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RR. Rolls-royce

588.00
9.20 (1.59%)
17 Jan 2025 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Rolls-royce LSE:RR. London Ordinary Share GB00B63H8491 ORD SHS 20P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  9.20 1.59% 588.00 587.20 587.40 588.60 577.60 581.20 27,938,266 16:35:15
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Aircraft Engine,engine Parts 16.49B 2.41B 0.2836 20.71 49.23B
Rolls-royce is listed in the Aircraft Engine,engine Parts sector of the London Stock Exchange with ticker RR.. The last closing price for Rolls-royce was 578.80p. Over the last year, Rolls-royce shares have traded in a share price range of 293.80p to 599.80p.

Rolls-royce currently has 8,504,896,989 shares in issue. The market capitalisation of Rolls-royce is £49.23 billion. Rolls-royce has a price to earnings ratio (PE ratio) of 20.71.

Rolls-royce Share Discussion Threads

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DateSubjectAuthorDiscuss
13/8/2024
09:17
Rolls-Royce share price analysis: buy, sell or hold?



Rolls-Royce (LON: LON:RR) share price has held steady this year, making it one of the best-performing companies in the FTSE 100 index. It has risen by over 64% this year, giving it a market cap of over £41 billion.

Rolls-Royce is doing well
Rolls Royce, one of the leading industrial companies in the world, is doing well, helped by the rising demand across its three key divisions and great execution.

It confirmed this view recently when it published its financial results for the first half of the year. The numbers showed that its underlying revenue rose to £8.18 billion this year, higher than the £6.95 billion it made a year earlier.

Its operating profit nearly doubled as it moved from £673 million to over £1.14 billion while its profit before taxation soared to over £1.03 billion. Most importantly, Rolls-Royce generated a free cash flow of over £1.15 billion.

These results demonstrated that the management was executing well at a time when supply chain constraints are continuing. Most of its improvement came from its civil aviation business, where the company sells engines and then takes Long Term Service Agreements (LTSA).

When everything is going on well, the LTSA strategy is highly profitable since its airline customers pay for every flight hour, a process that spreads costs, making it more affordable to them. It is Rolls-Royce’s biggest cash earner.

Rolls-Royce is also growing its margins across all its divisions. Its civil aviation’s operating margins rose to 18% while the defense and power systems rose to 15.5% and 10.3%, respectively. If this trend continues, it means that the company is set to hit its mid-term targets ahead of schedule.

Meanwhile, Roll-Royce Holdings is also benefiting from the data center business as the artificial intelligence craze continues. Its power business had over $1.8 billion in revenues and an operating profit of over £189 million.

Most importantly, Rolls-Royce has improved its balance sheet. It ended the last quarter with over £6.8 billion in available liquidity, with its cash and equivalents standing at £4.3 billion. It has also reduced its net debt to over £0.8 billion, down from the pandemic high of £5.2 billion.

Additionally, Rolls-Royce investors will now benefit from the stock appreciation and a dividend, which will be between 30% and 40% of its underlying profit.

Rolls-Royce valuation and catalysts
The main concern among investors is whether Rolls-Royce is overvalued or undervalued. Recent data shows that the company has a market cap of over £41 billion or $52 billion, making it the 16th biggest company in the UK.

This valuation makes it significantly smaller than General Electric (NYSE:GE) Aerospace, the biggest jet engine manufacturer in the world, which has a valuation of over $179 billion. GE Aerospace made over $9.1 billion in revenues in the last quarter.

In terms of multiples, data shows that Rolls-Royce Holdings trades at a price-to-earnings ratio of 17, which is lower than the S&P 500 average of 21 and the FTSE 100 index average of 19. This means that the company is still at a discount since its revenue growth rate is better than that of the S&P 500 and FTSE 100.

Rolls-Royce is also trading at a discount than most of its industrial rivals. GE Aviation has a price-to-earnings multiple of 45 while companies like Howmet Aerospace (HWM), Safran (EPA:SAF), and RTX have multiples of over 40. These multiples mean that the company is trading at a discount.

Other metrics show that the company is undervalued. A discounted free cash flow (DCF) valuation shows that the company is relatively cheap. According to Simply Wall St, the company was trading at a 54% discount to its fair value.

Therefore, fundamentally, the company seems like it is undervalued. Besides, it is growing, its business is seeing strong demand, and is now a leaner company than what it was during the Covid-19 pandemic. It has also received upgrades from the three leading rating agencies like Moody’s, Fitch, and S&P Global.

