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Raytheon

DB:RTN1
Snowflake Description

Outstanding track record established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RTN1
DB
$55B
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

Raytheon Company develops integrated products, services, and solutions for the defense and other government markets worldwide. The last earnings update was 80 days ago. More info.


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RTN1 Share Price and Events
7 Day Returns
2.5%
DB:RTN1
0.8%
Europe Aerospace & Defense
2.8%
DE Market
1 Year Returns
9%
DB:RTN1
11.7%
Europe Aerospace & Defense
3%
DE Market
RTN1 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Raytheon (RTN1) 2.5% 0.6% 14.3% 9% 43.4% 137.5%
Europe Aerospace & Defense 0.8% -3.8% 0.9% 11.7% 67.1% 114.9%
DE Market 2.8% 0.2% 1.3% 3% 8% 23.6%
1 Year Return vs Industry and Market
  • RTN1 underperformed the Aerospace & Defense industry which returned 11.7% over the past year.
  • RTN1 outperformed the Market in Germany which returned 3% over the past year.
Price Volatility
RTN1
Industry
5yr Volatility vs Market

Value

 Is Raytheon undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Raytheon to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Raytheon.

DB:RTN1 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5.9%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:RTN1
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.864 (1 + (1- 21%) (10.81%))
0.958
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.96
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.958 * 5.96%)
5.94%

Discounted Cash Flow Calculation for DB:RTN1 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Raytheon is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:RTN1 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 5.94%)
2020 3,853.83 Analyst x10 3,637.77
2021 3,774.63 Analyst x8 3,363.25
2022 4,225.50 Analyst x4 3,553.91
2023 4,223.33 Analyst x3 3,352.95
2024 4,224.83 Est @ 0.04% 3,166.09
2025 4,228.76 Est @ 0.09% 2,991.37
2026 4,234.41 Est @ 0.13% 2,827.44
2027 4,241.27 Est @ 0.16% 2,673.25
2028 4,248.98 Est @ 0.18% 2,527.96
2029 4,257.29 Est @ 0.2% 2,390.90
Present value of next 10 years cash flows $30,484.00
DB:RTN1 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $4,257.29 × (1 + 0.23%) ÷ (5.94% – 0.23%)
$74,711.53
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $74,711.53 ÷ (1 + 5.94%)10
$41,958.21
DB:RTN1 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $30,484.00 + $41,958.21
$72,442.21
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $72,442.21 / 278.49
$260.13
DB:RTN1 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:RTN1 represents 0.9058x of NYSE:RTN
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.9058x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 260.13 x 0.9058
€235.62
Value per share (EUR) From above. €235.62
Current discount Discount to share price of €180.00
= -1 x (€180.00 - €235.62) / €235.62
23.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Raytheon is available for.
Intrinsic value
24%
Share price is €180 vs Future cash flow value of €235.62
Current Discount Checks
For Raytheon to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Raytheon's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Raytheon's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Raytheon's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Raytheon's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:RTN1 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $10.87
NYSE:RTN Share Price ** NYSE (2019-10-11) in USD $198.72
Europe Aerospace & Defense Industry PE Ratio Median Figure of 36 Publicly-Listed Aerospace & Defense Companies 21.4x
Germany Market PE Ratio Median Figure of 417 Publicly-Listed Companies 19.72x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Raytheon.

DB:RTN1 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:RTN Share Price ÷ EPS (both in USD)

= 198.72 ÷ 10.87

18.29x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Raytheon is good value based on earnings compared to the Europe Aerospace & Defense industry average.
  • Raytheon is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Raytheon's expected growth come at a high price?
Raw Data
DB:RTN1 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.29x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
8.7%per year
Europe Aerospace & Defense Industry PEG Ratio Median Figure of 26 Publicly-Listed Aerospace & Defense Companies 1.59x
Germany Market PEG Ratio Median Figure of 265 Publicly-Listed Companies 1.39x

*Line of best fit is calculated by linear regression .

