LSE:RR.

Stock Analysis Report

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Executive Summary

Rolls-Royce Holdings plc operates as an industrial technology company worldwide.


Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Rolls-Royce Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RR.'s share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.6%

RR.

2.2%

GB Aerospace & Defense

-0.7%

GB Market


1 Year Return

-67.7%

RR.

-11.6%

GB Aerospace & Defense

-12.7%

GB Market

Return vs Industry: RR. underperformed the UK Aerospace & Defense industry which returned -11.6% over the past year.

Return vs Market: RR. underperformed the UK Market which returned -12.7% over the past year.


Shareholder returns

RR.IndustryMarket
7 Day-6.6%2.2%-0.7%
30 Day-6.8%1.1%-1.3%
90 Day-16.5%2.8%4.8%
1 Year-67.5%-67.7%-10.3%-11.6%-8.8%-12.7%
3 Year-73.3%-74.2%-6.7%-14.4%-7.7%-19.0%
5 Year-67.0%-69.3%14.4%-2.4%11.6%-13.3%

Price Volatility Vs. Market

How volatile is Rolls-Royce Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

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. (£2.45) is trading below our estimate of fair value (£6.25)

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


Price To Earnings Ratio

PE vs Industry: RR. is unprofitable, so we can't compare its PE Ratio to the GB Aerospace & Defense industry average.

PE vs Market: RR. is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RR.'s PEG Ratio to determine if it is good value.


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.


Next Steps

Future Growth

How is Rolls-Royce Holdings forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

68.9%

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 (1.2%).

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.'s is expected to become profitable in the next 3 years.

Revenue vs Market: RR.'s revenue is expected to decline over the next 3 years (-2.7% per year).

High Growth Revenue: RR.'s revenue is forecast to decline over the next 3 years (-2.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RR.'s Return on Equity is forecast to be low in 3 years time (8.3%).


Next Steps

Past Performance

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

-8.2%

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 8.2% 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 (-6.7%).


Return on Equity

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


Next Steps

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.


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, due to free cash flow being positive and growing by 5.9% per year.


Next Steps

Dividend

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

2.05%

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?

5.0yrs

Average management tenure


CEO

D. Warren East (59 yo)

5.08yrs

Tenure

UK£3,159,000

Compensation

Mr. D. Warren 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. Mr. East serv ...


CEO Compensation Analysis

Compensation vs Market: D. Warren's total compensation ($USD4.13M) is about average for companies of similar size in the UK market ($USD3.31M).

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


Leadership Team

NamePositionTenureCompensationOwnership
D. Warren East
CEO & Executive Director5.08yrsUK£3.16m0.019%
£ 888.0k
Stephen Daintith
CFO & Executive Director3.33yrsUK£2.09m0.016%
£ 738.9k
Paul Stein
Chief Technology Officer3.33yrsno datano data
Jennifer Ramsey
Head of Investor Relationsno datano datano data
Mark Gregory
General Counsel4.83yrsno data0.0039%
£ 182.1k
Richard Wray
Director of External Communications & Brand6.83yrsno datano data
Ben Story
Strategic Marketing Director3.83yrsno datano data
Harry Holt
Chief People Officer2.58yrsno data0.0053%
£ 247.5k
Edward Pease
Senior Vice President of America19.42yrsno datano data
Ian Lawson
Chief Medical Officerno datano datano data
Bob Stoddart
President of Customer Business - Defense12.33yrsno datano data
Robert Watson
Senior Vice President of Customer Business Asia-Pacific7.25yrsno datano data

5.0yrs

Average Tenure

Experienced Management: RR.'s management team is considered experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
D. Warren East
CEO & Executive Director5.08yrsUK£3.16m0.019%
£ 888.0k
Stephen Daintith
CFO & Executive Director3.33yrsUK£2.09m0.016%
£ 738.9k
Frank Chapman
Independent Non-Executive Director8.75yrsUK£93.00k0.0017%
£ 81.4k
Lewis W. Booth
Independent Non Executive Director9.25yrsUK£135.00k0.0037%
£ 171.8k
Ian Edward Davis
Independent Chairman7.25yrsUK£428.00k0.0043%
£ 201.9k
Kevin Smith
Senior Independent Director4.25yrsUK£107.00k0.0014%
£ 65.9k
Hsien Yang Lee
Independent Non-Executive Director6.58yrsUK£110.00k0.00051%
£ 24.0k
Beverly Goulet
Independent Non-Executive Director3.08yrsUK£81.00k0.00049%
£ 23.1k
Irene Dorner
Independent Non-Executive Director5.08yrsUK£86.00k0.00065%
£ 30.6k
Nicholas Luff
Independent Non-Executive Director2.25yrsUK£70.00k0.00052%
£ 24.5k
Jasmin Staiblin
Independent Non-Executive Director8.25yrsUK£84.00kno data
Mark George Culmer
Independent Non-Executive Director0.58yrno datano data

5.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: RR.'s board of directors are considered experienced (5.8 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Rolls-Royce Holdings plc's company bio, 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£4.706b
  • Shares outstanding: 1.92b
  • 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)SPON ADR REPR 5 ORD SHS GBP0.20USUSDDec 1990
RRU1DB (Deutsche Boerse AG)SPON ADR REPR 5 ORD SHS GBP0.20DEEURDec 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

Biography

Rolls-Royce Holdings plc operates as an industrial technology company worldwide. It operates in four segments: Civil Aerospace, Power Systems, Defence, and ITP Aero. The Civil Aerospace segment develops, m ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 20:32
End of Day Share Price2020/08/04 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.