Rolls-Royce Holdings plc (RR.L) stock analysis

In our weekly check, Rolls-Royce Holdings plc is graded B (A to F). Of 24 checks on debt, profit, cash flow and trend: 17 pass, warnings: 4, red flags: 3.

About Rolls-Royce Holdings plc

Rolls-Royce Holdings plc is an Industrials company (Aerospace & Defense) based in the United Kingdom, listed on LSE as RR.L.

What our checks show for RR.L

Red flags

• Analysts expect the net margin to shrink by 10.3 points from today's 27.5%.
• The stock has fallen as much as 91% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 3.6 years.

Warning signs

• Operating cash flow is only 0.75x net profit: part of the reported profit does not arrive as cash.
• Analysts expect earnings per share to shrink about 4.3% a year.
• The price swings a lot: 37.8% annual volatility. Expect large ups and downs.
• Beta 1.2: the stock usually moves more than the market, both up and down.

Strengths

• Debt is low: 1.51x equity.
• Operating profit covers interest 11.4 times over.
• The net margin rose by 26.5 points over 5 years, to 27.5%.
• The gross margin is 27.9% and has risen by 8.9 points: pricing power is holding.
• Revenue grew 16.2% a year over the last 3 years.
• Earnings per share grew 66.3% a year over the last 3 years.

Similar companies

GD · SAF.PA · NOC · HWM · LMT · BA

Questions

What grade does Rolls-Royce Holdings plc (RR.L) have?

In our weekly check, Rolls-Royce Holdings plc is graded B (A to F). Of 24 checks on debt, profit, cash flow and trend: 17 pass, warnings: 4, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of RR.L stock?

This week's biggest flags for Rolls-Royce Holdings plc: Margins expected to shrink, Deep past fall, Slow recovery after falls. In total 7 of 24 checks show a warning or a red flag.

What does Rolls-Royce Holdings plc do?

Rolls-Royce Holdings plc is an Industrials company (Aerospace & Defense) based in the United Kingdom, listed on LSE as RR.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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