Raytheon Co

Find Ratings Reports
RTN : NYSE : Industrial Goods
$149.12 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1785300.0
12/06/16 - 4:02 PM ET

Financial Analysis

RAYTHEON CO's gross profit margin for the third quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.14% from the same quarter last year.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)6033.05783.0
EBITDA ($mil)936.0828.0
EBIT ($mil)806.0698.0
Net Income ($mil)529.0447.0

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)2804.03061.0
Total Assets ($mil)29452.029249.0
Total Debt ($mil)5334.05334.0
Equity ($mil)10467.010148.0

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin27.3726.02
EBITDA Margin15.5114.31
Operating Margin13.3612.07
Sales Turnover0.820.79
Return on Assets7.597.12
Return on Equity21.2420.48
Debt Q3 FY16 Q3 FY15
Current Ratio1.691.51
Interest Expense58.058.0
Interest Coverage13.912.03

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)293.6301.0
Div / share0.730.0
Book value / share35.6533.71
Institutional Own % n/a n/a
Avg Daily Volume1774601.01710371.0


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.32 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 25.37. Conducting a second comparison, its price-to-book ratio of 4.18 indicates a premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 16.06. 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 20.01 Peers 24.32   RTN 17.28 Peers 16.36

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.


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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
RTN 19.98 Peers 20.74   RTN 1.93 Peers 2.08

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.


Average. 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 valuation on par to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RTN 4.18 Peers 16.06   RTN 10.20 Peers 160.37

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 1.81 Peers 1.62   RTN 4.75 Peers 3.81

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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