UK stock report - Rolls-Royce Holdings


Rolls-Royce hits year-high 11th time in three months June 23, 2017 16:30 BST


Rolls-Royce Holdings PLC (L:RR.), the 2nd largest Aerospace & defense company by market cap in the United Kingdom, hit a 52-week high of GBX942.50 during the day. In the last three months the stock has hit a new 52-week high eleven times, pointing to a significant uptrend. The stock price has increased GBX11.50 (1.2%) from its last trading session of June 22 to close at GBX942.0. Compared with the FTSE 100 Index which fell 15.2 points (0.2%) in the day, the relative price increase was 1.4%. The volume was 0.8 times the average daily trading volume of 6.3 million shares.



1.1 Fundamentals:

+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.7. Compared with the rest of the market the stock is undervalued.

+ The company is cash rich with Cash to Market Capitalisation at 16.0%.

1.2 Technicals:

Uptrend: The stock continues its significant uptrend. The stock rose 1.2% on high volatility today and expanding price range.

+ The price lifted 3.8% in the last week and jumped 9.3% in the last month.

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 914.59 minus the 26-day EMA of 893.11 is positive 21.48 suggesting a bullish signal. Both EMA prices are rising, another bullish signal.

+ The stock's relative price strength percentile is rising at 91 for 6 months, 92 for 3 months and 93 for 1 month.

+ The stock has seen a rally of 38% in less than 6 months.

+ The present value of GBP1,000 (PV1000) invested one year ago in Rolls-Royce is GBP1,505, comprising a capital gain of GBP483 and dividend reinvested of GBP22.

FTSE 100 Index9959841,171

+ The present value of GBP1,000 (PV1000) invested five years ago in Rolls-Royce is GBP1,381, including a capital gain of GBP240 and dividend reinvested of GBP141.

+ 5 years Multiplier in GBP = 1.381x

+ Compound Annual Growth Rate (CAGR) in GBP = 6.7%

Present Value of USD1,000 invested 5 years ago:

+ The present value of USD1,000 (PV1000) invested five years ago in Rolls-Royce is $US1,121, including a capital gain of $US6 and dividend reinvested of $US115.

+ 5 years ago GBP 1 equalled USD 1.56

+ 5 years Multiplier in USD = 1.121x

+ Compound Annual Growth Rate (CAGR) in USD = 2.3%

Jun 23, 2017: GBP 1 equals USD 1.27

1.3 High Performance Indicators:

DescriptionValueRank In Market
Today's TurnoverGBP45.6 million (US$57.8 million)In Top 2%
Price/MAP501.09In Top 5%
Price/MAP2001.25In Top 8%
Price Change %1.2In Top Quartile
% Prem to Vol Wtd Price5.7In Top Quartile



2.1 Fundamentals:

+ The relative yield of the stock, defined by its yield of 1.2%, divided by average yield of dividend yielding stocks in the FTSE 100 Index of 3.7% is 33.8%. This suggests the stock is overvalued in dividend yield terms.

+ Total Liabilities/EBITDA of 172.8 which compares unfavourably with the Joseph Piotroski benchmark of 5.

2.2 Overvaluation [compared with sector average]:

+ Return on Capital Employed 0.9% [5.7%].

+ Dividend yield of 1.2% [2.4%].

2.3 Technicals:

+ The 0.1% discount to 12-month high of GBX942.50 against the 57.7% premium to 12-month low of GBX597.18 suggests the climb might be peaking.

2.4 Overbought/Bearish/Resistance Signals:

+ The Relative Strength Index (RSI) of 73.6 has penetrated the overbought line of 70, suggesting the price gain of 5.4% in the last 14 days is unusually high.

+ The stock is overbought according to the Williams % R indicator of -0.8, suggesting the price is close to its 14-day high of GBX942.50.

2.5 Low Performance Indicators:

DescriptionValueRank In Market
Return on Capital Employed [ROCE] %0.9In Bottom 3%
EBITDA Margin %0.9In Bottom 1%
Total Debt to Equity4.9In Bottom 1%



3.1 Momentum:

+ Volume: there were 4,845,093 shares worth GBP45.6 million (US$57.8 million) traded today. In the past week, volume was 0.7 times average and the shares were up 3.8%.

