company background image
RR.

Rolls-Royce Holdings LSE:RR. Stock Report

Last Price

UK£0.72

Market Cap

UK£6.0b

7D

-5.1%

1Y

-45.8%

Updated

25 Sep, 2022

Data

Company Financials +
RR. fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance0/6
Financial Health2/6
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£0.72
52 Week HighUK£1.62
52 Week LowUK£0.70
Beta1.72
1 Month Change-8.41%
3 Month Change-12.14%
1 Year Change-45.75%
3 Year Change-90.92%
5 Year Change-91.90%
Change since IPO-43.40%

Recent News & Updates

Aug 30
Is Now An Opportune Moment To Examine Rolls-Royce Holdings plc (LON:RR.)?

Is Now An Opportune Moment To Examine Rolls-Royce Holdings plc (LON:RR.)?

Rolls-Royce Holdings plc ( LON:RR. ), is not the largest company out there, but it received a lot of attention from a...

Shareholder Returns

RR.GB Aerospace & DefenseGB Market
7D-5.1%2.6%-3.1%
1Y-45.8%22.1%-14.4%

Return vs Industry: RR. underperformed the UK Aerospace & Defense industry which returned 22.1% over the past year.

Return vs Market: RR. underperformed the UK Market which returned -14.4% over the past year.

Price Volatility

Is RR.'s price volatile compared to industry and market?
RR. volatility
RR. Average Weekly Movement6.8%
Aerospace & Defense Industry Average Movement4.0%
Market Average Movement5.2%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.6%

Stable Share Price: RR. is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: RR.'s weekly volatility (7%) has been stable over the past year.

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£6.02b
Earnings (TTM)-UK£1.88b
Revenue (TTM)UK£11.66b

0.5x

P/S Ratio

-3.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RR. income statement (TTM)
RevenueUK£11.66b
Cost of RevenueUK£9.28b
Gross ProfitUK£2.38b
Other ExpensesUK£4.27b
Earnings-UK£1.88b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.22
Gross Margin20.45%
Net Profit Margin-16.13%
Debt/Equity Ratio-99.7%

How did RR. perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is RR. undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RR.?

Other financial metrics that can be useful for relative valuation.

RR. key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA11.2x
PEG Ration/a

Price to Sales Ratio vs Peers

How does RR.'s PS Ratio compare to its peers?

RR. PS Ratio vs Peers
The above table shows the PS ratio for RR. vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average2.3x
ULE Ultra Electronics Holdings
3x4.7%UK£2.5b
QQ. QinetiQ Group
1.5x4.4%UK£2.0b
BA. BAE Systems
1.2x5.2%UK£24.7b
HON Honeywell International
3.4x6.2%US$115.5b
RR. Rolls-Royce Holdings
0.5x6.8%UK£6.0b

Price-To-Sales vs Peers: RR. is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (2.3x).


Price to Earnings Ratio vs Industry

How does RR.'s PE Ratio compare vs other companies in the European Aerospace & Defense Industry?

Price-To-Sales vs Industry: RR. is good value based on its Price-To-Sales Ratio (0.5x) compared to the European Aerospace & Defense industry average (1.3x)


Price to Sales Ratio vs Fair Ratio

What is RR.'s PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RR. PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.5x
Fair PS Ratio1.4x

Price-To-Sales vs Fair Ratio: RR. is good value based on its Price-To-Sales Ratio (0.5x) compared to the estimated Fair Price-To-Sales Ratio (1.4x).


Share Price vs Fair Value

What is the Fair Price of RR. when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RR. (£0.72) is trading below our estimate of fair value (£1.04)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

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


40.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RR. is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: RR. is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RR. is expected to become profitable in the next 3 years.

Revenue vs Market: RR.'s revenue (6.8% per year) is forecast to grow faster than the UK market (4.5% per year).

High Growth Revenue: RR.'s revenue (6.8% 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


Discover growth companies

Past Performance

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

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-16.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RR. is currently unprofitable.

Growing Profit Margin: RR. is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RR. is unprofitable, and losses have increased over the past 5 years at a rate of 16.7% per year.

Accelerating Growth: Unable to compare RR.'s earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RR. is unprofitable, 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.


Discover strong past performing companies

Financial Health

How is Rolls-Royce Holdings's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

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.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable RR. has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RR. is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 40.4% per year.


Discover healthy companies

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

  • Cash Flow Coverage


1.00%

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?

