Raytheon Co

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RTN : NYSE : Industrial Goods
$136.13 -0.41 | -0.30%
Today's Range: 134.44 - 137.17
Avg. Daily Volume: 1,555,900
09/30/16 - 4:02 PM ET

Financial Analysis

RAYTHEON CO's gross profit margin for the second quarter of its fiscal year 2016 has increased 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 2.58% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)6035.05848.0
EBITDA ($mil)925.0792.0
EBIT ($mil)802.0676.0
Net Income ($mil)709.0505.0

Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)2719.02494.0
Total Assets ($mil)29098.028437.0
Total Debt ($mil)5333.05333.0
Equity ($mil)10316.010056.0

Profitability Q2 FY16 Q2 FY15
Gross Profit Margin26.8424.61
EBITDA Margin15.3213.54
Operating Margin13.2911.56
Sales Turnover0.820.8
Return on Assets7.47.57
Return on Equity20.7821.34
Debt Q2 FY16 Q2 FY15
Current Ratio1.641.54
Interest Expense58.059.0
Interest Coverage13.8311.46

Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)295.1304.0
Div / share0.730.67
Book value / share34.9633.08
Institutional Own % n/a n/a
Avg Daily Volume1700498.01883123.0


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.95 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 25.19. Conducting a second comparison, its price-to-book ratio of 3.99 indicates a premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 31.11. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
RTN 19.56 Peers 24.95   RTN 13.81 Peers 15.47

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
RTN 18.00 Peers 19.48   RTN 2.02 Peers 3.31

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.


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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RTN 3.99 Peers 31.11   RTN 2.73 Peers 203.59

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RTN 1.72 Peers 1.55   RTN 5.08 Peers 4.07

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.


Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

RTN has a sales growth rate that exceeds its peers.



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