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

Europe • Frankfurt Stock Exchange • FRA:RRU • GB00B63H8491

14.06 EUR
-0.3 (-2.09%)
Last: Feb 5, 2026, 07:00 PM
Fundamental Rating

6

Overall RRU gets a fundamental rating of 6 out of 10. We evaluated RRU against 53 industry peers in the Aerospace & Defense industry. RRU scores excellent on profitability, but there are some minor concerns on its financial health. RRU is growing strongly while it is still valued neutral. This is a good combination! These ratings could make RRU a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year RRU was profitable.
  • RRU had a positive operating cash flow in the past year.
  • 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.
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 0 2B -2B -4B

1.2 Ratios

  • The Return On Assets of RRU (15.26%) is better than 98.11% of its industry peers.
  • With an excellent Return On Equity value of 240.37%, RRU belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • RRU's Return On Invested Capital of 11.49% is fine compared to the rest of the industry. RRU outperforms 71.70% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for RRU is below the industry average of 9.60%.
  • The last Return On Invested Capital (11.49%) for RRU is above the 3 year average (6.58%), which is a sign of increasing profitability.
Industry RankSector 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
RRU.DE Yearly ROA, ROE, ROICRRU.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200 -200

1.3 Margins

  • RRU has a better Profit Margin (29.62%) than 100.00% of its industry peers.
  • In the last couple of years the Profit Margin of RRU has grown nicely.
  • Looking at the Operating Margin, with a value of 16.47%, RRU belongs to the top of the industry, outperforming 86.79% of the companies in the same industry.
  • RRU's Operating Margin has improved in the last couple of years.
  • RRU has a Gross Margin (25.80%) which is comparable to the rest of the industry.
  • RRU's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
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 0 10 -10 20 -20

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5

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.
  • The number of shares outstanding for RRU has been increased compared to 1 year ago.
  • RRU has more shares outstanding than it did 5 years ago.
  • 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 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 10B 20B 30B

2.2 Solvency

  • RRU has an Altman-Z score of 2.68. 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 (2.68) is comparable to the rest of the industry.
  • The Debt to FCF ratio of RRU is 1.55, which is an excellent value as it means it would take RRU, only 1.55 years of fcf income to pay off 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 88.68% 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.
  • With a Debt to Equity ratio value of 1.18, RRU is not doing good in the industry: 75.47% of the companies in the same industry are doing better.
  • Although RRU does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. 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 1.18
Debt/FCF 1.55
Altman-Z 2.68
ROIC/WACC1.1
WACC10.4%
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 0 2B -2B 4B -4B 6B -6B

2.3 Liquidity

  • RRU has a Current Ratio of 1.24. This is a normal value and indicates that RRU is financially healthy and should not expect problems in meeting its short term obligations.
  • RRU has a Current ratio of 1.24. This is comparable to the rest of the industry: RRU outperforms 58.49% 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 in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.24
Quick Ratio 0.93
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 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. 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%.
  • 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

  • Based on estimates for the next years, RRU will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.12% on average per year.
  • RRU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.92% yearly.
EPS Next Y45.77%
EPS Next 2Y29.01%
EPS Next 3Y23.84%
EPS Next 5Y17.12%
Revenue Next Year13.68%
Revenue Next 2Y11.64%
Revenue Next 3Y10.53%
Revenue Next 5Y8.92%

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.
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. Valuation

4.1 Price/Earnings Ratio

  • RRU is valuated quite expensively with a Price/Earnings ratio of 45.35.
  • Based on the Price/Earnings ratio, RRU is valued a bit cheaper than 62.26% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.67. RRU is valued rather expensively when compared to this.
  • A Price/Forward Earnings ratio of 36.40 indicates a quite expensive valuation of RRU.
  • 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 27.20, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 45.35
Fwd PE 36.4
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.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of RRU indicates a somewhat cheap valuation: RRU is cheaper than 75.47% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 32.35
EV/EBITDA 24.76
RRU.DE Per share dataRRU.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.5 1 1.5 2 2.5

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.
  • The decent profitability rating of RRU may justify a higher PE ratio.
  • RRU's earnings are expected to grow with 23.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.99
PEG (5Y)1.51
EPS Next 2Y29.01%
EPS Next 3Y23.84%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

2

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.87%, RRU is not a good candidate for dividend investing.
  • RRU's Dividend Yield is a higher than the industry average which is at 0.71.
  • With a Dividend Yield of 0.87, RRU pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.87%

5.2 History

Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
RRU.DE Yearly Dividends per shareRRU.DE Yearly Dividends per shareYearly Dividends per share 2025 0.02 0.04 0.06 0.08 0.1

5.3 Sustainability

DPN/A
EPS Next 2Y29.01%
EPS Next 3Y23.84%
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 0 2B -2B -4B

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ROLLS-ROYCE HOLDINGS PLC

FRA:RRU (2/5/2026, 7:00:00 PM)

14.06

-0.3 (-2.09%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)11-13
Earnings (Next)02-26
Inst Owners69.84%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap118.14B
Revenue(TTM)19.54B
Net Income(TTM)5.79B
Analysts80
Price Target14.58 (3.7%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.87%
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)3.94%
PT rev (3m)5.67%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.1%
EPS NY rev (3m)3.06%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.04%
Valuation
Industry RankSector Rank
PE 45.35
Fwd PE 36.4
P/S 5.26
P/FCF 32.35
P/OCF 24.85
P/B 42.64
P/tB N/A
EV/EBITDA 24.76
EPS(TTM)0.31
EY2.2%
EPS(NY)0.39
Fwd EY2.75%
FCF(TTM)0.43
FCFY3.09%
OCF(TTM)0.57
OCFY4.02%
SpS2.68
BVpS0.33
TBVpS-0.28
PEG (NY)0.99
PEG (5Y)1.51
Graham Number1.52
Profitability
Industry RankSector 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 RankSector 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 2.68
F-Score5
WACC10.4%
ROIC/WACC1.1
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 Y45.77%
EPS Next 2Y29.01%
EPS Next 3Y23.84%
EPS Next 5Y17.12%
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 5Y8.92%
EBIT growth 1Y45.09%
EBIT growth 3Y70.73%
EBIT growth 5YN/A
EBIT Next Year80.12%
EBIT Next 3Y29.6%
EBIT Next 5Y20.47%
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 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.


How profitable is ROLLS-ROYCE HOLDINGS PLC (RRU.DE) stock?

ROLLS-ROYCE HOLDINGS PLC (RRU.DE) has a profitability rating of 7 / 10.


What is the financial health of ROLLS-ROYCE HOLDINGS PLC (RRU.DE) stock?

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