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 only an average score on both its financial health and profitability. RRU is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year RRU was profitable.
RRU had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: RRU reported negative net income in multiple 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
The Return On Assets of RRU (7.06%) is better than 90.70% of its industry peers.
RRU has a better Return On Invested Capital (8.66%) than 62.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RRU is below the industry average of 8.70%.
The 3 year average ROIC (6.58%) for RRU is below the current ROIC(8.66%), indicating increased profibility in the last year.
| 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's Profit Margin of 13.33% is amongst the best of the industry. RRU outperforms 93.02% of its industry peers.
RRU's Profit Margin has improved in the last couple of years.
RRU has a better Operating Margin (12.32%) than 79.07% of its industry peers.
RRU's Operating Margin has improved in the last couple of years.
RRU has a Gross Margin of 22.32%. This is in the lower half of the industry: RRU underperforms 60.47% of its industry peers.
In the last couple of years the Gross Margin of RRU has grown nicely.
| 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.
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.
Compared to 1 year ago, RRU has an improved debt to assets ratio.
2.2 Solvency
RRU has an Altman-Z score of 2.12. 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.
The Altman-Z score of RRU (2.12) is worse than 60.47% 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 81.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.96
WACC9.03%
2.3 Liquidity
A Current Ratio of 1.28 indicates that RRU should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.28, RRU is doing good in the industry, outperforming 62.79% of the companies in the same industry.
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 Quick ratio of 0.98. This is in the better half of the industry: RRU outperforms 74.42% 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.
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.
The Revenue has grown by 14.70% in the past year. This is quite good.
RRU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.66% yearly.
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 17.11% yearly.
Based on estimates for the next years, RRU will show a quite strong growth in Revenue. The Revenue will grow by 9.83% on average per year.
EPS Next Y23.18%
EPS Next 2Y20.49%
EPS Next 3Y17.57%
EPS Next 5Y17.11%
Revenue Next Year11.18%
Revenue Next 2Y10.1%
Revenue Next 3Y8.8%
Revenue Next 5Y9.83%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
The Price/Earnings ratio is 50.26, which means the current valuation is very expensive for RRU.
RRU's Price/Earnings is on the same level as the industry average.
RRU is valuated expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 40.28, which means the current valuation is very expensive for RRU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RRU indicates a slightly more expensive valuation: RRU is more expensive than 65.12% of the companies listed in the same industry.
RRU is valuated expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.26 | ||
| Fwd PE | 40.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RRU is valued a bit more expensive than the industry average as 62.79% of the companies are valued more cheaply.
60.47% 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 | 29.2 | ||
| EV/EBITDA | 26.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RRU has a very decent profitability rating, which may justify a higher PE ratio.
RRU's earnings are expected to grow with 17.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.17
PEG (5Y)1.68
EPS Next 2Y20.49%
EPS Next 3Y17.57%
5. Dividend
5.1 Amount
With a yearly dividend of 0.62%, RRU is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.16, RRU has a dividend in line with its industry peers.
With a Dividend Yield of 0.62, RRU pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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 (7/11/2025, 7:00:00 PM)
11.56
0 (0%)
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 Cap97.70B
Analysts79.13
Price Target10.29 (-10.99%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
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)3.13%
PT rev (3m)6.84%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)3.39%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.26 | ||
| Fwd PE | 40.28 | ||
| P/S | 4.47 | ||
| P/FCF | 29.2 | ||
| P/OCF | 22.36 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.03 |
EPS(TTM)0.23
EY1.99%
EPS(NY)0.29
Fwd EY2.48%
FCF(TTM)0.4
FCFY3.42%
OCF(TTM)0.52
OCFY4.47%
SpS2.58
BVpS-0.12
TBVpS-0.73
PEG (NY)2.17
PEG (5Y)1.68
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 | 2.12 |
F-Score8
WACC9.03%
ROIC/WACC0.96
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 5Y17.11%
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 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%