Raytheon Co

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RTN : NYSE : Industrial Goods
$169.37 up 0.59 | 0.35%
Today's Range: 167.63 - 169.49
Avg. Daily Volume: 1398200.0
07/21/17 - 4:02 PM ET

Financial Analysis


RAYTHEON CO's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.56% from the same quarter last year.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)6000.05802.0
EBITDA ($mil)871.0737.0
EBIT ($mil)741.0613.0
Net Income ($mil)506.0428.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)2586.02645.0
Total Assets ($mil)29869.028829.0
Total Debt ($mil)5337.05332.0
Equity ($mil)10384.010124.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin26.6725.59
EBITDA Margin14.5112.7
Operating Margin12.3510.57
Sales Turnover0.810.82
Return on Assets7.666.76
Return on Equity22.019.13
Debt Q1 FY17 Q1 FY16
Current Ratio1.671.63
Debt/Capital0.340.35
Interest Expense58.058.0
Interest Coverage12.7810.57


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)291.0296.9
Div / share0.00.67
EPS1.731.43
Book value / share35.6834.1
Institutional Own % n/a n/a
Avg Daily Volume1419729.01661632.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 23.48 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 24.41. To use another comparison, its price-to-book ratio of 4.66 indicates a significant premium versus the S&P 500 average of 3.04 and a significant discount versus the industry average of 277.65. 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 21.46 Peers 23.48   RTN 19.54 Peers 17.26

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.

 

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 premium 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 19.87 Peers 22.02   RTN 40.49 Peers 10.22

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RTN 4.66 Peers 277.65   RTN 20.93 Peers 23.84

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 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 1.99 Peers 1.80   RTN 2.29 Peers 5.37

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

 

 

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