ROLLS-ROYCE HOLDINGS PLC (RRU.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:RRU • GB00B63H8491
14.38 EUR
+0.3 (+2.13%)
Last: Feb 2, 2026, 07:00 PM
Overall RRU gets a fundamental rating of 6 out of 10. We evaluated RRU against 53 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, RRU could be worth investigating further 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.
- 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 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.
- RRU had an Average Return On Invested Capital over the past 3 years of 6.58%. This 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
- The Profit Margin of RRU (29.62%) is better than 100.00% of its industry peers.
- RRU's Profit Margin has improved in the last couple of years.
- RRU has a Operating Margin of 16.47%. This is amongst the best in the industry. RRU outperforms 86.79% of its industry peers.
- RRU's Operating Margin has improved in the last couple of years.
- RRU's Gross Margin of 25.80% is in line compared to the rest of the industry. RRU outperforms 43.40% 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
- RRU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
- The debt/assets ratio for RRU has been reduced compared to a year ago.
2.2 Solvency
- RRU has an Altman-Z score of 2.68. 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.
- The Altman-Z score of RRU (2.68) is comparable to the rest of the industry.
- 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.
- With an excellent Debt to FCF ratio value of 1.55, RRU belongs to the best of the industry, outperforming 88.68% of the companies in the same industry.
- A Debt/Equity ratio of 1.18 is on the high side and indicates that RRU has dependencies on debt financing.
- RRU has a worse Debt to Equity ratio (1.18) than 75.47% 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 | 2.68 |
ROIC/WACC1.1
WACC10.42%
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.
- RRU has a Current ratio of 1.24. This is comparable to the rest of the industry: RRU outperforms 58.49% of its industry peers.
- A Quick Ratio of 0.93 indicates that RRU may have some problems paying its short term obligations.
- With a Quick ratio value of 0.93, RRU perfoms like the industry average, outperforming 58.49% of the companies in the same 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
- The Revenue has grown by 9.62% in the past year. This is quite good.
- RRU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.66% yearly.
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.
- Based on estimates for the next years, RRU will show a quite strong growth in Revenue. The Revenue will grow by 8.92% on average per year.
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
- Based on the Price/Earnings ratio of 46.39, the valuation of RRU can be described as expensive.
- 60.38% of the companies in the same industry are more expensive than RRU, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.41, RRU is valued quite expensively.
- A Price/Forward Earnings ratio of 37.10 indicates a quite expensive valuation of RRU.
- The rest of the industry has a similar Price/Forward Earnings ratio as RRU.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.64, RRU is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.39 | ||
| Fwd PE | 37.1 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of RRU indicates a somewhat cheap valuation: RRU is cheaper than 75.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.97 | ||
| EV/EBITDA | 24.71 |
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.
- A more expensive valuation may be justified as RRU's earnings are expected to grow with 23.84% in the coming years.
PEG (NY)1.01
PEG (5Y)1.55
EPS Next 2Y29.01%
EPS Next 3Y23.84%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.87%, RRU is not a good candidate for dividend investing.
- RRU's Dividend Yield is a higher than the industry average which is at 0.71.
- With a Dividend Yield of 0.87, RRU pays less dividend than the S&P500 average, which is at 1.83.
| 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%
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.