Rolls-Royce Holdings plc RR.L
Composite 51/100; the shares have moved about 45% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Valuation ranks 27/100 — a moderate mark against it.
Momentum ranks 72/100 — a moderate point in its favour. Quality ranks 69/100 — a moderate point in its favour.
Valuation ranks 27/100 — a moderate mark against it. Growth ranks 37/100 — a moderate mark against it. Income ranks 42/100 — a slight mark against it.
What the company does Rolls-Royce Holdings plc designs and manages mission-critical power systems across Civil Aerospace, Defence, and Power Systems. Its Civil Aerospace segment supplies large commercial and business aviation engines, while Defence focuses on military and naval propulsion, including nuclear power plants. Power Systems provides onsite power and propulsion solutions under the mtu brand.
Key financials Rolls-Royce reports strong profitability metrics: ROE 62.4%, ROA 7.1%, and ROCE 37.6%. Gross, operating, and net margins stand at 27.9%, 20.3%, and 27.5%, respectively. Revenue growth is 16.6%, with EPS growth at 4.1%. The company maintains a solid balance sheet with a Piotroski F-Score of 7/9 and Altman Z of 3.62.
Stock health The stock exhibits strong momentum, up 25.61% over 3 months and 37.19% over 12 months, though it is down 9.96% from its 52-week high. Sideravia scores the stock 62.5 overall, with high Quality (76.0) and Momentum (75.1) but low Valuation (37.4). The dividend yield is 0.7% with a payout ratio of 15.2%.
Price vs fair value The stock trades at a **PREMIUM of 42.20%** to our fair-value estimate of 797.62 and a **discount of 8.26%** to the analyst 12-month target of 1494.00. - H1 2026 earnings beat expectations, driven by defense and AI demand (Quartz) - Company raised 2026 targets after profits exceeded forecasts (Financial Times) - Defense spending tailwinds boosted BAE Systems and Rolls-Royce (PA Media: Money) - FTSE 100 hit a record high following upgrades to Rolls-Royce and BAE (Proactive)
Looking forward Forward P/E of 35.34 and EV/EBITDA of 14.14 suggest elevated valuation expectations. Analysts cite defense contracts and AI-driven demand as key growth drivers, though cost overruns in Boeing’s B-52 upgrade program (GAO) may pose risks. Growth and quality metrics remain robust, but valuation remains a concern.
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Data as of 2026-09-04, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.