| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 4/6 |
| Past Performance | 2/6 |
| Financial Health | 0/6 |
| Dividends | 0/6 |
RR. Stock Overview
Rolls-Royce Holdings plc operates as an industrial technology company in the United Kingdom and internationally.
Rolls-Royce Holdings Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£0.83 |
| 52 Week High | UK£1.62 |
| 52 Week Low | UK£0.78 |
| Beta | 1.82 |
| 1 Month Change | -13.76% |
| 3 Month Change | -28.83% |
| 1 Year Change | -20.81% |
| 3 Year Change | -90.62% |
| 5 Year Change | -90.46% |
| Change since IPO | -34.40% |
Recent News & Updates
Estimating The Fair Value Of Rolls-Royce Holdings plc (LON:RR.)
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Rolls-Royce Holdings...
Shareholder Returns
| RR. | GB Aerospace & Defense | GB Market | |
|---|---|---|---|
| 7D | -0.6% | 0.9% | -0.4% |
| 1Y | -20.8% | 36.9% | -4.0% |
Return vs Industry: RR. underperformed the UK Aerospace & Defense industry which returned 36.9% over the past year.
Return vs Market: RR. underperformed the UK Market which returned -3.9% over the past year.
Price Volatility
| RR. volatility | |
|---|---|
| RR. Average Weekly Movement | 10.0% |
| Aerospace & Defense Industry Average Movement | 5.4% |
| Market Average Movement | 6.1% |
| 10% most volatile stocks in GB Market | 11.5% |
| 10% least volatile stocks in GB Market | 3.2% |
Stable Share Price: RR. is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 10% a week.
Volatility Over Time: RR.'s weekly volatility (10%) has been stable over the past year, but is still higher than 75% of UK stocks.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1884 | 44,000 | David Warren East | https://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 New Markets. 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
| RR. fundamental statistics | |
|---|---|
| Market Cap | UK£6.97b |
| Earnings (TTM) | UK£123.00m |
| Revenue (TTM) | UK£11.22b |
56.7x
P/E Ratio0.6x
P/S RatioIs RR. overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| RR. income statement (TTM) | |
|---|---|
| Revenue | UK£11.22b |
| Cost of Revenue | UK£9.08b |
| Gross Profit | UK£2.14b |
| Other Expenses | UK£2.01b |
| Earnings | UK£123.00m |
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.015 |
| Gross Margin | 19.04% |
| Net Profit Margin | 1.10% |
| Debt/Equity Ratio | -132.4% |
How did RR. perform over the long term?
See historical performance and comparisonValuation
Is Rolls-Royce Holdings undervalued compared to its fair value and its price relative to the market?
Valuation Score
0/6Valuation Score 0/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
56.71x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RR. (£0.83) is trading above our estimate of fair value (£0.81)
Significantly Below Fair Value: RR. is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: RR. is poor value based on its PE Ratio (56.7x) compared to the UK Aerospace & Defense industry average (23.3x).
PE vs Market: RR. is poor value based on its PE Ratio (56.7x) compared to the UK market (15.3x).
Price to Earnings Growth Ratio
PEG Ratio: RR. is poor value based on its PEG Ratio (1.6x)
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 17 analysts?
Future Growth Score
4/6Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
34.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RR.'s forecast earnings growth (34.6% per year) is above the savings rate (0.9%).
Earnings vs Market: RR.'s earnings (34.6% per year) are forecast to grow faster than the UK market (11.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: RR.'s revenue (6.1% per year) is forecast to grow faster than the UK market (4.1% per year).
High Growth Revenue: RR.'s revenue (6.1% 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?
Past Performance Score
2/6Past Performance Score 2/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-2.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RR. has a large one-off loss of £562.0M impacting its December 31 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 -2.6% 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 (-20.2%).
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 Health Score
0/6Financial Health Score 0/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
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: RR.'s interest payments on its debt are not well covered by EBIT (2.8x coverage).
Balance Sheet
Dividend
What is Rolls-Royce Holdings's current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
0.92%
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.
Earnings Payout to Shareholders
Earnings Coverage: RR. is not paying a notable dividend for the UK market.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as RR. has not reported any payouts.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
6.6yrs
Average management tenure
CEO
David Warren East (60 yo)
6.83yrs
Tenure
UK£3,950,000
Compensation
Mr. David Warren Arthur East, CBE, has been the Chief Executive Officer of Rolls-Royce Holdings plc since July 3, 2015. He is a Member of Supervisory Board at ASML Holding N.V. since April 22, 2020. He ser...
CEO Compensation Analysis
Compensation vs Market: David Warren's total compensation ($USD4.92M) is above average for companies of similar size in the UK market ($USD3.27M).
Compensation vs Earnings: David 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 (6.6 years average tenure).
Board Members
Experienced Board: RR.'s board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.
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 not been meaningfully diluted in the past year.
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
- Implied Market Cap: UK£6.971b
- Shares outstanding: 8.37b
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/21 00:00 |
| End of Day Share Price | 2022/05/20 00:00 |
| Earnings | 2021/12/31 |
| Annual Earnings | 2021/12/31 |
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.