	0.73	0.46	0.09	0.45	0.1	-0.88	0.81	0.09	0.0	-0.11	0.61	0.81
Gross Profit	0.07	0.18	0.23	-0.18	0.09	-0.46	0.76		0.84	0.5	0.75	0.75	-0.07	0.17	-0.03	0.09	-0.48	0.89	0.44	0.11	0.19	0.57	0.78
Net Income	-0.12	0.04	0.01	-0.28	-0.12	-0.46	0.51	0.84		0.49	0.67	0.67	-0.15	0.55	-0.35	0.48	-0.24	0.61	0.81	0.01	0.05	0.38	0.51
Tax Provision	-0.69	-0.41	-0.53	-0.87	-0.53	-0.96	-0.02	0.5	0.49		0.06	0.06	-0.83	-0.15	-0.68	-0.29	0.23	0.46	0.45	0.43	0.48	0.39	0.18
Ptb Ratio	0.16	0.05	0.2	0.05	0.18	-0.1	0.73	0.75	0.67	0.06		1.0	0.2	0.26	0.22	0.24	-0.51	0.66	0.37	0.14	0.23	0.33	0.76
Pb Ratio	0.16	0.05	0.2	0.05	0.18	-0.1	0.73	0.75	0.67	0.06	1.0		0.2	0.26	0.22	0.24	-0.51	0.66	0.37	0.14	0.23	0.33	0.76
Ev To Sales	0.95	0.73	0.85	0.98	0.82	0.89	0.46	-0.07	-0.15	-0.83	0.2	0.2		0.24	0.77	0.37	-0.61	0.02	-0.32	-0.42	-0.54	0.02	0.13
Payout Ratio	0.17	0.34	0.23	0.18	-0.01	0.14	0.09	0.17	0.55	-0.15	0.26	0.26	0.24		-0.32	0.98	-0.07	-0.13	0.77	-0.42	-0.37	0.06	-0.17
Pfcf Ratio	0.76	0.45	0.67	0.76	0.69	0.66	0.45	-0.03	-0.35	-0.68	0.22	0.22	0.77	-0.32		-0.22	-0.52	0.18	-0.69	-0.05	-0.11	0.05	0.37
Pe Ratio	0.26	0.37	0.29	0.31	0.1	0.29	0.1	0.09	0.48	-0.29	0.24	0.24	0.37	0.98	-0.22		-0.11	-0.18	0.69	-0.45	-0.44	-0.02	-0.19
Current Ratio	-0.71	-0.65	-0.74	-0.56	-0.85	-0.36	-0.88	-0.48	-0.24	0.23	-0.51	-0.51	-0.61	-0.07	-0.52	-0.11		-0.65	0.03	0.15	0.31	-0.61	-0.59
Graham Number	0.18	0.21	0.3	-0.08	0.32	-0.37	0.81	0.89	0.61	0.46	0.66	0.66	0.02	-0.13	0.18	-0.18	-0.65		0.17	0.29	0.25	0.7	0.81
Ebt Per Ebit	-0.34	-0.07	-0.22	-0.4	-0.33	-0.44	0.09	0.44	0.81	0.45	0.37	0.37	-0.32	0.77	-0.69	0.69	0.03	0.17		-0.07	-0.02	0.25	0.01
Quick Ratio	-0.41	-0.53	-0.44	-0.41	-0.17	-0.41	0.0	0.11	0.01	0.43	0.14	0.14	-0.42	-0.42	-0.05	-0.45	0.15	0.29	-0.07		0.87	0.15	0.19
Cash Ratio	-0.54	-0.62	-0.52	-0.54	-0.46	-0.55	-0.11	0.19	0.05	0.48	0.23	0.23	-0.54	-0.37	-0.11	-0.44	0.31	0.25	-0.02	0.87		0.04	0.2
Debt Ratio	0.22	0.5	0.41	-0.03	0.41	-0.29	0.61	0.57	0.38	0.39	0.33	0.33	0.02	0.06	0.05	-0.02	-0.61	0.7	0.25	0.15	0.04		0.34
Market Cap	0.22	0.06	0.26	0.04	0.29	-0.15	0.81	0.78	0.51	0.18	0.76	0.76	0.13	-0.17	0.37	-0.19	-0.59	0.81	0.01	0.19	0.2	0.34

Click cells to compare fundamentals

Detailed Perspective On Raytheon Technologies

Raytheon Technologies reported the last year's revenue of 64.85 B. Total Income to common stockholders was 4.23 B with profit before taxes, overhead, and interest of 12.53 B.

A growth case for Raytheon Technologies

Current Total Risk Alpha is up to 0.04. Price may slide again. Raytheon Technologies Corp exhibits very low volatility with skewness of 0.18 and kurtosis of 0.18. However, we advise investors to further study Raytheon Technologies Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Raytheon Technologies' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Raytheon Technologies' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Raytheon Technologies Implied Volatility

Raytheon Technologies' implied volatility exposes the market's sentiment of Raytheon Technologies Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Raytheon Technologies' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Raytheon Technologies stock will not fluctuate a lot when Raytheon Technologies' options are near their expiration.

While other entities in the aerospace & defense industry are either recovering or due for a correction, Raytheon Technologies may not be performing as strong as the other in terms of long-term growth potentials. In closing, as of the 26th of July 2022, we see that Raytheon Technologies almost mirrors the market. The company is overvalued with below average odds of financial distress within the next 24 months. However, our final 90 days 'Buy-Sell' recommendation on the company is Buy.

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Editorial Staff

Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Raytheon Technologies Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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