Rolls-Royce Holdings PLC RR.

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GBX 461.90 +6.10 (1.34%)

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As of Jul 4, 2024 3:37pm Delayed Price Closed

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Company Report

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Rolls-Royce's Strong Performance Improvements Fuel Our Fair Value Estimate Increase

Loredana Muharremi Feb 22, 2024

Rolls-Royce holds a prominent position in the global commercial and military aerospace propulsion and power system sectors. Its commercial aerospace segment generates approximately 50% of group sales, and the company is a market leader with a dominant 58% market share in wide-body aircraft engines.

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Price vs Fair Value

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RR. is trading at a 330% premium.

Price

GBX 455.80

Jul 3, 2024

Fair Value

GBX 769.00

Feb 22, 2024

Uncertainty

High

1-Star Price: GBX 459.00
5-Star Price: GBX 522.00
Economic Moat: Cqpdwr
Capital Allocation: Dnggqvnp

Bulls Say, Bears Say

Bulls

Losses from new engine deliveries to decrease as Trent new-generation engines production ramps up.

Bears

Rolls-Royce faces a highly uncertain recovery from covid as a result of its outsize exposure to wide-body aircraft engines.

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Trading Information

Previous Close Price: GBX 455.80
Day Range: GBX 453.00–464.20
52-Week Range: GBX 143.75–488.50
Bid/Ask: GBX 450.00 / GBX 463.40
Market Cap: GBX 3.93 Tril
Volume/Avg: 10.8 Mil / 41.6 Mil

Key Statistics

Price/Earnings (Normalized): 31.66
Price/Sales: 2.32
Dividend Yield (Trailing): —
Dividend Yield (Forward): —
Total Yield: < 0.01%

Company Profile

Rolls-Royce operates three core business segments: civil aerospace, power systems, and defense. The civil aerospace segment builds engines powering wide-body aircraft, regional and business jets, and offers aftermarket services. Twenty years ago, the firm pioneered full-service flight hour contracts with the TotalCare package. Power systems provides power solutions to multiple end markets (defense, agriculture, marine, and power generation) while the defense business provides military, ground vehicle and naval propulsion solutions.

Sector: Industrials
Industry: Aerospace & Defense
Stock Style Box: Large Growth
Total Number of Employees: 41,810
Website: https://www.rolls-royce.com

Competitors

Valuation

Metric	RR.	RTX	GE
Price/Earnings (Normalized)	31.66	19.48	48.66
Price/Book Value	—	2.21	5.98
Price/Sales	2.32	1.99	2.58
Price/Cash Flow	27.92	21.48	42.64

Price/Earnings

RR.

RTX

Financial Strength

Metric	RR.	RTX	GE
Quick Ratio	0.69	0.64	0.76
Current Ratio	1.22	1.07	1.17
Interest Coverage	7.13	3.15	5.22

Quick Ratio

RR.

RTX

Profitability

Metric	RR.	RTX	GE
Return on Assets (Normalized)	3.80%	2.51%	2.83%
Return on Equity (Normalized)	—	6.05%	15.41%
Return on Invested Capital (Normalized)	147.07%	5.17%	9.19%

Return on Assets

RR.

RTX

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