Loading...

Rolls-Royce Holdings

LSE:RR.
Snowflake Description

Reasonable growth potential with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RR.
LSE
£17B
Market Cap
  1. Home
  2. GB
  3. Capital Goods
Company description

Rolls-Royce Holdings plc, an engineering company, develops, manufactures, markets, and sells power and propulsion systems in the United Kingdom and internationally. The last earnings update was 19 days ago. More info.


Add to Portfolio Compare Print
RR. Share Price and Events
7 Day Returns
3.5%
LSE:RR.
2.6%
GB Aerospace & Defense
3.7%
GB Market
1 Year Returns
1.8%
LSE:RR.
-8.6%
GB Aerospace & Defense
0.8%
GB Market
RR. Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Rolls-Royce Holdings (RR.) 3.5% -5.4% 12% 1.8% 32.4% -16.3%
GB Aerospace & Defense 2.6% -5.2% 7.3% -8.6% -5.2% -4.8%
GB Market 3.7% 1.4% 8.8% 0.8% 14.6% 4.4%
1 Year Return vs Industry and Market
  • RR. outperformed the Aerospace & Defense industry which returned -8.6% over the past year.
  • RR. outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 0.8% over the past year.
Price Volatility
RR.
Industry
5yr Volatility vs Market

RR. Value

 Is Rolls-Royce Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Rolls-Royce Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Rolls-Royce Holdings.

LSE:RR. Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.4%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:RR.
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.914 (1 + (1- 19%) (27.07%))
1.077
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.08
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.077 * 6.65%)
8.39%

Discounted Cash Flow Calculation for LSE:RR. using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Rolls-Royce Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:RR. DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 8.39%)
2019 622.82 Analyst x7 574.63
2020 930.21 Analyst x8 791.84
2021 1,223.67 Analyst x7 961.05
2022 1,279.00 Analyst x3 926.79
2023 1,313.50 Analyst x2 878.15
2024 1,342.82 Est @ 2.23% 828.29
2025 1,368.75 Est @ 1.93% 778.96
2026 1,392.29 Est @ 1.72% 731.05
2027 1,414.17 Est @ 1.57% 685.09
2028 1,434.94 Est @ 1.47% 641.37
Present value of next 10 years cash flows £7,797.22
LSE:RR. DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £1,434.94 × (1 + 1.23%) ÷ (8.39% – 1.23%)
£20,290.20
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £20,290.20 ÷ (1 + 8.39%)10
£9,069.02
LSE:RR. Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £7,797.22 + £9,069.02
£16,866.24
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £16,866.24 / 1,886.39
£8.94
LSE:RR. Discount to Share Price
Calculation Result
Value per share (GBP) From above. £8.94
Current discount Discount to share price of £9.19
= -1 x (£9.19 - £8.94) / £8.94
-2.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Rolls-Royce Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Rolls-Royce Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Rolls-Royce Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:RR. PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £-1.29
LSE:RR. Share Price ** LSE (2019-03-19) in GBP £9.19
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry PE Ratio Median Figure of 9 Publicly-Listed Aerospace & Defense Companies 19.61x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 806 Publicly-Listed Companies 15.95x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Rolls-Royce Holdings.

LSE:RR. PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:RR. Share Price ÷ EPS (both in GBP)

= 9.19 ÷ -1.29

-7.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rolls-Royce Holdings is loss making, we can't compare its value to the GB Aerospace & Defense industry average.
  • Rolls-Royce Holdings is loss making, we can't compare the value of its earnings to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Rolls-Royce Holdings's expected growth come at a high price?
Raw Data
LSE:RR. PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -7.12x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
79.1%per year
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry PEG Ratio Median Figure of 8 Publicly-Listed Aerospace & Defense Companies 1.91x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 574 Publicly-Listed Companies 1.37x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Rolls-Royce Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Rolls-Royce Holdings's assets?
Raw Data
LSE:RR. PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £-0.57
LSE:RR. Share Price * LSE (2019-03-19) in GBP £9.19
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry PB Ratio Median Figure of 12 Publicly-Listed Aerospace & Defense Companies 2.18x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,359 Publicly-Listed Companies 1.52x
LSE:RR. PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:RR. Share Price ÷ Book Value per Share (both in GBP)

