How to buy Rolls-Royce (RR) shares

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

Rolls-Royce Holdings plc
LSE: RR - GBX
AEROSPACE & DEFENSE
p99.71
-p2.47 (-2.42%)

Rolls-Royce Holdings plc (RR) is a leading aerospace and defence business based in the UK. It opened the day at 101.5p after a previous close of 100.86p. During the day the price has varied from a low of 101.06p to a high of 103.48p. The latest price was 102.58p (25 minute delay). Rolls-Royce is listed on the London Stock Exchange (LSE) and employs 48,200 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.
The whole process can take as little as 15 minutes.

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

Since the stock market crash that started in February 2020, Rolls-Royce's share price has had significant negative movement.

Its last market close was 108.94p, which is 83.13% down on its pre-crash value of 645.6007p and 175.38% down on the lowest point reached during the March 2020 crash when the shares fell as low as 300.0003p.

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 £161.34.

Rolls-Royce share price (LSE:RR)

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

Rolls-Royce shares at a glance

Information last updated 2021-07-02.
Open101.5p
High103.48p
Low101.06p
Close102.58p
Previous close100.86p
Change1.72p
Change %1.7053%
Volume40,725,535
Information last updated 2021-07-30.
52-week range34.5929p - 134.9p
50-day moving average101.4249p
200-day moving average104.595p
Wall St. target price974.81p
Dividend yield0p (0%)
Earnings per share (TTM)-125.3p
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Fees for buying 100x Rolls-Royce shares with popular platforms

Share prices fluctuate in real time, so the costs presented here should be considered as a guide only. They do not incorporate stamp duty. Always refer to the platform itself for availability and pricing – which may differ from our information.

Platform Platform fee Min. initial deposit Trading fee estimate
eToro Free Stocks logo £0 $200 £0.00
£102.58 total
Capital at risk
Freetrade logo £0 No minimum £0.00
£102.58 total
Capital at risk
Degiro Share Dealing logo £0 £0.01 £1.76
£104.34 total
Capital at risk
Hargreaves Lansdown Fund and Share Account logo £0 £1 £11.95
£114.53 total
Capital at risk
interactive investor Trading Account logo £9.99 per month No minimum £7.99
£110.57 total
Capital at risk
Fineco logo £0 No minimum £0.00
£102.58 total
Capital at risk
Halifax Share Dealing Account logo £36 per year £20 £9.50
£112.08 total
Capital at risk

Full comparison of share dealing platforms

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. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital 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 102.58p

1 month (2021-06-30) 3.70%
3 months (2021-04-30) -1.95%

Is Rolls-Royce under- or over-valued?

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

PEG ratio

Rolls-Royce's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 7.939. Higher PEG ratios such as this can be interpreted as meaning the shares offer worse value given the current rate of growth.

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.

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 that into context you can compare it against similar companies.

Financials

Revenue TTM £11.8 billion
Gross profit TTM £-210,000,000
Return on assets TTM -3.63%
Return on equity TTM 0%
Profit margin -26.81%
Market capitalisation £8.3 billion

TTM: trailing 12 months

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.

Total ESG risk score

Rolls-Royce's 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 12/31/2018) is nothing to write home about – landing it in it in the 53rd 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.

Environmental score

Rolls-Royce's 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.

Social score

Rolls-Royce's 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.

Governance score

Rolls-Royce's 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.

Controversy score

Rolls-Royce's controversy score: 2/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. A high-profile company, 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: 2019-01-01.

Total ESG score 29.13
Total ESG percentile 52.62
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

4.2%

Forward annual dividend yield: 4.2% of stock value

The latest dividend was paid out to all shareholders who bought their shares by 22 April 2020 (the "ex-dividend date").

Rolls-Royce's dividend yield is perhaps best considered in relation to those of similar companies.

Have Rolls-Royce's shares ever split?

Rolls-Royce's shares were split on a 1:120 basis on 23 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.

Share price volatility

Over the last 12 months, Rolls-Royce's shares have ranged in value from as little as 34.5929p up to 134.9p. A popular way to gauge a stock's volatility is its "beta".

RR.LSE volatility(beta: 1.98)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 1.9826. This would suggest that Rolls-Royce's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).

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

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Rolls-Royce in the news

There are no recent company news

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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