RTX Corporation (RTX): fair value, margin of safety and Wheel Score

Is RTX undervalued?

RTX closed at 186.47 on 16 Oct 2026, more than 30% above the GLS average fair value of 122.56. Only 3 of the 9 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the Sunday Scan drops names like this at the "below fair value" rule.

The 9 models disagree widely: DDM gives 41.49 while Payback Time gives 219.20. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files RTX under Defensive: a low beta, a dividend and positive earnings.

Nine valuation models for RTX

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

On financial health RTX scores 8/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 5.6 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.

Returns on capital are moderate - ROIC 6.4%, ROE 10.3%, ROA 3.9% - with debt at 0.61 times equity and a free-cash-flow yield of 4.5%.

The dividend yield is 1.51% at a payout ratio of 48%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Pratt and Whitney 35%, Raytheon Intelligence & Space 33%, Collins Aerospace Systems 32% (quarter Q2 FY2026).

Institutional ownership scores 10/10, insider activity 2/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 66: Good

RTX scores 66 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 0/25), Piotroski health (18/20), the GLS moat (8/15), the option premium on offer (20/20) and how easily the stock trades (20/20). Value (0/25) is the part holding the score back.

Implied volatility is 35% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 180,870 contracts of open interest across all expiries, which means tight fills at most strikes.

Volume runs at 4.0M shares a day on a market cap of $251.3B, with a beta of 0.31 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 20 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

RTX Corporation reports earnings on 20 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Aerospace & Defense

The 12 companies below are the closest to RTX Corporation by market cap within the Aerospace & Defense industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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