RTX (Update)
Raytheon Technologies Corporation
Industrial/Transportation
04/09/2019
Presented
| Date | 04/04/2019 |
| Price | $84.05 |
| Market Cap | $72.48B |
| Ent Value | $88.19B |
| P/E Ratio | 20.26x |
| Book Value | $44.63 |
| Div Yield | 2.22% |
| Shares O/S | 862.33M |
| Ave Daily Vol | 4,385,757 |
| Short Int | 0.93% |
Current
| Price | $125.03 |
| Market Cap | $166.32B |
| Raytheon Technologies Corporation, an aerospace and defense company, provides advanced systems and services for commercial, military, and government customers worldwide. It operates through four segments: Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space, and Raytheon Missiles & Defense. The Collins Aerospace Systems segment offers aerostructures, avionics, interiors, mechanical systems, mission systems, and power controls that serve customers in the commercial, regional, business aviation, and military sectors. The Pratt & Whitney segment designs, manufactures, and services aircraft engines and auxiliary power systems for commercial, military, and business aircraft. The Raytheon Intelligence & Space segment engages in developing various sensors, training, and cyber and software solutions. The Raytheon Missiles & Defense segment provides various advanced end-to-end solutions to detect, track, and engage threats. The company was incorporated in 1934 and is headquartered in Waltham, Massachusetts. |
Please note, this is an update to United Technologies Corp (UTX) - Long, which was first presented on 8/14/18.
Please note, on 04/03/20 United Technologies (UTX) and Raytheon Company (RTN) merged to create a new entity, Raytheon Technologies Corporation (RTX). As this was originally a UTX idea, presented data has been adjusted accordingly. The content of this idea will make reference to the original company name and ticker symbol.
Publicly traded companies mentioned herein: Airbus SE (AIR FP), Boeing (BA), Johnson Controls (JCI), Kone (KNEBV FH), Lennox International (LII), Safran SA (SAF FP), Schindler Group (SCHN SW), TransDigm Group (TGD), United Technologies Corp (UTX),
Highlights
The presenter is long shares of United Technologies Corp (UTX), with expectations that the upcoming three-way separation of the company’s elevator, HVAC, and aerospace divisions can unlock value, particularly in the aerospace business. In the presenter’s view, UTX “missed the entire multiple rerating in the industrial space over the past couple of years.'' While the valuation of their comps have increased (e.g. Boeing’s NTM EV/EBITDA increased from 8x to 15x), UTX still trades at 11x. The presenter sees significant upside to ~ $190 as the company approaches the separation in 2020.
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