ROLLS-ROYCE HOLDINGS PLC (RRU.DE) Stock Fundamental Analysis
FRA:RRU - Deutsche Boerse Ag - GB00B63H8491 - Common Stock - Currency: EUR
Taking everything into account, RRU scores 5 out of 10 in our fundamental rating. RRU was compared to 45 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of RRU get a neutral evaluation. Nothing too spectacular is happening here. 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.
The reported net income has been mixed in the past 5 years: RRU reported negative net income in multiple years.
In multiple years RRU reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of RRU (7.06%) is better than 82.22% 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 60.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RRU 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 Profit Margin of 13.33%. This is amongst the best in the industry. RRU outperforms 95.56% of its industry peers.
RRU's Profit Margin has improved in the last couple of years.
The Operating Margin of RRU (12.32%) is better than 77.78% of its industry peers.
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 44.44% 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
RRU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, RRU has more shares outstanding
Compared to 5 years ago, RRU has more shares outstanding
The debt/assets ratio for RRU has been reduced compared to a year ago.
2.2 Solvency
RRU has an Altman-Z score of 2.24. 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.
RRU's Altman-Z score of 2.24 is on the low side compared to the rest of the industry. RRU is outperformed by 66.67% of its industry peers.
RRU has a debt to FCF ratio of 1.77. This is a very positive value and a sign of high solvency as it would only need 1.77 years to pay back of all of its debts.
RRU has a Debt to FCF ratio of 1.77. This is amongst the best in the industry. RRU outperforms 82.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 2.24 |
ROIC/WACC0.97
WACC8.9%
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 has a better Current ratio (1.28) than 64.44% 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.
Looking at the Quick ratio, with a value of 0.98, RRU is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.97% over the past year.
Measured over the past years, RRU shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.95% on average per year.
Looking at the last year, RRU shows a quite strong growth in Revenue. The Revenue has grown by 14.70% in the last year.
RRU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.66% yearly.
EPS 1Y (TTM)51.97%
EPS 3Y468.12%
EPS 5Y29.95%
EPS Q2Q%75.87%
Revenue 1Y (TTM)14.7%
Revenue growth 3Y19.01%
Revenue growth 5Y2.66%
Sales Q2Q%10.69%
3.2 Future
Based on estimates for the next years, RRU will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.11% on average per year.
RRU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.83% yearly.
EPS Next Y23.18%
EPS Next 2Y20.49%
EPS Next 3Y17.57%
EPS Next 5Y17.11%
Revenue Next Year11.55%
Revenue Next 2Y10.29%
Revenue Next 3Y9.36%
Revenue Next 5Y9.83%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 40.32, the valuation of RRU can be described as expensive.
RRU's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of RRU to the average of the S&P500 Index (26.51), we can say RRU is valued expensively.
RRU is valuated quite expensively with a Price/Forward Earnings ratio of 37.02.
RRU's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RRU is more expensive than 68.89% of the companies in the same industry.
RRU is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.32 | ||
| Fwd PE | 37.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RRU is valued a bit more expensive than 62.22% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RRU indicates a somewhat cheap valuation: RRU is cheaper than 64.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.6 | ||
| EV/EBITDA | 28.19 |
4.3 Compensation for Growth
RRU's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RRU has a very decent profitability rating, which 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)1.74
PEG (5Y)1.35
EPS Next 2Y20.49%
EPS Next 3Y17.57%
5. Dividend
5.1 Amount
RRU has a yearly dividend return of 0.97%, which is pretty low.
Compared to an average industry Dividend Yield of 1.24, RRU has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, RRU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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 (8/8/2025, 7:00:00 PM)
12.5
-0.24 (-1.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners70.01%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap105.55B
Analysts79.13
Price Target11.28 (-9.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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)9.66%
PT rev (3m)19.92%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.32 | ||
| Fwd PE | 37.02 | ||
| P/S | 4.84 | ||
| P/FCF | 31.6 | ||
| P/OCF | 24.2 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.19 |
EPS(TTM)0.31
EY2.48%
EPS(NY)0.34
Fwd EY2.7%
FCF(TTM)0.4
FCFY3.16%
OCF(TTM)0.52
OCFY4.13%
SpS2.58
BVpS-0.12
TBVpS-0.73
PEG (NY)1.74
PEG (5Y)1.35
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 | 2.24 |
F-Score8
WACC8.9%
ROIC/WACC0.97
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)51.97%
EPS 3Y468.12%
EPS 5Y29.95%
EPS Q2Q%75.87%
EPS Next Y23.18%
EPS Next 2Y20.49%
EPS Next 3Y17.57%
EPS Next 5Y17.11%
Revenue 1Y (TTM)14.7%
Revenue growth 3Y19.01%
Revenue growth 5Y2.66%
Sales Q2Q%10.69%
Revenue Next Year11.55%
Revenue Next 2Y10.29%
Revenue Next 3Y9.36%
Revenue Next 5Y9.83%
EBIT growth 1Y31.51%
EBIT growth 3Y70.73%
EBIT growth 5YN/A
EBIT Next Year60.79%
EBIT Next 3Y24.18%
EBIT Next 5Y21.13%
FCF growth 1Y63.43%
FCF growth 3YN/A
FCF growth 5Y26.05%
OCF growth 1Y52.19%
OCF growth 3YN/A
OCF growth 5Y10.49%