DB:RTN1 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.29x ÷ 8.7%

2.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Raytheon is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Raytheon's assets?
Raw Data
DB:RTN1 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $43.84
NYSE:RTN Share Price * NYSE (2019-10-11) in USD $198.72
Europe Aerospace & Defense Industry PB Ratio Median Figure of 49 Publicly-Listed Aerospace & Defense Companies 1.96x
Germany Market PB Ratio Median Figure of 598 Publicly-Listed Companies 1.74x
DB:RTN1 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:RTN Share Price ÷ Book Value per Share (both in USD)

= 198.72 ÷ 43.84

4.53x

* Primary Listing of Raytheon.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Raytheon is overvalued based on assets compared to the Europe Aerospace & Defense industry average.
X
Value checks
We assess Raytheon's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Raytheon has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Raytheon expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Raytheon expected to grow at an attractive rate?
  • Raytheon's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Raytheon's earnings growth is positive but not above the Germany market average.
  • Raytheon's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:RTN1 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:RTN1 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 8.7%
DB:RTN1 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 5%
Europe Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 14.2%
Europe Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.8%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:RTN1 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:RTN1 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 35,365 4,946 4,501 3
2022-12-31 33,734 4,847 4,422 4
2021-12-31 32,516 4,589 3,952 11
2020-12-31 30,950 4,690 3,612 16
2019-12-31 29,076 4,152 3,298 16
2019-10-13
DB:RTN1 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 28,054 2,400 3,075
2019-03-31 27,520 2,733 3,057
2018-12-31 27,058 3,428 2,910
2018-09-30 26,481 2,619 2,470
2018-07-01 25,959 3,444 2,399
2018-04-01 25,615 3,070 2,153
2017-12-31 25,348 2,745 2,022
2017-10-01 24,844 2,263 2,184
2017-07-02 24,574 2,522 2,154
2017-04-02 24,322 2,485 2,319
2016-12-31 24,124 2,852 2,243
2016-10-02 24,173 2,537 2,246
2016-07-03 23,942 2,998 2,151

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Raytheon's earnings are expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).
  • Raytheon's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:RTN1 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Raytheon Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:RTN1 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 16.26 17.31 15.66 3.00
2022-12-31 15.93 17.20 14.88 4.00
2021-12-31 14.35 14.90 13.58 10.00
2020-12-31 12.97 13.60 12.20 15.00
2019-12-31 11.74 11.90 11.60 15.00
2019-10-13
DB:RTN1 Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 10.87
2019-03-31 10.73
2018-12-31 10.16
2018-09-30 8.58
2018-07-01 8.30
2018-04-01 7.42
2017-12-31 6.95
2017-10-01 7.47
2017-07-02 7.34
2017-04-02 7.87
2016-12-31 7.56
2016-10-02 7.53
2016-07-03 7.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Raytheon is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Raytheon's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Raytheon has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Raytheon performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Raytheon's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Raytheon's year on year earnings growth rate has been positive over the past 5 years.
  • Raytheon's 1-year earnings growth exceeds its 5-year average (28.3% vs 6.7%)
  • Raytheon's earnings growth has exceeded the Europe Aerospace & Defense industry average in the past year (28.3% vs 16.4%).
Earnings and Revenue History
Raytheon's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Raytheon Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:RTN1 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 28,054.00 3,075.00 4,114.00
2019-03-31 27,520.00 3,057.00 4,164.00
2018-12-31 27,058.00 2,910.00 4,177.00
2018-09-30 26,481.00 2,470.00 3,379.00
2018-07-01 25,959.00 2,399.00 3,805.00
2018-04-01 25,615.00 2,153.00 3,730.00
2017-12-31 25,348.00 2,022.00 3,690.00
2017-10-01 24,844.00 2,184.00 3,473.00
2017-07-02 24,574.00 2,154.00 3,225.00
2017-04-02 24,322.00 2,319.00 3,009.00
2016-12-31 24,124.00 2,243.00 3,322.00
2016-10-02 24,173.00 2,246.00 2,818.00
2016-07-03 23,942.00 2,151.00 2,781.00
2016-04-03 23,761.00 1,937.00 2,761.00
2015-12-31 23,321.00 2,097.00 2,614.00
2015-09-27 23,062.00 2,079.00 2,575.00
2015-06-28 22,753.00 2,146.00 2,442.00
2015-03-29 22,606.00 2,141.00 2,408.00
2014-12-31 22,826.00 2,179.00 2,352.00
2014-09-28 22,553.00 2,070.00 2,261.00
2014-06-29 22,921.00 2,042.00 2,272.00
2014-03-30 23,335.00 2,031.00 2,227.00
2013-12-31 23,706.00 1,932.00 2,236.00
2013-09-29 24,275.00 1,931.00 2,851.00 -543.00
2013-06-30 24,478.00 1,945.00 2,689.00 -362.00
2013-03-31 24,355.00 1,929.00 2,497.00 -168.00
2012-12-31 24,414.00 1,889.00 2,333.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Raytheon has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Raytheon used its assets more efficiently than the Europe Aerospace & Defense industry average last year based on Return on Assets.
  • Raytheon has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Raytheon's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Raytheon has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Raytheon's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Raytheon's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Raytheon is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Raytheon's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Raytheon's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Raytheon Company Filings, last reported 3 months ago.

