ROLLS-ROYCE HOLDINGS PLC (RRU.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RRU - GB00B63H8491 - Common Stock
13.32 EUR
+0.06 (+0.45%)
We assign a fundamental rating of 6 out of 10 to RRU. RRU was compared to 47 industry peers in the Aerospace & Defense industry. While RRU belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. RRU is growing strongly while it is still valued neutral. This is a good combination! This makes RRU very considerable 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
RRU has a better Return On Assets (15.26%) than 97.87% of its industry peers.
With an excellent Return On Equity value of 240.37%, RRU belongs to the best 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 68.09% 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 9.56%.
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.
RRU's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.47%, RRU belongs to the top of the industry, outperforming 89.36% 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 (25.80%) which is comparable to the rest of the industry.
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
An Altman-Z score of 2.60 indicates that RRU is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of RRU (2.60) is comparable to the rest of the industry.
RRU has a debt to FCF ratio of 1.55. This is a very positive value and a sign of high solvency as it would only need 1.55 years to pay back of 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 87.23% 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.
The Debt to Equity ratio of RRU (1.18) is worse than 76.60% 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 | 2.6 |
ROIC/WACC1.18
WACC9.76%
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.
With a Current ratio value of 1.24, RRU perfoms like the industry average, outperforming 57.45% 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.
RRU has a Quick ratio of 0.93. This is comparable to the rest of the industry: RRU outperforms 59.57% of 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.
Looking at the last year, RRU shows a quite strong growth in Revenue. The Revenue has grown by 9.62% in the last year.
The Revenue has been growing slightly by 2.66% on average over the past years.
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
Based on estimates for the next years, RRU will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.84% on average per year.
RRU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.16% yearly.
EPS Next Y42.78%
EPS Next 2Y28.4%
EPS Next 3Y23.25%
EPS Next 5Y15.84%
Revenue Next Year13.69%
Revenue Next 2Y11.65%
Revenue Next 3Y10.54%
Revenue Next 5Y9.16%
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
Based on the Price/Earnings ratio of 42.97, the valuation of RRU can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of RRU is on the same level as its industry peers.
RRU is valuated expensively when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 34.96, which means the current valuation is very expensive for RRU.
RRU's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of RRU to the average of the S&P500 Index (24.03), we can say RRU is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.97 | ||
| Fwd PE | 34.96 |
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 70.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.78 | ||
| EV/EBITDA | 23.54 |
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 23.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)1
PEG (5Y)1.43
EPS Next 2Y28.4%
EPS Next 3Y23.25%
5. Dividend
5.1 Amount
RRU has a yearly dividend return of 0.92%, which is pretty low.
RRU's Dividend Yield is comparable with the industry average which is at 0.87.
Compared to an average S&P500 Dividend Yield of 1.87, RRU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y28.4%
EPS Next 3Y23.25%
FRA:RRU (12/23/2025, 7:00:00 PM)
13.32
+0.06 (+0.45%)
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 Cap111.92B
Revenue(TTM)19.54B
Net Income(TTM)5.79B
Analysts79.2
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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)2.1%
PT rev (3m)7.73%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.67%
EPS NY rev (3m)6.67%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.97 | ||
| Fwd PE | 34.96 | ||
| P/S | 5 | ||
| P/FCF | 30.78 | ||
| P/OCF | 23.65 | ||
| P/B | 40.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.54 |
EPS(TTM)0.31
EY2.33%
EPS(NY)0.38
Fwd EY2.86%
FCF(TTM)0.43
FCFY3.25%
OCF(TTM)0.56
OCFY4.23%
SpS2.66
BVpS0.33
TBVpS-0.28
PEG (NY)1
PEG (5Y)1.43
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 | 2.6 |
F-Score5
WACC9.76%
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 2Y28.4%
EPS Next 3Y23.25%
EPS Next 5Y15.84%
Revenue 1Y (TTM)9.62%
Revenue growth 3Y19.01%
Revenue growth 5Y2.66%
Sales Q2Q%10.69%
Revenue Next Year13.69%
Revenue Next 2Y11.65%
Revenue Next 3Y10.54%
Revenue Next 5Y9.16%
EBIT growth 1Y45.09%
EBIT growth 3Y70.73%
EBIT growth 5YN/A
EBIT Next Year80.12%
EBIT Next 3Y29.6%
EBIT Next 5Y20.74%
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 42.97 and the Price/Book (PB) ratio is 40.57.