RR/ LN
Industrial/Transportation
10/09/2014
Presented
| Date | 10/07/2014 |
| Price | £9.40 |
| Market Cap | $2.89B |
| Ent Value | $25.46B |
| P/E Ratio | 25324.32x |
| Book Value | £3.60 |
| Div Yield | N/A |
| Shares O/S | 1,880.98M |
| Ave Daily Vol | 4,080,000 |
| Short Int | N/A |
Current
| Price | £5.41 |
| Market Cap | $70.64B |
| Rolls-Royce Holdings plc, together with its subsidiaries, provides integrated power solutions for customers in civil and defence aerospace, marine, and energy markets worldwide. It operates in five segments, Civil Aerospace, Defence Aerospace, Marine, Energy, and Power Systems. The Civil Aerospace segment develops, manufactures, markets, and sells commercial aero engines, including civil large, small aircraft, and helicopter engines for various sectors of the airliner and corporate jet market; and provides aftermarket services consisting of a suite of managing services for its engines. The Defence Aerospace segment is engaged in the development, manufacture, marketing, and sale of military aero engines for combat jets, helicopters, transporters, trainers, tactical aircraft, unmanned aerial vehicles, and distributed generation systems, as well as offers aftermarket services. The Marine segment is involved in the development, manufacture, marketing, and sale of marine-power propulsion systems and aftermarket services. Its produces include automation and control, bearings and seals, deck machinery solutions, power electric systems, engines, propulsors, reduction gears, ship design and systems, syncrolift shiplifts and transfer systems, and stabilisation and manoeuvring systems. This segment also integrates technologically complex systems for offshore oil and gas, merchant and naval surface, and submarine vessels. The Energy segment manufactures and sells power systems for the offshore oil and gas industry and electrical power generation, and aftermarket services. Its products include gas engines, gas turbine engines, gas compression, diesel engines, fuel cells, and automation and control systems. The Power Systems segment develops, manufactures, markets, and sells reciprocating engines, propulsion systems, and distributed energy systems. Rolls-Royce Holdings plc was founded in 1971 and is headquartered in London, the United Kingdom. |
Publicly traded companies mentioned herein: Rolls-Royce Holdings PLC (RR/ LN), Boeing Co. (BA), Airbus Group NV (AIR FP), Air France-KLM (AF FP)
Highlights
The presenter is bullish on the outlook for Rolls-Royce (RR) and thinks shares of the power systems provider are undervalued at ~940 GBp. RR has been a controversial company in 2014, and shares are off 25% from recent highs. However, at 12.5x the Street’s 2016 EPS estimates the risk/ reward is favorable and he is long the stock for the following reasons:
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