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

Updated on 07/19/2026

We analyzed Rolls-Royce Holdings stock against the 10 quality criteria of Lubin Investment. The company gets a quality score of 9/10, meaning high quality, and a P/FCF valuation multiple of 3222.5×.

Sector: Aerospace & Defense. Listing: L. Current price: 1365.60 GBp.

Lubin scoring methodology

Rolls-Royce Holdings plc (RR.L)'s score is calculated automatically from 10 objective financial criteria, with no human intervention or opinion. Each criterion is validated (YES / PARTIAL / NO) based on thresholds drawn from the financial literature (Warren Buffett, Bettin-Mauboussin, Aswath Damodaran). The final score is the sum of validations.

The 10 quantitative criteria analyzed

1. Profitable: positive net margin
2. Growing revenue: revenue growing > 10%/year over 5 years
3. Growing earnings per share: FCF per share adjusted for stock-based compensation, > 10%/year over 5 years
4. Share count under control: stable or declining (net buybacks = value creation for shareholders)
5. Cash profitability: free cash flow margin > 10% of revenue
6. Expanding margins: operating margin widens over 5 years (operating leverage)
7. Return on invested capital: Bettin-Mauboussin Cash ROCE > 15% per year
8. Debt under control: net debt repayable in less than 3 years of free cash flow
9. Earnings converted to cash: free cash flow exceeds accounting net income
10. Net collection period: short or negative cash conversion cycle

Frequently asked questions

Is Rolls-Royce Holdings a quality stock?

Rolls-Royce Holdings gets a quality score of 9/10 (high quality), calculated over the 10 Lubin Investment criteria: profitability, revenue and free cash flow growth, share buybacks, margins, debt and return on capital.

How is Rolls-Royce Holdings's score calculated?

The score is the total of validated criteria (YES / PARTIAL / NO) using thresholds drawn from the financial literature (Warren Buffett, Mauboussin, Aswath Damodaran), automatically and with no human opinion.

What is Rolls-Royce Holdings's P/FCF?

The price-to-free-cash-flow (P/FCF) multiple of Rolls-Royce Holdings stock is 3222.5×. At Lubin Investment, valuation is judged separately from quality.

Where to see Rolls-Royce Holdings's full analysis?

The full interactive analysis (10-criteria detail, history, P/FCF valuation, sector comparisons) is available at https://lubin-investment.com/analyse/RR.L?lng=en.

Other stocks in the Aerospace & Defense sector

• HEICO (HEI) — score 9/10, P/FCF 42.1×
• Thales (HO.PA) — score 9/10, P/FCF 17.9×
• Curtiss-Wright (CW) — score 9/10, P/FCF 47.7×
• HEICO (HEI.A) — score 9/10, P/FCF 44.3×
• Howmet Aerospace (HWM) — score 9/10, P/FCF 60.9×

Go further

👉 See the full interactive analysis of RR.L

Other resources : Detailed methodology · All stocks in the Aerospace & Defense sector · Stocks rated 10 out of 10 · Top quality companies · Lubin Investment pricing.