= 9.19 ÷ -0.57

-16x

* Primary Listing of Rolls-Royce Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rolls-Royce Holdings has negative assets, we can't compare the value of its assets to the GB Aerospace & Defense industry average.
X
Value checks
We assess Rolls-Royce Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Rolls-Royce Holdings has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

RR. Future Performance

 How is Rolls-Royce Holdings expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
79.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Rolls-Royce Holdings expected to grow at an attractive rate?
  • Rolls-Royce Holdings's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Rolls-Royce Holdings's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Rolls-Royce Holdings's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:RR. Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:RR. Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 79.1%
LSE:RR. Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 3%
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 12%
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 5.1%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11.1%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:RR. Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:RR. Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 18,228 2,931 4
2022-12-31 17,401 2,913 1,319 7
2021-12-31 16,868 2,654 1,072 13
2020-12-31 16,154 2,283 812 15
2019-12-31 15,449 2,112 490 16
LSE:RR. Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 15,729 2,226 -2,401
2018-09-30 16,889 2,371 41
2018-06-30 17,138 2,362 2,073
2018-03-31 16,723 2,086 3,140
2017-12-31 16,307 1,810 4,207
2017-09-30 15,273 1,448 1,355
2017-06-30 15,149 1,239 -1,088
2017-03-31 15,052 1,325 -2,560
2016-12-31 14,955 1,411 -4,032
2016-09-30 14,386 1,441 -3,041
2016-06-30 13,817 1,471 -2,049
2016-03-31 13,771 1,283 -983

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Rolls-Royce Holdings's earnings are expected to grow significantly at over 20% yearly.
  • Rolls-Royce Holdings's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:RR. Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Rolls-Royce Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:RR. Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 0.71 0.81 0.61 2.00
2021-12-31 0.58 0.69 0.50 5.00
2020-12-31 0.43 0.53 0.38 7.00
2019-12-31 0.27 0.30 0.23 8.00
LSE:RR. Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 -1.29
2018-09-30 0.02
2018-06-30 1.13
2018-03-31 1.71
2017-12-31 2.29
2017-09-30 0.74
2017-06-30 -0.59
2017-03-31 -1.40
2016-12-31 -2.20
2016-09-30 -1.66
2016-06-30 -1.12
2016-03-31 -0.54

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Rolls-Royce Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Rolls-Royce Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Rolls-Royce Holdings has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

RR. Past Performance

  How has Rolls-Royce Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Rolls-Royce Holdings's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Rolls-Royce Holdings does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Rolls-Royce Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Rolls-Royce Holdings's 1-year growth to the GB Aerospace & Defense industry average as it is not currently profitable.
Earnings and Revenue History
Rolls-Royce Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Rolls-Royce Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:RR. Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 15,729.00 -2,401.00 1,572.00 768.00
2018-09-30 16,888.50 40.50 1,419.50 722.50
2018-06-30 17,138.00 2,073.00 1,232.00 698.00
2018-03-31 16,722.50 3,140.00 1,226.50 746.50
2017-12-31 16,307.00 4,207.00 1,221.00 795.00
2017-09-30 15,273.00 1,355.00 1,500.00 896.00
2017-06-30 15,149.00 -1,088.00 1,814.00 976.00
2017-03-31 15,052.00 -2,560.00 1,854.00 949.50
2016-12-31 14,955.00 -4,032.00 1,894.00 923.00
2016-09-30 14,386.00 -3,040.50 1,512.50 870.50
2016-06-30 13,817.00 -2,049.00 1,131.00 818.00
2016-03-31 13,771.00 -983.00 1,084.50 818.00
2015-12-31 13,725.00 83.00 1,038.00 818.00
2015-09-30 13,791.00 -85.00 1,064.50 823.00
2015-06-30 13,857.00 -253.00 1,091.00 828.00
2015-03-31 13,796.50 -163.00 1,122.00 810.50
2014-12-31 13,736.00 -73.00 1,153.00 793.00
2014-06-30 13,546.00 2,236.00 1,175.00 708.00
2014-03-31 14,094.00 1,773.50 1,219.00 683.00
2013-12-31 14,642.00 1,311.00 1,263.00 658.00
2013-09-30 14,649.50 1,032.50 1,306.50 593.50
2013-06-30 13,786.00 725.00 1,180.00 565.00
2013-03-31 12,973.50 1,523.00 1,090.50 548.00
2012-12-31 12,161.00 2,321.00 1,001.00 531.00
2012-09-30 11,820.50 1,756.50 1,014.00 563.50
2012-06-30 11,480.00 1,219.00 996.00 538.00
2012-03-31 11,302.00 1,034.50 996.00 500.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Rolls-Royce Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • It is difficult to establish if Rolls-Royce Holdings has efficiently used its assets last year compared to the GB Aerospace & Defense industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Rolls-Royce Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Rolls-Royce Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Rolls-Royce Holdings has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

