ROLLS-ROYCE HOLDINGS PLC (RRU.DE) Fundamental Analysis & Valuation

FRA:RRU • GB00B63H8491

Current stock price

13.436 EUR
+0.17 (+1.28%)
Last:

This RRU.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. RRU.DE Profitability Analysis

1.1 Basic Checks

  • RRU had positive earnings in the past year.
  • In the past year RRU had a positive cash flow from operations.
  • Of the past 5 years RRU 4 years were profitable.
  • RRU had a positive operating cash flow in 4 of the past 5 years.
RRU.DE Yearly Net Income VS EBIT VS OCF VS FCFRRU.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B -4B

1.2 Ratios

  • With an excellent Return On Assets value of 15.32%, RRU belongs to the best of the industry, outperforming 98.21% of the companies in the same industry.
  • With an excellent Return On Equity value of 214.27%, 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 19.70%, RRU belongs to the top of the industry, outperforming 98.21% of the companies in the same industry.
  • RRU had an Average Return On Invested Capital over the past 3 years of 13.00%. This is above the industry average of 10.01%.
  • The 3 year average ROIC (13.00%) for RRU is below the current ROIC(19.70%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 15.32%
ROE 214.27%
ROIC 19.7%
ROA(3y)10.01%
ROA(5y)5.23%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13%
ROIC(5y)9.11%
RRU.DE Yearly ROA, ROE, ROICRRU.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200 -200

1.3 Margins

  • Looking at the Profit Margin, with a value of 27.54%, RRU belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • With an excellent Operating Margin value of 20.79%, RRU belongs to the best of the industry, outperforming 89.29% 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 29.12%, RRU is in line with its industry, outperforming 46.43% of the companies in the same industry.
  • In the last couple of years the Gross Margin of RRU has grown nicely.
Industry RankSector Rank
OM 20.79%
PM (TTM) 27.54%
GM 29.12%
OM growth 3Y52.72%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y12.61%
GM growth 5YN/A
RRU.DE Yearly Profit, Operating, Gross MarginsRRU.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20

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5

2. RRU.DE Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RRU is creating value.
  • Compared to 1 year ago, RRU has less 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.
RRU.DE Yearly Shares OutstandingRRU.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B
RRU.DE Yearly Total Debt VS Total AssetsRRU.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • RRU has an Altman-Z score of 2.74. 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 (2.74) is comparable to the rest of the industry.
  • RRU has a debt to FCF ratio of 1.19. This is a very positive value and a sign of high solvency as it would only need 1.19 years to pay back of all of its debts.
  • RRU's Debt to FCF ratio of 1.19 is amongst the best of the industry. RRU outperforms 91.07% of its industry peers.
  • RRU has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 1.05, RRU is doing worse than 75.00% of the companies in the same industry.
  • Although RRU's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 1.05
Debt/FCF 1.19
Altman-Z 2.74
ROIC/WACC2.08
WACC9.46%
RRU.DE Yearly LT Debt VS Equity VS FCFRRU.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B -4B 6B -6B

2.3 Liquidity

  • A Current Ratio of 1.20 indicates that RRU should not have too much problems paying its short term obligations.
  • RRU's Current ratio of 1.20 is in line compared to the rest of the industry. RRU outperforms 48.21% of its industry peers.
  • RRU has a Quick Ratio of 1.20. 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 0.90. This is comparable to the rest of the industry: RRU outperforms 55.36% of its industry peers.
Industry RankSector Rank
Current Ratio 1.2
Quick Ratio 0.9
RRU.DE Yearly Current Assets VS Current LiabilitesRRU.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

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7

3. RRU.DE Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 45.96% over the past year.
  • The Earnings Per Share has been growing by 149.74% on average over the past years. This is a very strong growth
  • RRU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.15%.
  • RRU shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.04% yearly.
EPS 1Y (TTM)45.96%
EPS 3Y149.74%
EPS 5YN/A
EPS Q2Q%22.1%
Revenue 1Y (TTM)12.15%
Revenue growth 3Y16.19%
Revenue growth 5Y13.04%
Sales Q2Q%13.82%

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 14.56% on average per year.
  • Based on estimates for the next years, RRU will show a quite strong growth in Revenue. The Revenue will grow by 8.49% on average per year.
EPS Next Y23.93%
EPS Next 2Y20.21%
EPS Next 3Y19.75%
EPS Next 5Y14.56%
Revenue Next Year13.61%
Revenue Next 2Y11.39%
Revenue Next 3Y10.77%
Revenue Next 5Y8.49%

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 decreasing.
RRU.DE Yearly Revenue VS EstimatesRRU.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 10B 20B 30B
RRU.DE Yearly EPS VS EstimatesRRU.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 0.2 -0.2 0.4 -0.4 -0.6

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4

4. RRU.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 39.52, RRU can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of RRU is on the same level as its industry peers.
  • RRU's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.47.
  • With a Price/Forward Earnings ratio of 31.88, RRU can be considered very expensive at the moment.
  • The rest of the industry has a similar Price/Forward Earnings ratio as RRU.
  • RRU is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.62, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 39.52
Fwd PE 31.88
RRU.DE Price Earnings VS Forward Price EarningsRRU.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150 200

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.
  • 80.36% of the companies in the same industry are more expensive than RRU, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 27.29
EV/EBITDA 18.5
RRU.DE Per share dataRRU.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2

4.3 Compensation for Growth

  • RRU's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of RRU may justify a higher PE ratio.
  • A more expensive valuation may be justified as RRU's earnings are expected to grow with 19.75% in the coming years.
PEG (NY)1.65
PEG (5Y)N/A
EPS Next 2Y20.21%
EPS Next 3Y19.75%

