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17 September 2021
21:56 hour

HAL, Rolls-Royce sign pact for Make-in-India Adour Engine Parts for global markets

Money Works 4 Me

14/09/2021 - 14:59

This follows the MoU signed by Rolls-Royce and HAL during the Aero India 2021 to establish an Authorized Maintenance Centre


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  1. Rolls Royce? (24/02/2021 - Reddit Stocks)
    Hey everyone. Just wondering what the thoughts on rolls royce are? The pandemic really hit their price hard. Dropped from £10 to just under £1. The beloved British company recently just won a contract in India too. I won't go I to too much details. All details are at your fingertips.   submitted by   /u/TopSeaworthiness7501 [link]   [comments]
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  2. : Rolls-Royce hopes $5.6 billion 2020 loss leaves ‘the worst behind’ (11/03/2021 - Market Watch)
    The British engine maker and supplier of parts to the airline industry, announced a worse-than-expected loss for 2020, but said it is still confident it can turn cash positive in the second half of this year, provided air travel picks up as forecast.
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  3. Bombardier with Rolls-Royce agrees to expand engine maintenance offering (16/08/2021 - Seeking Alpha)

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  4. Norway blocks Rolls-Royce's plan to sell engine maker to Russia (23/03/2021 - Investing.com)

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  5. Rolls-Royce's planned sale of engine maker to Russia blocked by Norway (23/03/2021 - Seeking Alpha)

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  6. 2 reasons to buy Rolls-Royce at $1.70 (19/03/2021 - Reddit Stocks)
    My thesis for buying $RYCEY (Rolls-Royce) is this simple line here: “In terms of their aims, management has a goal of developing low carbon solutions for hybrid, hydrogen, and electric powered craft"?????? 1.) I think 2021/22 might be a better year 2.) Free cash flow for these new green solutions 2 reasons to buy Rolls Royce   submitted by   /u/xsweeperx [link]   [comments]
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  7. Can someone give me their best bearish thesis on RYCEY. (04/04/2021 - Reddit Stocks)
    I’m already holding a large position long on Rolls Royce RYCEY, I believe strongly that they are just beginning their way back up from the bottom of a 5yr. low. I have read a lot of great PR in regards to innovations and developments they’re working on including the largest lightest turbofan engine ever made that will be 25% more efficient than its predecessors. Rolls Royce are invested in space travel as well as supersonic commercial flight for the future. I just want to hear a bearish argument other than the current state of civil aviation which is a main source of revenue for them as to why they won’t be 5x-10x in the next 2-3 years... Annnnd Go!   submitted by   /u/TJspring47 [link]   [comments]
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  8. If you haven’t yet, I recommend looking at this Rolls Royce Long ETF, as Rolls Royce is starting to pick up! Not a financial advisor. (23/02/2021 - Reddit Stock Market)
      submitted by   /u/CranusCranii [link]   [comments]
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  9. This is what I’m doing about the Rolls-Royce share price! (17/05/2021 - The Motley Fool UK)
    I suppose I could describe the performance on major stock markets last week as a bit of a washout. The FTSE 100, for instance, dropped 1% between Monday’s opening and Friday’s close as investors fretted about rocketing inflation and the prospect of extreme monetary tightening by central banks. However, the Rolls-Royce (LSE RR) share price held up quite robustly, despite these rising concerns. In fact, the FTSE 100 engine builder rose 1% during the course of the week. Consequently Rolls-Royce remains a chunky 15% more expensive than it was 12 months ago. Can the Rolls-Royce share price keep rising? There are several reasons why I think the Rolls-Royce share price could continue its ascent. #1: The Covid-19 battle keeps progressing. 2020 might have been a disaster for the aviation industry and by extension the FTSE 100 engineer. But latest financials last week suggest that the company may have turned the corner. Rolls-Royce has noted that large engine flying hours have remained stable since the end of last year. It’s also said that Covid-19 vaccination programmes in a significant number of countries were “encouraging” for its operations. #2: Defence spending continues to rise. One of the few bright spots for Rolls-Royce last year came from its Defence division. Sales at this unit — responsible for 30% at group level — edged 4% higher in 2020. I fully expect demand from its military customers to keep rising too as broader global arms spending heads relentlessly higher. Flies in the ointment There are clearly reasons why the Rolls-Royce share price could keep gaining ground. But the risks of it falling back to earth are not insignificant. In particular, any setbacks in the fight against Covid-19 could prove problematic if they delay a recovery in the global travel industry. The ongoing emergence of fresh virus variants (the Indian edition in particular is causing infection rates to accelerate in some parts of the globe) is a special concern for the industry. A fresh blow-up is particularly risky for firms with weak balance sheets like