Raytheon Stock Story

RTX

Stock

USD 94.71 0.27 0.29%

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 three weeks ago

View all stories for Raytheon Technologies | View All Stories

Will investors pick up Raytheon Technologies August?

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.

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. Please check the breakdown between Raytheon Technologies's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for Raytheon Technologies, but it might be worth checking our own buy vs. sell analysis

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 Boeing Company. You can also mitigate this risk by investing in the aerospace & defense 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.

	Accounts Payable	Total Assets	Current Assets	Cash and Equivalents	Shareholders Equity	Total Liabilities	Current Liabilities	Direct Expenses	Net Income	Operating Income	Weighted Average Shares	Interest Coverage	Long Term Debt to Equity	Calculated Tax Rate	PPandE Turnover	Receivables Turnover	Inventory Turnover	Operating Margin	Return on Investment	Cash Flow Per Share	Revenue to Assets	Total Assets Per Share	Quick Ratio	Asset Turnover	Current Ratio	Debt to Equity Ratio	EBITDA Margin	Earnings per Basic Share	Free Cash Flow per Share	Gross Margin	Profit Margin	Return on Average Assets	Return on Average Equity	Sales per Share	Net Income Per Employee	Revenue Per Employee
Accounts Payable		0.75	0.72	0.61	0.4	0.9	0.78	0.78	-0.15	-0.06	0.06	-0.6	0.59	0.08	-0.68	-0.36	0.15	-0.24	-0.59	0.08	-0.73	0.94	-0.36	-0.71	-0.65	0.61	-0.13	-0.1	-0.12	-0.37	-0.27	-0.55	-0.46	0.38	-0.22	0.36
Total Assets	0.75		0.98	0.62	0.85	0.94	0.99	0.8	-0.52	-0.56	0.67	-0.87	0.05	-0.52	-0.9	-0.01	0.23	-0.71	-0.94	-0.41	-0.94	0.63	-0.81	-0.93	-0.62	0.05	-0.58	-0.59	-0.54	-0.82	-0.61	-0.88	-0.85	-0.24	-0.53	0.71
Current Assets	0.72	0.98		0.67	0.85	0.89	0.97	0.78	-0.61	-0.6	0.7	-0.82	-0.02	-0.54	-0.87	0.0	0.24	-0.74	-0.92	-0.48	-0.91	0.56	-0.78	-0.9	-0.52	-0.01	-0.63	-0.67	-0.6	-0.86	-0.7	-0.92	-0.89	-0.29	-0.61	0.73
Cash and Equivalents	0.61	0.62	0.67		0.51	0.58	0.6	0.36	-0.45	-0.48	0.37	-0.57	0.06	-0.11	-0.75	-0.27	0.05	-0.53	-0.68	-0.34	-0.67	0.45	-0.15	-0.71	-0.23	0.07	-0.47	-0.42	-0.55	-0.57	-0.47	-0.64	-0.6	-0.17	-0.41	0.51
Shareholders Equity	0.4	0.85	0.85	0.51		0.65	0.81	0.55	-0.56	-0.64	0.87	-0.82	-0.36	-0.62	-0.76	0.36	0.24	-0.72	-0.91	-0.58	-0.74	0.22	-0.74	-0.76	-0.22	-0.36	-0.59	-0.76	-0.65	-0.8	-0.61	-0.86	-0.91	-0.53	-0.51	0.76
