How to buy Rolls-Royce shares | 292.5p

The coronavirus pandemic has caused extreme share price volatility. So are Rolls Royce shares a good buy?

Fact checked
Rolls-Royce logo

Rolls-Royce Holdings plc (RR) is a leading aerospace & defense business based in the UK. It opened the day at 291.9p after a previous close of 285.6p. During the day the price has varied from a low of 285.5p to a high of 305.9p. The latest price was 292.5p (25 minute delay). Rolls-Royce is listed on the London Stock Exchange (LSE) and employs 51,700 staff. All prices are listed in pence sterling.

How to buy shares in Rolls-Royce

  1. Choose a platform. If you're a beginner, our share-dealing table below can help you choose.
  2. Open your account. You'll need your ID, bank details and national insurance number.
  3. Confirm your payment details. You'll need to fund your account with a bank transfer, debit card or credit card.
  4. Search the platform for stock code: RR in this case.
  5. Research Rolls-Royce shares. The platform should provide the latest information available.
  6. Buy your Rolls-Royce shares. It's that simple.

How has Coronavirus impacted Rolls-Royce's share price?

Since the stock market crash in March caused by coronavirus, Rolls-Royce's share price has had significant negative movement.

Its last market close was 277.5p, which is 57.02% down on its pre-crash value of 645.6p and 8.11% down on the lowest point reached during the March crash when the shares fell as low as 300p.

If you had bought £1,000 worth of Rolls-Royce shares at the start of February 2020, those shares would have been worth £497.76 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth £410.98.

Rolls-Royce share price

Use our graph to track the performance of RR stocks over time.

Rolls-Royce shares at a glance

Information last updated 2020-07-02.
Previous close285.6p
Change 6.9p
Change % 2.416%
Volume 10,748,219
Information last updated 2020-08-02.
52-week range231.6p - 853.1643p
50-day moving average 268.2115p
200-day moving average 405.3984p
Wall St. target price974.81p
PE ratio N/A
Dividend yield 0.12p (4.2%)
Earnings per share (TTM) -125.3p
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Share dealing platform comparison

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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Capital is at risk.

Is it a good time to buy Rolls-Royce stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Rolls-Royce price performance over time

Historical closes compared with the last close of 292.5p

1 week (2020-08-03) N/A
1 month (2020-07-10) N/A
3 months (2020-05-14) 18.42%
6 months (2020-02-10) N/A
1 year (2019-08-10) N/A
2 years (2018-08-10) N/A
3 years (2017-08-10) N/A
5 years (2015-08-10) N/A

Is Rolls-Royce under- or over-valued?

Valuing Rolls-Royce stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Rolls-Royce's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Rolls-Royce's PEG ratio

Rolls-Royce's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 7.637. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Rolls-Royce's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

However, it's sensible to consider Rolls-Royce's PEG ratio in relation to those of similar companies.

Rolls-Royce's EBITDA

Rolls-Royce's EBITDA (earnings before interest, taxes, depreciation and amortisation) is £613 million.

The EBITDA is a measure of a Rolls-Royce's overall financial performance and is widely used to measure a its profitability.

To put Rolls-Royce's EBITDA into context you can compare it against that of similar companies.

Rolls-Royce financials

Revenue TTM £16.6 billion
Gross profit TTM £942 million
Return on assets TTM -1.55%
Return on equity TTM 0%
Profit margin -7.93%
Book value -1.386p
Market capitalisation £4.5 billion

TTM: trailing 12 months

Rolls-Royce's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Rolls-Royce.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Rolls-Royce's total ESG risk score

Total ESG risk: 29.13

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Rolls-Royce's overall score of 29.13 (as at 07/01/2020) is nothing to write home about – landing it in it in the 51st percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Rolls-Royce is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

To gain some more context, you can compare Rolls-Royce's total ESG risk score against those of similar companies.

Rolls-Royce's environmental score

Environmental score: 9.05/100

Rolls-Royce's environmental score of 9.05 puts it squarely in the 2nd percentile of companies rated in the same sector. This could suggest that Rolls-Royce is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Rolls-Royce's social score

Social score: 14.41/100

Rolls-Royce's social score of 14.41 puts it squarely in the 2nd percentile of companies rated in the same sector. This could suggest that Rolls-Royce is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Rolls-Royce's governance score

Governance score: 4.67/100

Rolls-Royce's governance score puts it squarely in the 2nd percentile of companies rated in the same sector. That could suggest that Rolls-Royce is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Rolls-Royce's controversy score

Controversy score: 2/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Rolls-Royce scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Rolls-Royce has, for the most part, managed to keep its nose clean.

Wondering how that compares? Below are the controversy scores of similar companies.

Environmental, social, and governance (ESG) summary

Rolls-Royce Holdings plc was last rated for ESG on: 2020-07-01.

Total ESG score 29.13
Total ESG percentile 51.14
Environmental score 9.05
Environmental score percentile 2
Social score 14.41
Social score percentile 2
Governance score 4.67
Governance score percentile 2
Level of controversy 2

Rolls-Royce share dividends

We're not expecting Rolls-Royce to pay a dividend over the next 12 months. However, you can browse other dividend-paying shares in our guide.

You may also wish to consider:

Have Rolls-Royce's shares ever split?

Rolls-Royce's shares were split on a 1:120 basis on 24 April 2013. So if you had owned 120 shares the day before before the split, the next day you'd have owned 1 share. This wouldn't directly have changed the overall worth of your Rolls-Royce shares – just the quantity. However, indirectly, the new 11900% higher share price could have impacted the market appetite for Rolls-Royce shares which in turn could have impacted Rolls-Royce's share price.

Rolls-Royce share price volatility

Over the last 12 months, Rolls-Royce's shares have ranged in value from as little as 231.6p up to 853.1643p. A popular way to gauge a stock's volatility is its "beta".

RR.LSE volatility(beta: 0.94)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (LSE average) beta is 1, while Rolls-Royce's is 0.9372. This would suggest that Rolls-Royce's shares are less volatile than average (for this exchange).

To put Rolls-Royce's beta into context you can compare it against those of similar companies.

Rolls-Royce overview

Rolls-Royce Holdings plc operates as an industrial technology company worldwide. It operates in four segments: Civil Aerospace, Power Systems, Defence, and ITP Aero. The Civil Aerospace segment develops, manufactures, and sells aero engines for large commercial aircraft, regional jet, and business aviation markets, as well as provides aftermarket services. The Power Systems segment provides high-speed and medium-speed reciprocating engines, and propulsion and power generation systems for the marine, defense, power generation, and industrial markets. The Defence segment offers aero engines for military transport and patrol aircraft applications; and naval engines and submarine nuclear power plants, as well as aftermarket services. The ITP Aero segment engages in the design, research and development, manufacture and casting, assembly, and testing of aeronautical engines and gas turbines. It also provides maintenance, repair, and overhaul services for regional airlines, as well as business aviation, industrial, and defense applications. Rolls-Royce Holdings plc was founded in 1884 and is headquartered in London, the United Kingdom.

Dividend history

Financial Year Type Amount Ex-dividend date Payment date
31/12/2019 Final 7.10p 23/04/2020 01/07/2020
Interim 4.60p 24/10/2019 03/01/2020
31/12/2018 Final 7.10p 25/04/2019 25/04/2019
Interim 4.60p 25/10/2018 03/01/2019
31/12/2017 Final 7.10p 26/04/2018 02/07/2018
Interim 4.60p 26/10/2017 03/01/2018

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