# Rolls Royce Holdings plc (RR.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Aerospace & Defense. Price 1475p, market value 121.6 billionp.

## Valuation
- **P/E (trailing): 41.0×** (5-yr avg 3238.2×, 3-yr avg 1531.6×). Rolls Royce Holdings plc trades at 41.0× trailing earnings, well below its own five-year average of 3238.2×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 29.9×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.23**. A PEG of 0.23 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 3.0×**. Each dollar of revenue is priced at 3.0×.
- **Price / book: 43.0×**. The shares trade at 43.0× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 13.0×**. Enterprise value is 13.0× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 5.6%** (5-yr avg 0.1%). Free cash flow equals 5.6% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 2.4%**. The inverse of the P/E: 2.4% of the price is earned each year.

## Profitability
- **Gross margin: 25.2%**. Rolls Royce Holdings plc keeps 25.2% of revenue after the direct cost of what it sells.
- **Operating margin: 20.5%**. 20.5% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 27.5%**. 27.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 214.3%**. A 214.3% return on equity is extremely high; check whether buybacks or debt have shrunk the equity base, which flatters the ratio.
- **Return on assets: 21.9%**. Each dollar of assets produces 21.9% of profit.

## Growth
- **Revenue growth (1 yr): 12.2%** (3-yr 16.2%/yr, 5-yr 13.0%/yr). Revenue grew 12.2% over the last year, against 13.0% a year compounded over five years.
- **EPS growth (1 yr): 130.0%**. Earnings per share rose 130.0%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 44.3%/yr**. Free cash flow has compounded at 44.3% a year over three years.

## Financial health
- **Debt to equity: 1.57**. Debt is 1.57 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: net cash**. Rolls Royce Holdings plc holds more cash than debt.
- **Interest coverage: 14.4×**. Operating profit covers interest 14.4× over, a safe margin.
- **Current ratio: 1.11** (quick 0.82). Current assets cover the next year's liabilities 1.11 times.
- **Altman Z-score: 3.13**. A Z-score of 3.13 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.81%** (0p per share, trailing). Rolls Royce Holdings plc yields 0.81%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 15%** (21% of free cash flow). 15% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 1**. 1 straight year of increases.
- **Shareholder yield: 1.6%**. Dividends plus net buybacks return 1.6% of the market value a year.

## Price and momentum
- **Total return (1 yr): 38.9%** (YTD 29.9%, 3-mo 18.4%). The shares are up 38.9% over twelve months including dividends.
- **From 52-week high: -7.0%** (49.0% above the low). Trading 7% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 50**. An RSI of 50 is neutral.
- **Beta (1 yr): 1.85** (volatility 37%). Beta of 1.85 against the FTSE All-Share: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=RR.L · Page: https://foliofundamentals.com/stocks/rr.l

Not investment advice.