Total Liabilities	0.9	0.94	0.89	0.58	0.65		0.95	0.84	-0.33	-0.33	0.38	-0.8	0.39	-0.29	-0.82	-0.22	0.17	-0.51	-0.81	-0.13	-0.91	0.85	-0.68	-0.87	-0.76	0.4	-0.39	-0.34	-0.29	-0.61	-0.45	-0.73	-0.66	0.08	-0.38	0.53
Current Liabilities	0.78	0.99	0.97	0.6	0.81	0.95		0.84	-0.49	-0.52	0.62	-0.84	0.1	-0.47	-0.85	-0.02	0.28	-0.68	-0.9	-0.34	-0.91	0.67	-0.82	-0.89	-0.68	0.11	-0.56	-0.55	-0.46	-0.78	-0.6	-0.85	-0.81	-0.17	-0.51	0.68
Direct Expenses	0.78	0.8	0.78	0.36	0.55	0.84	0.84		-0.17	-0.1	0.34	-0.57	0.2	-0.27	-0.56	0.07	0.43	-0.33	-0.58	0.08	-0.63	0.74	-0.68	-0.63	-0.66	0.24	-0.21	-0.22	-0.01	-0.46	-0.33	-0.56	-0.53	0.21	-0.23	0.67
Net Income	-0.15	-0.52	-0.61	-0.45	-0.56	-0.33	-0.49	-0.17		0.92	-0.61	0.44	0.39	0.65	0.49	0.12	-0.02	0.92	0.62	0.82	0.48	0.06	0.53	0.46	0.04	0.39	0.93	0.94	0.8	0.87	0.98	0.82	0.83	0.61	0.99	-0.23
Operating Income	-0.06	-0.56	-0.6	-0.48	-0.64	-0.33	-0.52	-0.1	0.92		-0.75	0.54	0.48	0.69	0.59	0.05	0.01	0.97	0.71	0.87	0.54	0.12	0.6	0.54	0.16	0.49	0.98	0.9	0.86	0.9	0.87	0.78	0.79	0.78	0.87	-0.31
Weighted Average Shares	0.06	0.67	0.7	0.37	0.87	0.38	0.62	0.34	-0.61	-0.75		-0.62	-0.65	-0.79	-0.62	0.49	0.31	-0.76	-0.74	-0.77	-0.57	-0.14	-0.76	-0.6	-0.11	-0.66	-0.67	-0.81	-0.76	-0.84	-0.61	-0.72	-0.8	-0.83	-0.52	0.77
Interest Coverage	-0.6	-0.87	-0.82	-0.57	-0.82	-0.8	-0.84	-0.57	0.44	0.54	-0.62		-0.04	0.51	0.89	0.01	-0.06	0.63	0.92	0.35	0.88	-0.53	0.69	0.89	0.53	-0.03	0.52	0.54	0.51	0.68	0.5	0.81	0.78	0.28	0.43	-0.57
Long Term Debt to Equity	0.59	0.05	-0.02	0.06	-0.36	0.39	0.1	0.2	0.39	0.48	-0.65	-0.04		0.54	-0.05	-0.63	-0.18	0.4	0.11	0.57	-0.19	0.76	0.22	-0.1	-0.47	1.0	0.41	0.55	0.43	0.36	0.33	0.17	0.31	0.78	0.28	-0.4
Calculated Tax Rate	0.08	-0.52	-0.54	-0.11	-0.62	-0.29	-0.47	-0.27	0.65	0.69	-0.79	0.51	0.54		0.45	-0.29	-0.22	0.71	0.56	0.6	0.46	0.16	0.72	0.46	0.14	0.54	0.68	0.73	0.54	0.72	0.65	0.62	0.67	0.7	0.6	-0.51
PPandE Turnover	-0.68	-0.9	-0.87	-0.75	-0.76	-0.82	-0.85	-0.56	0.49	0.59	-0.62	0.89	-0.05	0.45		0.21	0.05	0.68	0.92	0.46	0.96	-0.56	0.61	0.99	0.54	-0.04	0.58	0.52	0.65	0.77	0.54	0.82	0.77	0.33	0.47	-0.64
Receivables Turnover	-0.36	-0.01	0.0	-0.27	0.36	-0.22	-0.02	0.07	0.12	0.05	0.49	0.01	-0.63	-0.29	0.21		0.63	0.06	0.02	-0.14	0.25	-0.47	-0.24	0.21	0.33	-0.62	0.14	-0.19	-0.01	-0.03	0.12	0.04	-0.11	-0.38	0.21	0.46
Inventory Turnover	0.15	0.23	0.24	0.05	0.24	0.17	0.28	0.43	-0.02	0.01	0.31	-0.06	-0.18	-0.22	0.05	0.63		-0.06	-0.05	-0.02	0.04	0.04	-0.31	0.05	-0.13	-0.14	0.04	-0.17	0.06	-0.17	-0.08	-0.11	-0.18	-0.05	0.0	0.43
