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Rolls-Royce Holdings PLC

Rolls-Royce Holdings PLC

RYCEY
$19.65USD↑+1.97%+0.38 today

MARKET CAP

87.8B

P/E (TTM)

—

FWD P/E

—

DAY RANGE

$19 – $20

52W RANGE

$13
$21

AI Summary

Stalk
Sell NowMedium

RYCEY exhibits a bearish medium-term structure after a Support Failure pattern cracked below intermediate support. Short-term momentum aligns with the downtrend as price tracks below the EMA band. The long-term uptrend remains intact above the 200 SMA but is secondary to intermediate and near-term weakness. Execution favors selling now on continued bearish momentum.

  • ↑Revenue rose 28% YoY to £7B; H1 operating profit up 74% to £1.1B.
  • ↑Free cash flow reached £1.2B, cutting net debt 40% to £2B.
  • ↓Supply chain delays may persist 18–24 months, affecting deliveries.
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The case for & against

Bull & Bear analysis

Bullish

Rolls-Royce Holdings PLC (RYCEY) is a leading engineering company specializing in power systems for aviation, defense, and energy markets. Recognized for its cutting-edge technology, Rolls-Royce operates in a competitive environment, currently emphasizing operational excellence and sustainability in its operations. It is involved in both civil and defense sectors, driving growth through innovation as it aims to capitalize on the recovery trends seen post-COVID-19.

Bull says

  • ↑Revenue rose 28% YoY to £7B; H1 operating profit up 74% to £1.1B.
  • ↑Free cash flow reached £1.2B, cutting net debt 40% to £2B.
  • ↑Operating margin climbed to 14% after £431M in margin improvements.
  • ↑Civil aerospace engine flying hours recovered to 83% of pre-COVID levels.
  • ↑Investing £1B in lower-carbon engine R&D to drive sustainable growth.
  • ↑Strong growth outlook underpinned by robust profitability and balance-sheet health.

Bear says

  • ↓Supply chain delays may persist 18–24 months, affecting deliveries.
  • ↓Leverage elevated; negative earnings yield and weak dividend yield raise concerns.
  • ↓Margins below competitors on like-for-like basis due to high fixed costs.
  • ↓Inflationary cost pressures challenge margins despite disciplined pricing strategies.
  • ↓Geopolitical tensions risk disrupting defense and civilian aerospace demand.
  • ↓Weak liquidity and momentum factors suggest potential instability ahead.

Investment themes with RYCEY

European Defense↓ -2.07%

Defense contractors based in Europe

RYCEY · MRO.L · AM.PA

Earnings Call · Q2 2022 · Mgmt. Guidance

Updated 08-22-2026neutral

Transcript signals

Bull points

  • we are spending more with fewer suppliers. The relationship with those suppliers is richer. The contract terms can be longer and more rigorous.
  • we do anticipate the wide-body volumes recovering, not sort of immediately, so we do have some time for this, but we can see them recovering.
  • 1100 and 1200 shop visits, which reflects a substantial increase from just over 400 in the first half as engine flying hours growth returns, contributing to these scheduled visits.

Bear points

  • there is a significant ramp up in shop visits in the second half which generates a significant amount of profit and a number of spare engine sales we'd originally thought there'd be a few more spare engine sales in the first half but those have now moved into the second half.
  • lockdown situation in China has been the key retardant for the Rolls-Royce fleet of engines, which is keeping our engine flying hours back.
  • we are facing the impact of global supply chain challenges and cost inflation, but we're actively managing these to a sharper focus on pricing, productivity and cost
Read full transcript analysis ›