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Raytheon Company
RTN : NYSE : Industrial Goods

$100.13 1.10 | 1.11%
Today's Range: 98.90 - 100.36
Avg. Daily Volume: 2,136,200
04/17/14 - 4:00 PM ET

Financial Analysis


RAYTHEON CO's gross profit margin for the fourth quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. RAYTHEON CO has weak liquidity. Currently, the Quick Ratio is 0.97 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 37.49% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q4 FY13 Q4 FY12
Net Sales ($mil)5870.06439.0
EBITDA ($mil)833.0876.0
EBIT ($mil)720.0762.0
Net Income ($mil)531.0469.0


Balance Sheet Q4 FY13 Q4 FY12
Cash & Equiv. ($mil)4297.04044.0
Total Assets ($mil)25967.026686.0
Total Debt ($mil)4734.04731.0
Equity ($mil)11035.08026.0


Profitability Q4 FY13 Q4 FY12
Gross Profit Margin22.8822.69
EBITDA Margin14.1913.6
Operating Margin12.2711.83
Sales Turnover0.910.91
Return on Assets7.687.07
Return on Equity17.523.53
Debt Q4 FY13 Q4 FY12
Current Ratio1.691.57
Debt/Capital0.30.37
Interest Expense51.052.0
Interest Coverage14.1214.65


Share Data Q4 FY13 Q4 FY12
Shares outstanding (mil)314.5328.1
Div / share0.551.0
EPS1.461.41
Book value / share35.0924.46
Institutional Own % n/a n/a
Avg Daily Volume2116639.01660513.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 19.58 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 18.29. To use another comparison, its price-to-book ratio of 2.77 indicates valuation on par with the S&P 500 average of 2.52 and a significant discount versus the industry average of 4.31. The price-to-sales ratio is below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, RAYTHEON CO proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
RTN 16.29 Peers 19.58   RTN 12.84 Peers 14.27

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

RTN is trading at a discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

RTN is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
RTN 12.44 Peers 16.82   RTN 1.03 Peers 1.95

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

RTN is trading at a discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

RTN trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RTN 2.77 Peers 4.31   RTN 5.30 Peers 53.15

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

RTN is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, RTN is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RTN 1.29 Peers 1.62   RTN -2.90 Peers 4.89

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

RTN is trading at a discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

RTN significantly trails its peers on the basis of sales growth

 

 

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