RR. Health

 How is Rolls-Royce Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Rolls-Royce Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Rolls-Royce Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Rolls-Royce Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Rolls-Royce Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Rolls-Royce Holdings has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Rolls-Royce Holdings Company Filings, last reported 2 months ago.

LSE:RR. Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 -1,052.00 4,695.00 4,984.00
2018-09-30 -1,052.00 4,695.00 4,984.00
2018-06-30 770.00 4,473.00 4,398.00
2018-03-31 770.00 4,473.00 4,398.00
2017-12-31 6,170.00 3,521.00 2,956.00
2017-09-30 6,170.00 3,521.00 2,956.00
2017-06-30 3,243.00 3,606.00 2,339.00
2017-03-31 3,243.00 3,606.00 2,339.00
2016-12-31 1,864.00 3,391.00 2,774.00
2016-09-30 1,864.00 3,391.00 2,774.00
2016-06-30 3,842.00 3,372.00 2,288.00
2016-03-31 3,842.00 3,372.00 2,288.00
2015-12-31 5,016.00 3,398.00 3,178.00
2015-09-30 5,016.00 3,398.00 3,178.00
2015-06-30 5,410.00 2,320.00 1,589.00
2015-03-31 5,410.00 2,320.00 1,589.00
2014-12-31 6,387.00 2,310.00 2,869.00
2014-06-30 6,741.00 2,247.00 3,362.00
2014-03-31 6,741.00 2,247.00 3,362.00
2013-12-31 6,303.00 2,436.00 4,311.00
2013-09-30 6,303.00 2,436.00 4,311.00
2013-06-30 5,130.00 2,627.00 3,443.00
2013-03-31 5,130.00 2,627.00 3,443.00
2012-12-31 5,996.00 1,400.00 2,601.00
2012-09-30 6,105.00 1,400.00 2,601.00
2012-06-30 5,481.00 1,411.00 2,172.00
2012-03-31 5,481.00 1,411.00 2,172.00
  • Rolls-Royce Holdings has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Rolls-Royce Holdings's debt level has increased considering it has negative shareholder equity.
  • Debt is well covered by operating cash flow (47.4%, greater than 20% of total debt).
  • Rolls-Royce Holdings is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Rolls-Royce Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Rolls-Royce Holdings has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

RR. Dividends

 What is Rolls-Royce Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.27%
Current annual income from Rolls-Royce Holdings dividends. Estimated to be 2% next year.
If you bought £2,000 of Rolls-Royce Holdings shares you are expected to receive £25 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Rolls-Royce Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.03%).
  • Rolls-Royce Holdings's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.18%).
Upcoming dividend payment

Purchase Rolls-Royce Holdings on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:RR. Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 3.9%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 704 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:RR. Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.42 1.00
2022-12-31 0.27 4.00
2021-12-31 0.22 11.00
2020-12-31 0.17 16.00
2019-12-31 0.13 16.00
LSE:RR. Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-02-28 0.117 1.299
2018-03-27 0.117 1.304
2018-03-07 0.117 1.303
2017-03-09 0.117 1.344
2017-02-14 0.117 1.576
2016-07-28 0.092 1.281
2016-02-15 0.164 2.449
2015-02-16 0.231 3.116
2014-03-06 0.220 2.284
2014-02-13 0.220 2.190
2013-03-01 0.195 1.678
2012-02-27 0.175 2.023
2012-02-10 0.175 2.209
2011-03-22 0.160 2.441
2011-02-10 0.160 2.624
2011-02-09 0.160 2.451
2010-07-29 0.154 2.528
2010-03-01 0.150 2.561
2010-02-11 0.150 2.844
2009-03-20 0.143 3.520

