LSE:RR.

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

1.9%

LSE:RR.

2.9%

GB Aerospace & Defense

0.1%

GB Market


1 Year Return

-12.8%

LSE:RR.

-17.5%

GB Aerospace & Defense

-2.2%

GB Market

RR. outperformed the Aerospace & Defense industry which returned -17.5% over the past year.

RR. underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -2.2% over the past year.


Share holder returns

RR.IndustryMarket
7 Day1.9%2.9%0.1%
30 Day-5.0%4.4%0.6%
90 Day-4.9%4.4%-0.02%
1 Year-11.6%-12.8%-14.6%-17.5%2.2%-2.2%
3 Year24.9%19.8%10.4%-1.3%27.2%11.2%
5 Year-10.3%-18.0%21.0%-3.9%33.6%6.1%

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 based on future cash flows and its price relative to the stock market?

43%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Rolls-Royce Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

Rolls-Royce Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Rolls-Royce Holdings is loss making, we can't compare its value to the GB Aerospace & Defense industry average.

Rolls-Royce Holdings is loss making, we can't compare the value of its earnings to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Rolls-Royce Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

Rolls-Royce Holdings has negative assets, we can't compare the value of its assets to the GB Aerospace & Defense industry average.


Next Steps

Future Growth

How is Rolls-Royce Holdings expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

83.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Rolls-Royce Holdings's revenue is expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).

Rolls-Royce Holdings's earnings are expected to grow significantly at over 20% yearly.

Rolls-Royce Holdings's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Rolls-Royce Holdings's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Rolls-Royce Holdings's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Rolls-Royce Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

-10.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Rolls-Royce Holdings does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Rolls-Royce Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Rolls-Royce Holdings's 1-year growth to the GB Aerospace & Defense industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Rolls-Royce Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

It is difficult to establish if Rolls-Royce Holdings has efficiently used its assets last year compared to the GB Aerospace & Defense industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Rolls-Royce Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Rolls-Royce Holdings's financial position?


Financial Position Analysis

Rolls-Royce Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Rolls-Royce Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Rolls-Royce Holdings has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Rolls-Royce Holdings's debt level has increased considering it has negative shareholder equity.

Debt is well covered by operating cash flow (47.4%, greater than 20% of total debt).

Unable to confirm if the interest payments on Rolls-Royce Holdings's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

High level of physical assets or inventory.

Rolls-Royce Holdings has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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

2.17%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Rolls-Royce Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.95%).

Rolls-Royce Holdings's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.45%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).


Next Steps

Management

What is the CEO of Rolls-Royce Holdings's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

D. Warren East (57yo)

4.0yrs

Tenure

UK£3,943,000

Compensation

Mr. D. Warren A. East, CBE, has been the Chief Executive Officer of Rolls-Royce Holdings plc since July 1, 2015. Mr. East served as the Chief Executive Officer of ARM Holdings Plc and ARM Ltd. from October ...


CEO Compensation Analysis

D. Warren's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

D. Warren's compensation has increased whilst company is loss making.


Management Age and Tenure

3.3yrs

Average Tenure

The tenure for the Rolls-Royce Holdings management team is about average.


Board Age and Tenure

5.5yrs

Average Tenure

65.5yo

Average Age

The tenure for the Rolls-Royce Holdings board of directors is about average.