Rolls-Royce, naturally. Net debt at the company swelled to £3.6bn as of the end of 2020 from below £1bn a year earlier. And measures to get its pile down through asset disposals haven’t been off to a flyer either. A deal to hive off its Bergen maritime division was shot down on security concerns earlier this month. The verdict City analysts think losses at Rolls-Royce will narrow from 66.78p per share in 2020 to 2.3p this year. Expectations of further recovery in the airline industry mean the company’s expected to flip back into earnings of 3.6p per share in 2022 as well. These cheery predictions aren’t enough to tempt me to invest, however. The Covid-19 crisis could explode again at any moment, wrecking a bottom-line recovery at Rolls-Royce and putting fresh stress on its debt-laden balance sheet. Besides, I don’t think the Rolls-Royce share price provides particularly-good value right now (it trades on a forward earnings multiple of 30 times). I’d rather buy other UK shares today. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading As the Rolls-Royce share price remains cheap, I’d invest £3k Is it time to act on the Rolls-Royce share price? Can the Rolls-Royce share price stay above 100p? The Rolls-Royce share price has been ticking upwards. Is it time to buy now? The Rolls-Royce share price has fallen. Is now the time to buy? Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post This is what I’m doing about the Rolls-Royce share price! appeared first on The Motley Fool UK.
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  10. United States Imports of Engines & Engine Parts (13/02/2021 - Trading Economics)
    Imports of Engines & Engine Parts in the United States decreased to 2372.73 USD Million in December from 2458.13 USD Million in November of 2020. Imports of Engines & Engine Parts in the United States averaged 1501.75 USD Million from 1989 until 2020, reaching an all time high of 2764.06 USD Million in July of 2014 and a record low of 474.19 USD Million in March of 1991. This page includes a chart with historical data for the United States Imports of Engines & Engine Parts.
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  11. The Rolls-Royce share price has fallen. Is now the time to buy? (10/05/2021 - The Motley Fool UK)
    Shares in Rolls-Royce (LSE: RR) have fallen more than 20% from their high last month. Over the past year, they have dropped dramatically and struggled to recover from March 2020 when the pandemic began, with the Rolls-Royce share price falling as low as 64.86p at the end of October. There has been a strong recovery since then, with the share price back to 109p at the time of writing. Below are some of the reasons why the share price might be down. Reopening prospects mixed Recently, Rolls-Royce shares have tended to do well when there has been more optimism about the world opening up and return to international travel as we used to know it. A large part of the company’s business relies on there being international travel due to its aircraft engine business. The easing of restrictions in the UK has so far been a success and the vaccine rollout is also on track, which is allowing optimism over being able to travel abroad again this summer. However, countries such as India and Kenya have seen a dramatic rise in Covid-19 cases, which may make it harder to travel to these countries in the short term. In my opinion, I expect that travel reopening may not be perfect in the short term but I am optimistic that this form of cash flow for Rolls-Royce should be resuming sooner rather than later. Lack of news Another issue behind the share price of Rolls-Royce is likely to be the fact there has been no important news from the company recently. The lack of news is a possible factor in the share price with no catalyst to get shareholders excited about.  Underlying investment case hasn’t changed From a month ago there has been no real change in the prospects of Rolls-Royce, with the future climate looking the same and global travel still expected to improve and get back to normal. I am bullish on Rolls-Royce and see the drop in the last month as a buying opportunity for investors. With the world starting to open up – and it will do further in the coming months – this is only going to benefit Rolls-Royce. Of course in the short term, things may change but the long term should see the shares in the company increase in value. I am seeing the current price as a great buying opportunity and a great discount to investors. The risk to the share price Many investors will remain wary of Rolls-Royce at the moment and for good reason. The reason for this is the lack of control the company has in its own success at the moment. The success of the company going forward is heavily reliant on the pandemic and restrictions across the UK and the world easing. However, in the long term, the Rolls-Royce share price should recover its recent losses, which is why I am very bullish on the company. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading Hargreaves Lansdown investors are buying Rolls-Royce shares. Should I buy too? How much is the Rolls-Royce share price really worth? Will the Rolls-Royce share price fly this summer holiday season? Can the Rolls-Royce share price bounce back? Will the Rolls-Royce share price soar in May? Ed Jones owns shares in Rolls-Royce. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Rolls-Royce share price has fallen. Is now the time to buy? appeared first on The Motley Fool UK.
