ROLLS-ROYCE HOLDINGS PLC (RRU.DE) Stock Fundamental Analysis
FRA:RRU - GB00B63H8491 - Common Stock
12.48 EUR
+0.04 (+0.32%)
We assign a fundamental rating of 5 out of 10 to RRU. RRU was compared to 41 industry peers in the Aerospace & Defense industry. RRU has an excellent profitability rating, but there are some minor concerns on its financial health. RRU shows excellent growth, but is valued quite expensive already. These ratings could make RRU a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year RRU was profitable.
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.
In multiple years RRU reported negative operating cash flow during the last 5 years.
1.2 Ratios
RRU has a better Return On Assets (15.26%) than 97.67% of its industry peers.
RRU's Return On Equity of 240.37% is amongst the best of the industry. RRU outperforms 100.00% of its industry peers.
With a decent Return On Invested Capital value of 11.49%, RRU is doing good in the industry, outperforming 74.42% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RRU is below the industry average of 9.46%.
The last Return On Invested Capital (11.49%) for RRU is above the 3 year average (6.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.26% | ||
| ROE | 240.37% | ||
| ROIC | 11.49% |
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
Looking at the Profit Margin, with a value of 29.62%, RRU belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
RRU's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.47%, RRU belongs to the top of the industry, outperforming 93.02% of the companies in the same industry.
In the last couple of years the Operating Margin of RRU has grown nicely.
Looking at the Gross Margin, with a value of 25.80%, RRU is in line with its industry, outperforming 46.51% of the companies in the same industry.
In the last couple of years the Gross Margin of RRU has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.47% | ||
| PM (TTM) | 29.62% | ||
| GM | 25.8% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
RRU has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RRU has more shares outstanding
Compared to 1 year ago, RRU has an improved debt to assets ratio.
2.2 Solvency
RRU has an Altman-Z score of 2.49. 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 has a Altman-Z score of 2.49. This is comparable to the rest of the industry: RRU outperforms 53.49% of its industry peers.
The Debt to FCF ratio of RRU is 1.55, which is an excellent value as it means it would take RRU, only 1.55 years of fcf income to pay off all of its debts.
RRU's Debt to FCF ratio of 1.55 is amongst the best of the industry. RRU outperforms 86.05% of its industry peers.
RRU has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.18, RRU is not doing good in the industry: 72.09% of the companies in the same industry are doing better.
Although RRU does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 1.55 | ||
| Altman-Z | 2.49 |
ROIC/WACC1.28
WACC8.96%
2.3 Liquidity
A Current Ratio of 1.24 indicates that RRU should not have too much problems paying its short term obligations.
The Current ratio of RRU (1.24) is comparable to the rest of the industry.
RRU has a Quick Ratio of 1.24. This is a bad value and indicates that RRU is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.93, RRU is doing good in the industry, outperforming 72.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.97% over the past year.
The Earnings Per Share has been growing by 29.95% on average over the past years. This is a very strong growth
The Revenue has grown by 9.62% in the past year. This is quite good.
The Revenue has been growing slightly by 2.66% on average over the past years.
EPS 1Y (TTM)51.97%
EPS 3Y468.12%
EPS 5Y29.95%
EPS Q2Q%75.87%
Revenue 1Y (TTM)9.62%
Revenue growth 3Y19.01%
Revenue growth 5Y2.66%
Sales Q2Q%10.69%
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 19.06% yearly.
The Revenue is expected to grow by 9.15% on average over the next years. This is quite good.
EPS Next Y33.86%
EPS Next 2Y25.21%
EPS Next 3Y20.42%
EPS Next 5Y19.06%
Revenue Next Year13.22%
Revenue Next 2Y11.5%
Revenue Next 3Y10.2%
Revenue Next 5Y9.15%
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
With a Price/Earnings ratio of 40.26, RRU can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as RRU.
When comparing the Price/Earnings ratio of RRU to the average of the S&P500 Index (27.06), we can say RRU is valued slightly more expensively.
With a Price/Forward Earnings ratio of 34.25, RRU can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, RRU is valued a bit more expensive than 60.47% of the companies in the same industry.
RRU is valuated expensively when we compare the Price/Forward Earnings ratio to 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.26 | ||
| Fwd PE | 34.25 |
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.
74.42% 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 | 28.78 | ||
| EV/EBITDA | 22 |
4.3 Compensation for Growth
The 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 20.42% in the coming years.
PEG (NY)1.19
PEG (5Y)1.34
EPS Next 2Y25.21%
EPS Next 3Y20.42%
5. Dividend
5.1 Amount
No dividends for RRU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:RRU (9/5/2025, 7:00:00 PM)
12.48
+0.04 (+0.32%)
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 Cap105.25B
Analysts79.13
Price Target13.01 (4.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)26.42%
PT rev (3m)30.38%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)8.67%
EPS NY rev (3m)8.67%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.5%
Revenue NY rev (3m)1.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.26 | ||
| Fwd PE | 34.25 | ||
| P/S | 4.67 | ||
| P/FCF | 28.78 | ||
| P/OCF | 22.11 | ||
| P/B | 37.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22 |
EPS(TTM)0.31
EY2.48%
EPS(NY)0.36
Fwd EY2.92%
FCF(TTM)0.43
FCFY3.47%
OCF(TTM)0.56
OCFY4.52%
SpS2.67
BVpS0.33
TBVpS-0.28
PEG (NY)1.19
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.26% | ||
| ROE | 240.37% | ||
| ROCE | 16.32% | ||
| ROIC | 11.49% | ||
| ROICexc | 16.56% | ||
| ROICexgc | 24.65% | ||
| OM | 16.47% | ||
| PM (TTM) | 29.62% | ||
| GM | 25.8% | ||
| FCFM | 16.25% |
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-Score5
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 1.55 | ||
| Debt/EBITDA | 0.69 | ||
| Cap/Depr | 108.38% | ||
| Cap/Sales | 4.9% | ||
| Interest Coverage | 11.83 | ||
| Cash Conversion | 100.73% | ||
| Profit Quality | 54.84% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 2.49 |
F-Score5
WACC8.96%
ROIC/WACC1.28
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 Y33.86%
EPS Next 2Y25.21%
EPS Next 3Y20.42%
EPS Next 5Y19.06%
Revenue 1Y (TTM)9.62%
Revenue growth 3Y19.01%
Revenue growth 5Y2.66%
Sales Q2Q%10.69%
Revenue Next Year13.22%
Revenue Next 2Y11.5%
Revenue Next 3Y10.2%
Revenue Next 5Y9.15%
EBIT growth 1Y45.09%
EBIT growth 3Y70.73%
EBIT growth 5YN/A
EBIT Next Year60.79%
EBIT Next 3Y24.18%
EBIT Next 5Y20.92%
FCF growth 1Y85.51%
FCF growth 3YN/A
FCF growth 5Y26.05%
OCF growth 1Y72.99%
OCF growth 3YN/A
OCF growth 5Y10.49%