However, the management will need to execute well to justify the current valuation. This means that they need to ensure the quality of its engines to prevent the maintenance woes it had a few years ago.

Rolls-Royce share price forecast
The daily chart shows that the RR stock price has been in a strong bull run this year and recently soared to a record high of 502p. It has remained above the 50-day and 100-day Exponential Moving Averages (EMA).

The Relative Strength Index (RSI) and the Stochastic Oscillator have continued rising, meaning that it has strong momentum. The stock has formed what looks like a double-top pattern.

Therefore, the stock needs to move above that resistance at 502p to confirm the bullish trend. If this happens, the next point to watch will be at 600p.

RR: is this perennial leader facing new challenges?
With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Sure, there are always opportunities in the stock market – but finding them feels more difficult now than a year ago.

Unsure where to invest next? One of the best ways to discover new high-potential opportunities is to look at the top performing portfolios this year.

Investing.com’s ProPicks are 6 model portfolios that identify the best stocks for investors to buy right now. For example, ProPicks found 9 overlooked stocks that jumped over 25% this year alone.

The new stocks that made the monthly cut could yield enormous returns in the coming years.

Is RR one of them?


hxxps://uk.investing.com/news/stock-market-news/rollsroyce-share-price-analysis-buy-sell-or-hold-3646359


Thanks to etank who posted this link on another site.

freddie01
12/8/2024
14:25
An analyst from Bernstein SocGen Group maintained Rolls-Royce Holdings (LON: RR) at 'market perform' 'market perform' with a price target of £5.50 from a prior price target of £5.00.

Prior to this rating, Rolls-Royce Holdings had 12 buy ratings, 3 hold ratings, and 2 sell ratings.

thegrafter
12/8/2024
14:18
Interdict that the price is not moving much today suspect a buy order going thru
pal44
12/8/2024
14:02
The link above will take you to the company website.
This UK company is based in Oxfordshire and is a (self-proclaimed) leader in fusion technology.

I picked up on this over on the LGEN thread as it is stated on that thread that Legal & Gen. have a stake (unknown size) in Tokamak.

It is worth mentioning this as a fusion reactor leaves no radioactive waste and if this company's claims are to become reality it would provide an easy escape route for a government perhaps wary of investing in British designed and British produced products in favour of Chinese wind-turbines until 'fusion arrives'.

mcunliffe1
11/8/2024
20:18
Thanks pyglet and Freddie , I thought so too , it really felt like you were inside the Derby site at times and great to hear the passion from the team leaders , it certainly feels like Turfan has disseminated the right mind set down the chain of command, which is the only way he will ultimately succeed. It's just a pleasure to hold this stock with the potential future ahead :-))
thegrafter
11/8/2024
16:51
Excellent article.
freddie01
11/8/2024
16:31
Jug,I too had TW. Aviva just dumped them and they had hit 4p at end of day. I think I got them at 6p the next day. The story was assets £4Bn Debt £1Bn, Mkt Cap £100m.The question was writedowns. Even allowing 25% made it a bargain yet so many were scared to do it. I sold at around 50p.
vikingwarrier
11/8/2024
11:24
Fantastic article
pyglet
11/8/2024
09:37
https://www.thisismoney.co.uk/money/markets/article-13730441/Turbo-Tufan-Erginbilgics-turning-UltraFans-Rolls-Royce.html
thegrafter
10/8/2024
22:10
JUG., in early 1991 I remember buying 4 lots of 5000 shares for a client, his wife and their two children. Each bargain totalled the princely sum of £940. £35 of that was our minimum commission.
patientcapital
10/8/2024
18:20
vikingwarrier, I bought 2600 shares at .56p if only I had kept them, hindsight lol but it does clearly show that you should never underestimate long term share prices, I'm sure if someone had predicted they would rise to £96 one day we would have all laught,I'm invested in about 20 companies my biggest holding is in Tw which I bought for 30-37p in the financial crisis, intra day they fell to 3.5p, but I missed that,I wonder how many of those that supposedly bought at 10p still hold Next now?, they were good days to invest, I also bought Burtons,Asda,Safeway & Pilkingtons for similar money & held till they were taken over, I paid 8p I think for Chloride & they were also taken over(after a long wait)
jugears
10/8/2024
16:24
Rolls-Royce Reinvents Itself With Strategic Appointments And Major Deals
Company secures new contracts and rewards employees as it rebounds from pandemic losses
10th August 2024 Business News :
Rolls-Royce is on quite the roll—if we can say so. The aerospace and defense giant has recently made headlines for multiple significant appointments and deals, shaping the company’s future and boosting its growth potential.