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Rolls-Royce Holdings's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
X
Income/ dividend checks
We assess Rolls-Royce Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Rolls-Royce Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Rolls-Royce Holdings has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

RR. Management

 What is the CEO of Rolls-Royce Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
D. Warren East
COMPENSATION £2,331,000
AGE 56
TENURE AS CEO 3.7 years
CEO Bio

Mr. D. Warren A. East, CBE, has been the Chief Executive Officer of Rolls-Royce Holdings plc since July 1, 2015. Mr. East served as the Chief Executive Officer of ARM Holdings Plc and ARM Ltd. from October 2001 to July 1, 2013. Mr. East served as the Chief Executive Officer of Arm, Inc. He serves as a Member of the UK Trade and Investment Executive Board for Technology, where he is responsible for driving the UK’s trade and investment objectives in the telecoms and IT sectors. He joined ARM Holdings plc in 1994 and served as its Vice President of Business Operations from February 1998 and as Chief Operating Officer since October 2001. Mr. East served as the Chief Executive Officer of Artisan Components, Inc. since August 23, 2004. He was with Texas Instruments (TI) for 11 years and latterly managed TI 's FPGA marketing in Europe. He has been an Executive Director of Rolls-Royce Holdings plc since January 1, 2014. He serves as a Member of Advisory Board at Quester Venture Partnership. He served as a Director of ARM Ltd., and Reciva Limited. He served as a Non-Executive Director of De La Rue plc from January 9, 2007 to July 23, 2015 and served as its Senior Independent Director from July 25, 2013 to July 23, 2015. He served as an Independent Director of Micron Technology, Inc. from July 17, 2013 to January 27, 2016. He served as a Director at ARM Holdings PLC from October 2000 to July 1, 2013. He is a chartered engineer, Fellow of the Institution of Engineering and Technology, Fellow of the Royal Academy of Engineering and a Companion of the Chartered Management Institute. He is Director at DnDyson James Group Limited. Mr. East holds MBA from Cranfield University who also awarded him an honorary doctorate in 2011. He has Bachelor's Degree in Engineering sciences from the University of Oxford.

CEO Compensation
  • D. Warren's compensation has increased whilst company is loss making.
  • D. Warren's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Rolls-Royce Holdings management team in years:

2.9
Average Tenure
  • The tenure for the Rolls-Royce Holdings management team is about average.
Management Team

D. Warren East

TITLE
CEO & Executive Director
COMPENSATION
£2M
AGE
56
TENURE
3.7 yrs

Stephen Daintith

TITLE
CFO & Executive Director
COMPENSATION
£2M
AGE
53
TENURE
1.9 yrs

Paul Stein

TITLE
Chief Technology Officer
TENURE
1.9 yrs

Jennifer Ramsey

TITLE
Head of Investor Relations

Mark Gregory

TITLE
General Counsel
TENURE
3.4 yrs

Richard Wray

TITLE
Director of External Communications
TENURE
5.4 yrs

Ben Story

TITLE
Strategic Marketing Director
TENURE
2.4 yrs

Harry Holt

TITLE
Chief People Officer
TENURE
1.2 yrs

Ed Pease

TITLE
Senior Vice President of America
TENURE
18 yrs

Ian Lawson

TITLE
Chief Medical Officer
Board of Directors Tenure

Average tenure and age of the Rolls-Royce Holdings board of directors in years:

5.2
Average Tenure
64.5
Average Age
  • The tenure for the Rolls-Royce Holdings board of directors is about average.
Board of Directors

Ian Edward Davis

TITLE
Chairman
COMPENSATION
£427K
AGE
67
TENURE
5.8 yrs

D. Warren East

TITLE
CEO & Executive Director
COMPENSATION
£2M
AGE
56
TENURE
5.2 yrs

Stephen Daintith

TITLE
CFO & Executive Director
COMPENSATION
£2M
AGE
53
TENURE
1.9 yrs

Charles Powell

TITLE
Chairman of International Advisory Board
AGE
77

Lewis W. Booth

TITLE
Independent Non Executive Director
COMPENSATION
£164K
AGE
69
TENURE
7.8 yrs

