ROLLS-ROYCE HOLDINGS PLC (RRU.DE) Stock Fundamental Analysis
FRA:RRU - Deutsche Boerse Ag - GB00B63H8491 - Common Stock - Currency: EUR
RRU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 43 industry peers in the Aerospace & Defense industry. RRU has an average financial health and profitability rating. RRU shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
RRU had positive earnings in the past year.
In the past year RRU had a positive cash flow from operations.
In multiple years RRU reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: RRU reported negative operating cash flow in multiple years.
1.2 Ratios
RRU has a Return On Assets of 7.06%. This is amongst the best in the industry. RRU outperforms 90.70% of its industry peers.
RRU's Return On Invested Capital of 8.66% is in line compared to the rest of the industry. RRU outperforms 58.14% of its industry peers.
RRU had an Average Return On Invested Capital over the past 3 years of 6.58%. This is below the industry average of 9.16%.
The last Return On Invested Capital (8.66%) for RRU is above the 3 year average (6.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.06% | ||
| ROE | N/A | ||
| ROIC | 8.66% |
ROA(3y)3.47%
ROA(5y)0.02%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)6.58%
ROIC(5y)N/A
1.3 Margins
RRU has a better Profit Margin (13.33%) than 90.70% of its industry peers.
RRU's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 12.32%, RRU is doing good in the industry, outperforming 74.42% of the companies in the same industry.
RRU's Operating Margin has improved in the last couple of years.
RRU's Gross Margin of 22.32% is in line compared to the rest of the industry. RRU outperforms 44.19% of its industry peers.
RRU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.32% | ||
| PM (TTM) | 13.33% | ||
| GM | 22.32% |
OM growth 3Y43.46%
OM growth 5YN/A
PM growth 3Y131.85%
PM growth 5YN/A
GM growth 3Y5.44%
GM growth 5Y31.49%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RRU is destroying value.
The number of shares outstanding for RRU has been increased compared to 1 year ago.
RRU has more shares outstanding than it did 5 years ago.
RRU has a better debt/assets ratio than last year.
2.2 Solvency
RRU has an Altman-Z score of 1.90. This is not the best score and indicates that RRU is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.90, RRU is doing worse than 62.79% of the companies in the same industry.
The Debt to FCF ratio of RRU is 1.77, which is an excellent value as it means it would take RRU, only 1.77 years of fcf income to pay off all of its debts.
RRU's Debt to FCF ratio of 1.77 is amongst the best of the industry. RRU outperforms 81.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.95
WACC9.15%
2.3 Liquidity
RRU has a Current Ratio of 1.28. This is a normal value and indicates that RRU is financially healthy and should not expect problems in meeting its short term obligations.
RRU's Current ratio of 1.28 is fine compared to the rest of the industry. RRU outperforms 67.44% of its industry peers.
RRU has a Quick Ratio of 1.28. This is a bad value and indicates that RRU is not financially healthy enough and could expect problems in meeting its short term obligations.
RRU has a better Quick ratio (0.98) than 79.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
RRU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.44%, which is quite impressive.
The Earnings Per Share has been growing by 29.95% on average over the past years. This is a very strong growth
RRU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.70%.
Measured over the past years, RRU shows a small growth in Revenue. The Revenue has been growing by 2.66% on average per year.
EPS 1Y (TTM)47.44%
EPS 3Y468.12%
EPS 5Y29.95%
EPS Q2Q%27.65%
Revenue 1Y (TTM)14.7%
Revenue growth 3Y19.01%
Revenue growth 5Y2.66%
Sales Q2Q%14.27%
3.2 Future
RRU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.33% yearly.
Based on estimates for the next years, RRU will show a quite strong growth in Revenue. The Revenue will grow by 10.33% on average per year.
EPS Next Y23.18%
EPS Next 2Y20.49%
EPS Next 3Y17.57%
EPS Next 5Y14.33%
Revenue Next Year11.18%
Revenue Next 2Y10.1%
Revenue Next 3Y8.8%
Revenue Next 5Y10.33%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 41.61, RRU can be considered very expensive at the moment.
RRU's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of RRU to the average of the S&P500 Index (25.82), we can say RRU is valued expensively.