Just the other day, Rolls-Royce appointed Kimberly Hicks as their general counsel for defense and Rolls-Royce North America (RRNA). This isn’t just any routine appointment; Hicks has been serving in this role on an interim basis since January, indicating the company’s confidence in her capabilities. Based out of Washington, D.C., she will not only oversee the global defense and U.S. legal teams but will also sit on the RRNA board, trusted with managing the company's Special Security Agreement with the Department of Defense.


Hicks’s experience speaks volumes. She joined Rolls-Royce in May 2022 after serving as the legal counsel for Northrop Grumman and leading Accenture Federal Services' litigation and investigations team. Adam Riddle, the president for defense at RRNA, praised her extensive aerospace and defense knowledge as invaluable to the company as they navigate today’s complex government contracting environment.

But it’s not just leadership changes; Rolls-Royce is also securing major contracts. They recently signed a remarkable deal with Cathay Pacific, which involves supplying 60 Trent 7000 engines for the airline’s new fleet of Airbus A330-900 aircraft. This total arrangement includes not just the engines but also a TotalCare maintenance agreement, which means Rolls-Royce will handle the operational risks and maintenance aspects for the airline.

The Trent 7000 is no ordinary engine. It’s part of the Trent series, which has clocked over two million flight hours, showcasing reliability and performance. What really makes the Trent 7000 stand out is its fuel efficiency; it delivers about 14% better fuel economy per seat compared to its predecessor. Plus, Rolls-Royce is investing over £1 billion to extend the engine’s life and boost its capabilities. This engine is already set to operate on 50% sustainable aviation fuel and aims for full compatibility with 100% sustainable options moving forward. So, it’s not just about keeping planes running; it’s about doing it responsibly, contributing to the industry's movement toward greener technologies.

These strides are significant for Rolls-Royce, especially post-pandemic, as the aviation sector continues its recovery. The company, under CEO Tufan Erginbilgic's leadership since January 2023, is reshaping itself after being severely impacted by the pandemic-induced drop in air travel. Erginbilgic's approach includes cutting around 2,500 jobs as part of broader transformation efforts aimed at streamlining operations and returning the company to profitability.

Speaking of profitability, Rolls-Royce announced recently a stunning recovery, recording significant profits for the first half of the year—a whopping £1.1 billion, nearly double their earnings compared to the same timeframe last year. To celebrate this recovery, the company is set to award its 42,000 employees globally with shares valued at approximately £700 each this September. This will be the first time Rolls-Royce has distributed shares to its employees.

But there’s more to the share distribution than just good news. Employees based in the UK will need to hold on to their shares for three years before they can sell them, and taxes will apply if they sell within five years. For the nearly 21,000 employees based, it’s not just about receiving shares, but sharing directly in the success of the company.

Talk about motivation! Erginbilgic highlighted the employees' hard work and emphasized this reward as part of recognizing their contributions to the company’s rebound, noting, “These results are thanks to your hard work. It is important you share in our success.” This creates not only financial motivation but also unites the company under shared goals as they aim to secure future growth and innovations.

Meanwhile, another significant development includes Rolls-Royce’s latest engine, the Trent XWB-84, which is poised to enter service by 2025, integrating modern upgrades seen across their engine lines. Amidst growth and performance improvements for their existing models, the company is blazing the trail for new aviation standards and sustainability practices.


It isn’t every day you witness such substantial changes and developments all coming at once, which makes this period immensely exciting for both the company and the broader aerospace industry. The changes and new deals not only affirm Rolls-Royce's commitment to growth but also highlight their transition toward sustainability and innovation.

And if we look beyond Rolls-Royce, the aerospace sector as a whole is witnessing rapid developments as various companies streamline manufacturing processes, adopt new technologies, and pivot toward incorporating sustainable practices. The collaborations with major marks and partnerships are redefining what success looks like within the aviation world.

From embracing change within corporate structures to aligning business operations with environmentally-friendly initiatives, Rolls-Royce’s actions and strategies show the industry is ready to navigate the new normal—one where innovation and sustainability take center stage.

