ROLLS-ROYCE HOLDINGS PLC (RRU.DE) Fundamental Analysis & Valuation

FRA:RRU • GB00B63H8491

Current stock price

13.44 EUR
-0.48 (-3.45%)
Last:

This RRU.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. RRU.DE Profitability Analysis

1.1 Basic Checks

  • RRU had positive earnings in the past year.
  • RRU had a positive operating cash flow in the past year.
  • RRU had positive earnings in 4 of the past 5 years.
  • Of the past 5 years RRU 4 years had a positive operating cash flow.
RRU.DE Yearly Net Income VS EBIT VS OCF VS FCFRRU.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B -4B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 15.32%, RRU belongs to the top of the industry, outperforming 98.21% of the companies in the same industry.
  • RRU has a Return On Equity of 214.27%. This is amongst the best in the industry. RRU outperforms 100.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 19.70%, RRU belongs to the top of the industry, outperforming 98.21% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for RRU is above the industry average of 9.83%.
  • The last Return On Invested Capital (19.70%) for RRU is above the 3 year average (13.00%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 15.32%
ROE 214.27%
ROIC 19.7%
ROA(3y)10.01%
ROA(5y)5.23%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13%
ROIC(5y)9.11%
RRU.DE Yearly ROA, ROE, ROICRRU.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200 -200

1.3 Margins

  • Looking at the Profit Margin, with a value of 27.54%, RRU belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • With an excellent Operating Margin value of 20.79%, RRU belongs to the best of the industry, outperforming 94.64% of the companies in the same industry.
  • RRU's Operating Margin has improved in the last couple of years.
  • RRU has a Gross Margin (29.12%) which is in line with its industry peers.
  • In the last couple of years the Gross Margin of RRU has grown nicely.
Industry RankSector Rank
OM 20.79%
PM (TTM) 27.54%
GM 29.12%
OM growth 3Y52.72%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y12.61%
GM growth 5YN/A
RRU.DE Yearly Profit, Operating, Gross MarginsRRU.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20

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6

2. RRU.DE Health Analysis

2.1 Basic Checks

  • RRU has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • RRU has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, RRU has more shares outstanding
  • RRU has a better debt/assets ratio than last year.
RRU.DE Yearly Shares OutstandingRRU.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B
RRU.DE Yearly Total Debt VS Total AssetsRRU.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • An Altman-Z score of 2.74 indicates that RRU is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • RRU has a Altman-Z score (2.74) which is in line with its industry peers.
  • RRU has a debt to FCF ratio of 1.19. This is a very positive value and a sign of high solvency as it would only need 1.19 years to pay back of all of its debts.
  • With an excellent Debt to FCF ratio value of 1.19, RRU belongs to the best of the industry, outperforming 91.07% of the companies in the same industry.
  • RRU has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.05, RRU is not doing good in the industry: 73.21% of the companies in the same industry are doing better.
  • Although RRU's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 1.05
Debt/FCF 1.19
Altman-Z 2.74
ROIC/WACC2.07
WACC9.52%
RRU.DE Yearly LT Debt VS Equity VS FCFRRU.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B -4B 6B -6B

2.3 Liquidity

  • A Current Ratio of 1.20 indicates that RRU should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.20, RRU is in line with its industry, outperforming 55.36% of the companies in the same industry.
  • RRU has a Quick Ratio of 1.20. This is a bad value and indicates that RRU is not financially healthy enough and could expect problems in meeting its short term obligations.
  • RRU's Quick ratio of 0.90 is fine compared to the rest of the industry. RRU outperforms 62.50% of its industry peers.
Industry RankSector Rank
Current Ratio 1.2
Quick Ratio 0.9
RRU.DE Yearly Current Assets VS Current LiabilitesRRU.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

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7

3. RRU.DE Growth Analysis

3.1 Past

  • RRU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.96%, which is quite impressive.
  • RRU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 149.74% yearly.
  • Looking at the last year, RRU shows a quite strong growth in Revenue. The Revenue has grown by 12.15% in the last year.
  • The Revenue has been growing by 13.04% on average over the past years. This is quite good.
EPS 1Y (TTM)45.96%
EPS 3Y149.74%
EPS 5YN/A
EPS Q2Q%22.1%
Revenue 1Y (TTM)12.15%
Revenue growth 3Y16.19%
Revenue growth 5Y13.04%
Sales Q2Q%13.82%

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 14.56% yearly.
  • Based on estimates for the next years, RRU will show a quite strong growth in Revenue. The Revenue will grow by 8.49% on average per year.
EPS Next Y16.61%
EPS Next 2Y14.78%
EPS Next 3Y14.83%
EPS Next 5Y14.56%
Revenue Next Year9.91%
Revenue Next 2Y9.22%
Revenue Next 3Y8.44%
Revenue Next 5Y8.49%

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 decreasing: in the next years the growth will be less than in the last years.
RRU.DE Yearly Revenue VS EstimatesRRU.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 10B 20B 30B
RRU.DE Yearly EPS VS EstimatesRRU.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 0.2 -0.2 0.4 -0.4 -0.6