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  12. Rolls-Royce share price: what’s in store in the coming months? (26/04/2021 - The Motley Fool UK)
    Rolls-Royce (LSE:RR) was one of the biggest losers of the stock market crash caused by Covid-19 last year. What is ahead for the Rolls-Royce share price in the coming months, and is there an opportunity here for me to pick up cheap shares? Rolls-Royce share price woes Between February 2020 and September 2020, the Rolls-Royce share price lost 80%. Across the whole of 2020, the Rolls-Royce share price declined by over 50%. Its debt levels rose as it borrowed to keep the lights on, and it also cut jobs and announced a rights issue to generate cash flow. In December, the Rolls-Royce share price experienced its highest post-Covid-19 price. Shares were trading for 135p per share. Since that time, however, the share price has fallen over 20%.  Challenges and outlook ahead Airlines are operating more than at this time last year. The issue here is that Covid-19 is still rife and there could be further restrictions if another wave hits. In terms of Rolls-Royce, I believe the overall outlook is improving. I do believe, as I write, the worst of the crisis is over. It has taken the necessary steps to see it through some tough times and has begun to shore up its once-beleaguered balance sheet. There are still some challenges it needs to overcome, however. In a recent trading update, Rolls-Royce predicted a free cash outflow in the region of £2bn in 2021. This is money that is going out of the business that its management team will need to find from somewhere. In the same update, it did mention its £9bn liquidity, which is a good sign in my opinion. This should help with the cash outflow mentioned. The Rolls-Royce share price could benefit in the future if ambitions are achieved. It believes it can generate over £700m of free cash flow by 2022. This is a projection based on past figures and flying hours of engines. Cash is king and this could put Rolls-Royce in a much better position.  My verdict I believe there is lots of recovery potential linked to the Rolls-Royce share price. The issue I have is that this recovery is linked to Covid-19. I don’t think it can handle another scenario whereby planes are grounded and it faces severe losses. It must be noted that different parts of the world are in different states related to the virus. The US seems to be flourishing from an aviation perspective and is a market Rolls-Royce can capitalise on. Asia is struggling right now with a deadly variant, and there seems to be another lockdown on the horizon over there. I believe the current Rolls-Royce share price is not reflective of its improving stature, and I think it will creep up over the coming months. I class it as a high-risk investment but I think it is priced quite low right now. It could make an interesting recovery play for my portfolio. Right now, I would not invest in Rolls Royce shares but will keep a keen eye on developments.  Away from Rolls Royce, here is a tech stock that recently underwent an IPO that I have examined. CEO’s £500,000,000 Stake on Industry’s “Uber” Revolution We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign. But with this opportunity it could get even better. Still only 55 years old, he sees the chance for a new “Uber-style” technology. And this is not a tiny tech startup full of empty promises. This extraordinary company is already one of the largest in its industry. Last year, revenues hit a whopping £1.132 billion. The board recently announced a 10% dividend hike. And it has been a superb Motley Fool income pick for 9 years running! But even so, we believe there could still be huge upside ahead. Clearly, this company’s founder and CEO agrees. Learn how you can grab this ‘Top Income Stock’ Report now More reading As the Rolls-Royce share price falls, I’m still buying Will the Rolls-Royce share price recover in the second half of 2021? Why I think I could double my money with the 100p Rolls-Royce share price The Rolls-Royce share price is crashing in April! Should I buy RR today? Does the Rolls-Royce share price make me want to buy in 2021? Jabran Khan has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Rolls-Royce share price: what’s in store in the coming months? appeared first on The Motley Fool UK.
