ROLLS-ROYCE HOLDINGS PLC (RRU.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:RRU • GB00B63H8491
14.36 EUR
-0.02 (-0.14%)
Last: Feb 4, 2026, 07:00 PM
We assign a fundamental rating of 6 out of 10 to RRU. RRU was compared to 53 industry peers in the Aerospace & Defense industry. RRU scores excellent on profitability, but there are some minor concerns on its financial health. RRU is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make RRU suitable 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.
- The reported net income has been mixed in the past 5 years: RRU reported negative net income in multiple years.
- In multiple years RRU reported negative operating cash flow during the last 5 years.
1.2 Ratios
- RRU has a Return On Assets of 15.26%. This is amongst the best in the industry. RRU outperforms 98.11% of its industry peers.
- RRU has a better Return On Equity (240.37%) than 100.00% of its industry peers.
- The Return On Invested Capital of RRU (11.49%) is better than 71.70% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for RRU is below the industry average of 9.60%.
- The last Return On Invested Capital (11.49%) for RRU is above the 3 year average (6.58%), which is a sign of increasing profitability.
| 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
- RRU has a better Profit Margin (29.62%) than 100.00% of its industry peers.
- In the last couple of years the Profit Margin of RRU has grown nicely.
- With an excellent Operating Margin value of 16.47%, RRU belongs to the best of the industry, outperforming 86.79% of the companies in the same industry.
- In the last couple of years the Operating Margin of RRU has grown nicely.
- RRU has a Gross Margin of 25.80%. This is comparable to the rest of the industry: RRU outperforms 43.40% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RRU is creating some value.
- RRU has more shares outstanding than it did 1 year ago.
- RRU has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for RRU has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.73 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 2.73. This is comparable to the rest of the industry: RRU outperforms 47.17% 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.
- Looking at the Debt to FCF ratio, with a value of 1.55, RRU belongs to the top of the industry, outperforming 88.68% of the companies in the same industry.
- RRU has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
- RRU has a Debt to Equity ratio of 1.18. This is in the lower half of the industry: RRU underperforms 75.47% 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 | 2.73 |
ROIC/WACC1.1
WACC10.41%
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 comparable to the rest of the 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.
- RRU has a Quick ratio (0.93) which 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
- 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
- RRU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.62%.
- 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
- The Earnings Per Share is expected to grow by 17.12% on average over the next years. This is quite good.
- The Revenue is expected to grow by 8.92% on average over the next years. This is quite good.
EPS Next Y45.77%
EPS Next 2Y29.01%
EPS Next 3Y23.84%
EPS Next 5Y17.12%
Revenue Next Year13.68%
Revenue Next 2Y11.64%
Revenue Next 3Y10.53%
Revenue Next 5Y8.92%
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
- The Price/Earnings ratio is 46.32, which means the current valuation is very expensive for RRU.
- RRU's Price/Earnings ratio is a bit cheaper when compared to the industry. RRU is cheaper than 60.38% of the companies in the same industry.
- RRU is valuated expensively when we compare the Price/Earnings ratio to 28.25, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 36.88, RRU can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RRU is on the same level as its industry peers.
- RRU's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.50.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.32 | ||
| Fwd PE | 36.88 |
4.2 Price Multiples
- RRU's Enterprise Value to EBITDA ratio is in line with the industry average.
- RRU's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RRU is cheaper than 75.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.78 | ||
| EV/EBITDA | 25.48 |
4.3 Compensation for Growth
- RRU's 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 23.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.01
PEG (5Y)1.55
EPS Next 2Y29.01%
EPS Next 3Y23.84%
5. Dividend
5.1 Amount
- RRU has a yearly dividend return of 0.87%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.71, RRU pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.87, RRU pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y29.01%
EPS Next 3Y23.84%
FRA:RRU (2/4/2026, 7:00:00 PM)
14.36
-0.02 (-0.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)11-13 2025-11-13
Earnings (Next)02-26 2026-02-26/amc
Inst Owners69.84%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap120.66B
Revenue(TTM)19.54B
Net Income(TTM)5.79B
Analysts80
Price Target14.58 (1.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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)3.94%
PT rev (3m)5.67%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.1%
EPS NY rev (3m)3.06%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.32 | ||
| Fwd PE | 36.88 | ||
| P/S | 5.33 | ||
| P/FCF | 32.78 | ||
| P/OCF | 25.19 | ||
| P/B | 43.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.48 |
EPS(TTM)0.31
EY2.16%
EPS(NY)0.39
Fwd EY2.71%
FCF(TTM)0.44
FCFY3.05%
OCF(TTM)0.57
OCFY3.97%
SpS2.7
BVpS0.33
TBVpS-0.29
PEG (NY)1.01
PEG (5Y)1.55
Graham Number1.52
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 | 2.73 |
F-Score5
WACC10.41%
ROIC/WACC1.1
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 Y45.77%
EPS Next 2Y29.01%
EPS Next 3Y23.84%
EPS Next 5Y17.12%
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 5Y8.92%
EBIT growth 1Y45.09%
EBIT growth 3Y70.73%
EBIT growth 5YN/A
EBIT Next Year80.12%
EBIT Next 3Y29.6%
EBIT Next 5Y20.47%
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 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 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.