ROLLS-ROYCE HOLDINGS PLC (RRU.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RRU - GB00B63H8491 - Common Stock
14.92 EUR
-0.28 (-1.84%)
RRU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 54 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 priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, RRU could be worth investigating further for growth investing!.
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
- The Return On Assets of RRU (15.26%) is better than 98.15% of its industry peers.
- Looking at the Return On Equity, with a value of 240.37%, RRU belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 11.49%, RRU is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
- RRU had an Average Return On Invested Capital over the past 3 years of 6.58%. This is below the industry average of 9.28%.
- 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 Profit Margin of 29.62%. This is amongst the best in the industry. RRU outperforms 100.00% of its industry peers.
- In the last couple of years the Profit Margin of RRU has grown nicely.
- RRU's Operating Margin of 16.47% is amongst the best of the industry. RRU outperforms 87.04% of its industry peers.
- RRU's Operating Margin has improved in the last couple of years.
- RRU has a Gross Margin (25.80%) which is in line with 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RRU is creating some value.
- Compared to 1 year ago, RRU has more shares outstanding
- Compared to 5 years ago, RRU has more shares outstanding
- The debt/assets ratio for RRU has been reduced compared to a year ago.
2.2 Solvency
- RRU has an Altman-Z score of 2.78. 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.
- With a Altman-Z score value of 2.78, RRU perfoms like the industry average, outperforming 53.70% of the companies in the same 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.
- The Debt to FCF ratio of RRU (1.55) is better than 88.89% 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.
- With a Debt to Equity ratio value of 1.18, RRU is not doing good in the industry: 74.07% of the companies in the same industry are doing better.
- 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 | 2.78 |
ROIC/WACC1.18
WACC9.71%
2.3 Liquidity
- A Current Ratio of 1.24 indicates that RRU should not have too much problems paying its short term obligations.
- RRU has a better Current ratio (1.24) than 62.96% of its industry peers.
- 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 in line with its industry peers.
| 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
- The Earnings Per Share is expected to grow by 17.12% on average over the next years. This is quite good.
- RRU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.92% yearly.
EPS Next Y42.78%
EPS Next 2Y28.34%
EPS Next 3Y23.25%
EPS Next 5Y17.12%
Revenue Next Year13.68%
Revenue Next 2Y11.64%
Revenue Next 3Y10.53%
Revenue Next 5Y8.92%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 48.13, the valuation of RRU can be described as expensive.
- RRU's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.33. RRU is valued rather expensively when compared to this.
- RRU is valuated quite expensively with a Price/Forward Earnings ratio of 38.93.
- The rest of the industry has a similar Price/Forward Earnings ratio as RRU.
- The average S&P500 Price/Forward Earnings ratio is at 24.12. RRU is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.13 | ||
| Fwd PE | 38.93 |
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.
- RRU's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RRU is cheaper than 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.24 | ||
| EV/EBITDA | 26.22 |
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.
- A more expensive valuation may be justified as RRU's earnings are expected to grow with 23.25% in the coming years.
PEG (NY)1.13
PEG (5Y)1.61
EPS Next 2Y28.34%
EPS Next 3Y23.25%
5. Dividend
5.1 Amount
- No dividends for RRU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FRA:RRU (1/14/2026, 7:00:00 PM)
14.92
-0.28 (-1.84%)
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 Cap125.36B
Revenue(TTM)19.54B
Net Income(TTM)5.79B
Analysts80
Price Target14.03 (-5.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0.76%
PT rev (3m)5.46%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.94%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.13 | ||
| Fwd PE | 38.93 | ||
| P/S | 5.56 | ||
| P/FCF | 34.24 | ||
| P/OCF | 26.3 | ||
| P/B | 45.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.22 |
EPS(TTM)0.31
EY2.08%
EPS(NY)0.38
Fwd EY2.57%
FCF(TTM)0.44
FCFY2.92%
OCF(TTM)0.57
OCFY3.8%
SpS2.68
BVpS0.33
TBVpS-0.29
PEG (NY)1.13
PEG (5Y)1.61
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 | 2.78 |
F-Score5
WACC9.71%
ROIC/WACC1.18
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 Y42.78%
EPS Next 2Y28.34%
EPS Next 3Y23.25%
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.