Stock · RR.L · Industrials

Rolls-Royce Holdings PLC

United Kingdom · Large Cap · Revenue 12 mo. £23.2B

Price as of 11/06/2026

Score with PlusTo the score
Price
£12.61
1 Y +1.9%
Market cap
£100.4B
Phase
Growth
revenue growing, core business profitable
Revenue +16.2% a year (3 years)EBIT margin 17.2%Payout 43.0% of operating cash flow

Rolls-Royce Holdings plc designs and manages mission-critical power systems in the United Kingdom and internationally.

moreless

Rolls-Royce Holdings plc designs and manages mission-critical power systems in the United Kingdom and internationally. The company operates through three segments: Civil Aerospace, Defence, and Power Systems. The Civil Aerospace segment develops, manufactures, markets, and sells aero engines for large commercial aircraft, regional jet, and business aviation markets, as well as provides aftermarket services. The Defence segment is involved in the development, manufacture, marketing, and sale of military aero engines, naval engines, and submarine nuclear power plants, as well as offers aftermarket services. The Power Systems segment engages in the development, manufacture, marketing, and sale of integrated solutions for onsite power and propulsion under the mtu brand name. Rolls-Royce Holdings plc was founded in 1884 and is headquartered in London, the United Kingdom.

Original text from the data provider

Summary

Rolls-Royce Holdings PLC is around the middle of the Industrials sector overall

47.4 of 100

Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.

Analysis

What the price requires

The price requires 12.2% FCF growth a year, less than achieved over the last 10 years.

If free cash flow stays at €4.5B (2025), it supports €50.1B. The remaining €70.2B of the market value assume it grows 12.2% a year for 10 years and not at all afterwards.

Required FCF growth per year

12.2%

no growth afterwards

Market value breakdown€120.3B market value, price as of 11/06/2026

€50.1B without growth
€70.2B priced-in growth
  • 10 yrs achieved 43.9%
  • priced in 12.2%

Valuation against its own history

Price to operating cash flow 21.3×, above its usual range.

Middle half of 18 quarters: 7.1× to 20.9×, median 14.2×.

Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.

2 signs support the expectation, 1 speaks against it.

What supports it

with respect to the priced-in expectation

  • Expectation below the company's own record priced in 12.2%, achieved at least 43.9%
  • Low capital needs capex median 4.6% of revenue (10 years)

What speaks against it

with respect to the priced-in expectation

  • Volatile earnings 6 drops or sign changes in up to 10 years

Since the last quarter

Q1 → Q3 2026

Mostly better than the previous quarter: 3 of 4 changes for the better.

  • Revenue, 12 mo.£21.2B → £23.2B+9.2%better
  • FCF, 12 mo.£3.9B → £4.3B+11.3%better
  • Net debt−£2.0B → −£2.2B−10.2%better
  • Return on equity214.3% → 106.5%−107.8 ppworse

4 more unchanged: Gross margin, EBIT margin, FCF margin, Shares outstanding

Derivation

How the sector comparison is derived

Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.

Price as of 11/06/2026.

Profitability78.3above the middleEarns more than the sector: Return on equity 214.27%, sector 13.10%.
MetricStockSector medianPosition in sector
Return on equity214.27%13.10%Rank 100
Return on capital (Greenblatt)52.45%19.33%Rank 82
EBIT margin17.20%11.28%Rank 74
FCF margin17.75%8.50%Rank 88
Gross margin27.90%28.98%Rank 49
Growth60.3above the middleGrows faster than the sector: Revenue growth, 1 year 12.15%, sector 5.15%.
MetricStockSector medianPosition in sector
Revenue growth, 1 year12.15%5.15%Rank 84
Earnings growth, 3 years per yeardoes not count towards the rank–8.01%
Earnings growth, 5 years per yeardoes not count towards the rank–12.89%
Sustainable growth (ROE × retained earnings)2.93%4.02%Rank 36
Valuation38.4below the middleValued higher than the sector: EV/sales 4.63, sector 2.08.
MetricStockSector medianPosition in sector
Earnings yield5.48%4.42%Rank 62
FCF yield3.75%3.98%Rank 46
EV/saleslower is better4.632.08Rank 21
EV/EBITlower is better26.9119.47Rank 25
Momentum43.5around the middleShare price moving about like the sector.
MetricStockSector medianPosition in sector
Share price, 1 year1.86%−0.01%Rank 53
Share price, 6 months3.88%−1.43%Rank 59
Share price, 3 months−12.44%0.53%Rank 21
Distance from 52-week high−19.69%−16.36%Rank 40
Quality31.0below the middleQuality below the sector: Accruals (Sloan) 6.40%, sector 1.39%.
MetricStockSector medianPosition in sector
Accruals (Sloan)lower is better6.40%1.39%Rank 14
Change in share countlower is better0.11%−0.44%Rank 20
Dividend streak in years35Rank 42
Price reaction to results, market-adjusted0.14%0.27%Rank 48
Balance sheet & risk32.9below the middleMore risk than the sector: Equity ratio 7.15%, sector 39.65%.
MetricStockSector medianPosition in sector
Equity ratio7.15%39.65%Rank 3
Net debt/EBITDAlower is better−0.501.38Rank 86
Debt to equitylower is better1.570.61Rank 14
Volatility, 1 yearlower is better38.81%32.95%Rank 29

