Rolls-Royce Holdings plc
Rolls-Royce Holdings plc Fundamental Analysis
Rolls-Royce Holdings plc (RLLCF) shows strong financial fundamentals with a PE ratio of 0.00, profit margin of 29.62%, and ROE of 7.74%. The company generates $19.4B in annual revenue with strong year-over-year growth of 14.70%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RLLCF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentRLLCF demonstrates superior asset utilization.
Valuation Score
ExcellentRLLCF trades at attractive valuation levels.
Growth Score
ModerateRLLCF shows steady but slowing expansion.
Financial Health Score
ModerateRLLCF shows balanced financial health with some risks.
Profitability Score
ModerateRLLCF maintains healthy but balanced margins.
Key Financial Metrics
Is RLLCF Expensive or Cheap?
P/E Ratio
RLLCF trades at 0.00 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RLLCF's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Rolls-Royce Holdings plc at 0.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.27 times EBITDA. This is generally considered low.
How Well Does RLLCF Make Money?
Net Profit Margin
For every $100 in sales, Rolls-Royce Holdings plc keeps $29.62 as profit after all expenses.
Operating Margin
Core operations generate 17.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.74 in profit for every $100 of shareholder equity.
ROA
Rolls-Royce Holdings plc generates $15.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Rolls-Royce Holdings plc produces operating cash flow of $4.11B, showing steady but balanced cash generation.
Free Cash Flow
Rolls-Royce Holdings plc generates strong free cash flow of $3.16B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.38 in free cash annually.
FCF Yield
RLLCF converts 169.59% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
0.003
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.008
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.001
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
7.74
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How RLLCF Stacks Against Its Sector Peers
| Metric | RLLCF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 0.00 | 26.76 | Better (Cheaper) |
| ROE | 773.80% | 1300.00% | Weak |
| Net Margin | 29.62% | -29570.00% (disorted) | Strong |
| Debt/Equity | 2.04 | 0.79 | Weak (High Leverage) |
| Current Ratio | 1.25 | 10.68 | Neutral |
| ROA | 15.26% | -1545134.00% (disorted) | Strong |
RLLCF outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Rolls-Royce Holdings plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-24.60%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
227.19%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
8.90%
Industry Style: Cyclical, Value, Infrastructure
Growing