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  13. Is reopening important for the Rolls-Royce share price? (14/04/2021 - The Motley Fool UK)
    The Rolls-Royce (LSE: RR) share price has returned over 175% since October. But over the past 12 months, it has fallen 6%. Does the recent Rolls-Royce share price increase suggest that investors feel a reopened economy means better times for the aerospace giant? I’ll consider what reopening means in practice for Rolls-Royce and its share price. The core business model The company’s business model is based around selling and servicing engines. The long tail servicing of engines is where aircraft engine makers typically make the bulk of their profits. That’s why part of Rolls-Royce’s strategy has been to “capture throughlife value of in-service products”. Take 2019 as an example. That year, unaffected by the pandemic, services accounted for 52% of revenue. With demand currently reduced, engine orders may be delayed or cancelled. Some airlines may decide to reduce their future fleet, or use the environment to drive a hard bargain on engine costs. None of that is good for the Rolls-Royce share price, in my view. However, that is a longer-term concern. I see the more pressing issue as servicing. Aircraft engine are scheduled for different levels of maintenance based on how many hours they fly. Reduced flight time means a longer gap between servicing. Demand outlook The company currently expects large engine flying hours to return to 55% of 2019 levels this year, with a stronger recovery in the second half compensating for a weaker start to the year. By next year, the company foresees recovery to 80% of 2019 levels, reduced from an earlier estimate of 90%. Even with the 55% figure this year, the company expects to turn cash flow positive in the second half as recovery quickens. However, its annual free cash flow target of £750m is based on a recovery to 80% of 2019 demand. The company expects that to happen in 2022. However, as its previous forecast revisions have illustrated, demand visibility remains unclear for now. Reopening and the Rolls-Royce share price Reopening could bring an increase in demand for flying. On a positive analysis, the pent up demand for travel combined with a high consumer savings rate in many locked down markets might actually herald a travel boom. On a more bearish analysis, however, reopening might not presage a return to 2019 flying levels. Some passengers will be warier of travelling, while others may opt for domestic holidays. I also doubt business travel will recover to 2019 levels any time soon, as many companies have switched to remote working. Not just about flying hours While civil aviation flying hours are important to Rolls-Royce, its business does have segments that I see as more defensive. For example, its power business and military aviation businesses have not seen the demand slowdown the civil aerospace business has. Last year, the civil aerospace segment was only 44% of company revenues, so the relative resilience of the other business segments is a significant point to note. Meanwhile, reopening is progressing in many markets and flying is back. US daily passenger numbers have now reached 60% of 2019 levels, for example. I think these other businesses and an upturn in flying hours bodes well for the Rolls-Royce share price. Nonetheless, global reopening and a widescale return to flying seem necessary to me for the company to recover fully. The timing of both remains unclear. I am not buying Rolls-Royce shares for now. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Should I invest in Rolls-Royce or Aston Martin shares right now? This is what I’d do about the Rolls-Royce share price right now! What I’d do about Rolls-Royce Holdings shares now Will the Rolls-Royce share price bounceback in 2021? Will the Rolls-Royce share price keep climbing? christopherruane has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Is reopening important for the Rolls-Royce share price? appeared first on The Motley Fool UK.