Every new engine, every appointment, every profit margin tells the tale of resilience, adaptation, and the potential for spectacular achievements. Where they go from here is something every industry observer should watch closely. Keep eyes peeled; the future of aviation could be taking off on the back of these decisions by Rolls-Royce и its competitors.

thegrafter
10/8/2024
13:31
https://www.youtube.com/watch?v=drJ5IleFXG8
thegrafter
09/8/2024
18:57
Hi Jug, I well remember Next making national news when it fell to 7.5p during day trading. It ended the day at 10p, which is recorded. Strangely though everyone who claims to be a whizz bought that day and says they bought at 10p.Funny that ;-)
vikingwarrier
09/8/2024
17:14
Rolls-Royce promising 'a lot more' as working capital improves - analystsPublished: 12:13 09 Aug 2024 BSTWritten by: Josh LambEdited By: William FarringtonRolls-Royce Holdings PLC (LSE:RR.) could be lining up to deliver "a lot more" after working capital outflows appear to have been brought under control, analysts say.Highlighting a boost to free cash flow on better working capital in the engine makers' interim results, Liberum noted this was "the big lever that had been missing from previous guidance". "[There is] potentially a lot more to come if ratios can be normalised," analysts added.Rolls-Royce reported a £228 million working capital outflow for the first half of the year, against £465 million a year earlier.This aided a boost in free cash flow, the company said, which climbed from £356 million in the first half of 2023 to £1.2 billion this year.The company also reported a 74% increase in underlying profit to £1.1 billion, with revenue climbing 18% to £8.2 billion.Liberum highlighted that Rolls-Royce's improvements were "implicitly internally generated," given guidance on engine flight times, based on which the company is paid, were unchanged.Rolls-Royce's guidance for a £2.1 billion to £2.3 billion operating profit and £2.1 billion to £2.2 billion in free cash implies a similar second half to the year, Liberum added, leaving scope for "upside risk" in the months ahead.'Buy' was the rating from Liberum, with Deutsche Bank analysts echoing the call, noting improvements came in spite of ongoing supply chain challenges.
thegrafter
09/8/2024
15:13
Jug, nice post.
It's a similar to myself and many individual investors. Long term if you have the patience. short term CFD's if you want to gamble..

Looking at the ig, pepperstone, 2-1-2, EToro and others who advertise CFD's as a viable investment platform roughy say "70-84% of retail investors who trade with this company lose money" which proves if you highly leverage and the market bombs, they are oozing red ink on the bottom line.

Keep the faith.

goodbuyexsell
09/8/2024
11:45
vikingwarrier, best time to buy, its worked well for me in the last 45 years, when the great financial crisis came, I piled every penny I had into the stock market & bought bombed out shares, I still have all of them & have done the same several times since & many times before that, I bought next in the 80's for 56p & sold to quickly for £7.50, today they are £96.00! I only invest in good British companies & hold for the long term, I don't worry about short term turmoil, nothing goes up in a straight line & unless it directly involves a single share then there is nothing really to worry about, my mentor once told me never to worry as things are never as bad as they seem & he was right, Confidence in the markets its starting to build & you can see this by the speed in which it has recovered, my view is that we will see a slow & steady rise in all share price over the next year, what you have to remember is that the us markets are about a third over valued still, where as the footsie is about a third undervalued. Even though Rolls Royce has seemingly increased in value rapidly this share was never worth less than £3 in the first place & could very easily be anything between £7-10 in the future, I am glad I took my chance & bought a shed load at circa 80p & added more this week. I know a lot of people trade shares now or short them & they probably make a bit of money but I am old school & prefer buying share & paying for them & then holding them for at least 10 years, as long as my return is greater than bank interest I am happy, most of my shares have increased by 4 times what I paid for them some have increased 15/20 times there value over the years, not bad for a hobby.
When you suggest that a share could double or triple in value people think you are mad but take Next as an example, when I bought them they had a few shops & know one had ever heard of George Davis they are now worth 171 x what I paid for them, long term & patience really does work.

jugears
09/8/2024
10:18
I would like to know what Buffett bought with his cash pile. He loves it when turmoil throws up a bargain.
vikingwarrier
09/8/2024
09:43
Well this has been a good week, thanks to a total over reaction from the markets, it does make you wonder what idiots would panic sell a company that clearly has a long way to go yet, £6 IMEO. Glad I topped up earlier in the week.
jugears
09/8/2024
08:50
the trend is good so far !
pal44
09/8/2024
08:45
Yes maybe mid 90s by close of play today !
thegrafter
09/8/2024
08:42
Itching to breakout!
bigbigdave
09/8/2024
08:37
So far so good
vikingwarrier
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