OTCPK:RYCE.Y

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Reasonable 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: RYCE.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

RYCE.Y

-1.8%

US Aerospace & Defense

0.06%

US Market


1 Year Return

-31.4%

RYCE.Y

23.1%

US Aerospace & Defense

19.3%

US Market

Return vs Industry: RYCE.Y underperformed the US Aerospace & Defense industry which returned 23.1% over the past year.

Return vs Market: RYCE.Y underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

RYCE.YIndustryMarket
7 Day-1.8%-1.8%0.06%
30 Day0.3%0.2%1.7%
90 Day-7.1%5.7%9.0%
1 Year-30.5%-31.4%25.3%23.1%21.8%19.3%
3 Year-5.8%-9.1%51.5%43.4%49.5%39.9%
5 Year-35.4%-40.1%90.8%72.9%73.1%54.1%

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

No news available

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: RYCE.Y ($8.79) is trading below our estimate of fair value ($26.51)

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


Price To Earnings Ratio

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

PE vs Market: RYCE.Y is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RYCE.Y has negative assets, so we can't compare its PB Ratio to the US 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?

55.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RYCE.Y is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

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

High Growth Earnings: RYCE.Y's is expected to become profitable in the next 3 years.

Revenue vs Market: RYCE.Y's revenue (2.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: RYCE.Y's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RYCE.Y's Return on Equity is forecast to be very high in 3 years time (98.5%).


Next Steps

Past Performance

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

-14.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RYCE.Y is currently unprofitable.

Growing Profit Margin: RYCE.Y is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RYCE.Y is unprofitable, and losses have increased over the past 5 years at a rate of -14.3% per year.

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

Earnings vs Industry: RYCE.Y is unprofitable, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (8.1%).


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Rolls-Royce Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: RYCE.Y has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: RYCE.Y 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: RYCE.Y has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: RYCE.Y's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: RYCE.Y has a high level of physical assets or inventory.

Debt Coverage by Assets: RYCE.Y has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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 RYCE.Y has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RYCE.Y is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -7.9% per year.


Next Steps

Dividend

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

1.76%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: RYCE.Y's dividend (1.76%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: RYCE.Y's dividend (1.76%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

Stable Dividend: RYCE.Y's dividend payments have been volatile in the past 10 years.

Growing Dividend: RYCE.Y's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: RYCE.Y is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: RYCE.Y's dividends in 3 years are forecast to be well covered by earnings (43.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Warren East (57yo)

4.6yrs

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

Compensation vs Market: Warren's total compensation ($USD5.08M) is below average for companies of similar size in the US market ($USD10.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
D. Warren East
CEO & Executive Director4.6yrsUK£3.94m0.0095% £1.6m
Stephen Daintith
CFO & Executive Director2.8yrsUK£3.10m0.0098% £1.6m
Paul Stein
Chief Technology Officer2.8yrsno datano data
Jennifer Ramsey
Head of Investor Relations0yrsno datano data
Mark Gregory
General Counsel4.3yrsno data0.0014% £238.8k
Richard Wray
Director of External Communications & Brand6.3yrsno datano data
Ben Story
Strategic Marketing Director3.3yrsno datano data
Harry Holt
Chief People Officer2.1yrsno data0.0026% £431.5k
Edward Pease
Senior Vice President of America18.9yrsno datano data
Ian Lawson
Chief Medical Officer0yrsno datano data

3.8yrs

Average Tenure

Experienced Management: RYCE.Y's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
D. Warren East
CEO & Executive Director4.6yrsUK£3.94m0.0095% £1.6m
Stephen Daintith
CFO & Executive Director2.8yrsUK£3.10m0.0098% £1.6m
Charles Powell
Chairman of International Advisory Board0yrsno datano data
Lewis W. Booth
Independent Non Executive Director8.8yrsUK£124.00k0.0036% £599.5k
Ratan Tata
Member of International Advisory Board0yrsno datano data
Lubna Al-Olayan
Member of International Advisory Board0yrsno datano data
Ian Edward Davis
Independent Chairman6.8yrsUK£427.00k0.0041% £680.2k
Kevin Smith
Senior Independent Director3.8yrsUK£107.00k0.0014% £228.9k
Irene Dorner
Independent Non-Executive Director4.6yrsUK£77.00k0.00065% £107.1k
Gang Fan
Member of International Advisory Board0yrsno datano data

5.3yrs

Average Tenure

64.5yo

Average Age

Experienced Board: RYCE.Y's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


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: RYCE.Y
  • Exchange: OTCPK
  • Founded: 1884
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: UK£12.793b
  • Listing Market Cap: UK£16.471b
  • 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)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

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 manufactures aero engines for large commercial aircraft, regional jet, and business aviation markets, as well as provides aftermarket services. The Power Systems segment provides high-speed and medium-speed reciprocating engines, and propulsion systems for marine, defense, power generation, and industrial markets. It also engages in civil nuclear operations that supply safety-critical systems to nuclear power plants. The Defence segment offers aero engines for military transport and patrol aircraft applications; and naval engines and submarines, as well as aftermarket services. The ITP Aero segment is involved in the design, research and development, manufacture and casting, and assembly and testing of aeronautical engines and gas turbines. It also provides maintenance, repair, and overhaul services for regional airlines and helicopters, as well as business aviation, and industrial and defense applications. Rolls-Royce Holdings plc was founded in 1884 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 00:44
End of Day Share Price2020/02/20 00:00
Earnings2019/06/30
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.