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  14. Tata Consumer Products signs up as founding member of India Plastics Pact (13/09/2021 - Money Works 4 Me)
    The India Plastics Pact is a collaboration between the Confederation of Indian Industry and WWF India
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  15. Would I buy Rolls-Royce shares at 8-month lows? (21/07/2021 - The Motley Fool UK)
    Rolls-Royce (LSE: RR) shares hit a low on Monday, crashing below 90p to eight-month lows. They recovered a bit by yesterday’s close, but not significantly so. When it was last at these levels, the Rolls-Royce share price was actually on its way up. This was in November last year and the stock market rally had just begun. Now is the exact opposite situation. It has been falling for much of the past month.  Better times ahead At any other time, I would have not thought of buying Rolls-Royce shares at such a juncture. But this time things are different. We have finally passed Freedom Day in the UK, which makes any Covid precautions discretionary (for now). Also, in the UK, North America and much of Europe, at least 50% of the population has had at least one vaccine shot. This means that we are closer to travelling in big numbers again than we have been at any time in the last year.  Considering that 60% of the company’s revenues come from the supply and servicing of civilian aircraft, this is good news indeed. This segment has been a big drag in the recent past, even while its power systems and defence segments have been in better health.  Disposals programme gathers pace I reckon that it will still be some time before Rolls-Royce can get its financials in order. But I think the worst may be over for it. Besides an improved outlook, this is because of its notable commitment to its £2bn disposals programme. It initiated this last year in a bid to get back to financial health after the pandemic.  In December, it decided to sell off its nuclear instrumentation business to French civil nuclear energy company Framatome. It is also trying to sell its Spanish aircraft engine business, ITP Aero and Bergen Engines, its maritime engine maker.  Most recently, media reports have said it plans to sell its stake in AirTanker, which leases aircraft to the RAF. Rolls-Royce has a roughly 50% stake in the company, while much of the rest is owned by Babcock International, the defence and nuclear engineering business.  What’s next for the Rolls-Royce share price? I think these are positive developments but we should have a better idea of how things are progressing only by the end of the year. This is because, by then, more data on the recovery should be available.  But the Rolls-Royce share price can start rising before that. The rise in new coronavirus cases that caused a mini market meltdown a few days ago now seems to be behind us. And prices of sensitive stocks are moving up. This includes Rolls-Royce, which is up by 6.3% in today’s trading.  Also, stock markets have a tendency to preempt the future. So by the time its updates reflect better health, I reckon that will already be priced in, assuming that the markets remain buoyant.  I am still cautious though, because it was not in a great place even before the pandemic. And any setbacks in reopening global travel could hit it hard. But going by improving conditions at the moment, it is on my watchlist for now. The post Would I buy Rolls-Royce shares at 8-month lows? appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The Rolls Royce share price is below 100p – so is it a buy? Can the Rolls-Royce share price recover in 2021? 3 FTSE 100 shares to buy after the ‘Freedom Day’ crash Will the Rolls-Royce share price keep falling? How low can the Rolls-Royce share price go? Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  16. Could the Rolls-Royce share price hit £1.50? (20/08/2021 - The Motley Fool UK)
    Aeronautical engineer Rolls-Royce (LSE: RR) has had a challenging couple of years. With demand for aircraft engine servicing plummeting during the pandemic, the company saw profits collapse last year. The Rolls-Royce share price has had a rocky ride, but it’s shown signs of recovery lately and is up 25% over the past year. What’s next for the company and its share price? Here I consider whether it could climb to £1.50, around 35% above its current price. Business tailwinds The business has shown promising signs of gradual recovery. In its interim results this month, it turned a £1.6bn underlying operating loss in the first half last year to a profit of £307m this time around. It wasn’t all good news, by any means, and revenue slipped compared to the equivalent period last year. As demand for civil aviation continues to recover, there should be heightened demand for the company’s engine servicing. Airlines in recovery mode may also start to consider buying new aircraft, all of which need