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4

4. RRU.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 39.53, the valuation of RRU can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of RRU indicates a somewhat cheap valuation: RRU is cheaper than 62.50% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.23, RRU is valued quite expensively.
  • Based on the Price/Forward Earnings ratio of 33.84, the valuation of RRU can be described as expensive.
  • RRU's Price/Forward Earnings ratio is in line with the industry average.
  • When comparing the Price/Forward Earnings ratio of RRU to the average of the S&P500 Index (22.42), we can say RRU is valued expensively.
Industry RankSector Rank
PE 39.53
Fwd PE 33.84
RRU.DE Price Earnings VS Forward Price EarningsRRU.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • 64.29% of the companies in the same industry are more expensive than RRU, based on the Enterprise Value to EBITDA ratio.
  • RRU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RRU is cheaper than 80.36% of the companies in the same industry.
Industry RankSector Rank
P/FCF 27.31
EV/EBITDA 18.51
RRU.DE Per share dataRRU.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RRU does not grow enough to justify the current Price/Earnings ratio.
  • RRU has an outstanding 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 14.83% in the coming years.
PEG (NY)2.38
PEG (5Y)N/A
EPS Next 2Y14.78%
EPS Next 3Y14.83%

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3

5. RRU.DE Dividend Analysis

5.1 Amount

  • RRU has a yearly dividend return of 0.80%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.73, RRU has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, RRU's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.8%

5.2 History

  • On average, the dividend of RRU grows each year by 17.06%, which is quite nice.
Dividend Growth(5Y)17.06%
Div Incr Years0
Div Non Decr Years0
RRU.DE Yearly Dividends per shareRRU.DE Yearly Dividends per shareYearly Dividends per share 2025 2026 0.02 0.04 0.06 0.08 0.1

5.3 Sustainability

  • 15.15% of the earnings are spent on dividend by RRU. This is a low number and sustainable payout ratio.
  • The dividend of RRU is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP15.15%
EPS Next 2Y14.78%
EPS Next 3Y14.83%
RRU.DE Yearly Income VS Free CF VS DividendRRU.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B -4B
RRU.DE Dividend Payout.RRU.DE Dividend Payout, showing the Payout Ratio.RRU.DE Dividend Payout.PayoutRetained Earnings

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RRU.DE Fundamentals: All Metrics, Ratios and Statistics

ROLLS-ROYCE HOLDINGS PLC

FRA:RRU (3/20/2026, 7:00:00 PM)

13.44

-0.48 (-3.45%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-26
Earnings (Next)07-29
Inst Owners69.91%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap113.13B
Revenue(TTM)21.21B
Net Income(TTM)5.84B
Analysts77.6
Price Target14.99 (11.53%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.8%
Yearly Dividend0.12
Dividend Growth(5Y)17.06%
DP15.15%
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)-0.18%
PT rev (3m)7.67%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.26%
EPS NY rev (3m)3.24%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)0.82%
Valuation
Industry RankSector Rank
PE 39.53
Fwd PE 33.84
P/S 4.61
P/FCF 27.31
P/OCF 21.42
P/B 35.87
P/tB N/A
EV/EBITDA 18.51
EPS(TTM)0.34
EY2.53%
EPS(NY)0.4
Fwd EY2.96%
FCF(TTM)0.49
FCFY3.66%
OCF(TTM)0.63
OCFY4.67%
SpS2.91
BVpS0.37
TBVpS-0.26
PEG (NY)2.38
PEG (5Y)N/A
Graham Number1.69
Profitability
Industry RankSector Rank
ROA 15.32%
ROE 214.27%
ROCE 23.41%
ROIC 19.7%
ROICexc 30.15%
ROICexgc 48.13%
OM 20.79%
PM (TTM) 27.54%
GM 29.12%
FCFM 16.88%
ROA(3y)10.01%
ROA(5y)5.23%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13%
ROIC(5y)9.11%
ROICexc(3y)18.25%
ROICexc(5y)12.49%
ROICexgc(3y)27.63%
ROICexgc(5y)18.77%
ROCE(3y)15.47%
ROCE(5y)10.83%
ROICexgc growth 3Y83.4%
ROICexgc growth 5YN/A
ROICexc growth 3Y79.06%
ROICexc growth 5YN/A
OM growth 3Y52.72%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y12.61%
GM growth 5YN/A
F-Score7
Asset Turnover0.56
Health
Industry RankSector Rank
Debt/Equity 1.05
Debt/FCF 1.19
Debt/EBITDA 0.55
Cap/Depr 133.65%
Cap/Sales 4.64%
Interest Coverage 17.35
Cash Conversion 88.73%
Profit Quality 61.29%
Current Ratio 1.2
Quick Ratio 0.9
Altman-Z 2.74
F-Score7
WACC9.52%
ROIC/WACC2.07
Cap/Depr(3y)102.92%
Cap/Depr(5y)84.7%
Cap/Sales(3y)4.55%
Cap/Sales(5y)4.61%
Profit Quality(3y)83.21%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)45.96%
EPS 3Y149.74%
EPS 5YN/A
EPS Q2Q%22.1%
EPS Next Y16.61%
EPS Next 2Y14.78%
EPS Next 3Y14.83%
EPS Next 5Y14.56%
Revenue 1Y (TTM)12.15%
Revenue growth 3Y16.19%
Revenue growth 5Y13.04%
Sales Q2Q%13.82%
Revenue Next Year9.91%
Revenue Next 2Y9.22%
Revenue Next 3Y8.44%
Revenue Next 5Y8.49%
EBIT growth 1Y89.27%
EBIT growth 3Y77.44%
EBIT growth 5YN/A
EBIT Next Year39.61%
EBIT Next 3Y18.05%
EBIT Next 5Y16.01%
FCF growth 1Y23.62%
FCF growth 3Y41.86%
FCF growth 5YN/A
OCF growth 1Y20.7%
OCF growth 3Y35.13%
OCF growth 5YN/A

ROLLS-ROYCE HOLDINGS PLC / RRU.DE Fundamental Analysis 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 8 / 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 6 / 10.


Can you provide the dividend sustainability for RRU stock?

The dividend rating of ROLLS-ROYCE HOLDINGS PLC (RRU.DE) is 3 / 10 and the dividend payout ratio is 15.15%.