RTX
Raytheon Technologies Corporation
Industrial/Transportation, Event Driven/Special Sit
03/15/2018
Presented
| Date | 03/12/2018 |
| Price | $80.76 |
| Market Cap | $64.45B |
| Ent Value | $81.75B |
| P/E Ratio | 23.54x |
| Book Value | $37.05 |
| Div Yield | 2.09% |
| Shares O/S | 798.00M |
| Ave Daily Vol | 4,774,435 |
| Short Int | N/A |
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: 3M Co (MMM), Airbus SE (AIR FP), Boeing Co (BA), Honeywell International Inc (HON), Rockwell Collins Inc (COL), Schindler Holding AG (SCHN SW), thyssenkrupp AG (TKA GR), United Technologies Corp (UTX)
Highlights
The presenter is long shares of United Technologies (UTX), and sees the potential for it to be a “beat and raise" story over the remainder of 2018. He believes management’s guidance for 2018 is conservative ($6.85 - $7.10 of EPS), Street EBITDA estimates fail to adjust for the GTF program, and the GTF program as a whole could flip from a headwind to a tailwind in 2018 (analogous to the evolution of Boeing’s 787 program). On a sum-of-the-parts (SOTP) basis, “it is not difficult” for him to model a fair value in the $175 - $180 range for UTX (representing >30% upside from current levels). At sub-10x his adjusted 2018 EBITDA, UTX stock is “too cheap”.
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