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

FRA:RRU • GB00B63H8491

Current stock price

13.186 EUR
+0.06 (+0.47%)
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.
  • RRU had a positive operating cash flow in the past year.
  • Of the past 5 years RRU 4 years were profitable.
  • Of the past 5 years RRU 4 years had a positive operating cash flow.
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

  • Looking at the Return On Assets, with a value of 15.32%, RRU belongs to the top of the industry, outperforming 98.21% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 214.27%, 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 19.70%, RRU belongs to the top of the industry, outperforming 98.21% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for RRU is above the industry average of 9.92%.
  • 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.
  • RRU's Operating Margin of 20.79% is amongst the best of the industry. RRU outperforms 91.07% of its industry peers.
  • In the last couple of years the Operating Margin of RRU has grown nicely.
  • RRU has a Gross Margin (29.12%) which is in line with its industry peers.
  • RRU's Gross Margin has improved in the last couple of years.
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

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RRU is creating value.
  • Compared to 1 year ago, RRU has less shares outstanding
  • Compared to 5 years ago, RRU has more shares outstanding
  • Compared to 1 year ago, RRU has an improved debt to assets ratio.
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 2.71. 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 (2.71) 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.
  • A Debt/Equity ratio of 1.05 is on the high side and indicates that RRU has dependencies on debt financing.
  • RRU has a worse Debt to Equity ratio (1.05) than 75.00% of its industry peers.
  • 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 2.71
ROIC/WACC2.12
WACC9.31%
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.
  • The Current ratio of RRU (1.20) is comparable to the rest of the industry.
  • 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 (0.90) which is in line with 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. RRU.DE Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 45.96% over the past year.
  • Measured over the past years, RRU shows a very strong growth in Earnings Per Share. The EPS has been growing by 149.74% on average per year.
  • Looking at the last year, RRU shows a quite strong growth in Revenue. The Revenue has grown by 12.15% in the last year.
  • 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

  • RRU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.35% yearly.
  • The Revenue is expected to grow by 9.19% on average over the next years. This is quite good.
EPS Next Y23.93%
EPS Next 2Y20.21%
EPS Next 3Y19.75%
EPS Next 5Y17.35%
Revenue Next Year13.61%
Revenue Next 2Y11.39%
Revenue Next 3Y10.77%
Revenue Next 5Y9.19%

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 decreasing: in the next years the growth will be less than in the last years.
RRU.DE Yearly Revenue VS EstimatesRRU.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B 40B
RRU.DE Yearly EPS VS EstimatesRRU.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0 0.5 -0.5

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3

4. RRU.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 38.78 indicates a quite expensive valuation of RRU.
  • RRU's Price/Earnings is on the same level as the industry average.
  • When comparing the Price/Earnings ratio of RRU to the average of the S&P500 Index (27.15), we can say RRU is valued slightly more expensively.
  • The Price/Forward Earnings ratio is 31.29, which means the current valuation is very expensive for RRU.
  • The rest of the industry has a similar Price/Forward Earnings ratio as RRU.
  • The average S&P500 Price/Forward Earnings ratio is at 22.12. RRU is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 38.78
Fwd PE 31.29
RRU.DE Price Earnings VS Forward Price EarningsRRU.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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 76.79% of the companies in the same industry.
Industry RankSector Rank
P/FCF 26.78
EV/EBITDA 18.14
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.
  • RRU's earnings are expected to grow with 19.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.62
PEG (5Y)N/A
EPS Next 2Y20.21%
EPS Next 3Y19.75%

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4

5. RRU.DE Dividend Analysis

5.1 Amount

  • RRU has a yearly dividend return of 0.82%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.88, RRU has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, RRU's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.82%

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

  • 15.15% of the earnings are spent on dividend by RRU. This is a low number and sustainable payout ratio.
  • The dividend of RRU is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is 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 (4/27/2026, 7:00:00 PM)

13.186

+0.06 (+0.47%)

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 Cap110.75B
Revenue(TTM)21.21B
Net Income(TTM)5.84B
Analysts77.69
Price Target16.2 (22.86%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.82%
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)8.68%
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 38.78
Fwd PE 31.29
P/S 4.52
P/FCF 26.78
P/OCF 21
P/B 35.17
P/tB N/A
EV/EBITDA 18.14
EPS(TTM)0.34
EY2.58%
EPS(NY)0.42
Fwd EY3.2%
FCF(TTM)0.49
FCFY3.73%
OCF(TTM)0.63
OCFY4.76%
SpS2.92
BVpS0.37
TBVpS-0.26
PEG (NY)1.62
PEG (5Y)N/A
Graham Number1.69345 (-87.16%)
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 2.71
F-Score7
WACC9.31%
ROIC/WACC2.12
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 5Y17.35%
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 5Y9.19%
EBIT growth 1Y89.27%
EBIT growth 3Y77.44%
EBIT growth 5YN/A
EBIT Next Year42.87%
EBIT Next 3Y21.18%
EBIT Next 5Y17.56%
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 3 / 10 to ROLLS-ROYCE HOLDINGS PLC (RRU.DE). This can be considered as Overvalued.


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 38.78 and the Price/Book (PB) ratio is 35.17.


Can you provide the financial health for RRU stock?

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