ROLLS-ROYCE HOLDINGS PLC (RRU.DE) Stock Fundamental Analysis
Europe - FRA:RRU - GB00B63H8491 - Common Stock
13.18 EUR
-0.18 (-1.35%)
We assign a fundamental rating of 6 out of 10 to RRU. RRU was compared to 46 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.
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
RRU has a better Return On Assets (15.26%) than 97.83% of its industry peers.
RRU's Return On Equity of 240.37% is amongst the best of the industry. RRU outperforms 100.00% of its industry peers.
RRU has a better Return On Invested Capital (11.49%) than 71.74% 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 9.55%.
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.
With an excellent Operating Margin value of 16.47%, RRU belongs to the best of the industry, outperforming 89.13% of the companies in the same industry.
In the last couple of years the Operating Margin of RRU has grown nicely.
With a Gross Margin value of 25.80%, RRU is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of RRU has grown nicely.
| 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.
The number of shares outstanding for RRU has been increased compared to 1 year ago.
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
An Altman-Z score of 2.61 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 2.61. This is comparable to the rest of the industry: RRU outperforms 43.48% 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 better Debt to FCF ratio (1.55) than 84.78% 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.
The Debt to Equity ratio of RRU (1.18) is worse than 73.91% 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 | 2.61 |
ROIC/WACC1.24
WACC9.25%
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 decent Current ratio value of 1.24, RRU is doing good in the industry, outperforming 60.87% 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.
Looking at the Quick ratio, with a value of 0.93, RRU is in the better half of the industry, outperforming 67.39% of the companies in the same 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.
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 19.18% yearly.
The Revenue is expected to grow by 9.59% on average over the next years. This is quite good.
EPS Next Y41.44%
EPS Next 2Y26.52%
EPS Next 3Y21.67%
EPS Next 5Y19.18%
Revenue Next Year13.72%
Revenue Next 2Y11.59%
Revenue Next 3Y10.3%
Revenue Next 5Y9.59%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
With a Price/Earnings ratio of 42.52, RRU can be considered very expensive at the moment.
Based on the Price/Earnings ratio, RRU is valued a bit cheaper than the industry average as 63.04% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RRU to the average of the S&P500 Index (26.03), we can say RRU is valued expensively.
A Price/Forward Earnings ratio of 35.78 indicates a quite expensive valuation of RRU.
RRU's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.27. RRU is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.52 | ||
| Fwd PE | 35.78 |
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 67.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.63 | ||
| EV/EBITDA | 23.75 |
4.3 Compensation for Growth
The 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 21.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)1.42
EPS Next 2Y26.52%
EPS Next 3Y21.67%
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, RRU is not a good candidate for dividend investing.
RRU's Dividend Yield is a higher than the industry average which is at 1.07.
Compared to an average S&P500 Dividend Yield of 2.38, RRU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y26.52%
EPS Next 3Y21.67%
FRA:RRU (11/4/2025, 7:00:00 PM)
13.18
-0.18 (-1.35%)
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 Cap110.91B
Revenue(TTM)19.54B
Net Income(TTM)5.79B
Analysts79.17
Price Target13.8 (4.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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)6.77%
PT rev (3m)34.12%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)14.83%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.52 | ||
| Fwd PE | 35.78 | ||
| P/S | 4.98 | ||
| P/FCF | 30.63 | ||
| P/OCF | 23.53 | ||
| P/B | 40.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.75 |
EPS(TTM)0.31
EY2.35%
EPS(NY)0.37
Fwd EY2.79%
FCF(TTM)0.43
FCFY3.27%
OCF(TTM)0.56
OCFY4.25%
SpS2.65
BVpS0.33
TBVpS-0.28
PEG (NY)1.03
PEG (5Y)1.42
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 | 2.61 |
F-Score5
WACC9.25%
ROIC/WACC1.24
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 Y41.44%
EPS Next 2Y26.52%
EPS Next 3Y21.67%
EPS Next 5Y19.18%
Revenue 1Y (TTM)9.62%
Revenue growth 3Y19.01%
Revenue growth 5Y2.66%
Sales Q2Q%10.69%
Revenue Next Year13.72%
Revenue Next 2Y11.59%
Revenue Next 3Y10.3%
Revenue Next 5Y9.59%
EBIT growth 1Y45.09%
EBIT growth 3Y70.73%
EBIT growth 5YN/A
EBIT Next Year76.87%
EBIT Next 3Y27.64%
EBIT Next 5Y20.83%
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 42.52 and the Price/Book (PB) ratio is 40.37.