Is RTX a high-quality business?

AlphaMadera's AlphaQuality grade scores RTX Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how RTX compares to a Buffett-style quality bar.

What is RTX Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to RTX based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes RTX a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

RTX - RTX Corporation

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $224.89 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

B- 65.6 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

C- 44.4

5yr Avg ROIC 4.5% 32/100
Operating Margin Trend +0.58 pp/yr 72/100

Capital Efficiency

Weight: 15%

B- 62.4

5yr Avg ROE 7.3% 46/100
5yr Share-Count CAGR -2.6% 92/100

Growth Quality

Weight: 10%

A- 86.4

5yr Revenue CAGR 8.3% 76/100
5yr EPS CAGR 18.0% 92/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 15%

B+ 76.0

5yr FCF Margin 7.1% 58/100
5yr FCF/NI Conversion 1.14x 98/100

Balance Sheet

Weight: 25%

C+ 61.1

Net Debt / EBITDA 2.49x 60/100
Interest Coverage (EBIT/Int) 4.84x 63/100
Altman Z-Score 2.59 60/100

Stability

Weight: 20%

B 70.9

EPS Volatility (σ/μ) 0.40 43/100
Piotroski F-Score 8 89/100
Negative-Revenue Years (5) 0/5 100/100

4 of 4 gurus held; 1 added; 3 trimmed.

Holders: 4
Avg Δ position: -46.4%
New buys: 0
Full exits: 0

Wood decreased -81%
Cooperman decreased -75%
Tepper decreased -32%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (10%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.