3.2 Moving Annual Return

RR.Close (GBX)Dividends (GBX)Capital Gain / (Loss) %% YieldAnnual Return %
June 2394211.748.31.850.2
1 Yr ago635.1216.37(27.8)1.9(25.9)
2 Yrs ago879.0823.1(13.6)2.3(11.4)
3 Yrs ago1,017.9722(4.1)2.1(2.1)
4 Yrs ago1,061.8519.539.82.642.3

3.3 Beta:

+ Beta: the Beta of Rolls-Royce stock is 0.7. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.

3.4 Turnover Rate & Turnover Period:

+ The turnover rate in the 12 months to date was 67.98% (or a turnover period of 1 year 5 months). This average length of ownership of the stock at 73.5 times the average holding period of 7 days for stocks in the FTSE 100 Index suggests a larger number of core investors, making a long-term investment safer.



4.1 Global Rank [out of 47,450 stocks] and Rank in the Europe Region [out of 8,291 stocks]

DescriptionValueGlobal RankIn Eur Region
MCap (US$)21.9B645167
Total Assets (US$)32.3B1,134259
Revenue (US$)18.9B693175
Net Profit (US$)(5.1B)41,8126,923
Net Profit Margin %(27.0)32,8415,568
Yield %1.314,5962,652
PV$1000 (1Year) US$*1,29811,8412,078
US$* Change (1Year) %28.312,3722,190

* 1 year ago GBP 1 = USD 1.47

Jun 23, 2017: GBP 1 equals USD 1.27

4.2 Independent Ratings

Rolls-Royce Holdings PLC was ranked 193 in the Industry Week list of the world's largest 1000 manufacturers by Revenues in 2015; a deterioration over a year from rank 172 in 2014.

It is the 203rd largest by revenue in the FT Global 500.

It is the 418th largest by revenue in the Forbes Global 2000.

It is placed 121/615 in BSS News Bites' ranking of United Kingdom performers in the past year, a percentile ranking of 80.



5.1 Financials Summary

Year endedDec 2016Dec 2015Dec 2014
Sales (USD B)19.117.517.8
Pretax (USD)(5.9B)204.4M85.6M
Net (USD)(5.2B)107.3M88.2M
EPS (GBP)(2.2)0.040.04

5.2 Trailing 12 Months Dividends

Trailing 12 Months ToValue (GBX)
23 Jun 201711.7
23 Jun 201616.37
23 Jun 201523.1
23 Jun 201422
23 Jun 201319.5



6.1 Activities

Rolls-Royce Group plc is an integrated power systems company, operating in civil and defense aerospace, marine and energy markets. The Company serves customers in over 120 countries. Its gas turbine products are shipped to customers worldwide, by land, sea and air. It is a global provider of defense aero-engine products and services, with 18,000 engines in service for 160 customers in 103 countries. Its marine business has more than 2,000 customers and equipment installed on over 30,000 vessels worldwide, including those of 70 navies. The Company's energy business is a supplier of power systems for onshore and offshore oil and gas applications. The Company operates in four segments: Civil aerospace, Defense aerospace, Marine and Energy. During the year ended December 31, 2009, the Company acquired 58% interest in Tidal Generation Limited, 49% interest in Europea Microfusioni Aerospaziali S.p.A. and 33% interest in ODIM ASA.

6.2 Industry & Sector

Classification LevelName of Sector
Economic SectorIndustrials
Business SectorIndustrial Goods
Industry GroupAerospace & Defense
IndustryAerospace & Defense

6.3 Issued Capital

Based on 1,838,815,997 issued shares the market capitalisation is GBP17.3 billion (US$21.9 billion).



Insider Buying

June 08: Rolls-Royce director buys

Rolls-Royce (L:RR.) director Eric Schulz bought 16 shares worth GBP144 ($US186) on June 07. The purchase price was GBP8.98. The shares hit a thirty four-month high on the day.

