ROLLS-ROYCE HOLDINGS PLC (RRU.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RRU - GB00B63H8491 - Common Stock
12.24 EUR
+0.1 (+0.82%)
We assign a fundamental rating of 6 out of 10 to RRU. RRU was compared to 48 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! These ratings would make RRU suitable for growth investing!
1. Profitability
1.1 Basic Checks
RRU had positive earnings in the past year.
In the past year RRU had a positive cash flow from operations.
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
The Return On Assets of RRU (15.26%) is better than 97.92% of its industry peers.
RRU has a Return On Equity of 240.37%. This is amongst the best in the industry. RRU outperforms 100.00% of its industry peers.
With a decent Return On Invested Capital value of 11.49%, RRU is doing good in the industry, outperforming 70.83% 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 9.50%.
The 3 year average ROIC (6.58%) for RRU is below the current ROIC(11.49%), indicating increased profibility in the last year.
| 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 91.67% 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
RRU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
RRU has more shares outstanding than it did 1 year ago.
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 2.47. 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.
RRU has a Altman-Z score of 2.47. This is comparable to the rest of the industry: RRU outperforms 43.75% of its industry peers.
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 85.42% 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 Debt to Equity ratio of 1.18. This is in the lower half of the industry: RRU underperforms 77.08% 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 | 2.47 |
ROIC/WACC1.26
WACC9.09%
2.3 Liquidity
A Current Ratio of 1.24 indicates that RRU should not have too much problems paying its short term obligations.
RRU's Current ratio of 1.24 is fine compared to the rest of the industry. RRU outperforms 60.42% of its industry peers.
A Quick Ratio of 0.93 indicates that RRU may have some problems paying its short term obligations.
RRU's Quick ratio of 0.93 is fine compared to the rest of the industry. RRU outperforms 62.50% 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.
Measured over the past years, RRU shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.95% on average per year.
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
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.
The Revenue is expected to grow by 9.16% on average over the next years. This is quite good.
EPS Next Y45.2%
EPS Next 2Y28.77%
EPS Next 3Y23.52%
EPS Next 5Y15.84%
Revenue Next Year13.72%
Revenue Next 2Y11.72%
Revenue Next 3Y10.63%
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
A Price/Earnings ratio of 39.48 indicates a quite expensive valuation of RRU.
RRU's Price/Earnings is on the same level as the industry average.
RRU is valuated expensively when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
RRU is valuated quite expensively with a Price/Forward Earnings ratio of 32.03.
Based on the Price/Forward Earnings ratio, RRU is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 36.21. RRU is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.48 | ||
| Fwd PE | 32.03 |
4.2 Price Multiples
RRU's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, RRU is valued a bit cheaper than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.36 | ||
| EV/EBITDA | 21.67 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 23.52% in the coming years.
PEG (NY)0.87
PEG (5Y)1.32
EPS Next 2Y28.77%
EPS Next 3Y23.52%
5. Dividend
5.1 Amount
RRU has a yearly dividend return of 0.99%, which is pretty low.
RRU's Dividend Yield is comparable with the industry average which is at 1.21.
With a Dividend Yield of 0.99, RRU pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y28.77%
EPS Next 3Y23.52%
FRA:RRU (11/28/2025, 7:00:00 PM)
12.24
+0.1 (+0.82%)
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 Cap102.84B
Revenue(TTM)19.54B
Net Income(TTM)5.79B
Analysts80
Price Target13.59 (11.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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)2.12%
PT rev (3m)9.7%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.66%
EPS NY rev (3m)8.48%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.48 | ||
| Fwd PE | 32.03 | ||
| P/S | 4.61 | ||
| P/FCF | 28.36 | ||
| P/OCF | 21.79 | ||
| P/B | 37.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.67 |
EPS(TTM)0.31
EY2.53%
EPS(NY)0.38
Fwd EY3.12%
FCF(TTM)0.43
FCFY3.53%
OCF(TTM)0.56
OCFY4.59%
SpS2.66
BVpS0.33
TBVpS-0.28
PEG (NY)0.87
PEG (5Y)1.32
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 | 2.47 |
F-Score5
WACC9.09%
ROIC/WACC1.26
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 Y45.2%
EPS Next 2Y28.77%
EPS Next 3Y23.52%
EPS Next 5Y15.84%
Revenue 1Y (TTM)9.62%
Revenue growth 3Y19.01%
Revenue growth 5Y2.66%
Sales Q2Q%10.69%
Revenue Next Year13.72%
Revenue Next 2Y11.72%
Revenue Next 3Y10.63%
Revenue Next 5Y9.16%
EBIT growth 1Y45.09%
EBIT growth 3Y70.73%
EBIT growth 5YN/A
EBIT Next Year76.87%
EBIT Next 3Y27.64%
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 39.48 and the Price/Book (PB) ratio is 37.38.