ROLLS-ROYCE HOLDINGS PLC (RRU.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RRU - GB00B63H8491 - Common Stock
12.54 EUR
-0.36 (-2.79%)
Overall RRU gets a fundamental rating of 6 out of 10. We evaluated RRU against 50 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 growing strongly while it is still valued neutral. This is a good combination! These ratings could make RRU a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
RRU had positive earnings in the past year.
RRU had a positive operating cash flow in the past year.
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 98.00% of its industry peers.
The Return On Equity of RRU (240.37%) is better than 100.00% of its industry peers.
RRU has a better Return On Invested Capital (11.49%) than 72.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RRU is below the industry average of 9.12%.
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
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.
RRU has a Operating Margin of 16.47%. This is amongst the best in the industry. RRU outperforms 92.00% of its industry peers.
RRU's Operating Margin has improved in the last couple of years.
RRU's Gross Margin of 25.80% is in line compared to the rest of the industry. RRU outperforms 44.00% of 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.
The number of shares outstanding for RRU has been increased compared to 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
An Altman-Z score of 2.51 indicates that RRU is not a great score, but indicates only limited risk for bankruptcy at the moment.
RRU has a Altman-Z score of 2.51. This is comparable to the rest of the industry: RRU outperforms 50.00% 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 has a Debt to FCF ratio of 1.55. This is amongst the best in the industry. RRU outperforms 88.00% 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's Debt to Equity ratio of 1.18 is on the low side compared to the rest of the industry. RRU is outperformed by 76.00% 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 | 2.51 |
ROIC/WACC1.21
WACC9.53%
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.
The Current ratio of RRU (1.24) is better than 62.00% of its industry peers.
A Quick Ratio of 0.93 indicates that RRU may have some problems paying its short term obligations.
RRU has a better Quick ratio (0.93) than 64.00% of its industry peers.
| 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
The Earnings Per Share is expected to grow by 15.84% 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 9.16% yearly.
EPS Next Y42.78%
EPS Next 2Y28.4%
EPS Next 3Y23.25%
EPS Next 5Y15.84%
Revenue Next Year13.69%
Revenue Next 2Y11.65%
Revenue Next 3Y10.54%
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.
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
RRU is valuated quite expensively with a Price/Earnings ratio of 40.45.
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 26.43, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 33.05, RRU can be considered very expensive at the moment.
RRU's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RRU is more expensive than 60.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.66. RRU is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.45 | ||
| Fwd PE | 33.05 |
4.2 Price Multiples
RRU's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RRU indicates a somewhat cheap valuation: RRU is cheaper than 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.09 | ||
| EV/EBITDA | 22.24 |
4.3 Compensation for Growth
RRU's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 23.25% in the coming years.
PEG (NY)0.95
PEG (5Y)1.35
EPS Next 2Y28.4%
EPS Next 3Y23.25%
5. Dividend
5.1 Amount
RRU has a yearly dividend return of 0.95%, which is pretty low.
Compared to an average industry Dividend Yield of 0.88, RRU has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, RRU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y28.4%
EPS Next 3Y23.25%
FRA:RRU (12/16/2025, 7:00:00 PM)
12.54
-0.36 (-2.79%)
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 Cap105.37B
Revenue(TTM)19.54B
Net Income(TTM)5.79B
Analysts79.2
Price Target13.93 (11.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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)0.91%
PT rev (3m)7.73%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.67%
EPS NY rev (3m)6.67%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.45 | ||
| Fwd PE | 33.05 | ||
| P/S | 4.73 | ||
| P/FCF | 29.09 | ||
| P/OCF | 22.35 | ||
| P/B | 38.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.24 |
EPS(TTM)0.31
EY2.47%
EPS(NY)0.38
Fwd EY3.03%
FCF(TTM)0.43
FCFY3.44%
OCF(TTM)0.56
OCFY4.47%
SpS2.65
BVpS0.33
TBVpS-0.28
PEG (NY)0.95
PEG (5Y)1.35
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 | 2.51 |
F-Score5
WACC9.53%
ROIC/WACC1.21
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 2Y28.4%
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 Year13.69%
Revenue Next 2Y11.65%
Revenue Next 3Y10.54%
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 40.45 and the Price/Book (PB) ratio is 38.35.