Thoughts on RTX long-term play? Here is brief due diligence I did on them. (At this point I’ve done very little research besides skimming over the 10k)
Raytheon Technologies Inc (RTX) is a leading aerospace and defense company that designs and manufactures a wide range of advanced technologies, including missiles, radars, sensors, and avionics. The company was formed in April 2020 through the merger of Raytheon Company and United Technologies Corporation.
Strong operating cash flow growth. Really the main metric in focusing in on. But the rest of the balance sheet is strong as well as growth in operating income. Obvious Top and bottom line numbers have been growing higher in comparison to the industry. Also with low volatility in since the merger in 2014. Company relies on government contracts which is a risk, but with Ukraine/Russian war this continues to grow even with a democrat in office. If a republican gets elected I expect no issue with consistency in contract revenue. Good yield on dividend.
Read the interest rate risk disclosure in the 10k, they mention even with 100 basis point rate hike the risk isn’t material to the financial statements
Leave a Reply