Insider Trading

More shares have been bought than sold by Rolls-Royce Holdings individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUK£1,94309 Jul 19
Linda Cairnie
EntityIndividual
Role
Member of the Board of Directors
Shares225
Max PriceUK£8.64
BuyUK£98409 Jul 19
Hsien Yang Lee
EntityIndividual
Shares114
Max PriceUK£8.64
BuyUK£1,97809 Jul 19
Ian Edward Davis
EntityIndividual
Role
Chairman of the Board
Shares229
Max PriceUK£8.64
BuyUK£1,93910 Jun 19
Linda Cairnie
EntityIndividual
Role
Member of the Board of Directors
Shares213
Max PriceUK£9.10
BuyUK£98310 Jun 19
Hsien Yang Lee
EntityIndividual
Shares108
Max PriceUK£9.10
BuyUK£1,97610 Jun 19
Ian Edward Davis
EntityIndividual
Role
Chairman of the Board
Shares217
Max PriceUK£9.10
BuyUK£1,93507 May 19
Linda Cairnie
EntityIndividual
Role
Member of the Board of Directors
Shares210
Max PriceUK£9.22
BuyUK£98607 May 19
Hsien Yang Lee
EntityIndividual
Shares107
Max PriceUK£9.22
BuyUK£1,98107 May 19
Ian Edward Davis
EntityIndividual
Role
Chairman of the Board
Shares215
Max PriceUK£9.22
BuyUK£1,98208 Apr 19
Ian Edward Davis
EntityIndividual
Role
Chairman of the Board
Shares216
Max PriceUK£9.18
BuyUK£1,93708 Apr 19
Linda Cairnie
EntityIndividual
Role
Member of the Board of Directors
Shares211
Max PriceUK£9.18
BuyUK£98208 Apr 19
Hsien Yang Lee
EntityIndividual
Shares107
Max PriceUK£9.18
BuyUK£1,98307 Mar 19
Ian Edward Davis
EntityIndividual
Role
Chairman of the Board
Shares221
Max PriceUK£8.97
BuyUK£98707 Mar 19
Hsien Yang Lee
EntityIndividual
Shares110
Max PriceUK£8.97
BuyUK£1,93807 Mar 19
Linda Cairnie
EntityIndividual
Role
Member of the Board of Directors
Shares216
Max PriceUK£8.97
BuyUK£98208 Feb 19
Hsien Yang Lee
EntityIndividual
Shares108
Max PriceUK£9.09
BuyUK£1,93708 Feb 19
Linda Cairnie
EntityIndividual
Role
Member of the Board of Directors
Shares213
Max PriceUK£9.09
BuyUK£1,98208 Feb 19
Ian Edward Davis
EntityIndividual
Role
Chairman of the Board
Shares218
Max PriceUK£9.09
BuyUK£1,98007 Dec 18
Ian Edward Davis
EntityIndividual
Role
Chairman of the Board
Shares245
Max PriceUK£8.08
BuyUK£98607 Dec 18
Hsien Yang Lee
EntityIndividual
Shares122
Max PriceUK£8.08
BuyUK£4,09707 Dec 18
Frank Chapman
EntityIndividual
Role
Member of the Board of Directors
Shares507
Max PriceUK£8.08
BuyUK£1,93907 Dec 18
Linda Cairnie
EntityIndividual
Role
Member of the Board of Directors
Shares240
Max PriceUK£8.08
BuyUK£74,99321 Nov 18
D. Warren East
EntityIndividual
Role
CEO & Executive Director
Member of the Board of Directors
Shares9,488
Max PriceUK£7.90
BuyUK£4,09108 Oct 18
Frank Chapman
EntityIndividual
Role
Member of the Board of Directors
Shares432
Max PriceUK£9.47
BuyUK£98508 Oct 18
Hsien Yang Lee
EntityIndividual
Shares104
Max PriceUK£9.47
BuyUK£1,97908 Oct 18
Ian Edward Davis
EntityIndividual
Role
Chairman of the Board
Shares209
Max PriceUK£9.47
BuyUK£4,09108 Oct 18
Linda Cairnie
EntityIndividual
Role
Member of the Board of Directors
Shares432
Max PriceUK£9.47
BuyUK£1,94007 Sep 18
Linda Cairnie
EntityIndividual
Role
Member of the Board of Directors
Shares201
Max PriceUK£9.65
BuyUK£98507 Sep 18
Hsien Yang Lee
EntityIndividual
Shares102
Max PriceUK£9.65
BuyUK£1,97907 Sep 18
Ian Edward Davis
EntityIndividual
Role
Chairman of the Board
Shares205
Max PriceUK£9.65
BuyUK£4,09307 Sep 18
Frank Chapman
EntityIndividual
Role
Member of the Board of Directors
Shares424
Max PriceUK£9.65
BuyUK£1,94307 Aug 18
Linda Cairnie
EntityIndividual
Role
Member of the Board of Directors
Shares178
Max PriceUK£10.92
BuyUK£1,98707 Aug 18
Ian Edward Davis
EntityIndividual
Role
Chairman of the Board
Shares182
Max PriceUK£10.92
BuyUK£98207 Aug 18
Hsien Yang Lee
EntityIndividual
Shares90
Max PriceUK£10.92
BuyUK£4,09307 Aug 18
Frank Chapman
EntityIndividual
Role
Member of the Board of Directors
Shares375
Max PriceUK£10.92

Ownership Breakdown


Management Team

  • Ian Lawson

    Chief Medical Officer

  • Paul Stein

    Chief Technology Officer

    • Tenure: 2.3yrs
  • Stephen Daintith (54yo)

    CFO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: £3.10m
  • Mark Gregory

    General Counsel

    • Tenure: 3.8yrs
  • Richard Wray

    Director of External Communications & Brand

    • Tenure: 5.8yrs
  • Ed Pease

    Senior Vice President of America

    • Tenure: 18.3yrs
  • Harry Holt

    Chief People Officer

    • Tenure: 1.5yrs
  • Ben Story

    Strategic Marketing Director

    • Tenure: 2.8yrs
  • Jennifer Ramsey

    Head of Investor Relations

  • D. Warren East (57yo)

    CEO & Executive Director

    • Tenure: 4.0yrs
    • Compensation: £3.94m

Board Members

  • Frank Chapman (66yo)

    Independent Non-Executive Director

    • Tenure: 7.7yrs
    • Compensation: £95.00k
  • Ratan Tata (82yo)

    Member of International Advisory Board

  • Stephen Daintith (54yo)

    CFO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: £3.10m
  • Charles Powell (78yo)

    Chairman of International Advisory Board

  • Lewis W. Booth (70yo)

    Independent Non Executive Director

    • Tenure: 8.2yrs
    • Compensation: £124.00k
  • Linda Cairnie (65yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: £93.00k
  • Ian Edward Davis (68yo)

    Chairman

    • Tenure: 6.2yrs
    • Compensation: £427.00k
  • Lubna Al-Olayan (63yo)

    Member of International Advisory Board

  • D. Warren East (57yo)

    CEO & Executive Director

    • Tenure: 5.5yrs
    • Compensation: £3.94m
  • Kevin Smith (64yo)

    Senior Independent Director

    • Tenure: 3.2yrs
    • Compensation: £107.00k

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£16.521b
  • Shares outstanding: 1.91b
  • Website: Click here

Number of Employees


Location

  • Rolls-Royce Holdings plc
  • 62 Buckingham Gate
  • London
  • Greater London
  • SW1E 6AT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
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
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
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 through four segments: Civil Aerospace, Power Systems, Defence, and ITP Aero. The Civil Aerospace segment manufa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/19 20:45
End of Day Share Price2019/07/19 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


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.