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United Technologies

DB:UTC1
Snowflake Description

Established dividend payer with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
UTC1
DB
$116B
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

United Technologies Corporation provides technology products and services to building systems and aerospace industries worldwide. The last earnings update was 79 days ago. More info.


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UTC1 Share Price and Events
7 Day Returns
1.9%
DB:UTC1
0.8%
Europe Aerospace & Defense
2.8%
DE Market
1 Year Returns
8.9%
DB:UTC1
11.7%
Europe Aerospace & Defense
3%
DE Market
UTC1 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
United Technologies (UTC1) 1.9% -2% 2.7% 8.9% 33.2% 54.9%
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
  • UTC1 underperformed the Aerospace & Defense industry which returned 11.7% over the past year.
  • UTC1 outperformed the Market in Germany which returned 3% over the past year.
Price Volatility
UTC1
Industry
5yr Volatility vs Market

UTC1 Value

 Is United Technologies 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 United Technologies 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 United Technologies.

DB:UTC1 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 18 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.8%
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:UTC1
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%) (41.36%))
1.098
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.098 * 5.96%)
6.77%

Discounted Cash Flow Calculation for DB:UTC1 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for United Technologies 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:UTC1 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.77%)
2020 7,108.18 Analyst x11 6,657.37
2021 8,633.00 Analyst x5 7,572.68
2022 9,206.75 Analyst x4 7,563.76
2023 9,889.33 Analyst x3 7,609.26
2024 10,351.67 Est @ 4.68% 7,459.84
2025 10,697.51 Est @ 3.34% 7,220.14
2026 10,955.00 Est @ 2.41% 6,925.00
2027 11,147.08 Est @ 1.75% 6,599.52
2028 11,291.52 Est @ 1.3% 6,261.05
2029 11,401.66 Est @ 0.98% 5,921.16
Present value of next 10 years cash flows $69,789.00
DB:UTC1 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $11,401.66 × (1 + 0.23%) ÷ (6.77% – 0.23%)
$174,636.13
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $174,636.13 ÷ (1 + 6.77%)10
$90,692.79
DB:UTC1 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $69,789.00 + $90,692.79
$160,481.79
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $160,481.79 / 854.06
$187.9
DB:UTC1 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:UTC1 represents 0.89342x of NYSE:UTX
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.89342x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 187.90 x 0.89342
€167.88
Value per share (EUR) From above. €167.88
Current discount Discount to share price of €121.64
= -1 x (€121.64 - €167.88) / €167.88
27.5%

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

Current Discount
Amount off the current price United Technologies is available for.
Intrinsic value
28%
Share price is €121.64 vs Future cash flow value of €167.88
Current Discount Checks
For United Technologies to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • United Technologies's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • United Technologies'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 United Technologies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are United Technologies's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:UTC1 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $6.21
NYSE:UTX Share Price ** NYSE (2019-10-11) in USD $136.15
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 United Technologies.

DB:UTC1 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

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

= 136.15 ÷ 6.21

21.92x

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

  • United Technologies is overvalued based on earnings compared to the Europe Aerospace & Defense industry average.
  • United Technologies is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does United Technologies's expected growth come at a high price?
Raw Data
DB:UTC1 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.92x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts
11.3%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:UTC1 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.92x ÷ 11.3%

1.93x

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

  • United Technologies is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on United Technologies's assets?
Raw Data
DB:UTC1 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $47.70
NYSE:UTX Share Price * NYSE (2019-10-11) in USD $136.15
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:UTC1 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 136.15 ÷ 47.70

2.85x

* Primary Listing of United Technologies.

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

  • United Technologies is overvalued based on assets compared to the Europe Aerospace & Defense industry average.
X
Value checks
We assess United Technologies'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. United Technologies has a total score of 1/6, 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.

