ROLLS-ROYCE HOLDINGS PLC (RRU.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RRU - GB00B63H8491 - Common Stock
14.64 EUR
-0.16 (-1.08%)
RRU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 54 industry peers in the Aerospace & Defense industry. While RRU has a great profitability rating, there are some minor concerns on its financial health. RRU is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make RRU suitable 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.
- 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 98.15% of its industry peers.
- RRU has a better Return On Equity (240.37%) than 100.00% of its industry peers.
- RRU has a Return On Invested Capital of 11.49%. This is in the better half of the industry: RRU outperforms 74.07% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for RRU is below the industry average of 9.17%.
- 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
- RRU has a better Profit Margin (29.62%) than 100.00% of its industry peers.
- RRU's Profit Margin has improved in the last couple of years.
- RRU has a better Operating Margin (16.47%) than 88.89% of its industry peers.
- In the last couple of years the Operating Margin of RRU has grown nicely.
- The Gross Margin of RRU (25.80%) is comparable to the rest of the industry.
- 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.
- Compared to 1 year ago, RRU has more shares outstanding
- 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 2.76. 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 2.76, RRU is in line with its industry, outperforming 51.85% 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 87.04% 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.
- With a Debt to Equity ratio value of 1.18, RRU is not doing good in the industry: 75.93% of the companies in the same industry are doing better.
- 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 | 2.76 |
ROIC/WACC1.13
WACC10.19%
2.3 Liquidity
- RRU has a Current Ratio of 1.24. This is a normal value and indicates that RRU is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Current ratio value of 1.24, RRU is doing good in the industry, outperforming 61.11% of the companies in the same 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.
- The Quick ratio of RRU (0.93) 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.
- The Earnings Per Share has been growing by 29.95% on average over the past years. This is a very strong growth
- Looking at the last year, RRU shows a quite strong growth in Revenue. The Revenue has grown by 9.62% 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)9.62%
Revenue growth 3Y19.01%
Revenue growth 5Y2.66%
Sales Q2Q%10.69%
3.2 Future
- The Earnings Per Share is expected to grow by 17.12% on average over the next years. This is quite good.
- RRU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.92% yearly.
EPS Next Y42.78%
EPS Next 2Y28.34%
EPS Next 3Y23.25%
EPS Next 5Y17.12%
Revenue Next Year13.68%
Revenue Next 2Y11.64%
Revenue Next 3Y10.53%
Revenue Next 5Y8.92%
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
- A Price/Earnings ratio of 47.23 indicates a quite expensive valuation of RRU.
- The rest of the industry has a similar Price/Earnings ratio as RRU.
- RRU is valuated expensively when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 38.53, which means the current valuation is very expensive for RRU.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RRU is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of RRU to the average of the S&P500 Index (24.30), we can say RRU is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.23 | ||
| Fwd PE | 38.53 |
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.
- Based on the Price/Free Cash Flow ratio, RRU is valued a bit cheaper than 75.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.89 | ||
| EV/EBITDA | 25.95 |
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.
- RRU's earnings are expected to grow with 23.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.1
PEG (5Y)1.58
EPS Next 2Y28.34%
EPS Next 3Y23.25%
5. Dividend
5.1 Amount
- RRU has a yearly dividend return of 0.82%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.75, RRU has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.86, RRU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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 (1/21/2026, 7:00:00 PM)
14.64
-0.16 (-1.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)11-13 2025-11-13
Earnings (Next)02-26 2026-02-26/amc
Inst Owners69.84%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap123.01B
Revenue(TTM)19.54B
Net Income(TTM)5.79B
Analysts80
Price Target14.58 (-0.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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)4.73%
PT rev (3m)9.61%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.94%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.23 | ||
| Fwd PE | 38.53 | ||
| P/S | 5.51 | ||
| P/FCF | 33.89 | ||
| P/OCF | 26.04 | ||
| P/B | 44.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.95 |
EPS(TTM)0.31
EY2.12%
EPS(NY)0.38
Fwd EY2.6%
FCF(TTM)0.43
FCFY2.95%
OCF(TTM)0.56
OCFY3.84%
SpS2.66
BVpS0.33
TBVpS-0.28
PEG (NY)1.1
PEG (5Y)1.58
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 | 2.76 |
F-Score5
WACC10.19%
ROIC/WACC1.13
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 5Y17.12%
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 5Y8.92%
EBIT growth 1Y45.09%
EBIT growth 3Y70.73%
EBIT growth 5YN/A
EBIT Next Year80.12%
EBIT Next 3Y29.6%
EBIT Next 5Y20.47%
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 of ROLLS-ROYCE HOLDINGS PLC (RRU.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to ROLLS-ROYCE HOLDINGS PLC (RRU.DE). This can be considered as Fairly Valued.
How profitable is ROLLS-ROYCE HOLDINGS PLC (RRU.DE) stock?
ROLLS-ROYCE HOLDINGS PLC (RRU.DE) has a profitability rating of 7 / 10.
What is the financial health of ROLLS-ROYCE HOLDINGS PLC (RRU.DE) stock?
The financial health rating of ROLLS-ROYCE HOLDINGS PLC (RRU.DE) is 5 / 10.