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

FRA:RRU • GB00B63H8491

Current stock price

13.7 EUR
+0.28 (+2.09%)
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

  • RRU has a Return On Assets of 15.32%. This is amongst the best in the industry. RRU outperforms 98.21% of its industry peers.
  • RRU's Return On Equity of 214.27% is amongst the best of the industry. RRU outperforms 100.00% of its industry peers.
  • With an excellent Return On Invested Capital value of 19.70%, RRU belongs to the best of the industry, outperforming 98.21% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for RRU is above the industry average of 9.83%.
  • The last Return On Invested Capital (19.70%) for RRU is above the 3 year average (13.00%), which is a sign of increasing profitability.
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

  • RRU has a better Profit Margin (27.54%) than 100.00% of its industry peers.
  • RRU's Operating Margin of 20.79% is amongst the best of the industry. RRU outperforms 94.64% 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 29.12%, RRU is in line with its industry, outperforming 55.36% of the companies in the same industry.
  • 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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6

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.
  • RRU has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, RRU has more shares outstanding
  • 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 2.78. 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.
  • Looking at the Altman-Z score, with a value of 2.78, RRU is in line with its industry, outperforming 53.57% of the companies in the same 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 has a better Debt to FCF ratio (1.19) than 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's Debt to Equity ratio of 1.05 is on the low side compared to the rest of the industry. RRU is outperformed by 73.21% 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 RankSector Rank
Debt/Equity 1.05
Debt/FCF 1.19
Altman-Z 2.78
ROIC/WACC2.07
WACC9.52%
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

  • RRU has a Current Ratio of 1.20. 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 1.20. This is comparable to the rest of the industry: RRU outperforms 55.36% 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.
  • The Quick ratio of RRU (0.90) is better than 62.50% 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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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.
  • RRU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 149.74% yearly.
  • Looking at the last year, RRU shows a quite strong growth in Revenue. The Revenue has grown by 12.15% in the last year.
  • The Revenue has been growing by 13.04% on average over the past years. This is quite good.
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

  • The Earnings Per Share is expected to grow by 14.56% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 8.49% on average over the next years. This is quite good.
EPS Next Y16.61%
EPS Next 2Y14.78%
EPS Next 3Y14.83%
EPS Next 5Y14.56%
Revenue Next Year9.91%
Revenue Next 2Y9.22%
Revenue Next 3Y8.44%
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.
  • 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 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

  • RRU is valuated quite expensively with a Price/Earnings ratio of 40.29.
  • Based on the Price/Earnings ratio, RRU is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 25.23. RRU is valued rather expensively when compared to this.
  • With a Price/Forward Earnings ratio of 34.54, RRU can be considered very expensive at the moment.
  • RRU's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.51, RRU is valued quite expensively.
Industry RankSector Rank
PE 40.29
Fwd PE 34.54
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RRU indicates a somewhat cheap valuation: RRU is cheaper than 64.29% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, RRU is valued cheaper than 80.36% of the companies in the same industry.
Industry RankSector Rank
P/FCF 27.88
EV/EBITDA 18.91
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

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RRU does not grow enough to justify the current Price/Earnings ratio.
  • RRU has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as RRU's earnings are expected to grow with 14.83% in the coming years.
PEG (NY)2.43
PEG (5Y)N/A
EPS Next 2Y14.78%
EPS Next 3Y14.83%

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3

5. RRU.DE Dividend Analysis

5.1 Amount

  • RRU has a yearly dividend return of 0.80%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.73, RRU has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.90, RRU's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.8%

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 2Y14.78%
EPS Next 3Y14.83%
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 (3/25/2026, 7:00:00 PM)

13.7

+0.28 (+2.09%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)02-26
Earnings (Next)07-29
Inst Owners69.91%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap115.31B
Revenue(TTM)21.21B
Net Income(TTM)5.84B
Analysts77.6
Price Target14.99 (9.42%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.8%
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)-0.18%
PT rev (3m)7.67%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.26%
EPS NY rev (3m)3.24%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)0.82%
Valuation
Industry RankSector Rank
PE 40.29
Fwd PE 34.54
P/S 4.71
P/FCF 27.88
P/OCF 21.87
P/B 36.62
P/tB N/A
EV/EBITDA 18.91
EPS(TTM)0.34
EY2.48%
EPS(NY)0.4
Fwd EY2.9%
FCF(TTM)0.49
FCFY3.59%
OCF(TTM)0.63
OCFY4.57%
SpS2.91
BVpS0.37
TBVpS-0.26
PEG (NY)2.43
PEG (5Y)N/A
Graham Number1.69
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 2.78
F-Score7
WACC9.52%
ROIC/WACC2.07
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 Y16.61%
EPS Next 2Y14.78%
EPS Next 3Y14.83%
EPS Next 5Y14.56%
Revenue 1Y (TTM)12.15%
Revenue growth 3Y16.19%
Revenue growth 5Y13.04%
Sales Q2Q%13.82%
Revenue Next Year9.91%
Revenue Next 2Y9.22%
Revenue Next 3Y8.44%
Revenue Next 5Y8.49%
EBIT growth 1Y89.27%
EBIT growth 3Y77.44%
EBIT growth 5YN/A
EBIT Next Year39.61%
EBIT Next 3Y18.05%
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.


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

ROLLS-ROYCE HOLDINGS PLC (RRU.DE) has a profitability rating of 8 / 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 6 / 10.


Can you provide the dividend sustainability for RRU stock?

The dividend rating of ROLLS-ROYCE HOLDINGS PLC (RRU.DE) is 3 / 10 and the dividend payout ratio is 15.15%.