Frank Chapman

TITLE
Independent Non-Executive Director
COMPENSATION
£94K
AGE
65
TENURE
7.3 yrs

Linda Cairnie

TITLE
Independent Non-Executive Director
COMPENSATION
£94K
AGE
64
TENURE
4.5 yrs

Kevin Smith

TITLE
Senior Independent Director
COMPENSATION
£110K
AGE
63
TENURE
2.8 yrs

Ratan Tata

TITLE
Member of International Advisory Board
AGE
81

Lubna Al-Olayan

TITLE
Member of International Advisory Board
AGE
62
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Rolls-Royce Holdings insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
07. Mar 19 Buy Linda Cairnie Individual 07. Mar 19 07. Mar 19 216 £8.97 £1,938
07. Mar 19 Buy Hsien Yang Lee Individual 07. Mar 19 07. Mar 19 110 £8.97 £987
07. Mar 19 Buy Ian Edward Davis Individual 07. Mar 19 07. Mar 19 221 £8.97 £1,983
08. Feb 19 Buy Linda Cairnie Individual 07. Feb 19 07. Feb 19 213 £9.09 £1,937
08. Feb 19 Buy Hsien Yang Lee Individual 07. Feb 19 07. Feb 19 108 £9.09 £982
08. Feb 19 Buy Ian Edward Davis Individual 07. Feb 19 07. Feb 19 218 £9.09 £1,982
07. Dec 18 Buy Linda Cairnie Individual 07. Dec 18 07. Dec 18 240 £8.08 £1,939
07. Dec 18 Buy Hsien Yang Lee Individual 07. Dec 18 07. Dec 18 122 £8.08 £986
07. Dec 18 Buy Ian Edward Davis Individual 07. Dec 18 07. Dec 18 245 £8.08 £1,980
07. Dec 18 Buy Frank Chapman Individual 07. Dec 18 07. Dec 18 507 £8.08 £4,097
21. Nov 18 Buy D. Warren East Individual 20. Nov 18 20. Nov 18 9,488 £7.90 £74,993
08. Oct 18 Buy Linda Cairnie Individual 08. Oct 18 08. Oct 18 432 £9.47 £4,091
08. Oct 18 Buy Hsien Yang Lee Individual 08. Oct 18 08. Oct 18 104 £9.47 £985
08. Oct 18 Buy Ian Edward Davis Individual 08. Oct 18 08. Oct 18 209 £9.47 £1,979
08. Oct 18 Buy Frank Chapman Individual 08. Oct 18 08. Oct 18 432 £9.47 £4,091
07. Sep 18 Buy Linda Cairnie Individual 07. Sep 18 07. Sep 18 201 £9.65 £1,940
07. Sep 18 Buy Hsien Yang Lee Individual 07. Sep 18 07. Sep 18 102 £9.65 £985
07. Sep 18 Buy Ian Edward Davis Individual 07. Sep 18 07. Sep 18 205 £9.65 £1,979
07. Sep 18 Buy Frank Chapman Individual 07. Sep 18 07. Sep 18 424 £9.65 £4,093
07. Aug 18 Buy Linda Cairnie Individual 07. Aug 18 07. Aug 18 178 £10.92 £1,943
07. Aug 18 Buy Hsien Yang Lee Individual 07. Aug 18 07. Aug 18 90 £10.92 £982
07. Aug 18 Buy Ian Edward Davis Individual 07. Aug 18 07. Aug 18 182 £10.92 £1,987
07. Aug 18 Buy Frank Chapman Individual 07. Aug 18 07. Aug 18 375 £10.92 £4,093
09. Jul 18 Buy Linda Cairnie Individual 09. Jul 18 09. Jul 18 196 £9.91 £1,942
09. Jul 18 Buy Hsien Yang Lee Individual 09. Jul 18 09. Jul 18 99 £9.91 £981
09. Jul 18 Buy Ian Edward Davis Individual 09. Jul 18 09. Jul 18 200 £9.91 £1,982
09. Jul 18 Buy Frank Chapman Individual 09. Jul 18 09. Jul 18 413 £9.91 £4,093
07. Jun 18 Buy Linda Cairnie Individual 07. Jun 18 07. Jun 18 231 £8.40 £1,940
07. Jun 18 Buy Hsien Yang Lee Individual 07. Jun 18 07. Jun 18 117 £8.40 £983
07. Jun 18 Buy Ian Edward Davis Individual 07. Jun 18 07. Jun 18 236 £8.40 £1,982
07. Jun 18 Buy Frank Chapman Individual 07. Jun 18 07. Jun 18 471 £8.40 £3,955
08. May 18 Buy Linda Cairnie Individual 08. May 18 08. May 18 232 £8.35 £1,936
08. May 18 Buy Hsien Yang Lee Individual 08. May 18 08. May 18 118 £8.35 £985
08. May 18 Buy Kevin Smith Individual 08. May 18 08. May 18 316 £8.35 £2,637
08. May 18 Buy Ian Edward Davis Individual 08. May 18 08. May 18 237 £8.35 £1,978
08. May 18 Buy Frank Chapman Individual 08. May 18 08. May 18 474 £8.35 £3,956
09. Apr 18 Buy Linda Cairnie Individual 09. Apr 18 09. Apr 18 220 £8.83 £1,943
09. Apr 18 Buy Hsien Yang Lee Individual 09. Apr 18 09. Apr 18 111 £8.83 £980
09. Apr 18 Buy Kevin Smith Individual 09. Apr 18 09. Apr 18 299 £8.83 £2,640
09. Apr 18 Buy Ian Edward Davis Individual 09. Apr 18 09. Apr 18 224 £8.83 £1,978
09. Apr 18 Buy Frank Chapman Individual 09. Apr 18 09. Apr 18 448 £8.83 £3,956
X
Management checks
We assess Rolls-Royce Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Rolls-Royce Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