June 07: Rolls-Royce director buys

Rolls-Royce (L:RR.) director Ian Davis bought 221 shares worth GBP1,981 ($US2,564) on June 07. The purchase price was GBP8.96. The shares hit a thirty four-month high on the day.

June 07: Rolls-Royce director buys

Rolls-Royce (L:RR.) director Lee Hsien Yang bought 110 shares worth GBP986 ($US1,276) on June 07. The purchase price was GBP8.96. The shares hit a thirty four-month high on the day.

June 07: Rolls-Royce director buys

Rolls-Royce (L:RR.) director Ruth Cairnie bought 216 shares worth GBP1,936 ($US2,506) on June 07. The purchase price was GBP8.96. The shares hit a thirty four-month high on the day.

June 07: Rolls-Royce director buys

Rolls-Royce (L:RR.) director Kevin Smith bought 295 shares worth GBP2,645 ($US3,422) on June 07. The purchase price was GBP8.96. The shares hit a thirty four-month high on the day.



8.1 Latest Buzz

News DateHeadlinePublisher
Jun 22, 2017Rolls-Royce Holdings PLC (RR.L): A Look Inside The NumbersBaxter ReviewJun 22, 2017Rolls-Royce Holding PLC 16.3% Potential Decrease Indicated by JP Morgan CazenoveDirectorsTalk InterviewsJun 22, 2017Analysts take a look at Rolls-Royce Holding PLC (ADR) (OTCMKTS:RYCEY) having..Finance News DailyJun 22, 2017Rolls-Royce Holdings PLC (RYCEY) Shares Moving On VolumeGeneva JournalJun 22, 2017Trading Spotlight on Rolls-Royce Holdings PLC (RR.L) SharesRives JournalJun 22, 2017Are Analysts Bullish about Rolls-Royce Holding PLC (ADR) (OTCMKTS:RYCEY) after..Weekly RegisterJun 22, 2017JP Morgan Cazenove Keeps GBX 780.00 PT On Rolls-Royce Group PLC (LON:RR..Wolcott Daily
Jun 21, 2017Rolls-Royce Holdings PLC (RYCEF) Adding Value Over Past WeekAiken AdvocateJun 21, 2017Barometer Capital Management Cut Northrop Grumman (NOC) Stake; Rolls-Royce..High Point ObserverJun 21, 2017Stock Watch: Checking the Numbers on Shares of Rolls-Royce Holdings PLC (RR.L)Piedmont RegisterJun 21, 2017Rolls-Royce Holding PLC (RR) Price Target Cut to GBX 525 by Analysts at..The Cerbat Gem
Jun 20, 2017Rolls-Royce, Momo, Sony and other top picks from Sohn Hong KongFinancial PostJun 20, 2017Shares Seesawing on Volume: Rolls-Royce Holdings PLC (RYCEY)The HeraldJun 20, 2017Value Composition in Focus For Rolls-Royce Holdings plc (LSE:RR.)Union Trade Journal
Jun 19, 2017Rolls-Royce Weighs Tweaking Engine to Give a Lift to Airbus A380BloombergJun 19, 2017Rolls-Royce Holdings PLC (RR.L) Price Above The Cloud: Shows Positive MomentumConcord RegisterJun 19, 2017Rolls-Royce Holding PLC (RR) Rating Reiterated by Deutsche Bank AGMarkets DailyJun 19, 2017Active Runner in Focus: Rolls-Royce Holdings PLC (RYCEY)Ozark Times

8.2 Corporate Wire

To view Recent Company Headlines, click here

June 20: Rolls-Royce, Aviall agree contract to support AE defence engines for global fleet sustainment

June 20: Rolls-Royce demonstrates world's first remotely operated commercial vessel

June 19: Rolls-Royce future technology strategy comes to life as Advance3 build nears completion

June 19: Rolls-Royce opens latest UK Defence Service Delivery Centre at RAF Lossiemouth

June 19: Rolls-Royce, Purdue University and State of Indiana announce new initiative to develop next-generation jet engine components

State/Province/Country: United Kingdom

Country of Incorporation: United Kingdom

Exchange: London Stock Exchange

ISIN: GB00B63H8491


PermID: 5033562382

Rolls-Royce Holdings Plc