Fact based stock research
Rolls-Royce (LSE:RR.)

GB00B63H8491

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

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Rolls-Royce stock research in summary

rolls-royce.com

ANALYSIS: With an Obermatt Combined Rank of 61 (better than 61% compared with investment alternatives), Rolls-Royce (Aerospace & Defense, United Kingdom) shares have above-average financial characteristics compared with similar stocks. Shares of Rolls-Royce are low in value (priced high) with a consolidated Value Rank of 41 (worse than 59% of alternatives), and are riskily financed (Safety Rank of 30, which means above-average debt burdens) but show above-average growth (Growth Rank of 93). ...read more

RECOMMENDATION: A Combined Rank of 61, is a buy recommendation based on Rolls-Royce's financial characteristics. As the company Rolls-Royce shows low value with an Obermatt Value Rank of 41 (59% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 93% of comparable companies (Obermatt Growth Rank is 93). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 30 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Rolls-Royce, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	41
Growth Rank	93
Safety Rank	30
Combined Rank	61

Country	United Kingdom
Industry	Aerospace & Defense
Index	FTSE All Shares, FTSE 100, FTSE 350, Employee Focus EU, SDG 12, SDG 13, SDG 16, SDG 7, SDG 8
Size class	X-Large

This stock has achievements: Insight 2019-02-22, Top 10 Stock.

31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Rolls-Royce

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	30	31	35	41
GROWTH
GROWTH	81	97	96	93
SAFETY
SAFETY	10	42	22	30
SENTIMENT
SENTIMENT	27	65	97	^new
360° VIEW
360° VIEW	18	78	82	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 31-Dec-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Rolls-Royce is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	30	31	35	41
GROWTH
GROWTH	81	97	96	93
SAFETY
SAFETY	10	42	22	30
COMBINED
COMBINED	32	70	62	61

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of Rolls-Royce the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 41 (worse than 59% compared with alternatives), Rolls-Royce shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators where three out of four are below average for Rolls-Royce. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 100, which means that the stock price is lower compared with invested capital than for 100% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 5 which means the stock price compared with what market professionals expect for future profits is higher than 95% of comparable companies, indicating a low value concerning Rolls-Royce's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 100 and for the dividend yields rank which is lower than for 70% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 41, is a hold recommendation based on Rolls-Royce's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for Rolls-Royce, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	49	13	7	5
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	12	13	11	13
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	100	100	100	100
DIVIDEND YIELD
DIVIDEND YIELD	1	24	26	30
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	30	31	35	41

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Rolls-Royce; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 93 (better than 93% compared with alternatives) for 2025, Rolls-Royce shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for Rolls-Royce. Sales Growth has a value of 62, which means that, currently, professionals expect the company to grow more than 62% of its competitors. The same is valid for Profit Growth with a value of 57 and for Capital Growth with 96. In addition, Stock Returns had an above-average rank value of 93, which means they have been higher than 93% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 93, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Rolls-Royce exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	42	65	64	62
PROFIT GROWTH
PROFIT GROWTH	66	98	81	57
CAPITAL GROWTH
CAPITAL GROWTH	84	78	96	96
STOCK RETURNS
STOCK RETURNS	62	100	97	93
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	81	97	96	93

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Rolls-Royce.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 30 (better than 30% compared with alternatives), the company Rolls-Royce has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Rolls-Royce is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Rolls-Royce. Liquidity is at 63, meaning the company generates more profit to service its debt than 63% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 45, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 55% of its competitors. Leverage is also high at a rank of 3, which means that the company has an above-average debt-to-equity ratio. It has more debt than 97% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 30 (worse than 70% compared with alternatives), Rolls-Royce has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	1	73	1	3
REFINANCING
REFINANCING	56	46	41	45
LIQUIDITY
LIQUIDITY	6	20	46	63
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	10	42	22	30

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Rolls-Royce and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	59	62	^new
OPINIONS CHANGE
OPINIONS CHANGE	46	45	50	^new
PRO HOLDINGS
PRO HOLDINGS	67	79	99	^new
MARKET PULSE
MARKET PULSE	38	38	84	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	27	65	97	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Rolls-Royce.
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