DB:RTN1 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 12,639.00 5,057.00 2,173.00
2019-03-31 12,140.00 5,056.00 2,093.00
2018-12-31 11,883.00 5,055.00 3,608.00
2018-09-30 11,870.00 5,053.00 2,073.00
2018-07-01 11,119.00 5,052.00 3,094.00
2018-04-01 10,729.00 5,051.00 2,748.00
2017-12-31 10,475.00 5,050.00 3,400.00
2017-10-01 11,246.00 5,049.00 2,311.00
2017-07-02 11,164.00 5,047.00 2,577.00
2017-04-02 10,733.00 5,337.00 2,585.00
2016-12-31 10,606.00 5,335.00 3,403.00
2016-10-02 10,833.00 5,334.00 2,804.00
2016-07-03 10,659.00 5,333.00 2,719.00
2016-04-03 10,640.00 5,332.00 2,645.00
2015-12-31 10,685.00 5,330.00 3,200.00
2015-09-27 10,692.00 5,334.00 3,061.00
2015-06-28 10,598.00 5,333.00 2,494.00
2015-03-29 9,906.00 5,331.00 4,140.00
2014-12-31 9,721.00 5,325.00 4,719.00
2014-09-28 11,954.00 4,737.00 4,114.00
2014-06-29 11,894.00 4,736.00 4,176.00
2014-03-30 11,583.00 4,735.00 4,531.00
2013-12-31 11,197.00 4,734.00 4,297.00
2013-09-29 9,011.00 4,733.00 3,897.00
2013-06-30 8,737.00 4,732.00 3,462.00
2013-03-31 8,460.00 4,731.00 4,012.00
2012-12-31 8,190.00 4,731.00 4,044.00
  • Raytheon's level of debt (40%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (39.8% vs 40% today).
  • Debt is well covered by operating cash flow (47.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 25x coverage).
X
Financial health checks
We assess Raytheon's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Raytheon has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Raytheon's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.9%
Current annual income from Raytheon dividends. Estimated to be 2.02% next year.
If you bought €2,000 of Raytheon shares you are expected to receive €38 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Raytheon's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • Raytheon's dividend is below the markets top 25% of dividend payers in Germany (3.86%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:RTN1 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
Europe Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 1.7%
Germany Market Average Dividend Yield Market Cap Weighted Average of 337 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:RTN1 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 4.58 1.00
2022-12-31 4.29 2.00
2021-12-31 4.34 7.00
2020-12-31 4.03 11.00
2019-12-31 3.71 11.00
2019-10-13
DB:RTN1 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-09-26 3.770 1.933
2019-05-30 3.770 2.058
2019-03-20 3.770 2.094
2018-11-14 3.470 2.033
2018-09-27 3.470 1.826
2018-05-31 3.470 1.736
2018-03-21 3.470 1.625
2017-11-15 3.190 1.607
2017-09-28 3.190 1.716
2017-05-25 3.190 1.860
2017-03-29 3.190 2.048
2016-11-16 2.930 1.971
2016-09-22 2.930 2.113
2016-05-26 2.930 2.129
2016-03-23 2.930 2.305
2015-11-18 2.680 2.159
2015-07-23 2.680 2.441
2015-05-28 2.680 2.684
2015-03-18 2.680 2.483
2014-11-19 2.420 2.262
2014-07-23 2.420 2.472
2014-05-29 2.420 2.541
2014-03-19 2.420 2.484
2013-11-20 2.200 2.393
2013-07-24 2.200 2.829
2013-05-30 2.200 3.269
2013-03-20 2.200 3.620
2012-11-14 2.000 3.557
2012-09-19 2.000 3.565
2012-05-31 2.000 3.622
2012-03-21 2.000 3.833
2011-11-16 1.720 3.563
2011-09-22 1.720 4.040
2011-05-27 1.720 3.854
2011-03-23 1.720 3.463
2010-12-07 1.500 3.041
2010-09-23 1.500 3.221
2010-05-27 1.500 3.144
2010-03-24 1.500 2.633
2009-12-09 1.240 2.287
2009-09-24 1.240 2.578
2009-05-28 1.240 2.702
2009-03-25 1.240 2.862
2008-12-10 1.120 2.509

