RAYTHEON CO's gross profit margin for the second quarter of its fiscal year 2015 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased.
During the same period, stockholders' equity ("net worth") has decreased by 14.25% from the same quarter last year.
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|Income Statement||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||5848.0||5701.0|
|Net Income ($mil)||505.0||551.0|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||2494.0||4176.0|
|Total Assets ($mil)||28437.0||26380.0|
|Total Debt ($mil)||5333.0||4736.0|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||24.61||26.47|
|Return on Assets||7.57||8.21|
|Return on Equity||21.34||17.41|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||304.0||310.6|
|Div / share||0.67||0.61|
|Book value / share||33.08||37.76|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1922348.0||1570190.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 18.99 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 20.03. Conducting a second comparison, its price-to-book ratio of 3.18 indicates a premium versus the S&P 500 average of 2.67 and a significant discount versus the industry average of 7.66. 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.
|RTN 15.15||Peers 18.99||RTN 18.11||Peers 14.36|
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.
Premium. 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 significant premium to its peers.
|RTN 14.91||Peers 17.21||RTN NM||Peers 2.92|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
RTN is trading at a valuation on par with its peers.
Neutral. 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's negative PEG ratio makes this valuation measure meaningless.
|RTN 3.18||Peers 7.66||RTN 7.93||Peers 32.55|
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.
|RTN 1.40||Peers 1.58||RTN -0.74||Peers 2.41|
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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