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RR.

Rolls-Royce Holdings LSE:RR. Stock Report

Last Price

UK£0.83

Market Cap

UK£7.0b

7D

-0.6%

1Y

-20.8%

Updated

22 May, 2022

Data

Company Financials +
RR. fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance2/6
Financial Health0/6
Dividends0/6

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

Summary of all time highs, changes and price drops for Rolls-Royce Holdings
Historical stock prices
Current Share PriceUK£0.83
52 Week HighUK£1.62
52 Week LowUK£0.78
Beta1.82
1 Month Change-9.02%
3 Month Change-27.38%
1 Year Change-20.81%
3 Year Change-90.62%
5 Year Change-90.46%
Change since IPO-34.40%

Recent News & Updates

Apr 18
Estimating The Fair Value Of Rolls-Royce Holdings plc (LON:RR.)

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 & DefenseGB 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 -4% over the past year.

Price Volatility

Is RR.'s price volatile compared to industry and market?
RR. volatility
RR. Average Weekly Movement10.0%
Aerospace & Defense Industry Average Movement5.4%
Market Average Movement6.1%
10% most volatile stocks in GB Market11.5%
10% least volatile stocks in GB Market3.2%

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

FoundedEmployeesCEOWebsite
188444,000David Warren 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 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

How do Rolls-Royce Holdings's earnings and revenue compare to its market cap?
RR. fundamental statistics
Market CapUK£6.97b
Earnings (TTM)UK£123.00m
Revenue (TTM)UK£11.22b

56.7x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RR. income statement (TTM)
RevenueUK£11.22b
Cost of RevenueUK£9.08b
Gross ProfitUK£2.14b
Other ExpensesUK£2.01b
EarningsUK£123.00m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.015
Gross Margin19.04%
Net Profit Margin1.10%
Debt/Equity Ratio-132.4%

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?

Valuation Score

0/6

Valuation 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 (15.4x).


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

4/6

Future 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 (11.3% 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

2/6

Past 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

0/6

Financial 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

0/6

Dividend 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 ($USD4.92M) is above average for companies of similar size in the UK market ($USD3.30M).

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/22 00:00
End of Day Share Price2022/05/20 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.