6.9yrs

Average management tenure


CEO

David Warren East (61 yo)

7.17yrs

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 ($USD4.32M) is about average for companies of similar size in the UK market ($USD3.37M).

Compensation vs Earnings: David Warren's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: RR.'s management team is seasoned and experienced (6.9 years average tenure).


Board Members

Experienced Board: RR.'s board of directors are not considered experienced ( 2.5 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

LSE:RR. Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
08 Aug 22BuyUK£980Hsien Yang LeeIndividual1,161UK£0.84
05 Aug 22BuyUK£41,300Anita FrewIndividual50,000UK£0.83
04 Aug 22BuyUK£81,895Anita FrewIndividual100,000UK£0.82
28 Apr 22BuyUK£24,177David Warren EastIndividual29,348UK£0.82
28 Apr 22BuyUK£11,616Panos KakoullisIndividual14,101UK£0.82
07 Apr 22BuyUK£981Hsien Yang LeeIndividual1,020UK£0.96
28 Feb 22BuyUK£76,943Nicholas LuffIndividual76,667UK£1.00
13 Dec 21BuyUK£96,775Anita FrewIndividual80,000UK£1.23
28 Oct 21BuyUK£23,587David Warren EastIndividual17,613UK£1.34
28 Oct 21BuyUK£11,332Panos KakoullisIndividual8,462UK£1.34
28 Sep 21BuyUK£23,586David Warren EastIndividual15,993UK£1.47
28 Sep 21BuyUK£11,332Panos KakoullisIndividual7,684UK£1.47

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 60.32% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
11.34%
Causeway Capital Management LLC
950,261,322£683.0m10.08%4.58%
5.04%
BlackRock, Inc.
422,222,817£303.5m-23.15%0.01%
4.67%
Massachusetts Financial Services Company
391,148,027£281.2m-5.45%0.08%
4.04%
The Vanguard Group, Inc.
338,478,825£243.3m2.11%0.01%
3.6%
T. Rowe Price Group, Inc.
301,501,324£216.7m34.09%0.03%
3.04%
Capital Research and Management Company
254,491,866£182.9m-38.88%0.01%
2.75%
Franklin Resources, Inc.
230,065,834£165.4m25.67%0.08%
2.52%
Fidelity International Ltd
210,926,158£151.6m14.19%0.09%
2.24%
Abrams Capital Management, L.P.
187,462,005£134.7m0%3.78%
1.91%
HBOS Investment Fund Managers Limited
159,933,345£115.0m23.03%1.24%
1.88%
Legal & General Investment Management Limited
157,153,681£113.0m3.11%0.04%
1.77%
Norges Bank Investment Management
148,019,443£106.4m-0.86%0.02%
1.63%
UBS Asset Management
136,834,901£98.4m-0.58%0.02%
1.6%
State Street Global Advisors, Inc.
133,814,081£96.2m-9.36%0.01%
1.51%
Schroder Investment Management Limited
126,714,667£91.1m13.42%0.08%
1.49%
Lockwood Advisors, Inc.
124,895,988£89.8m-0.44%1.1%
1.43%
Orbis Investment Management Limited
119,875,174£86.2m-49.83%0.42%
1.32%
Ruane, Cunniff & Goldfarb L.P.
110,312,292£79.3m-0.45%1.14%
1.12%
Harris Associates L.P.
93,517,602£67.2m25.03%0.1%
1.03%
Barclays Bank PLC, Wealth and Investment Management Division
86,225,027£62.0m37%0.73%
0.96%
Rolls Royce Group plc, ESOP
80,497,825£57.9m-4.67%no data
0.94%
HSBC Global Asset Management (UK) Limited
78,689,118£56.6m41.45%0.05%
0.91%
Giovanni Agnelli B.V.
76,386,488£54.9m-8.61%no data
0.9%
Marathon Asset Management Limited
75,263,159£54.1m-6.03%0.36%
0.72%
Bestinver Gestión, S.G.I.I.C.
60,238,157£43.3m104.44%1.64%

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£6.024b
  • Shares outstanding: 8.38b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RYCE.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDDec 1990
RRU1DB (Deutsche Boerse AG)SPONSORED ADRDEEURDec 1990
RYCE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
RR.LSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
RRUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
RRLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
RR NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
RLLC.FOTCPK (Pink Sheets LLC)NON CUM RED PREF SHS GBP0.001 CUSUSDNov 2016

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/25 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
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.