RR. News

Simply Wall St News

Who Has Been Buying Rolls-Royce Holdings plc (LON:RR.) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Rolls-Royce Holdings plc (LON:RR.). … Rolls-Royce Holdings Insider Transactions Over The Last Year. … In the last twelve months there was more buying than selling by Rolls-Royce Holdings insiders

Simply Wall St -

Investors Who Bought Rolls-Royce Holdings Shares Three Years Ago Are Now Up 51%

For example, Rolls-Royce Holdings plc (LON:RR.) shareholders have seen the share price rise 51% over three years, well in excess of the market return (38%). … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During three years of share price growth, Rolls-Royce Holdings moved from a loss to profitability.

Simply Wall St -

Is Rolls-Royce Holdings plc (LON:RR.) An Attractive Dividend Stock?

Historically, Rolls-Royce Holdings plc (LON:RR.) has been paying a dividend to shareholders. … Let's take a look at Rolls-Royce Holdings in more detail. … See our latest analysis for Rolls-Royce Holdings?

Simply Wall St -

What Should You Know About Rolls-Royce Holdings plc's (LON:RR.) Capital Returns?

and want to begin learning the link between Rolls-Royce Holdings plc (LON:RR.)’s return fundamentals and stock market performance. … Therefore, looking at how efficiently Rolls-Royce Holdings is able to use capital to create earnings will help us understand your potential return. … Rolls-Royce Holdings's Return On Capital Employed

Simply Wall St -

What Should You Know About Rolls-Royce Holdings plc's (LON:RR.) Return On Capital?

and looking to gauge the potential return on investment in Rolls-Royce Holdings plc (LON:RR.). … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided.

Simply Wall St -

Should Rolls-Royce Holdings plc's (LON:RR.) Recent Earnings Worry You?

After reading Rolls-Royce Holdings plc's (LON:RR.) most recent earnings announcement (31 December 2017), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … See our latest analysis for Rolls-Royce Holdings … RR.'s trailing twelve-month earnings (from 31 December 2017) of UK£4.21b has

Simply Wall St -

Is Rolls-Royce Holdings plc's (LON:RR.) Balance Sheet A Threat To Its Future?

