Raytheon Company has kept its focus on shareholder value through incremental dividends and share repurchases. The company increased its annual dividend payout rate by 21% from $1.24 to $1.50 per share. Shareholders of record as of the close of business on Apr 6, 2010 will receive the incremental quarterly cash dividend of $0.375 per share on Apr 29, 2010.
Raytheon's strong balance sheet provides financial flexibility in matters of incremental dividend, ongoing share repurchase and earnings accretive acquisitions. The company in fiscal 2009 repurchased 25.8 million shares for $1.2 billion.
As of fiscal-end 2009, the company had a low debt-to-capitalization of 19.0% (Zacks industry average was 93.2%), total debt of $2.3 billion along with cash holdings of $2.6 billion and unutilized credit facility close to $1.5 billion. Total debt was in the form of fixed rate instruments with coupon rates ranging from 4.4% to 7.2%.
Raytheon ended fiscal 2009 with an order backlog of $36.9 billion compared to $38.9 billion at the end of fiscal 2008. Funded backlog as of fiscal-end 2009 stood at $23.5 billion.
Raytheon is one of the largest aerospace and defense companies in the U.S. It provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services.
We continue to view Raytheon as one of the best positioned companies among the large-cap defense primes due to its non-platform-centric focus, strong order bookings and order backlog, healthy cash flow generation and focus on shareholder value.
We maintain our market Neutral recommendation on the shares. Defense contractors with significant exposure to high-cost platform programs include Lockheed Martin Corporation , Northrop Grumman Corporation , and General Dynamics Corporation
Raytheon's strong balance sheet provides financial flexibility in matters of incremental dividend, ongoing share repurchase and earnings accretive acquisitions. The company in fiscal 2009 repurchased 25.8 million shares for $1.2 billion.
As of fiscal-end 2009, the company had a low debt-to-capitalization of 19.0% (Zacks industry average was 93.2%), total debt of $2.3 billion along with cash holdings of $2.6 billion and unutilized credit facility close to $1.5 billion. Total debt was in the form of fixed rate instruments with coupon rates ranging from 4.4% to 7.2%.
Raytheon ended fiscal 2009 with an order backlog of $36.9 billion compared to $38.9 billion at the end of fiscal 2008. Funded backlog as of fiscal-end 2009 stood at $23.5 billion.
Raytheon is one of the largest aerospace and defense companies in the U.S. It provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services.
We continue to view Raytheon as one of the best positioned companies among the large-cap defense primes due to its non-platform-centric focus, strong order bookings and order backlog, healthy cash flow generation and focus on shareholder value.
We maintain our market Neutral recommendation on the shares. Defense contractors with significant exposure to high-cost platform programs include Lockheed Martin Corporation , Northrop Grumman Corporation , and General Dynamics Corporation
No comments:
Post a Comment