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RR.

Rolls-Royce HoldingsLSE:RR. Stock Report

Market Cap

UK£11.0b

7D

19.4%

1Y

-14.4%

Updated

25 Sep, 2021

Data

Company Financials +
RR. fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance2/6
Financial Health0/6
Dividends0/6

RR. Overview

Rolls-Royce Holdings plc operates as an industrial technology company in the United Kingdom and internationally.

Rolls-Royce Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Rolls-Royce Holdings
Historical stock prices
Current Share PriceUK£1.33
52 Week HighUK£0.65
52 Week LowUK£2.52
Beta1.98
1 Month Change14.17%
3 Month Change24.41%
1 Year Change-14.38%
3 Year Change-86.58%
5 Year Change-81.60%
Change since IPO4.33%

Recent News & Updates

Shareholder Returns

RR.GB Aerospace & DefenseGB Market
7D19.4%0.9%0.6%
1Y-14.4%32.9%23.4%

Return vs Industry: RR. underperformed the UK Aerospace & Defense industry which returned 32.9% over the past year.

Return vs Market: RR. underperformed the UK Market which returned 23.4% over the past year.

Price Volatility

Is RR.'s price volatile compared to industry and market?
RR. volatility
RR. Beta1.98
Industry Beta1.14
Market Beta1

Stable Share Price: RR. is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: RR.'s weekly volatility has decreased from 15% to 6% over the past year.

About the Company

FoundedEmployeesCEOWebsite
188448,200Warren Easthttps://www.rolls-royce.com

Rolls-Royce Holdings plc operates as an industrial technology company in the United Kingdom and internationally. The company operates in four segments: Civil Aerospace, Power Systems, Defence, and ITP Aero. The Civil Aerospace segment develops, manufactures, and sells aero engines for large commercial aircraft, regional jet, and business aviation markets, as well as provides aftermarket services.

Rolls-Royce Holdings Fundamentals Summary

How do Rolls-Royce Holdings's earnings and revenue compare to its market cap?
RR. fundamental statistics
Market CapUK£11.04b
Earnings (TTM)UK£2.49b
Revenue (TTM)UK£11.31b

4.4x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RR. income statement (TTM)
RevenueUK£11.31b
Cost of RevenueUK£10.12b
Gross ProfitUK£1.19b
Expenses-UK£1.29b
EarningsUK£2.49b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.30
Gross Margin10.56%
Net Profit Margin21.99%
Debt/Equity Ratio-134.9%

How did RR. perform over the long term?

See historical performance and comparison

Valuation

Is Rolls-Royce Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RR. (£1.33) is trading below our estimate of fair value (£3.64)

Significantly Below Fair Value: RR. is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RR. is good value based on its PE Ratio (4.4x) compared to the UK Aerospace & Defense industry average (26.2x).

PE vs Market: RR. is good value based on its PE Ratio (4.4x) compared to the UK market (23.4x).


Price to Earnings Growth Ratio

PEG Ratio: RR. is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: RR. has negative assets, so we can't compare its PB Ratio to the GB Aerospace & Defense industry average.


Future Growth

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

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RR.'s forecast earnings growth (9.2% per year) is above the savings rate (0.9%).

Earnings vs Market: RR.'s earnings (9.2% per year) are forecast to grow slower than the UK market (13.2% per year).

High Growth Earnings: RR.'s earnings are forecast to grow, but not significantly.

Revenue vs Market: RR.'s revenue (6.3% per year) is forecast to grow faster than the UK market (5.4% per year).

High Growth Revenue: RR.'s revenue (6.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RR.'s Return on Equity is forecast to be high in 3 years time


Past Performance

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

-5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RR. has a large one-off gain of £2.2B impacting its June 30 2021 financial results.

Growing Profit Margin: RR. became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RR. has become profitable over the past 5 years, growing earnings by -5.8% per year.

Accelerating Growth: RR. has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RR. has become profitable in the last year, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (16.7%).


Return on Equity

High ROE: RR.'s liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is Rolls-Royce Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: RR. has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: RR. has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: RR. has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: RR.'s has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: RR.'s operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if RR.'s interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

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

0.45%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RR.'s dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RR.'s dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RR.'s dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RR.'s dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RR. is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RR.'s dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure


CEO

Warren East (60 yo)

6.17yrs

Tenure

UK£1,110,000

Compensation

Mr. Warren D.A. East, CBE, has been the Chief Executive Officer of Rolls-Royce Holdings plc since July 1, 2015. He is a Member of Supervisory Board at ASML Holding N.V. since April 22, 2020. He serves as A...


CEO Compensation Analysis

Compensation vs Market: Warren's total compensation ($USD1.52M) is below average for companies of similar size in the UK market ($USD3.77M).

Compensation vs Earnings: Warren's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: RR.'s management team is seasoned and experienced (5.4 years average tenure).


Board Members

Experienced Board: RR.'s board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RR. insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 334.3%.


Top Shareholders

Company Information

Rolls-Royce Holdings plc's employee growth, exchange listings and data sources


Key Information

  • Name: Rolls-Royce Holdings plc
  • Ticker: RR.
  • Exchange: LSE
  • Founded: 1884
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: UK£11.041b
  • Shares outstanding: 8.33b
  • Website: https://www.rolls-royce.com

Number of Employees


Location

  • Rolls-Royce Holdings plc
  • Kings Place
  • 90 York Way
  • London
  • Greater London
  • N1 9FX
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/25 17:53
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.