UTC1 Future Performance

 How is United Technologies expected to perform in the next 1 to 3 years based on estimates from 18 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
11.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is United Technologies expected to grow at an attractive rate?
  • United Technologies's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • United Technologies's earnings growth is positive but not above the Germany market average.
  • United Technologies's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:UTC1 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:UTC1 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts 11.3%
DB:UTC1 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 4.4%
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:UTC1 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:UTC1 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 92,195 11,596 9,180 2
2022-12-31 86,637 11,091 8,636 3
2021-12-31 84,053 10,820 8,631 9
2020-12-31 80,500 9,248 7,529 17
2019-12-31 76,944 7,303 6,327 18
2019-10-13
DB:UTC1 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 72,553 7,378 5,170
2019-03-31 69,624 7,369 5,318
2018-12-31 66,501 6,322 5,269
2018-09-30 64,137 6,838 4,980
2018-06-30 62,689 5,047 5,072
2018-03-31 61,264 5,091 4,463
2017-12-31 59,837 5,631 4,552
2017-09-30 58,816 4,909 5,179
2017-06-30 58,108 6,876 5,292
2017-03-31 57,702 6,302 5,279
2016-12-31 57,244 3,880 5,065
2016-09-30 56,885 4,719 3,785

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • United Technologies's earnings are expected to grow by 11.3% yearly, however this is not considered high growth (20% yearly).
  • United Technologies's revenue is expected to grow by 4.4% 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:UTC1 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 18 Analyst Estimates (S&P Global) See Below

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

DB:UTC1 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 10.32 10.40 10.24 2.00
2022-12-31 9.71 9.80 9.61 2.00
2021-12-31 9.03 9.57 8.79 6.00
2020-12-31 8.39 8.95 7.49 12.00
2019-12-31 7.38 8.00 6.02 12.00
2019-10-13
DB:UTC1 Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 6.21
2019-03-31 6.52
2018-12-31 6.58
2018-09-30 6.30
2018-06-30 6.42
2018-03-31 5.66
2017-12-31 5.76
2017-09-30 6.53
2017-06-30 6.61
2017-03-31 6.51
2016-12-31 6.19
2016-09-30 4.57

*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.
  • United Technologies is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess United Technologies'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.
United Technologies has a total score of 1/6, 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.

UTC1 Past Performance

  How has United Technologies 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 United Technologies'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.
  • United Technologies's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • United Technologies's 1-year earnings growth exceeds its 5-year average (1.9% vs -3%)
  • United Technologies's earnings growth has not exceeded the Europe Aerospace & Defense industry average in the past year (1.9% vs 16.4%).
Earnings and Revenue History
United Technologies'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 United Technologies Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:UTC1 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 72,553.00 5,170.00 6,565.00 2,790.00
2019-03-31 69,624.00 5,318.00 6,263.00 2,636.00
2018-12-31 66,501.00 5,269.00 6,029.00 2,462.00
2018-09-30 64,137.00 4,980.00 6,057.00 2,359.00
2018-06-30 62,689.00 5,072.00 6,015.00 2,365.00
2018-03-31 61,264.00 4,463.00 5,932.00 2,395.00
2017-12-31 59,837.00 4,552.00 5,856.00 2,427.00
2017-09-30 58,816.00 5,179.00 6,185.00 2,423.00
2017-06-30 58,108.00 5,292.00 6,124.00 2,413.00
2017-03-31 57,702.00 5,279.00 6,111.00 2,382.00
2016-12-31 57,244.00 5,065.00 6,007.00 2,376.00
2016-09-30 56,885.00 3,785.00 5,829.00 2,322.00
2016-06-30 56,319.00 3,769.00 5,798.00 2,286.00
2016-03-31 56,135.00 3,804.00 5,773.00 2,256.00
2015-12-31 56,098.00 3,996.00 5,886.00 2,279.00
2015-09-30 56,778.00 5,530.00 5,881.00 2,292.00
2015-06-30 57,603.00 5,858.00 6,023.00 2,386.00
2015-03-31 56,475.00 6,217.00 6,052.00 2,415.00
2014-12-31 57,900.00 6,066.00 6,172.00 2,475.00
2014-09-30 59,679.00 6,237.00 6,273.00 2,509.00
2014-06-30 60,528.00 5,897.00 6,405.00 2,499.00
2014-03-31 62,972.00 5,629.00 6,687.00 2,543.00
2013-12-31 56,600.00 5,265.00 6,364.00 2,342.00
2013-09-30 62,310.00 5,182.00 6,933.00 2,583.00
2013-06-30 61,890.00 5,014.00 6,872.00 2,543.00
2013-03-31 59,691.00 4,928.00 6,599.00 2,437.00
2012-12-31 57,708.00 4,847.00 6,452.00 2,371.00

*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.
  • United Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • United Technologies used its assets more efficiently than the Europe Aerospace & Defense industry average last year based on Return on Assets.
  • United Technologies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess United Technologies'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.
United Technologies has a total score of 2/6, 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.

