Rolls-Royce Holdings PLC Stock Analysis:

Based on the Rolls-Royce Holdings PLC stock forecasts from 5 analysts, the average analyst target price for Rolls-Royce Holdings PLC is GBX 118.63 over the next 12 months. Rolls-Royce Holdings PLC’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Rolls-Royce Holdings PLC is Slightly Bearish, which is based on 4 positive signals and 9 negative signals. At the last closing, Rolls-Royce Holdings PLC’s stock price was GBX 88.78. Rolls-Royce Holdings PLC’s stock price has changed by +12.21% over the past week, +0.90% over the past month and -7.27% over the last year.

 

Recent Analyst Ratings:

Target Price Action	Rating Action	Analyst	Rating	Price	Date
	Reiterated by	Deutsche Bank Capital	Hold	GBX 95	2022-06-29
	Reiterated by	Citigroup	Buy	GBX 147	2022-06-23
	Downgraded by	Berenberg Capital Markets	Hold	GBX 160 » GBX 100	2022-06-15
	Reiterated by	JP Morgan & Company	Overweight		2022-05-12
	Downgraded by	JP Morgan & Company	Underweight	GBX 140 » GBX 75	2022-04-12
	Target Lowered by	Deutsche Bank Capital	Hold	GBX 130 » GBX 110	2022-04-06

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.