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Raytheon's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).
X
Income/ dividend checks
We assess Raytheon's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Raytheon afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Raytheon has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Raytheon's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tom Kennedy
COMPENSATION $22,420,258
AGE 63
TENURE AS CEO 5.5 years
CEO Bio

Dr. Thomas A. Kennedy, also known as Tom, Ph.D., has served as Chairman of the Board of Raytheon Company since October 2014, Chief Executive Officer since April 2014 and a Director since January 2014. From April 2013 to March 2014, he served as Executive Vice President and Chief Operating Officer of Raytheon Company. From June 2010 to March 2013, he served as Vice President of Raytheon Company and President of the Integrated Defense Systems (IDS) business unit. From July 2007 to June 2010, he was Vice President of the Tactical Airborne Systems product line within the Space and Airborne Systems (SAS) business unit, and from May 2003 to July 2007, he was Vice President of the Mission System Integration product line within SAS. Dr. Kennedy joined Raytheon in 1983 and has held positions of increasing responsibility as a new business leader and program manager for several radar and electronic warfare systems development programs

CEO Compensation
  • Tom's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Tom's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Raytheon management team in years:

4.8
Average Tenure
56
Average Age
  • The tenure for the Raytheon management team is about average.
Management Team

Tom Kennedy

TITLE
Chairman & CEO
COMPENSATION
$22M
AGE
63
TENURE
5.5 yrs

Toby O'Brien

TITLE
VP & CFO
COMPENSATION
$6M
AGE
54
TENURE
4.6 yrs

Dave Wajsgras

TITLE
VP and President of Intelligence
COMPENSATION
$5M
AGE
59

Wesley Kremer

TITLE
VP & President of Missile Systems
COMPENSATION
$5M
AGE
54
TENURE
4.3 yrs

Mike Wood

TITLE
VP, Controller & Chief Accounting Officer
AGE
51
TENURE
13 yrs

Mark Russell

TITLE
Vice President of Engineering
AGE
57
TENURE
11.3 yrs

Kevin Neifert

TITLE
Chief Information Officer
AGE
58
TENURE
3.8 yrs

Kelsey DeBriyn

TITLE
Vice President of Investor Relations
TENURE
1.7 yrs

Fran Jimenez

TITLE
VP, General Counsel & Corporate Secretary
COMPENSATION
$5M
AGE
54
TENURE
4.8 yrs

Pam Wickham

TITLE
Vice President of Corporate Affairs & Communications
AGE
56
TENURE
14.6 yrs
Board of Directors Tenure

Average tenure and age of the Raytheon board of directors in years:

