ROLLS-ROYCE HOLDINGS PLC (RRU.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RRU - GB00B63H8491 - Common Stock
13.8 EUR
+0.62 (+4.7%)
Taking everything into account, RRU scores 5 out of 10 in our fundamental rating. 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 valued quite expensively, but it does show have an excellent growth rating. This makes RRU very considerable 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
With an excellent Return On Assets value of 15.26%, RRU belongs to the best of the industry, outperforming 97.78% of the companies in the same industry.
RRU has a Return On Equity of 240.37%. This is amongst the best in 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 71.11% of the companies in the same industry.
RRU had an Average Return On Invested Capital over the past 3 years of 6.58%. This is below the industry average of 9.11%.
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.
In the last couple of years the Profit Margin of RRU has grown nicely.
RRU's Operating Margin of 16.47% is amongst the best of the industry. RRU outperforms 91.11% 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 worse than 60.00% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RRU is still creating some value.
Compared to 1 year ago, RRU has more shares outstanding
The number of shares outstanding for RRU has been increased compared to 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 2.58. 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 (2.58) which is comparable to the rest of the industry.
RRU has a debt to FCF ratio of 1.55. This is a very positive value and a sign of high solvency as it would only need 1.55 years to pay back of all of its debts.
RRU's Debt to FCF ratio of 1.55 is amongst the best of the industry. RRU outperforms 86.67% 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.
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 77.78% of its industry peers.
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 | 2.58 |
ROIC/WACC1.18
WACC9.73%
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 64.44% 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
RRU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.97%, which is quite impressive.
RRU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.95% yearly.
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 2Y28.34%
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.
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 44.52, which means the current valuation is very expensive for 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 26.60, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 36.25 indicates a quite expensive valuation of RRU.
62.22% of the companies in the same industry are cheaper than RRU, based on the Price/Forward Earnings ratio.
RRU's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.52 | ||
| Fwd PE | 36.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RRU is valued a bit more expensive than 60.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RRU is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.88 | ||
| EV/EBITDA | 23.29 |
4.3 Compensation for Growth
The 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.
RRU's earnings are expected to grow with 23.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.04
PEG (5Y)1.49
EPS Next 2Y28.34%
EPS Next 3Y23.25%
5. Dividend
5.1 Amount
With a yearly dividend of 0.91%, RRU is not a good candidate for dividend investing.
RRU's Dividend Yield is comparable with the industry average which is at 0.90.
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 (1/2/2026, 7:00:00 PM)
13.8
+0.62 (+4.7%)
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 Cap115.95B
Revenue(TTM)19.54B
Net Income(TTM)5.79B
Analysts79.2
Price Target14.03 (1.67%)
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 | 44.52 | ||
| Fwd PE | 36.25 | ||
| P/S | 5.18 | ||
| P/FCF | 31.88 | ||
| P/OCF | 24.49 | ||
| P/B | 42.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.29 |
EPS(TTM)0.31
EY2.25%
EPS(NY)0.38
Fwd EY2.76%
FCF(TTM)0.43
FCFY3.14%
OCF(TTM)0.56
OCFY4.08%
SpS2.66
BVpS0.33
TBVpS-0.28
PEG (NY)1.04
PEG (5Y)1.49
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 | 2.58 |
F-Score5
WACC9.73%
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 5 / 10 to RRU.DE.
What is the valuation status of ROLLS-ROYCE HOLDINGS PLC (RRU.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to ROLLS-ROYCE HOLDINGS PLC (RRU.DE). This can be considered as Overvalued.
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.