Obermatt

Rolls-Royce

LSE:RR. · GB00B63H8491
Aerospace & DefenseX-Large

360

75
EV / EBIT54
Price / Owner Earnings87
Owner Earnings Yield94
Dividend Yield37
Price/Sales13
EV / Gross Profit46
Price/Book3
Return on Capital100
Cash Return on Capital100
Return on Equity100
EBIT Margin85
Gross Profitability61
Cash Conversion23
Accruals26
Owner Earnings Margin98
Sales growth68
Profit Growth94
Long-Term EPS Growth47
Owner Earnings Growth51
Reinvestment83
Price momentum83
Debt load13
Refinancing28
Debt Payback100
Liquidity80
Analyst ratings67
Opinion Changes50
Price Target Upside31
Market mood100
Value Creation16/20strong value creator
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Rolls-Royce generates returns well above its cost of capital, the foundation of durable shareholder value.

Profile

CountryUK
IndustryAerospace & Defense
SizeX-Large
TypePublic Company
ExchangeLSE
Founded2011
Employees21,233
ISINGB00B63H8491
Last UpdateApr 2, 2026
Themes
Battery Energy Storage System (BESS)Advanced NuclearPassenger Aircraft ManufacturingDefenseTech

Description

Rolls-Royce Holdings plc develops and delivers complex power and propulsion solutions for air, sea, and land. Business Segments The company operates through several distinct business segments, each contributing to the company’s overall performance…

Analysis

Quality compounder

Rolls-Royce Holdings plc is a quality compounder: a well-run business trading at a price that reflects what it is worth. One caution: reported profits have recently run ahead of actual cash, which we track closely.

The price is fair. You pay 17.9× its owner earnings: the cash an owner could take out each year, which is in the historically fair zone. At today's price, the market is assuming roughly 5% yearly growth; analysts expect 16%. The price, in other words, assumes less than the experts do.

The trajectory is moderate and the balance sheet is adequate. The company scores 16/20 on our value-creation score: strong value creator.

What to watch: Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
67
2023202420252026

All-time high

90

Apr 2025

All-time low

18

Jan 2023

Average rank

64

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
13
7
13
49
Price/Earnings
13
11
13
12
Price/Book
3
100
100
100
Dividend Yield
37
26
26
20
Value (overall)
9
3
31
33

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →