ROLLS-ROYCE HOLDINGS PLC (RRU.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RRU - GB00B63H8491 - Common Stock
13.1 EUR
-0.22 (-1.65%)
Taking everything into account, RRU scores 5 out of 10 in our fundamental rating. RRU was compared to 45 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 valued quite expensively, but it does show have an excellent growth rating. This makes RRU very considerable 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.
In multiple years RRU reported negative net income over the last 5 years.
In multiple years RRU reported negative operating cash flow during the last 5 years.
1.2 Ratios
With an excellent Return On Assets value of 15.26%, RRU belongs to the best of the industry, outperforming 97.78% of the companies in the same industry.
RRU has a better Return On Equity (240.37%) than 100.00% of its industry peers.
RRU has a better Return On Invested Capital (11.49%) than 68.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RRU is below the industry average of 9.26%.
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
RRU has a Profit Margin of 29.62%. This is amongst the best in the industry. RRU outperforms 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 91.11% of the companies in the same industry.
RRU's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 25.80%, RRU is doing worse than 62.22% of the companies in the same 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.
RRU has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.57 indicates that RRU is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.57, RRU is in line with its industry, outperforming 48.89% of the companies in the same 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.
The Debt to FCF ratio of RRU (1.55) is better than 86.67% 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: 80.00% of the companies in the same industry are doing better.
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 | 2.57 |
ROIC/WACC1.19
WACC9.62%
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 Current ratio of 1.24. This is in the better half of the industry: RRU outperforms 62.22% 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 comparable to the rest of the industry.
| 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
The Earnings Per Share is expected to grow by 15.84% 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 9.16% yearly.
EPS Next Y42.78%
EPS Next 2Y28.34%
EPS Next 3Y23.25%
EPS Next 5Y15.84%
Revenue Next Year13.68%
Revenue Next 2Y11.64%
Revenue Next 3Y10.53%
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 42.26 indicates a quite expensive valuation of RRU.
The rest of the industry has a similar Price/Earnings ratio as RRU.
When comparing the Price/Earnings ratio of RRU to the average of the S&P500 Index (26.84), we can say RRU is valued expensively.
With a Price/Forward Earnings ratio of 34.41, RRU can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, RRU is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of RRU to the average of the S&P500 Index (23.40), we can say RRU is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.26 | ||
| Fwd PE | 34.41 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than RRU, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, RRU is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.26 | ||
| EV/EBITDA | 23.14 |
4.3 Compensation for Growth
RRU's 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.
RRU's earnings are expected to grow with 23.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.99
PEG (5Y)1.41
EPS Next 2Y28.34%
EPS Next 3Y23.25%
5. Dividend
5.1 Amount
With a yearly dividend of 0.91%, RRU is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.90, RRU has a dividend in line with its industry peers.
With a Dividend Yield of 0.91, RRU pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y28.34%
EPS Next 3Y23.25%
FRA:RRU (12/29/2025, 7:00:00 PM)
13.1
-0.22 (-1.65%)
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 Cap110.07B
Revenue(TTM)19.54B
Net Income(TTM)5.79B
Analysts79.2
Price Target14.03 (7.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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)3.27%
PT rev (3m)8.55%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.67%
EPS NY rev (3m)0.94%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.26 | ||
| Fwd PE | 34.41 | ||
| P/S | 4.92 | ||
| P/FCF | 30.26 | ||
| P/OCF | 23.25 | ||
| P/B | 39.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.14 |
EPS(TTM)0.31
EY2.37%
EPS(NY)0.38
Fwd EY2.91%
FCF(TTM)0.43
FCFY3.3%
OCF(TTM)0.56
OCFY4.3%
SpS2.66
BVpS0.33
TBVpS-0.28
PEG (NY)0.99
PEG (5Y)1.41
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 | 2.57 |
F-Score5
WACC9.62%
ROIC/WACC1.19
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 5Y15.84%
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 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 5 / 10 to RRU.DE.
What is the valuation status for RRU stock?
ChartMill assigns a valuation rating of 3 / 10 to ROLLS-ROYCE HOLDINGS PLC (RRU.DE). This can be considered as Overvalued.
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 42.26 and the Price/Book (PB) ratio is 39.89.