Operating Margin	-0.24	-0.71	-0.74	-0.53	-0.72	-0.51	-0.68	-0.33	0.92	0.97	-0.76	0.63	0.4	0.71	0.68	0.06	-0.06		0.81	0.79	0.65	-0.07	0.72	0.65	0.31	0.4	0.98	0.9	0.8	0.95	0.92	0.87	0.87	0.66	0.89	-0.43
Return on Investment	-0.59	-0.94	-0.92	-0.68	-0.91	-0.81	-0.9	-0.58	0.62	0.71	-0.74	0.92	0.11	0.56	0.92	0.02	-0.05	0.81		0.54	0.91	-0.45	0.73	0.92	0.46	0.11	0.7	0.71	0.67	0.85	0.68	0.92	0.91	0.42	0.6	-0.64
Cash Flow Per Share	0.08	-0.41	-0.48	-0.34	-0.58	-0.13	-0.34	0.08	0.82	0.87	-0.77	0.35	0.57	0.6	0.46	-0.14	-0.02	0.79	0.54		0.4	0.33	0.47	0.38	-0.12	0.6	0.78	0.86	0.96	0.82	0.75	0.64	0.7	0.88	0.74	-0.29
Revenue to Assets	-0.73	-0.94	-0.91	-0.67	-0.74	-0.91	-0.91	-0.63	0.48	0.54	-0.57	0.88	-0.19	0.46	0.96	0.25	0.04	0.65	0.91	0.4		-0.65	0.68	0.98	0.62	-0.18	0.55	0.5	0.58	0.75	0.54	0.82	0.76	0.24	0.48	-0.57
Total Assets Per Share	0.94	0.63	0.56	0.45	0.22	0.85	0.67	0.74	0.06	0.12	-0.14	-0.53	0.76	0.16	-0.56	-0.47	0.04	-0.07	-0.45	0.33	-0.65		-0.28	-0.62	-0.74	0.77	0.02	0.14	0.13	-0.16	-0.07	-0.36	-0.24	0.56	-0.04	0.21
Quick Ratio	-0.36	-0.81	-0.78	-0.15	-0.74	-0.68	-0.82	-0.68	0.53	0.6	-0.76	0.69	0.22	0.72	0.61	-0.24	-0.31	0.72	0.73	0.47	0.68	-0.28		0.65	0.6	0.22	0.63	0.63	0.45	0.78	0.6	0.7	0.72	0.44	0.53	-0.59
Asset Turnover	-0.71	-0.93	-0.9	-0.71	-0.76	-0.87	-0.89	-0.63	0.46	0.54	-0.6	0.89	-0.1	0.46	0.99	0.21	0.05	0.65	0.92	0.38	0.98	-0.62	0.65		0.59	-0.09	0.55	0.49	0.57	0.75	0.52	0.81	0.76	0.27	0.44	-0.66
Current Ratio	-0.65	-0.62	-0.52	-0.23	-0.22	-0.76	-0.68	-0.66	0.04	0.16	-0.11	0.53	-0.47	0.14	0.54	0.33	-0.13	0.31	0.46	-0.12	0.62	-0.74	0.6	0.59		-0.48	0.25	-0.04	-0.03	0.33	0.13	0.29	0.21	-0.19	0.11	-0.23
Debt to Equity Ratio	0.61	0.05	-0.01	0.07	-0.36	0.4	0.11	0.24	0.39	0.49	-0.66	-0.03	1.0	0.54	-0.04	-0.62	-0.14	0.4	0.11	0.6	-0.18	0.77	0.22	-0.09	-0.48		0.41	0.55	0.46	0.36	0.32	0.17	0.31	0.81	0.28	-0.38
EBITDA Margin	-0.13	-0.58	-0.63	-0.47	-0.59	-0.39	-0.56	-0.21	0.93	0.98	-0.67	0.52	0.41	0.68	0.58	0.14	0.04	0.98	0.7	0.78	0.55	0.02	0.63	0.55	0.25	0.41		0.87	0.77	0.89	0.92	0.79	0.79	0.66	0.92	-0.29
Earnings per Basic Share	-0.1	-0.59	-0.67	-0.42	-0.76	-0.34	-0.55	-0.22	0.94	0.9	-0.81	0.54	0.55	0.73	0.52	-0.19	-0.17	0.9	0.71	0.86	0.5	0.14	0.63	0.49	-0.04	0.55	0.87		0.83	0.89	0.92	0.86	0.91	0.73	0.89	-0.43
