Raytheon Co

Find Ratings Reports
RTN : NYSE : Industrial Goods
$151.02 | %
Today's Range: 150.83 - 152.82
Avg. Daily Volume: 1696700.0
03/24/17 - 4:02 PM ET

Financial Analysis


RAYTHEON CO's gross profit margin for the fourth quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. RAYTHEON CO has weak liquidity. Currently, the Quick Ratio is 0.75 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.

During the same period, stockholders' equity ("net worth") has remained unchanged 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)6238.06328.0
EBITDA ($mil)1000.0965.0
EBIT ($mil)862.0829.0
Net Income ($mil)544.0571.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)3403.03200.0
Total Assets ($mil)30052.029281.0
Total Debt ($mil)5335.05330.0
Equity ($mil)10066.010128.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin27.5926.17
EBITDA Margin16.0315.24
Operating Margin13.8213.1
Sales Turnover0.80.79
Return on Assets7.357.08
Return on Equity21.9520.34
Debt Q4 FY16 Q4 FY15
Current Ratio1.661.6
Debt/Capital0.350.34
Interest Expense58.058.0
Interest Coverage14.8614.29


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)292.8299.0
Div / share1.470.67
EPS1.841.85
Book value / share34.3833.87
Institutional Own % n/a n/a
Avg Daily Volume1708122.01877257.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.89 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 26.73. Conducting a second comparison, its price-to-book ratio of 4.47 indicates a premium versus the S&P 500 average of 2.98 and a significant discount versus the industry average of 36.58. The current price-to-sales ratio is below the S&P 500 average, but above the industry average. 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 20.65 Peers 22.89   RTN 15.78 Peers 16.97

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

RTN is trading at a valuation on par with its peers.

 

Average. 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 valuation on par 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 18.54 Peers 20.78   RTN NM Peers 4.24

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RTN 4.47 Peers 36.58   RTN 10.22 Peers 25.28

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 1.87 Peers 1.67   RTN 3.53 Peers 5.61

Premium. 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 premium 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

 

 

Latest Stock Upgrades/Downgrades