engines. One of the advantages Rolls-Royce has as a company is that only a few aircraft engine makers exist and the barriers to entry in the industry are high. That helps give Rolls-Royce pricing power. I think that could help it boost profits in years to come. The Rolls-Royce share price and cash flow One of the drivers for the Rolls-Royce share price is the company’s free cash flow. That is different to earnings. Earnings are purely an accounting measure but free cash flow tracks the amount of hard money coming into – or leaving – a business. Free cash flow helps boost liquidity. While Rolls-Royce has bled cash over the past eighteen months, the company expects to become free cash flow positive in the current half-year period. It maintained this estimate in its interim results, which I take as a sign of management confidence. Free cash flow positivity could help to boost the Rolls-Royce share price in my opinion. Last year the company diluted shareholders by issuing new shares to raise money. There is a risk that it could do so again if it needs more liquidity. But free cash flow will help its liquidity, strengthening the firm’s balance sheet. Valuing Rolls-Royce £1.50 may sound a long way from today’s Rolls-Royce share price, but I think it is possible for the stock to hit that price. It’s actually well below the level at which the shares entered the pandemic. Admittedly Rolls-Royce is a different business now, scarred by the plunge in demand in its civil aviation division last year. But as it shows signs it is rebuilding, I think the share price could rise. The interim results were decent and the real test in my opinion will be the full-year results. If it really does return to free cash flow positivity, I expect the shares to rally. So a £1.50 Rolls-Royce share price is on the cards in my opinion, although as of now I do not see any specific drivers for such price appreciation in the next few months. Meanwhile, risks remain. Further lockdowns and travel restrictions in some markets could hurt revenues. Any failure to deliver on the cash flow target – whatever the reason – could knock investor confidence, which could lead to a share price fall. The post Could the Rolls-Royce share price hit £1.50? appeared first on The Motley Fool UK. Our #1 North American Stock For The ‘New-Age Space Race’ Billionaires like Jeff Bezos, Bill Gates, Elon Musk, and Mark Zuckerberg are already betting big money on the ‘new-age space race’, and for one very good reason… …because this is an industry that according to Morgan Stanley could be worth $1 TRILLION by 2040. But the problem is most of their investments are in private companies — meaning they’re largely off-limits for everyday investors. Fortunately, our team of analysts have identified one little-known company that’s at the cutting-edge of the space industry, and is currently trading at what looks like a VERY reasonable valuation… …for now. That’s why I want to urge you to check out our premium research on this top North American space stock ASAP. Simply click here to see find out how you can grab your copy today More reading Should I buy Rolls-Royce shares at 112p? Better buy for September: Aviva (LSE:AV) or Rolls-Royce (LSE:RR)? Shares to buy now: IAG (LSE: IAG) or Rolls-Royce (LSE: RR)? The Rolls-Royce share price is rallying! Should I buy? Is the Rolls-Royce share price heading to 175p? Christopher Ruane has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  17. Rolls-Royce share price: 2 reasons why I’d buy after earnings (16/03/2021 - The Motley Fool UK)
    Rolls-Royce (LSE:RR) recently reported its full-year results for 2020. The company reported a loss of around £4bn, worse than the expected loss of £3.1bn, showing how badly the pandemic hurt civil air travel. Although the annual results weren’t good, here are two reasons why I’d nevertheless buy at the current Rolls-Royce share price. I think 2022 might be a better year One reason I like Rolls-Royce at the current share price is that the future might be better. While 2020 was a terrible year for Rolls-Royce and 2021 has disappointed so far in terms of engine flying hours, I reckon 2022 may be a year to look forward to. For 2022, management expects large engine long-term service agreement flying hours to be approximately 80% of 2019 levels. Their more pessimistic scenario is for around 70% of 2019 levels. That compares to management expectations for this year of about 55% of 2019 levels in the base case and about 45% in the pessimistic case. The number of engine flying hours is important because Rolls-Royce makes a lot of its money from long-term contracts that’s dependent on those engine flying hours. Management also sees the power systems business sales returning to around 2019 adjusted levels next year as well. Management believes the power systems division benefits from economic growth, which is something that fortunately