RTX ASCHIX:RTXC 89 Return-on-Tangible-Equity is 20.47% as of Mar. 2026, which is 18% above its 10-year median of 17.36. GuruFocus rates CHIX:RTXC with a GF Score™ of 89/100 and a GF Value™ of kr139.87. The stock has 3 warning signs investors should review. Among 2,377 Hardware companies, RTX AS ranks better than 50.27% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. RTX AS's annualized net income for the quarter that ended in Mar. 2026 was kr42.5 Mil. RTX AS's average shareholder tangible equity for the quarter that ended in Mar. 2026 was kr207.6 Mil. Therefore, RTX AS's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 20.47%.
The historical rank and industry rank for RTX AS's Return-on-Tangible-Equity or its related term are showing as below:
CHIX:RTXc'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -10.87 Med: 17.36 Max: 25.28
Current: 5.34
During the past 13 years, RTX AS's highest Return-on-Tangible-Equity was 25.28%. The lowest was -10.87%. And the median was 17.36%.
CHIX:RTXc's Return-on-Tangible-Equity is ranked better than 50.27% of 2377
companies
in the Hardware industry
Industry Median: 5.27
vs CHIX:RTXc: 5.34
RTX AS (CHIX:RTXc) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
RTX AS Return-on-Tangible-Equity Related Terms
RTX AS Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for RTX AS's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CHIX:RTXC vs CSCO, CIEN, MSI: Return-on-Tangible-Equity Comparison
For the Communication Equipment subindustry, RTX AS's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
RTX AS Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, RTX AS's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where RTX AS's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 20.47% mean?
RTX AS (CHIX:RTXC) has a Return-on-Tangible-Equity of 20.47% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on RTX AS and its competitors. This is 18% above median its historical median of 17.36. According to the industry distribution chart, RTX AS ranks #1182 out of 2377 companies in the Hardware industry, placing it in the top 49.7%.
Is RTX AS's Return-on-Tangible-Equity too high?
RTX AS's current Return-on-Tangible-Equity of 20.47% is 18% above median its 10-year median of 17.36. The Hardware industry median Return-on-Tangible-Equity is 5.27. RTX AS's value of 20.47% is 288.4% above this industry median. Based on the distribution chart, RTX AS ranks #1182 out of 2377 companies in the Hardware industry, which is above the industry midpoint. Overall, RTX AS has a GF Score™ of 89/100, reflecting its overall financial health beyond just this single metric.
How does RTX AS's Return-on-Tangible-Equity compare to CSCO and CIEN?
According to the Hardware industry distribution chart, RTX AS ranks #1182 out of 2377 companies for Return-on-Tangible-Equity. This puts RTX AS in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.27. RTX AS's value of 20.47% is 288.4% above this benchmark. While the company's 10-year median is 17.36 vs. the industry median of 5.27, RTX AS has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.27, based on 2,377 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. RTX AS's current Return-on-Tangible-Equity of 20.47% is 288.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on RTX AS and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RTX AS's current Return-on-Tangible-Equity is 20.47%, which is 18% above median its own 10-year median of 17.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RTX AS stock overvalued right now?
RTX AS (CHIX:RTXC) has a current Return-on-Tangible-Equity of 20.47%. The stock's GF Value™ is kr139.87, compared to a current price of kr158.80 — trading 13.5% above its estimated fair value. The current Return-on-Tangible-Equity is 20.47%, which is 18% above median its 10-year median of 17.36 and 288.4% above the Hardware industry median of 5.27. RTX AS's overall GF Score™ is 89/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For RTX AS (CHIX:RTXC), the current Return-on-Tangible-Equity is 20.47% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is RTX AS (CHIX:RTXC) Overvalued in 2026?
Based on GuruFocus' analysis, RTX AS stock appears to be overvalued.
The current stock price of kr158.80 is trading 13.5% above its estimated GF Value™ of kr139.87.
Key valuation signals for CHIX:RTXC:
Return-on-Tangible-Equity: 20.47% (18% above median its 10-year median of 17.36)
GF Value™: kr139.87 vs. price of kr158.80 (13.5% above fair value)
Industry Position: 288.4% above the Hardware median (#1182 of 2377)
No single metric tells the full story. See the CHIX:RTXC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RTX AS is engaged in the design, development, and production of wireless communication solutions rooted in a combination of software and hardware. It delivers turnkey solutions to globally recognized B2B customers. Its operating segment includes Enterprise, ProAudio, and Healthcare. In Enterprise, the company designs, develops, and supplies wireless IP telephony products and sub-systems. In ProAudio, it designs, develops, and manufactures wireless audio solutions. In Healthcare, the company builds wireless technology into modern healthcare services, providing patient monitoring solutions and wireless communication infrastructure for high-tech medical devices. The company has a presence in Denmark, the USA, Hong Kong, France, Germany, and other countries.
89GF Score
Get the complete analysis for CHIX:RTXC
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
CHIX:RTXC has been successfully added to your 
