ROLLS-ROYCE HOLDINGS PLC (RRU.DE) Stock Fundamental Analysis
FRA:RRU - Deutsche Boerse Ag - GB00B63H8491 - Common Stock - Currency: EUR
Overall RRU gets a fundamental rating of 5 out of 10. We evaluated RRU against 38 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of RRU get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, RRU is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
RRU had positive earnings in the past year.
RRU had a positive operating cash flow in the past year.
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
RRU has a Return On Assets of 7.06%. This is amongst the best in the industry. RRU outperforms 92.11% of its industry peers.
The Return On Invested Capital of RRU (10.17%) is better than 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.06% | ||
| ROE | N/A | ||
| ROIC | 10.17% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RRU has a better Profit Margin (13.33%) than 92.11% of its industry peers.
In the last couple of years the Profit Margin of RRU has grown nicely.
RRU has a better Operating Margin (14.46%) than 89.47% of its industry peers.
In the last couple of years the Operating Margin of RRU has grown nicely.
Looking at the Gross Margin, with a value of 22.32%, RRU is in line with its industry, outperforming 50.00% of the companies in the same industry.
RRU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.46% | ||
| PM (TTM) | 13.33% | ||
| GM | 22.32% |
OM growth 3Y51.33%
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RRU is creating some value.
There is no outstanding debt for RRU. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 1.91 indicates that RRU is not a great score, but indicates only limited risk for bankruptcy at the moment.
RRU has a Altman-Z score (1.91) which is in line with its industry peers.
RRU has a debt to FCF ratio of 1.77. This is a very positive value and a sign of high solvency as it would only need 1.77 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.77, RRU belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 1.91 |
ROIC/WACC1.08
WACC9.39%
2.3 Liquidity
A Current Ratio of 1.28 indicates that RRU should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.28, RRU is doing good in the industry, outperforming 73.68% of the companies in the same industry.
RRU has a Quick Ratio of 1.28. 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's Quick ratio of 0.98 is amongst the best of the industry. RRU outperforms 86.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.08% over the past year.
The Earnings Per Share has been growing by 172.88% on average over the past years. This is a very strong growth
Looking at the last year, RRU shows a quite strong growth in Revenue. The Revenue has grown by 14.70% in the last year.
RRU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.66% yearly.
EPS 1Y (TTM)4.08%
EPS 3Y172.88%
EPS 5YN/A
EPS Q2Q%15.75%
Revenue 1Y (TTM)14.7%
Revenue growth 3Y19.01%
Revenue growth 5Y2.66%
Sales Q2Q%18.78%
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 13.15% yearly.
The Revenue is expected to grow by 6.59% on average over the next years.
EPS Next Y17.17%
EPS Next 2Y16.29%
EPS Next 3Y14.21%
EPS Next 5Y13.15%
Revenue Next Year9.71%
Revenue Next 2Y9.03%
Revenue Next 3Y8.5%
Revenue Next 5Y6.59%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.00 indicates a quite expensive valuation of RRU.
Based on the Price/Earnings ratio, RRU is valued a bit cheaper than 68.42% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. RRU is around the same levels.
With a Price/Forward Earnings ratio of 37.62, 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 71.05% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, RRU is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27 | ||
| Fwd PE | 37.62 |
4.2 Price Multiples
RRU's Enterprise Value to EBITDA is on the same level as the industry average.
RRU's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RRU is cheaper than 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.99 | ||
| EV/EBITDA | 20.19 |
4.3 Compensation for Growth
RRU's 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 14.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.57
PEG (5Y)N/A
EPS Next 2Y16.29%
EPS Next 3Y14.21%
5. Dividend
5.1 Amount
RRU has a yearly dividend return of 0.75%, which is pretty low.
RRU's Dividend Yield is comparable with the industry average which is at 1.22.
With a Dividend Yield of 0.75, RRU pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
The dividend of RRU decreases each year by -32.15%.
Dividend Growth(5Y)-32.15%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y16.29%
EPS Next 3Y14.21%
FRA:RRU (3/7/2025, 7:00:00 PM)
9.72
+0.01 (+0.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners64.68%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap82.63B
Analysts78.33
Price Target9.01 (-7.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend0.01
Dividend Growth(5Y)-32.15%
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)15.09%
PT rev (3m)29.24%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.58%
EPS NY rev (3m)2.01%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.4%
Revenue NY rev (3m)2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27 | ||
| Fwd PE | 37.62 | ||
| P/S | 3.67 | ||
| P/FCF | 23.99 | ||
| P/OCF | 18.37 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.19 |
EPS(TTM)0.36
EY3.7%
EPS(NY)0.26
Fwd EY2.66%
FCF(TTM)0.41
FCFY4.17%
OCF(TTM)0.53
OCFY5.44%
SpS2.65
BVpS-0.13
TBVpS-0.74
PEG (NY)1.57
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.06% | ||
| ROE | N/A | ||
| ROCE | 14.45% | ||
| ROIC | 10.17% | ||
| ROICexc | 14.65% | ||
| ROICexgc | 22.02% | ||
| OM | 14.46% | ||
| PM (TTM) | 13.33% | ||
| GM | 22.32% | ||
| FCFM | 15.32% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y51.33%
OM growth 5YN/A
PM growth 3Y131.85%
PM growth 5YN/A
GM growth 3Y5.44%
GM growth 5Y31.49%
F-Score8
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.77 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 133.23% | ||
| Cap/Sales | 4.69% | ||
| Interest Coverage | 9.66 | ||
| Cash Conversion | 111.27% | ||
| Profit Quality | 114.88% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 1.91 |
F-Score8
WACC9.39%
ROIC/WACC1.08
Cap/Depr(3y)87.3%
Cap/Depr(5y)71.2%
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)4.08%
EPS 3Y172.88%
EPS 5YN/A
EPS Q2Q%15.75%
EPS Next Y17.17%
EPS Next 2Y16.29%
EPS Next 3Y14.21%
EPS Next 5Y13.15%
Revenue 1Y (TTM)14.7%
Revenue growth 3Y19.01%
Revenue growth 5Y2.66%
Sales Q2Q%18.78%
Revenue Next Year9.71%
Revenue Next 2Y9.03%
Revenue Next 3Y8.5%
Revenue Next 5Y6.59%
EBIT growth 1Y54.38%
EBIT growth 3Y80.1%
EBIT growth 5YN/A
EBIT Next Year50.95%
EBIT Next 3Y20.87%
EBIT Next 5Y16.53%
FCF growth 1Y63.43%
FCF growth 3YN/A
FCF growth 5Y26.05%
OCF growth 1Y52.19%
OCF growth 3YN/A
OCF growth 5Y10.49%