UTC1 Health

 How is United Technologies'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 United Technologies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • United Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • United Technologies's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of United Technologies'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 not covered by short term assets, assets are 0.8x 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 United Technologies Company Filings, last reported 3 months ago.

DB:UTC1 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 43,086.00 45,166.00 6,819.00
2019-03-31 42,055.00 45,100.00 6,240.00
2018-12-31 40,719.00 45,537.00 6,152.00
2018-09-30 34,375.00 39,943.00 13,799.00
2018-06-30 33,476.00 28,309.00 11,068.00
2018-03-31 32,627.00 27,347.00 7,667.00
2017-12-31 31,552.00 27,485.00 8,985.00
2017-09-30 32,120.00 27,260.00 8,523.00
2017-06-30 30,561.00 26,626.00 9,345.00
2017-03-31 29,579.00 24,582.00 7,156.00
2016-12-31 29,465.00 23,901.00 7,157.00
2016-09-30 31,079.00 22,665.00 7,107.00
2016-06-30 30,962.00 22,537.00 6,785.00
2016-03-31 30,030.00 23,051.00 7,215.00
2015-12-31 28,966.00 20,425.00 7,075.00
2015-09-30 32,183.00 22,667.00 5,477.00
2015-06-30 32,072.00 22,443.00 5,933.00
2015-03-31 30,302.00 21,993.00 5,281.00
2014-12-31 32,704.00 19,701.00 5,229.00
2014-09-30 35,530.00 19,998.00 5,035.00
2014-06-30 35,339.00 20,072.00 4,962.00
2014-03-31 33,832.00 20,043.00 4,477.00
2013-12-31 33,330.00 20,241.00 4,619.00
2013-09-30 30,043.00 21,188.00 4,621.00
2013-06-30 28,543.00 21,656.00 4,909.00
2013-03-31 27,818.00 22,824.00 4,767.00
2012-12-31 27,307.00 23,221.00 4,819.00
  • United Technologies's level of debt (104.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (56.8% vs 104.8% today).
  • Debt is not well covered by operating cash flow (16.3%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.1x coverage).
X
Financial health checks
We assess United Technologies'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. United Technologies has a total score of 2/6, 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.

UTC1 Dividends

 What is United Technologies'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
2.16%
Current annual income from United Technologies dividends. Estimated to be 2.28% next year.
If you bought €2,000 of United Technologies shares you are expected to receive €43 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?
  • United Technologies's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • United Technologies's dividend is below the markets top 25% of dividend payers in Germany (3.86%).
Upcoming dividend payment

Purchase United Technologies before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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:UTC1 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 18 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:UTC1 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 3.66 1.00
2022-12-31 3.21 2.00
2021-12-31 3.25 7.00
2020-12-31 3.10 12.00
2019-12-31 2.97 12.00
2019-10-13
DB:UTC1 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-10-10 2.940 2.177
2019-06-10 2.940 2.244
2019-04-29 2.940 2.195
2019-02-04 2.940 2.285
2019-01-23 2.940 2.505
2018-06-13 2.800 2.219
2018-04-30 2.800 2.247
2018-02-05 2.800 2.206
2017-10-11 2.800 2.246
2017-06-14 2.800 2.371
2017-04-25 2.640 2.190
2017-02-06 2.640 2.347
2016-10-12 2.640 2.466
2016-06-08 2.640 2.538
2016-04-25 2.640 2.604
2016-02-08 2.560 2.639
2015-10-14 2.560 2.729
2015-06-10 2.560 2.579
2015-04-27 2.560 2.186
2015-02-02 2.560 2.149
2014-10-08 2.360 2.139
2014-06-11 2.360 2.152
2014-04-28 2.360 2.019
2014-02-03 2.360 2.047
2013-10-09 2.356 2.143
2013-06-12 2.140 2.097
2013-04-29 2.140 2.266
2013-02-04 2.140 2.329
2012-10-10 2.140 2.641
2012-06-13 2.140 2.784
2012-04-11 1.920 2.497
2012-02-06 1.920 2.311
2011-10-12 1.920 2.533
2011-06-08 1.920 2.477
2011-04-13 1.920 2.215
2011-02-07 1.700 2.042
2010-10-13 1.700 2.190
2010-06-09 1.700 2.466
2010-04-14 1.700 2.402
2010-02-08 1.700 2.397
2009-10-14 1.540 2.269
2009-06-10 1.540 2.723
2009-04-08 1.540 3.038
2009-02-09 1.540 3.599

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 United Technologies's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).
X
Income/ dividend checks
We assess United Technologies'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 United Technologies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. United Technologies 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.