There are a number of reasons that attract investors towards large-cap companies such as Rolls-Royce Holdings plc (LON:RR.), with a market cap of UK£17.86b. … the key to their continued success lies in its financial health. … I will provide an overview of Rolls-Royce Holdings’s financial liquidity and leverage to give you an idea of Rolls-Royce Holdings’s position to take advantage of potential acquisitions or comfortably endure future downturns.

Simply Wall St -

Calculating The Fair Value Of Rolls-Royce Holdings plc (LON:RR.)

by taking the foreast future cash flows of the company and discounting them back to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Rolls-Royce Holdings plc (LON:RR.) Delivered A Better ROE Than The Industry, Here’s Why

and looking to gauge the potential return on investment in Rolls-Royce Holdings plc (LON:RR.). … With an ROE of 68.20%, Rolls-Royce Holdings plc (LON:RR.) outpaced its own industry which delivered a less exciting 11.34% over the past year. … This can be measured by looking at the company’s financial leverage.

Simply Wall St -

Does Rolls-Royce Holdings plc's (LON:RR.) PE Ratio Signal A Buying Opportunity?

I am writing today to help inform people who are new to the stock market. … and want to begin learning the link between Rolls-Royce Holdings plc (LON:RR.)’s fundamentals and stock market performance. … Rolls-Royce Holdings plc (LON:RR.) is currently trading at a trailing P/E of 3.6x, which is lower than the industry average of 22.4x.

Simply Wall St -

RR. Company Info

Description

Rolls-Royce Holdings plc, an engineering company, develops, manufactures, markets, and sells power and propulsion systems in the United Kingdom and internationally. The company’s Civil Aerospace segment provides aero engines for large commercial aircraft, regional jet, and business aviation markets, as well as aftermarket services. Its Defence Aerospace segment offers military aero engines for combat jets, rotary, transporters, tankers, patrol and tactical aircraft, and unmanned aerial vehicles, as well as maintenance, repair, overhaul, helicopter, and training services. The company’s Power Systems segment provides high-speed engines, propulsion systems, and distributed energy systems for use in ships; heavy land, rail, and defense vehicles; and the oil and gas industry under the MTU Onsite Energy brand. This segment also markets diesel gensets for emergency, base load, and peak load applications, as well as for cogeneration plants for the generation of combined heat and power based on gas engines or turbines; medium-speed engines for marine and power generation applications; and fuel injection systems for large engines. Its Marine segment manufactures and services propulsion and handling solutions for maritime offshore, merchant, and naval markets, ranging from standalone products to integrated systems. This segment offers diesel and gas engines, gas turbines, propulsors, propulsion systems, stabilization and maneuvering products, deck machinery, cranes, automation and control products, electrical power systems, and reduction gears. The company’s Nuclear segment provides nuclear submarine systems and support services incorporating design, procurement, and operation services; specialized components, systems, and services to the civil nuclear industry; and nuclear instrumentation and controls, nuclear services, and small modular reactors. Rolls-Royce Holdings plc was founded in 1971 and is headquartered in London, the United Kingdom.

Details
Name: Rolls-Royce Holdings plc
RR.
Exchange: LSE
Founded: 1971
£17,343,446,969
1,886,387,532
Website: http://www.rolls-royce.com
Address: Rolls-Royce Holdings plc
62 Buckingham Gate,
London,
Greater London, SW1E 6AT,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE RR. Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK RYCE.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB RRU Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BMV RR N Ordinary Shares Bolsa Mexicana de Valores MX MXN 02. Jan 1992
BATS-CHIXE RRL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
OTCPK RYCE.Y SPON ADR REPR 5 ORD SHS GBP0.20 Pink Sheets LLC US USD 28. Dec 1990
DB RRU1 SPON ADR REPR 5 ORD SHS GBP0.20 Deutsche Boerse AG DE EUR 28. Dec 1990
Number of employees
Current staff
Staff numbers
54,500
Rolls-Royce Holdings employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/19 20:36
End of day share price update: 2019/03/19 00:00
Last estimates confirmation: 2019/03/18
Last earnings filing: 2019/02/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.