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3

5. RRU.DE Dividend Analysis

5.1 Amount

  • RRU has a yearly dividend return of 0.76%, which is pretty low.
  • RRU's Dividend Yield is comparable with the industry average which is at 0.73.
  • With a Dividend Yield of 0.76, RRU pays less dividend than the S&P500 average, which is at 1.81.
Industry RankSector Rank
Dividend Yield 0.76%

5.2 History

  • On average, the dividend of RRU grows each year by 17.06%, which is quite nice.
Dividend Growth(5Y)17.06%
Div Incr Years0
Div Non Decr Years0
RRU.DE Yearly Dividends per shareRRU.DE Yearly Dividends per shareYearly Dividends per share 2025 2026 0.02 0.04 0.06 0.08 0.1

5.3 Sustainability

  • RRU pays out 15.15% of its income as dividend. This is a sustainable payout ratio.
  • RRU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP15.15%
EPS Next 2Y20.21%
EPS Next 3Y19.75%
RRU.DE Yearly Income VS Free CF VS DividendRRU.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B -4B
RRU.DE Dividend Payout.RRU.DE Dividend Payout, showing the Payout Ratio.RRU.DE Dividend Payout.PayoutRetained Earnings

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RRU.DE Fundamentals: All Metrics, Ratios and Statistics

ROLLS-ROYCE HOLDINGS PLC

FRA:RRU (4/23/2026, 7:00:00 PM)

13.436

+0.17 (+1.28%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-26
Earnings (Next)07-29
Inst Owners70.5%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap112.85B
Revenue(TTM)21.21B
Net Income(TTM)5.84B
Analysts77.69
Price Target16.2 (20.57%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.76%
Yearly Dividend0.12
Dividend Growth(5Y)17.06%
DP15.15%
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)8.07%
PT rev (3m)11.11%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)6.27%
EPS NY rev (3m)9.82%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)3.37%
Revenue NY rev (3m)4.23%
Valuation
Industry RankSector Rank
PE 39.52
Fwd PE 31.88
P/S 4.61
P/FCF 27.29
P/OCF 21.4
P/B 35.84
P/tB N/A
EV/EBITDA 18.5
EPS(TTM)0.34
EY2.53%
EPS(NY)0.42
Fwd EY3.14%
FCF(TTM)0.49
FCFY3.66%
OCF(TTM)0.63
OCFY4.67%
SpS2.92
BVpS0.37
TBVpS-0.26
PEG (NY)1.65
PEG (5Y)N/A
Graham Number1.6935 (-87.4%)
Profitability
Industry RankSector Rank
ROA 15.32%
ROE 214.27%
ROCE 23.41%
ROIC 19.7%
ROICexc 30.15%
ROICexgc 48.13%
OM 20.79%
PM (TTM) 27.54%
GM 29.12%
FCFM 16.88%
ROA(3y)10.01%
ROA(5y)5.23%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13%
ROIC(5y)9.11%
ROICexc(3y)18.25%
ROICexc(5y)12.49%
ROICexgc(3y)27.63%
ROICexgc(5y)18.77%
ROCE(3y)15.47%
ROCE(5y)10.83%
ROICexgc growth 3Y83.4%
ROICexgc growth 5YN/A
ROICexc growth 3Y79.06%
ROICexc growth 5YN/A
OM growth 3Y52.72%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y12.61%
GM growth 5YN/A
F-Score7
Asset Turnover0.56
Health
Industry RankSector Rank
Debt/Equity 1.05
Debt/FCF 1.19
Debt/EBITDA 0.55
Cap/Depr 133.65%
Cap/Sales 4.64%
Interest Coverage 17.35
Cash Conversion 88.73%
Profit Quality 61.29%
Current Ratio 1.2
Quick Ratio 0.9
Altman-Z 2.74
F-Score7
WACC9.46%
ROIC/WACC2.08
Cap/Depr(3y)102.92%
Cap/Depr(5y)84.7%
Cap/Sales(3y)4.55%
Cap/Sales(5y)4.61%
Profit Quality(3y)83.21%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)45.96%
EPS 3Y149.74%
EPS 5YN/A
EPS Q2Q%22.1%
EPS Next Y23.93%
EPS Next 2Y20.21%
EPS Next 3Y19.75%
EPS Next 5Y14.56%
Revenue 1Y (TTM)12.15%
Revenue growth 3Y16.19%
Revenue growth 5Y13.04%
Sales Q2Q%13.82%
Revenue Next Year13.61%
Revenue Next 2Y11.39%
Revenue Next 3Y10.77%
Revenue Next 5Y8.49%
EBIT growth 1Y89.27%
EBIT growth 3Y77.44%
EBIT growth 5YN/A
EBIT Next Year42.87%
EBIT Next 3Y21.18%
EBIT Next 5Y16.01%
FCF growth 1Y23.62%
FCF growth 3Y41.86%
FCF growth 5YN/A
OCF growth 1Y20.7%
OCF growth 3Y35.13%
OCF growth 5YN/A

ROLLS-ROYCE HOLDINGS PLC / RRU.DE Fundamental Analysis 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.


What is the profitability of RRU stock?

ROLLS-ROYCE HOLDINGS PLC (RRU.DE) has a profitability rating of 8 / 10.


Can you provide the PE and PB ratios for RRU stock?

The Price/Earnings (PE) ratio for ROLLS-ROYCE HOLDINGS PLC (RRU.DE) is 39.52 and the Price/Book (PB) ratio is 35.84.


Can you provide the financial health for RRU stock?

The financial health rating of ROLLS-ROYCE HOLDINGS PLC (RRU.DE) is 5 / 10.