UTC1 Management

 What is the CEO of United Technologies'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
Greg Hayes
COMPENSATION $18,418,315
AGE 58
TENURE AS CEO 4.9 years
CEO Bio

Mr. Gregory J. Hayes, also known as Greg, has been the Chief Executive Officer and President at United Technologies Corporation since November 23, 2014 and has been its Chairman of the Board since September 14, 2016. He is the Chief Executive Officer of United Technologies Corporation and President of United Technologies Corporation at Sikorsky Aircraft Corporation. Mr. Hayes served as the Chief Financial Officer at United Technologies Corporation from September, 2008 to November 23, 2014. Mr. Hayes served as a Senior Vice President at United Technologies Corporation from September 2008 to November 23, 2014. He served as a Vice President of Accounting & Finance for United Technologies Corp., from 2006 to September 2008, Vice President of Accounting & Control since February 2004 and Controller from April 1, 2003 to August 15, 2007. He served as a Vice President of Financial Planning and Analysis at United Technologies Corp. since January 2002 and its Vice President since April 1, 2003. He served as Treasury of Hamilton Sundstrand, Director of Financial Planning & Controller of Aerospace, Hamilton Sundstrand and Vice President of Finance, Sundstrand Aerospace at United Technologies Corp. He joined United Technologies Corp., in 1989 and served as its Chief Accounting Officer from 2006 to December 31, 2010. He has been an Independent Director of United Technologies Corporation since November 23, 2014. His Various senior positions since joining UTC in 1999 through the merger with Sundstrand Corporation, including Vice President, Accounting and Finance, and responsibility for UTC’s Corporate Strategy group. He was also employed at Arthur Andersen & Co. Mr. Hayes is a Certified Public Accountant and holds a Bachelor's Degree in Economics from Purdue University in 1982. He was Independent Director of Nucor Corporation from February 2014 to May 10, 2018.

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

Average tenure and age of the United Technologies management team in years:

0.9
Average Tenure
55
Average Age
  • The average tenure for the United Technologies management team is less than 2 years, this suggests a new team.
Management Team

Greg Hayes

TITLE
Chairman
COMPENSATION
$18M
AGE
58
TENURE
4.9 yrs

Akhil Johri

TITLE
Executive VP & CFO
COMPENSATION
$6M
AGE
58
TENURE
4.8 yrs

Dave Gitlin

TITLE
President & CEO of Carrier
COMPENSATION
$6M
AGE
50
TENURE
0.9 yrs

Judy Marks

TITLE
President & CEO of Otis
COMPENSATION
$7M
AGE
55
TENURE
0.3 yrs

Kelly Ortberg

TITLE
Chief Executive Officer of Collins Aerospace
COMPENSATION
$10M
AGE
59
TENURE
0.9 yrs

Sharat Dua

TITLE
Head of Finance

Mike Dumais

TITLE
Executive VP of Operations & Strategy
AGE
52
TENURE
2.8 yrs

Robin Diamonte

TITLE
Chief Investment Officer & VP of Pension Investments
AGE
54

Nicolas Pujet

TITLE
Interim Chief Technology Officer
TENURE
0.1 yrs

Carroll Lane

TITLE
Vice President of Investor Relations
Board of Directors Tenure

Average tenure and age of the United Technologies board of directors in years:

3.8
Average Tenure
66.5
Average Age
  • The tenure for the United Technologies board of directors is about average.
Board of Directors