5.1
Average Tenure
62.5
Average Age
  • The tenure for the Raytheon board of directors is about average.
Board of Directors

Tom Kennedy

TITLE
Chairman & CEO
COMPENSATION
$22M
AGE
63
TENURE
5 yrs

Bill Spivey

TITLE
Independent Director
COMPENSATION
$295K
AGE
72
TENURE
20.8 yrs

Steve Hadley

TITLE
Independent Director
COMPENSATION
$305K
AGE
72
TENURE
10.3 yrs

Tracy Atkinson

TITLE
Independent Director
COMPENSATION
$308K
AGE
55
TENURE
5.3 yrs

Tish Long

TITLE
Independent Director
COMPENSATION
$314K
AGE
60
TENURE
4.6 yrs

Vern Clark

TITLE
Lead Director
COMPENSATION
$374K
AGE
74
TENURE
6.4 yrs

George Oliver

TITLE
Independent Director
COMPENSATION
$292K
AGE
59
TENURE
5.9 yrs

Bob Beauchamp

TITLE
Independent Director
COMPENSATION
$373K
AGE
59
TENURE
4.3 yrs

Dinesh Paliwal

TITLE
Independent Director
COMPENSATION
$273K
AGE
62
TENURE
3.1 yrs

Sandy Winnefeld

TITLE
Independent Director
COMPENSATION
$292K
AGE
63
TENURE
2.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
24. Apr 19 Sell Stephen Hadley Individual 22. Apr 19 22. Apr 19 0 €162.09 €-76
X
Management checks
We assess Raytheon's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Raytheon has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Raytheon Company develops integrated products, services, and solutions for the defense and other government markets worldwide. It operates through five segments: Integrated Defense Systems (IDS); Intelligence, Information and Services (IIS); Missile Systems (MS); Space and Airborne Systems (SAS); and Forcepoint. The IDS segment offers integrated air and missile defense; land-and sea-based radar solutions; command, control, communications, computers, cyber, and intelligence solutions; naval combat and ship electronic and sensing systems; and undersea sensing and effects solutions. The IIS segment provides technical and professional services, such as navigation, DoD space and weather solutions, cybersecurity, analytics, training, logistics, mission support, software-based systems, automation and sustainment solutions, and air traffic management systems, as well as intelligence, surveillance, and reconnaissance solutions. The MS segment develops and supports weapon systems comprising missiles, smart munitions, close-in weapon systems, projectiles, kinetic kill vehicles, directed energy effectors, and combat sensor solutions. The SAS segment provides civil and military electro-optical/infrared sensors; airborne radars for surveillance and fire control applications; lasers; precision guidance systems; signals intelligence systems; processors; electronic warfare systems; tactical and strategic communications; and space-qualified systems. The Forcepoint segment offers cyber security products that include risk adaptive data loss prevention; user and entity behavior analytics and cloud access security broker capabilities; insider threat solutions; firewall technology; cloud and on premise Web and email security; and cross domain transfer products. Raytheon Company has a strategic agreement with AirMap to collaborate on future projects to safely integrate drones into the national airspace system. The company was founded in 1922 and is headquartered in Waltham, Massachusetts.

Details
Name: Raytheon Company
RTN1
Exchange: DB
Founded: 1922
$50,083,388,499
278,486,115
Website: http://www.raytheon.com
Address: Raytheon Company
870 Winter Street,
Waltham,
Massachusetts, 02451,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE RTN Common Stock Par Value 0.01 New York Stock Exchange US USD 15. May 2001
DB RTN1 Common Stock Par Value 0.01 Deutsche Boerse AG DE EUR 15. May 2001
LSE 0KU4 Common Stock Par Value 0.01 London Stock Exchange GB USD 15. May 2001
BMV RTN1 * Common Stock Par Value 0.01 Bolsa Mexicana de Valores MX MXN 15. May 2001
Number of employees
Current staff
Staff numbers
67,000
Raytheon employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/13 20:56
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/10/10
Last earnings filing: 2019/07/25
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.