Free Cash Flow per Share	-0.12	-0.54	-0.6	-0.55	-0.65	-0.29	-0.46	-0.01	0.8	0.86	-0.76	0.51	0.43	0.54	0.65	-0.01	0.06	0.8	0.67	0.96	0.58	0.13	0.45	0.57	-0.03	0.46	0.77	0.83		0.85	0.74	0.74	0.77	0.8	0.72	-0.38
Gross Margin	-0.37	-0.82	-0.86	-0.57	-0.8	-0.61	-0.78	-0.46	0.87	0.9	-0.84	0.68	0.36	0.72	0.77	-0.03	-0.17	0.95	0.85	0.82	0.75	-0.16	0.78	0.75	0.33	0.36	0.89	0.89	0.85		0.89	0.91	0.92	0.66	0.83	-0.59
Profit Margin	-0.27	-0.61	-0.7	-0.47	-0.61	-0.45	-0.6	-0.33	0.98	0.87	-0.61	0.5	0.33	0.65	0.54	0.12	-0.08	0.92	0.68	0.75	0.54	-0.07	0.6	0.52	0.13	0.32	0.92	0.92	0.74	0.89		0.88	0.87	0.52	0.99	-0.31
Return on Average Assets	-0.55	-0.88	-0.92	-0.64	-0.86	-0.73	-0.85	-0.56	0.82	0.78	-0.72	0.81	0.17	0.62	0.82	0.04	-0.11	0.87	0.92	0.64	0.82	-0.36	0.7	0.81	0.29	0.17	0.79	0.86	0.74	0.91	0.88		0.99	0.43	0.82	-0.56
Return on Average Equity	-0.46	-0.85	-0.89	-0.6	-0.91	-0.66	-0.81	-0.53	0.83	0.79	-0.8	0.78	0.31	0.67	0.77	-0.11	-0.18	0.87	0.91	0.7	0.76	-0.24	0.72	0.76	0.21	0.31	0.79	0.91	0.77	0.92	0.87	0.99		0.52	0.8	-0.62
Sales per Share	0.38	-0.24	-0.29	-0.17	-0.53	0.08	-0.17	0.21	0.61	0.78	-0.83	0.28	0.78	0.7	0.33	-0.38	-0.05	0.66	0.42	0.88	0.24	0.56	0.44	0.27	-0.19	0.81	0.66	0.73	0.8	0.66	0.52	0.43	0.52		0.49	-0.38
Net Income Per Employee	-0.22	-0.53	-0.61	-0.41	-0.51	-0.38	-0.51	-0.23	0.99	0.87	-0.52	0.43	0.28	0.6	0.47	0.21	0.0	0.89	0.6	0.74	0.48	-0.04	0.53	0.44	0.11	0.28	0.92	0.89	0.72	0.83	0.99	0.82	0.8	0.49		-0.16
Revenue Per Employee	0.36	0.71	0.73	0.51	0.76	0.53	0.68	0.67	-0.23	-0.31	0.77	-0.57	-0.4	-0.51	-0.64	0.46	0.43	-0.43	-0.64	-0.29	-0.57	0.21	-0.59	-0.66	-0.23	-0.38	-0.29	-0.43	-0.38	-0.59	-0.31	-0.56	-0.62	-0.38	-0.16

Click cells to compare fundamentals

Payment of 2522 shares by Roy Azevedo of Raytheon Technologies subject to Rule 16b-3

Legal trades by Raytheon Technologies insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

Raytheon insider trading alert for payment of common stock by Roy Azevedo, President RIS, on 29th of March 2022. This event was filed by Raytheon Technologies Cor with SEC on 2022-03-29. Statement of changes in beneficial ownership - SEC Form 4. Roy Azevedo currently serves as president - raytheon intelligence and space of Raytheon Technologies [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

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.

Editorial Staff

Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test 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.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2022 Macroaxis LLC