many economists project a lot of in the coming year. Free cash flow in the future? Another reason I like the stock at the current Rolls-Royce share price is that the company expects to potentially generate a fair amount of free cash flow next year. In terms of estimates, management believes Rolls-Royce could make over £750m in free cash flow as early as 2022 assuming that the recovery in the flying hours is over 80% of 2019 levels and also the company makes 200–250 wide-body deliveries. The free cash flow projection excludes any potential impact from any disposals. With more free cash flow, management can do a lot more things. They can pay a dividend, reduce debt, or buy back some shares. They can invest in new organic opportunities or do M&A that could help add value or help them achieve goals faster as well. In terms of their aims, management has a goal of developing low carbon solutions for hybrid, hydrogen, and electric powered craft. I reckon having more free cash flow to fund research could help with that goal. If the market remains bullish on green stocks by that time and the market buys into Rolls-Royce becoming more ‘green’, I think there is the chance that Rolls-Royce shares could benefit from the perception. The Rolls-Royce share price: what I’d do While the company’s future to me looks better than current conditions, guidance is something that can change if circumstances change. If Covid-19 variants become more of a problem, the engine flying hours might not recover like management expects. If that happens, management could find it pretty difficult to achieve their free cash flow projections. In my view, however, I think the worst is probably behind the stock at least in terms of this pandemic and its effects. Global GDP is growing and the world has numerous different vaccine rollouts that are ongoing. I think there is a lot to like about Rolls-Royce, including the expected stronger year in 2022 and the anticipated positive free cash flow next year. As a result, I’d buy and hold Rolls-Royce shares. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading The Rolls-Royce share price is above 100p: what next? Rolls-Royce share price: I think we’ve seen the bottom I’m tempted by the Rolls-Royce share price. Here’s why I’m not buying FTSE 100 stock watch: will the Rolls-Royce share price recover? The Rolls-Royce share price holds steady after big 2020 loss. Should I buy? Jay Yao has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Rolls-Royce share price: 2 reasons why I’d buy after earnings appeared first on The Motley Fool UK.
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  18. Rolls Royce - Followup + Original Analysis (22/02/2021 - Reddit Stocks)
    (Pennystocks crosspost) My previous thread on this topic: https://www.reddit.com/r/Pennystock/comments/lihkm5/outlook_on_rolls_royce/ My blog: https://srirangan.net/2021-02-rolls-royce-stock-analysis.html Rolls Royce Stock Analysis Rolls Royce is near an all time low, and I wondered if it was a good long term investment. Here is my analysis. Of course, none of this is financial advise! Last week I started this topic on Reddit. Based on the sentiment on Reddit, this is what I heard: Do not confuse Rolls Royce with the car company. Auto manufacturing unit is now owned by BMW. Rolls Royce is primarily an aerospace, aviation and defense company. People generally do not expect a short-term recovery in aviation. Others see the all-time-low stock and are willing to throw some money on it. Current Scenario Rolls Royce has been hit by the "double whammy" - aviation distress due to Covid-19 + the Brexit drama. Which resulted in the stock price hovering around £1 since late October. Pre-Covid price was hovering around £23. Fundamentals The company has cash reserves of £9 billion and they expect to burn £2 billion this year. This projection is based on expectation that air-traffic in 2021 will be 55% of 2019. Here's the revenue breakdown (as per 2019 annual report) Civil aerospace 51% Power systems 22% Defence 21% ITP Aero 6% Others 1% Out of these, in 2019, Defence was the most profitable business unit, despite accounting for one fifth of the revenue. Civil aerospace was the least profitable with an operating profit just under £50 million. Their 2019 backorders were £61 billion, thus appearing to be in firmer financial footing than what the stock price indicates. FY20 Estimates and FY21 and FY22 Projections FY20 Loss (£1682mil) *estimate FY21 Profit £209mil *projection FY22 Profit £790mil *projection While the exact numbers in these estimates and projection might differ, analyst consensus expects a strong Rolls Royce recovery in FY22 starting with a partial recovery in FY21. Rolls Royce and the Indian Defense Sector From recent press releases, two items caught my attention. First was their partnership with HAL (Hindustan Aeronautics Limited) regarding the production and