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
Interest Expense58.058.0
Interest Coverage12.7810.57

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


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.

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.

1 2 3 4 5
premium   discount
  Price to
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.

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.

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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