ROLLS-ROYCE HOLDINGS PLC (RRU.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RRU - GB00B63H8491 - Common Stock
13.32 EUR
+0.06 (+0.45%)
We assign a fundamental rating of 6 out of 10 to RRU. RRU was compared to 45 industry peers in the Aerospace & Defense industry. RRU has an excellent profitability rating, but there are some minor concerns on its financial health. RRU is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, RRU could be worth investigating further for growth investing!.
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
Looking at the Return On Assets, with a value of 15.26%, RRU belongs to the top of the industry, outperforming 97.87% of the companies in the same industry.
Looking at the Return On Equity, with a value of 240.37%, RRU belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
RRU's Return On Invested Capital of 11.49% is fine compared to the rest of the industry. RRU outperforms 68.09% 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 9.26%.
The 3 year average ROIC (6.58%) for RRU is below the current ROIC(11.49%), indicating increased profibility in the last year.
| 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
The Profit Margin of RRU (29.62%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of RRU has grown nicely.
The Operating Margin of RRU (16.47%) is better than 89.36% of its industry peers.
In the last couple of years the Operating Margin of RRU has grown nicely.
RRU has a Gross Margin (25.80%) which is in line with its industry peers.
RRU's Gross Margin has improved in the last couple of years.
| 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
The debt/assets ratio for RRU has been reduced compared to a year ago.
2.2 Solvency
RRU has an Altman-Z score of 2.60. 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.
With a Altman-Z score value of 2.60, RRU perfoms like the industry average, outperforming 51.06% of the companies in the same industry.
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 has a better Debt to FCF ratio (1.55) than 87.23% of its industry peers.
A Debt/Equity ratio of 1.18 is on the high side and indicates that RRU has dependencies on debt financing.
RRU has a worse Debt to Equity ratio (1.18) than 76.60% of its industry peers.
Even though the debt/equity ratio score it not favorable for RRU, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 1.55 | ||
| Altman-Z | 2.6 |
ROIC/WACC1.18
WACC9.76%
2.3 Liquidity
A Current Ratio of 1.24 indicates that RRU should not have too much problems paying its short term obligations.
With a Current ratio value of 1.24, RRU perfoms like the industry average, outperforming 57.45% of the companies in the same industry.
A Quick Ratio of 0.93 indicates that RRU may have some problems paying its short term obligations.
RRU has a Quick ratio (0.93) which is comparable to the rest of the 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.
RRU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.95% yearly.
RRU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.62%.
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)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 15.84% yearly.
The Revenue is expected to grow by 9.16% on average over the next years. This is quite good.
EPS Next Y42.78%
EPS Next 2Y28.34%
EPS Next 3Y23.25%
EPS Next 5Y15.84%
Revenue Next Year13.68%
Revenue Next 2Y11.64%
Revenue Next 3Y10.53%
Revenue Next 5Y9.16%
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
RRU is valuated quite expensively with a Price/Earnings ratio of 42.97.
Compared to the rest of the industry, the Price/Earnings ratio of RRU is on the same level as its industry peers.
When comparing the Price/Earnings ratio of RRU to the average of the S&P500 Index (26.92), we can say RRU is valued expensively.
RRU is valuated quite expensively with a Price/Forward Earnings ratio of 35.00.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RRU is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, RRU is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.97 | ||
| Fwd PE | 35 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RRU.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RRU indicates a somewhat cheap valuation: RRU is cheaper than 70.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.78 | ||
| EV/EBITDA | 23.54 |
4.3 Compensation for Growth
RRU's 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 23.25% in the coming years.
PEG (NY)1
PEG (5Y)1.43
EPS Next 2Y28.34%
EPS Next 3Y23.25%
5. Dividend
5.1 Amount
RRU has a yearly dividend return of 0.91%, which is pretty low.
Compared to an average industry Dividend Yield of 0.90, RRU has a dividend in line with its industry peers.
With a Dividend Yield of 0.91, RRU pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y28.34%
EPS Next 3Y23.25%
FRA:RRU (12/23/2025, 7:00:00 PM)
13.32
+0.06 (+0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners69.95%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap111.92B
Revenue(TTM)19.54B
Net Income(TTM)5.79B
Analysts79.2
Price Target14.03 (5.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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)3.27%
PT rev (3m)8.55%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.67%
EPS NY rev (3m)0.94%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.97 | ||
| Fwd PE | 35 | ||
| P/S | 5 | ||
| P/FCF | 30.78 | ||
| P/OCF | 23.65 | ||
| P/B | 40.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.54 |
EPS(TTM)0.31
EY2.33%
EPS(NY)0.38
Fwd EY2.86%
FCF(TTM)0.43
FCFY3.25%
OCF(TTM)0.56
OCFY4.23%
SpS2.66
BVpS0.33
TBVpS-0.28
PEG (NY)1
PEG (5Y)1.43
Graham Number1.51
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
ROICexgc growth 3Y80.93%
ROICexgc 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 | 2.6 |
F-Score5
WACC9.76%
ROIC/WACC1.18
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 Y42.78%
EPS Next 2Y28.34%
EPS Next 3Y23.25%
EPS Next 5Y15.84%
Revenue 1Y (TTM)9.62%
Revenue growth 3Y19.01%
Revenue growth 5Y2.66%
Sales Q2Q%10.69%
Revenue Next Year13.68%
Revenue Next 2Y11.64%
Revenue Next 3Y10.53%
Revenue Next 5Y9.16%
EBIT growth 1Y45.09%
EBIT growth 3Y70.73%
EBIT growth 5YN/A
EBIT Next Year80.12%
EBIT Next 3Y29.6%
EBIT Next 5Y20.74%
FCF growth 1Y85.51%
FCF growth 3YN/A
FCF growth 5Y26.05%
OCF growth 1Y72.99%
OCF growth 3YN/A
OCF growth 5Y10.49%
ROLLS-ROYCE HOLDINGS PLC / RRU.DE FAQ
What is the ChartMill fundamental rating of ROLLS-ROYCE HOLDINGS PLC (RRU.DE) stock?
ChartMill assigns a fundamental rating of 6 / 10 to RRU.DE.
What is the valuation status for RRU stock?
ChartMill assigns a valuation rating of 4 / 10 to ROLLS-ROYCE HOLDINGS PLC (RRU.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for ROLLS-ROYCE HOLDINGS PLC?
ROLLS-ROYCE HOLDINGS PLC (RRU.DE) has a profitability rating of 7 / 10.
What is the valuation of ROLLS-ROYCE HOLDINGS PLC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ROLLS-ROYCE HOLDINGS PLC (RRU.DE) is 42.97 and the Price/Book (PB) ratio is 40.57.