Greg Hayes

TITLE
Chairman
COMPENSATION
$18M
AGE
58
TENURE
3.1 yrs

JP Garnier

TITLE
Independent Director
COMPENSATION
$326K
AGE
72
TENURE
22.8 yrs

John Faraci

TITLE
Independent Director
COMPENSATION
$326K
AGE
69
TENURE
13.8 yrs

Ellen Kullman

TITLE
Lead Director
COMPENSATION
$381K
AGE
63

Brian Rogers

TITLE
Independent Director
COMPENSATION
$326K
AGE
64
TENURE
3.8 yrs

Fred Reynolds

TITLE
Independent Director
COMPENSATION
$341K
AGE
68
TENURE
3.8 yrs

Terry McGraw

TITLE
Independent Director
COMPENSATION
$301K
AGE
71
TENURE
15.8 yrs

Marshall Larsen

TITLE
Independent Director
COMPENSATION
$331K
AGE
71
TENURE
7.1 yrs

Lloyd Austin

TITLE
Independent Director
COMPENSATION
$336K
AGE
65
TENURE
3.1 yrs

Diane Bryant

TITLE
Independent Director
COMPENSATION
$331K
AGE
57
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 (€)
18. Mar 19 Sell Robert Bailey Individual 15. Mar 19 15. Mar 19 -1,418 €111.46 €-158,050
01. Mar 19 Sell Robert Ortberg Individual 28. Feb 19 28. Feb 19 -16,587 €111.16 €-1,843,824
22. Feb 19 Sell David Gitlin Individual 20. Feb 19 20. Feb 19 -7,200 €112.90 €-812,855
15. Feb 19 Sell Elizabeth Amato Individual 14. Feb 19 14. Feb 19 -10,089 €109.83 €-1,108,124
07. Feb 19 Sell Robert Bailey Individual 06. Feb 19 06. Feb 19 -862 €106.97 €-92,211
X
Management checks
We assess United Technologies'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. United Technologies 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.

UTC1 News

Simply Wall St News

UTC1 Company Info

Description

United Technologies Corporation provides technology products and services to building systems and aerospace industries worldwide. Its Otis segment designs, manufactures, sells, and installs passenger and freight elevators, escalators, and moving walkways; and offers modernization products to upgrade elevators and escalators, as well as maintenance and repair services. The company’s Carrier segment provides heating, ventilating, air conditioning, refrigeration, fire, security, and building automation products, solutions, and services for commercial, government, infrastructure, residential, and refrigeration and transportation applications. This segment also offers building services, including audit, design, installation, system integration, repair, maintenance, and monitoring. Its Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation markets; and provides aftermarket maintenance, repair, and overhaul, as well as fleet management services. The company’s Collins Aerospace Systems segment provides electric power generation, power management, and distribution systems; air data and aircraft sensing systems; engine control, intelligence, surveillance, and reconnaissance systems; engine components; environmental control systems; fire and ice detection, and protection systems; propeller systems; engine nacelle systems; aircraft lighting, seating, and cargo systems; actuation and landing systems; space products and subsystems; avionics systems; flight controls, communications, navigation, oxygen, and training systems; food and beverage preparation, and storage and galley systems; and lavatory and wastewater management systems. The company offers its services through manufacturers’ representatives, distributors, wholesalers, dealers, retail outlets, and sales representatives, as well as directly to customers. United Technologies Corporation was founded in 1934 and is headquartered in Farmington, Connecticut.

Details
Name: United Technologies Corporation
UTC1
Exchange: DB
Founded: 1934
$105,233,449,750
854,058,428
Website: http://www.utc.com
Address: United Technologies Corporation
10 Farm Springs Road,
Farmington,
Connecticut, 06032,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE UTX Common Stock New York Stock Exchange US USD 02. Jan 1968
DB UTC1 Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
XTRA UTC1 Common Stock XETRA Trading Platform DE EUR 02. Jan 1968
LSE 0R2N Common Stock London Stock Exchange GB USD 02. Jan 1968
WBAG UTX Common Stock Wiener Boerse AG AT EUR 02. Jan 1968
SNSE UTX Common Stock Santiago Stock Exchange CL USD 02. Jan 1968
BMV UTX * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
BOVESPA UTEC34 EACH BDR REPR 1 COM USD1 Bolsa de Valores de Sao Paulo BR BRL 29. Dec 2014
BASE UTX CEDEARS EACH REP 1/5 COM USD1 (USD) Buenos Aires Stock Exchange AR ARS 19. Jul 2001
Number of employees
Current staff
Staff numbers
240,200
United Technologies employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/13 20:37
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/10/12
Last earnings filing: 2019/07/26
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.