Ten years in figures

Revenue from £15.0B (2016) to £21.2B (2025), 4.0% a year.

Fiscal years, amounts in GBP
YearRevenue, £BEBIT marginFCFSharesNet debt
201615.0−0.9%£195.0M5.34B£586.0M
201716.37.9%£64.0M5.36B£535.0M
201815.7−6.7%£641.0M5.42B−£312.0M
201916.6−5.2%£1.6B5.55B£1.2B
202011.5−17.2%−£3.6B5.99B£4.0B
202111.24.6%−£587.0M8.35B£5.2B
202213.56.2%£1.5B8.35B£3.6B
202316.511.8%£1.8B8.41B£2.3B
202418.915.4%£2.9B8.44B−£195.0M
202521.217.2%£3.8B8.45B−£2.0B

Score, radar and strategy match for Rolls-Royce Holdings PLC are visible with Plus. Metrics, price and sector comparison stay free.

Detail data

How does Rolls-Royce Holdings PLC stock perform across 18 strategies?

Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.

Strategy match visible with Plus

The match with the 18 strategies checked is visible with Plus.

  • Piotroski F-Score (9-Point Check)
  • Mohanram G-Score: Growth Quality
  • StockScorer Score
  • Balanced GARP
  • Earnings Quality: Accrual Check (Sloan)
  • Moat Quality
  • Magic Formula: Value + Quality
  • Undervalued Stocks: Multi-Factor Check
  • Growth Momentum (CAN SLIM principle)
  • Defensive: Low Volatility
  • High-Growth / Rule of 40
  • Altman Z-Score: Stress Test
  • Acquirer's Multiple: EV/EBIT Deep Value
  • Dividend Aristocrats & Continuity
  • Dividend Quality: 4 Factors
  • Levermann Strategy (13 Criteria)
  • PEG Strategy (inspired by Peter Lynch)
  • Trending Value: Value + Momentum

Rolls-Royce Holdings PLC key metrics: P/E, P/B and equity ratio

Selected fundamental metrics for Rolls-Royce Holdings PLC.

MetricStockSector
P/E ratio18.222.5
P/B ratio39.12.9
Return on equity (ROE)214.3%13.1%
Equity ratio7.2%39.7%
Debt-to-equity (D/E)1.570.61
Dividend yield0.9%2.0%

Similar stocks in Industrials

How comparable stocks in the same sector score in the StockScorer model.

SymbolCompanyRating
RR.LRolls-Royce Holdings PLCthis page
BA.LBAE Systems plclocked
BAThe Boeing Companylocked
SAF.PASafran SAlocked
LMTLockheed Martin Corporationlocked
AIR.PAAirbus Group SElocked

Frequently asked questions about Rolls-Royce Holdings PLC stock

How does Rolls-Royce Holdings PLC stock (RR.L) score in the StockScorer model?
The StockScorer score for Rolls-Royce Holdings PLC is visible with Plus. The stock lies outside the basic universe (Germany 40, Germany Mid 50, Germany Small 70, Eurozone 50, S&P 500, NASDAQ-100).
What is Rolls-Royce Holdings PLC's P/E ratio?
Rolls-Royce Holdings PLC's P/E ratio is 18.2. The Industrials sector median is 22.5.
What sector is Rolls-Royce Holdings PLC in?
Rolls-Royce Holdings PLC is assigned to the Industrials sector. Its rank within the sector is 47.4 out of 100: 100 means the stock leads its peer group of large and mid-cap sector stocks in every measured area.

See the full analysis during the trial

30 days free with all indices, then with Plus.

  • More metrics: FCF margin, cash flow yield and more
  • Full peer comparison within the same sector
  • See the match across all strategies in detail
  • Apply your own scoring profile to any stock
  • Add the stock to your watchlist and track score changes
  • Daily updated ratings, rule-based and transparent

Learn more about the metrics in the metrics glossary or all rated stocks in the stock overview.

How StockScorer rates every stock is explained on the methodology page.