Raytheon Co

Find Ratings Reports
RTN : NYSE : Industrial Goods
$184.94 up 0.14 | 0.076%
Today's Range: 184.41 - 185.23
Avg. Daily Volume: 1307800.0
09/21/17 - 2:44 PM ET

Financial Analysis

RAYTHEON CO's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.83% from the same quarter last year.

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 Q2 FY17 Q2 FY16
Net Sales ($mil)6281.06029.0
EBITDA ($mil)982.0937.0
EBIT ($mil)849.0814.0
Net Income ($mil)553.0717.0

Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)2585.02719.0
Total Assets ($mil)30229.029098.0
Total Debt ($mil)5047.05333.0
Equity ($mil)10815.010316.0

Profitability Q2 FY17 Q2 FY16
Gross Profit Margin27.5327.07
EBITDA Margin15.6315.54
Operating Margin13.5213.5
Sales Turnover0.810.82
Return on Assets7.057.43
Return on Equity19.6720.85
Debt Q2 FY17 Q2 FY16
Current Ratio1.661.64
Interest Expense51.058.0
Interest Coverage16.6514.03

Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)290.0295.1
Div / share1.60.73
Book value / share37.2934.96
Institutional Own % n/a n/a
Avg Daily Volume1301817.01516127.0


BUY. RAYTHEON CO's P/E ratio indicates a discount compared to an average of 28.73 for the Aerospace & Defense industry and a value on par with the S&P 500 average of 24.88. To use another comparison, its price-to-book ratio of 4.86 indicates a significant premium versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 15.67. The current price-to-sales ratio is similar to the S&P 500 average, but it is above the industry average, indicating a premium. 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 25.01 Peers 28.73   RTN 20.92 Peers 16.61

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
RTN 21.46 Peers 22.45   RTN 11.63 Peers 4.78

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RTN 4.86 Peers 15.67   RTN 1.25 Peers 64.10

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 2.14 Peers 1.86   RTN 2.54 Peers 3.76

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