ROLLS-ROYCE HOLDINGS PLC (RRU.DE) Stock Fundamental Analysis
FRA:RRU - Deutsche Boerse Ag - GB00B63H8491 - Common Stock - Currency: EUR
RRU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 40 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of RRU get a neutral evaluation. Nothing too spectacular is happening here. RRU is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year RRU was profitable.
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 Return On Assets of 7.06%. This is amongst the best in the industry. RRU outperforms 92.50% of its industry peers.
RRU has a Return On Invested Capital of 8.66%. This is comparable to the rest of the industry: RRU outperforms 60.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RRU is below the industry average of 8.80%.
The 3 year average ROIC (6.58%) for RRU is below the current ROIC(8.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.06% | ||
| ROE | N/A | ||
| ROIC | 8.66% |
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 (13.33%) than 95.00% of its industry peers.
In the last couple of years the Profit Margin of RRU has grown nicely.
The Operating Margin of RRU (12.32%) is better than 80.00% of its industry peers.
In the last couple of years the Operating Margin of RRU has grown nicely.
RRU has a Gross Margin of 22.32%. This is comparable to the rest of the industry: RRU outperforms 52.50% of its industry peers.
RRU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.32% | ||
| PM (TTM) | 13.33% | ||
| GM | 22.32% |
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 below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for RRU has been increased compared to 1 year ago.
RRU has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RRU has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.76, we must say that RRU is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.76, RRU is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
RRU has a debt to FCF ratio of 1.77. This is a very positive value and a sign of high solvency as it would only need 1.77 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.77, RRU belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.97
WACC8.93%
2.3 Liquidity
RRU has a Current Ratio of 1.28. This is a normal value and indicates that RRU is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.28, RRU is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
RRU has a Quick Ratio of 1.28. 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 0.98, RRU belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
RRU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.44%, 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.
Looking at the last year, RRU shows a quite strong growth in Revenue. The Revenue has grown by 14.70% in the last year.
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)47.44%
EPS 3Y468.12%
EPS 5Y29.95%
EPS Q2Q%27.65%
Revenue 1Y (TTM)14.7%
Revenue growth 3Y19.01%
Revenue growth 5Y2.66%
Sales Q2Q%14.27%
3.2 Future
The Earnings Per Share is expected to grow by 14.33% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.33% on average over the next years. This is quite good.
EPS Next Y23.18%
EPS Next 2Y20.49%
EPS Next 3Y17.57%
EPS Next 5Y14.33%
Revenue Next Year9.71%
Revenue Next 2Y9.03%
Revenue Next 3Y8.5%
Revenue Next 5Y10.33%
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 35.70 indicates a quite expensive valuation of RRU.
RRU's Price/Earnings is on the same level as the industry average.
RRU is valuated rather expensively when we compare the Price/Earnings ratio to 28.92, which is the current average of the S&P500 Index.
RRU is valuated quite expensively with a Price/Forward Earnings ratio of 29.59.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RRU is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.65, RRU is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.7 | ||
| Fwd PE | 29.59 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RRU.
Based on the Price/Free Cash Flow ratio, RRU is valued cheaper than 82.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.52 | ||
| EV/EBITDA | 19.11 |
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.
A more expensive valuation may be justified as RRU's earnings are expected to grow with 17.57% in the coming years.
PEG (NY)1.54
PEG (5Y)1.19
EPS Next 2Y20.49%
EPS Next 3Y17.57%
5. Dividend
5.1 Amount
RRU has a yearly dividend return of 0.84%, which is pretty low.
RRU's Dividend Yield is comparable with the industry average which is at 1.37.
With a Dividend Yield of 0.84, RRU pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y20.49%
EPS Next 3Y17.57%
FRA:RRU (4/23/2025, 7:00:00 PM)
8.568
+0.17 (+1.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners64.68%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap72.63B
Analysts77.5
Price Target9.63 (12.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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)6.84%
PT rev (3m)35.5%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)14.37%
EPS NY rev (3m)16.67%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.7 | ||
| Fwd PE | 29.59 | ||
| P/S | 3.3 | ||
| P/FCF | 21.52 | ||
| P/OCF | 16.48 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.11 |
EPS(TTM)0.24
EY2.8%
EPS(NY)0.29
Fwd EY3.38%
FCF(TTM)0.4
FCFY4.65%
OCF(TTM)0.52
OCFY6.07%
SpS2.6
BVpS-0.13
TBVpS-0.73
PEG (NY)1.54
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.06% | ||
| ROE | N/A | ||
| ROCE | 12.31% | ||
| ROIC | 8.66% | ||
| ROICexc | 12.48% | ||
| ROICexgc | 18.76% | ||
| OM | 12.32% | ||
| PM (TTM) | 13.33% | ||
| GM | 22.32% | ||
| FCFM | 15.32% |
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
ROICexcg growth 3Y80.93%
ROICexcg 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-Score8
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.77 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 99.89% | ||
| Cap/Sales | 4.69% | ||
| Interest Coverage | 8.23 | ||
| Cash Conversion | 117.6% | ||
| Profit Quality | 114.88% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 1.76 |
F-Score8
WACC8.93%
ROIC/WACC0.97
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)47.44%
EPS 3Y468.12%
EPS 5Y29.95%
EPS Q2Q%27.65%
EPS Next Y23.18%
EPS Next 2Y20.49%
EPS Next 3Y17.57%
EPS Next 5Y14.33%
Revenue 1Y (TTM)14.7%
Revenue growth 3Y19.01%
Revenue growth 5Y2.66%
Sales Q2Q%14.27%
Revenue Next Year9.71%
Revenue Next 2Y9.03%
Revenue Next 3Y8.5%
Revenue Next 5Y10.33%
EBIT growth 1Y31.51%
EBIT growth 3Y70.73%
EBIT growth 5YN/A
EBIT Next Year58.42%
EBIT Next 3Y24.25%
EBIT Next 5Y21.74%
FCF growth 1Y63.43%
FCF growth 3YN/A
FCF growth 5Y26.05%
OCF growth 1Y52.19%
OCF growth 3YN/A
OCF growth 5Y10.49%