RTX

Raytheon Technologies Corporation

Industrial/Transportation


Presented:12/06/2019
Price:$92.50
Cap:$79.84B
Current Price:$125.03
Cap:$166.32B

Presented

Date12/06/2019
Price$92.50
Market Cap$79.84B
Ent Value$94.34B
P/E Ratio24.84x
Book Value$46.88
Div Yield2%
Shares O/S863.10M
Ave Daily Vol2,768,235
Short Int0.92%

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, 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: Raytheon (RTN), ThyssenKrupp AG (TKA GR), United Technologies Corporation (UTX)

Highlights

The presenter is long shares of United Technologies (UTX), as he is bullish on the setup of the company’s split into three businesses: Otis, an elevator manufacturer; Carrier, an HVAC manufacturer; and Collins and Pratt & Whitney, the aerospace and defense businesses that are going to merge with Raytheon (RTN) in an all-stock deal in H1’20. He believes that the split will unlock the value of the three businesses. The stock is currently trading at $147 per share and 11.25x forward EV/EBITDA. His SOTP model suggests 20% - 30% upside with additional upside from incremental strategic opportunities.

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Idea Discussion

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