Rolls-Royce Holdings plc Fundamental Analysis (XETRA: RRU.DE)
Rolls-Royce Holdings plc Fundamental Analysis (XETRA: RRU.DE)
Rolls-Royce Holdings plc (XETRA: RRU.DE) shows moderate financial fundamentals with a PE ratio of 41.69, profit margin of 13.11%, and ROE of 1.09%. The company generates $23.1B in annual revenue with strong year-over-year growth of 12.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RRU.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakRRU.DE struggles to generate sufficient returns from assets.
Valuation Score
ModerateRRU.DE shows balanced valuation metrics.
Growth Score
ModerateRRU.DE shows steady but slowing expansion.
Financial Health Score
ModerateRRU.DE shows balanced financial health with some risks.
Profitability Score
ModerateRRU.DE maintains healthy but balanced margins.
Key Financial Metrics
Is RRU.DE Expensive or Cheap?
P/E Ratio
RRU.DE trades at 41.69 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RRU.DE's PEG of 0.49 indicates potential undervaluation.
Price to Book
The market values Rolls-Royce Holdings plc at 43.92 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 19.47 times EBITDA. This signals the market has high growth expectations.
How Well Does RRU.DE Make Money?
Net Profit Margin
For every $100 in sales, Rolls-Royce Holdings plc keeps $13.11 as profit after all expenses.
Operating Margin
Core operations generate 24.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.09 in profit for every $100 of shareholder equity.
ROA
Rolls-Royce Holdings plc generates $7.77 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 $4.93B, showing steady but balanced cash generation.
Free Cash Flow
Rolls-Royce Holdings plc generates strong free cash flow of $4.28B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.51 in free cash annually.
FCF Yield
RRU.DE converts 3.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
41.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
43.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.24
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.09
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.29
vs 25 benchmark
How RRU.DE Stacks Against Its Sector Peers
| Metric | RRU.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 41.69 | 29.88 | Worse (Expensive) |
| ROE | 108.59% | 1106.00% | Weak |
| Net Margin | 13.11% | -24767.00% (disorted) | Strong |
| Debt/Equity | 1.53 | 0.94 | Weak (High Leverage) |
| Current Ratio | 1.24 | 21.64 | Neutral |
| ROA | 7.77% | -1320894.00% (disorted) | Weak |
RRU.DE outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
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
31.30%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
231.14%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
203.68%
Industry Style: Cyclical, Value, Infrastructure
High Growth