The Price/Forward Earnings ratio is 33.69, which means the current valuation is very expensive for RRU.
RRU's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of RRU to the average of the S&P500 Index (21.76), we can say RRU is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.61 | ||
| Fwd PE | 33.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RRU is on the same level as its industry peers.
72.09% of the companies in the same industry are more expensive than RRU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.47 | ||
| EV/EBITDA | 21.77 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of RRU may justify a higher PE ratio.
A more expensive valuation may be justified as RRU's earnings are expected to grow with 17.57% in the coming years.
PEG (NY)1.8
PEG (5Y)1.39
EPS Next 2Y20.49%
EPS Next 3Y17.57%
5. Dividend
5.1 Amount
RRU has a yearly dividend return of 0.73%, which is pretty low.
RRU's Dividend Yield is comparable with the industry average which is at 1.30.
Compared to an average S&P500 Dividend Yield of 2.39, RRU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y20.49%
EPS Next 3Y17.57%
FRA:RRU (5/23/2025, 7:00:00 PM)
9.986
+0.03 (+0.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners64.68%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap84.56B
Analysts79.2
Price Target9.41 (-5.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.3%
PT rev (3m)18.19%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)14.37%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)3.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.61 | ||
| Fwd PE | 33.69 | ||
| P/S | 3.75 | ||
| P/FCF | 24.47 | ||
| P/OCF | 18.74 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.77 |
EPS(TTM)0.24
EY2.4%
EPS(NY)0.3
Fwd EY2.97%
FCF(TTM)0.41
FCFY4.09%
OCF(TTM)0.53
OCFY5.34%
SpS2.66
BVpS-0.13
TBVpS-0.75
PEG (NY)1.8
PEG (5Y)1.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.06% | ||
| ROE | N/A | ||
| ROCE | 12.31% | ||
| ROIC | 8.66% | ||
| ROICexc | 12.48% | ||
| ROICexgc | 18.76% | ||
| OM | 12.32% | ||
| PM (TTM) | 13.33% | ||
| GM | 22.32% | ||
| FCFM | 15.32% |
ROA(3y)3.47%
ROA(5y)0.02%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)6.58%
ROIC(5y)N/A
ROICexc(3y)8.59%
ROICexc(5y)N/A
ROICexgc(3y)12.54%
ROICexgc(5y)N/A
ROCE(3y)9.36%
ROCE(5y)N/A
ROICexcg growth 3Y80.93%
ROICexcg growth 5YN/A
ROICexc growth 3Y76.35%
ROICexc growth 5YN/A
OM growth 3Y43.46%
OM growth 5YN/A
PM growth 3Y131.85%
PM growth 5YN/A
GM growth 3Y5.44%
GM growth 5Y31.49%
F-Score8
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.77 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 99.89% | ||
| Cap/Sales | 4.69% | ||
| Interest Coverage | 8.23 | ||
| Cash Conversion | 117.6% | ||
| Profit Quality | 114.88% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 1.9 |
F-Score8
WACC9.15%
ROIC/WACC0.95
Cap/Depr(3y)78.15%
Cap/Depr(5y)65.71%
Cap/Sales(3y)4.47%
Cap/Sales(5y)5.33%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)47.44%
EPS 3Y468.12%
EPS 5Y29.95%
EPS Q2Q%27.65%
EPS Next Y23.18%
EPS Next 2Y20.49%
EPS Next 3Y17.57%
EPS Next 5Y14.33%
Revenue 1Y (TTM)14.7%
Revenue growth 3Y19.01%
Revenue growth 5Y2.66%
Sales Q2Q%14.27%
Revenue Next Year11.18%
Revenue Next 2Y10.1%
Revenue Next 3Y8.8%
Revenue Next 5Y10.33%
EBIT growth 1Y31.51%
EBIT growth 3Y70.73%
EBIT growth 5YN/A
EBIT Next Year60.79%
EBIT Next 3Y24.18%
EBIT Next 5Y21.74%
FCF growth 1Y63.43%
FCF growth 3YN/A
FCF growth 5Y26.05%
OCF growth 1Y52.19%
OCF growth 3YN/A
OCF growth 5Y10.49%