RTX CORP (5UR.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:5UR - US75513E1010 - Common Stock
166.76 EUR
-2.36 (-1.4%)
We assign a fundamental rating of 4 out of 10 to 5UR. 5UR was compared to 53 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of 5UR while its profitability can be described as average. While showing a medium growth rate, 5UR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year 5UR was profitable.
- In the past year 5UR had a positive cash flow from operations.
- Of the past 5 years 5UR 4 years were profitable.
- 5UR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 3.91%, 5UR perfoms like the industry average, outperforming 54.72% of the companies in the same industry.
- With a Return On Equity value of 10.22%, 5UR perfoms like the industry average, outperforming 45.28% of the companies in the same industry.
- 5UR's Return On Invested Capital of 6.30% is in line compared to the rest of the industry. 5UR outperforms 49.06% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 5UR is significantly below the industry average of 9.24%.
- The last Return On Invested Capital (6.30%) for 5UR is above the 3 year average (3.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 10.22% | ||
| ROIC | 6.3% |
ROA(3y)2.73%
ROA(5y)1.68%
ROE(3y)6.81%
ROE(5y)4.17%
ROIC(3y)3.68%
ROIC(5y)3.17%
1.3 Margins
- Looking at the Profit Margin, with a value of 7.67%, 5UR is in the better half of the industry, outperforming 66.04% of the companies in the same industry.
- In the last couple of years the Profit Margin of 5UR has declined.
- 5UR's Operating Margin of 10.02% is fine compared to the rest of the industry. 5UR outperforms 64.15% of its industry peers.
- 5UR's Operating Margin has declined in the last couple of years.
- 5UR's Gross Margin of 20.13% is on the low side compared to the rest of the industry. 5UR is outperformed by 67.92% of its industry peers.
- 5UR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.02% | ||
| PM (TTM) | 7.67% | ||
| GM | 20.13% |
OM growth 3Y-2.13%
OM growth 5Y-7.15%
PM growth 3Y-0.49%
PM growth 5Y-13.5%
GM growth 3Y-0.54%
GM growth 5Y-4.24%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 5UR is destroying value.
- 5UR has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, 5UR has more shares outstanding
- Compared to 1 year ago, 5UR has an improved debt to assets ratio.
2.2 Solvency
- 5UR has an Altman-Z score of 2.73. This is not the best score and indicates that 5UR is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of 5UR (2.73) is comparable to the rest of the industry.
- 5UR has a debt to FCF ratio of 8.26. This is a slightly negative value and a sign of low solvency as 5UR would need 8.26 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 8.26, 5UR is in line with its industry, outperforming 43.40% of the companies in the same industry.
- 5UR has a Debt/Equity ratio of 0.60. This is a neutral value indicating 5UR is somewhat dependend on debt financing.
- 5UR has a Debt to Equity ratio (0.60) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 8.26 | ||
| Altman-Z | 2.73 |
ROIC/WACC0.64
WACC9.91%
2.3 Liquidity
- 5UR has a Current Ratio of 1.07. This is a normal value and indicates that 5UR is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.07, 5UR is not doing good in the industry: 77.36% of the companies in the same industry are doing better.
- 5UR has a Quick Ratio of 1.07. This is a bad value and indicates that 5UR is not financially healthy enough and could expect problems in meeting its short term obligations.
- 5UR has a Quick ratio (0.81) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
- 5UR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.21%, which is quite good.
- Measured over the past years, 5UR shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.02% on average per year.
- The Revenue has grown by 8.79% in the past year. This is quite good.
- The Revenue has been growing by 12.23% on average over the past years. This is quite good.
EPS 1Y (TTM)14.21%
EPS 3Y10.36%
EPS 5Y-7.02%
EPS Q2Q%17.24%
Revenue 1Y (TTM)8.79%
Revenue growth 3Y7.83%
Revenue growth 5Y12.23%
Sales Q2Q%11.89%
3.2 Future
- Based on estimates for the next years, 5UR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.26% on average per year.
- The Revenue is expected to grow by 5.22% on average over the next years.
EPS Next Y8.94%
EPS Next 2Y8.76%
EPS Next 3Y9.5%
EPS Next 5Y8.26%
Revenue Next Year9.13%
Revenue Next 2Y7.67%
Revenue Next 3Y7.23%
Revenue Next 5Y5.22%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 31.82, 5UR can be considered very expensive at the moment.
- 5UR's Price/Earnings ratio is a bit cheaper when compared to the industry. 5UR is cheaper than 75.47% of the companies in the same industry.
- 5UR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 29.41 indicates a quite expensive valuation of 5UR.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 5UR is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. 5UR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.82 | ||
| Fwd PE | 29.41 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 5UR.
- 5UR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.65 | ||
| EV/EBITDA | 23.46 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 5UR does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.56
PEG (5Y)N/A
EPS Next 2Y8.76%
EPS Next 3Y9.5%
5. Dividend
5.1 Amount
- 5UR has a Yearly Dividend Yield of 1.39%.
- Compared to an average industry Dividend Yield of 0.74, 5UR pays a bit more dividend than its industry peers.
- 5UR's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
- The dividend of 5UR decreases each year by -3.08%.
Dividend Growth(5Y)-3.08%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- 52.52% of the earnings are spent on dividend by 5UR. This is a bit on the high side, but may be sustainable.
DP52.52%
EPS Next 2Y8.76%
EPS Next 3Y9.5%
RTX CORP / 5UR.DE FAQ
What is the fundamental rating for 5UR stock?
ChartMill assigns a fundamental rating of 4 / 10 to 5UR.DE.
Can you provide the valuation status for RTX CORP?
ChartMill assigns a valuation rating of 2 / 10 to RTX CORP (5UR.DE). This can be considered as Overvalued.
How profitable is RTX CORP (5UR.DE) stock?
RTX CORP (5UR.DE) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for 5UR stock?
The Price/Earnings (PE) ratio for RTX CORP (5UR.DE) is 31.82 and the Price/Book (PB) ratio is 4.15.
Can you provide the dividend sustainability for 5UR stock?
The dividend rating of RTX CORP (5UR.DE) is 3 / 10 and the dividend payout ratio is 52.52%.