ROLLS-ROYCE HOLDINGS PLC (RRU.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:RRU - GB00B63H8491 - Common Stock
14.72 EUR
-0.08 (-0.54%)
RRU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 47 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 growing strongly while it is still valued neutral. This is a good combination! These ratings would make RRU suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year RRU was profitable.
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
Looking at the Return On Assets, with a value of 15.26%, RRU belongs to the top of the industry, outperforming 97.87% 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 Return On Invested Capital of 11.49%. This is in the better half of the industry: RRU outperforms 72.34% of its industry peers.
RRU had an Average Return On Invested Capital over the past 3 years of 6.58%. This is below the industry average of 9.17%.
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
The Profit Margin of RRU (29.62%) is better 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 91.49% 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 in line with its industry, outperforming 44.68% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RRU is creating some value.
Compared to 1 year ago, RRU has more shares outstanding
RRU has more shares outstanding than it did 5 years ago.
RRU has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.76 indicates that RRU is not a great score, but indicates only limited risk for bankruptcy at the moment.
RRU has a Altman-Z score (2.76) which 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 87.23% 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.
RRU's Debt to Equity ratio of 1.18 is on the low side compared to the rest of the industry. RRU is outperformed by 74.47% of its industry peers.
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 | 2.76 |
ROIC/WACC1.19
WACC9.69%
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.
The Current ratio of RRU (1.24) is better than 63.83% of its industry peers.
A Quick Ratio of 0.93 indicates that RRU may have some problems paying its short term obligations.
The Quick ratio of RRU (0.93) is better than 63.83% of its industry peers.
| 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.
RRU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.62%.
Measured over the past years, RRU shows a small growth in Revenue. The Revenue has been growing by 2.66% on average per year.
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
RRU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.84% yearly.
The Revenue is expected to grow by 9.16% on average over the next years. This is quite good.
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
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.
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
The Price/Earnings ratio is 47.48, which means the current valuation is very expensive for RRU.
Compared to the rest of the industry, the Price/Earnings ratio of RRU is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.00, RRU is valued quite expensively.
RRU is valuated quite expensively with a Price/Forward Earnings ratio of 38.49.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RRU is on the same level as its industry peers.
RRU is valuated expensively when we compare the Price/Forward Earnings ratio to 23.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.48 | ||
| Fwd PE | 38.49 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RRU.
70.21% of the companies in the same industry are more expensive than RRU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.85 | ||
| EV/EBITDA | 25.92 |
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 23.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.11
PEG (5Y)1.59
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 0.87, RRU has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, RRU's dividend is way lower than the S&P500 average.
| 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 (1/8/2026, 7:00:00 PM)
14.72
-0.08 (-0.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners69.84%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap123.68B
Revenue(TTM)19.54B
Net Income(TTM)5.79B
Analysts79.2
Price Target14.03 (-4.69%)
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)5.46%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.94%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.48 | ||
| Fwd PE | 38.49 | ||
| P/S | 5.5 | ||
| P/FCF | 33.85 | ||
| P/OCF | 26.01 | ||
| P/B | 44.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.92 |
EPS(TTM)0.31
EY2.11%
EPS(NY)0.38
Fwd EY2.6%
FCF(TTM)0.43
FCFY2.95%
OCF(TTM)0.57
OCFY3.84%
SpS2.68
BVpS0.33
TBVpS-0.28
PEG (NY)1.11
PEG (5Y)1.59
Graham Number1.52
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 | 2.76 |
F-Score5
WACC9.69%
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 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.