supply chain of Adour Mk 871 and Trent engines. And second was their partnership with Infosys for Aerospace Engineering in India. Why these reports excite me: One obvious reason is the operational efficiencies to be gained from moving production to India. India is one of the largest defense markets in the world and HAL recently won a contract with the Indian air force for the delivery of fighter jets and trainers. Companies that move manufacturing to India tend to win larger Indian defense contracts, as seen with Dassault Aviation's recent success in this market. There's another likelihood. India's indiginous aerospace sector has made rapid progress in the last two decades. But one of their achilles heels has been the ability to produce engines and propulsion systems. Groups like Tata, Infosys, Reliance are eager to capture the Indian defence and aerospace market. With Rolls Royce's proven propulsion system capabilities and their all-time low stock price, one can't rule out enhanced interest in partnerships, mergers and acquisitions. This won't be the first time an Indian conglomerate has shown interest in British industrial assets. Scenario 1: Steady Recovery The first scenario is in line with analyst projections of profitability in FY21 and FY22. This will see a steady increase of the Rolls Royce stock price to par value at £7-£10 in the next two years. Just a return to pre-Covid levels yield 15x to 20x returns. Ask yourself how soon would Rolls Royce recover to post-Covid levels. Scenario 2: Acquisition Second scenario is the stock price struggling due to Covid and Brexit in the first half of 2021, which then leads to an increased acquisition interest in Rolls Royce by either American or Indian defense / aerospace companies. It is hard to predict stock price in this scenario, but it will be magnitudes greater than current price of £1. Scenario 3: Status Quo Covid could get worse. Brexit drama continues. Rolls Royce's civil aerospace business struggles and is potentially sold off. The stock price witnesses a marginal recovery in this scenario, let's say in the £2.5 range sometime in 2022? Still a 2.5x return in 18 to 24 months. References Trading Update January 26th 2021 rolls-royce.com 2019 Annual Report rolls-royce.com February 12th 2021 Analyst Consensus rolls-royce.com HAL Wins IAF Tejas Order financialexpress.com Disclosure With these current prices and the obvious opportunity, this author might throw all available spare change and grab as much of the Rolls Royce stock he can under £2. I'm not advising you either way.   submitted by   /u/lexxwern [link]   [comments]
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  19. Why is Rolls-Royce a penny stock? (13/07/2021 - The Motley Fool UK)
    With Rolls-Royce (LSE: RR) trading below a pound, the famous engine maker is now a penny stock. But the Rolls-Royce share price traded higher just a couple of months ago – and I think it could go up again. Turbulence for the Rolls-Royce share price Concerns about demand for air travel meant that companies heavily exposed to it, such as Rolls-Royce, were hard hit after the pandemic started. The shares were climbing earlier this year, but have shed a quarter of their value since their mid-March highs. They are now up just 4% over the past year. There are a number of reasons for that. One reason is the inconsistent pace at which air travel demand is coming back. With each setback, such as delays in lifting restrictions, investors fret about the prospects for Rolls-Royce. That has hit the Rolls-Royce share price. A second reason is the company’s liquidity. It massively boosted liquidity last year. But it did so at the expense of existing shareholders, through a heavily dilutive rights issue. While I think the company currently has ample liquidity, the proven risk of dilution could be dampening enthusiasm for the shares. Quality on the cheap Often, penny stock status suggests concerns about a company’s future business prospects. Undoubtedly a decline in demand for aircraft engine servicing has hit Rolls-Royce hard. Last year it booked a £3.1bn loss. With demand for air travel still significantly below pre-pandemic levels, there is a risk that weakened revenues in the company’s core engines business will weigh on profits again this year – and perhaps beyond. But there are signs of longer-term resilience in the air travel market, including large aircraft order from major airlines. Only a few global aircraft engine makers of scale exist, and Rolls-Royce is one of them. That alone ought to help it return to financial health in future. Add to that the fact that the company isn’t just reliant on civil aviation – and its other business divisions have held up fairly well during the pandemic. So while the Rolls-Royce share price may languish beneath the pound mark for a while yet, I don’t expect it to stay there forever. Where next for the Rolls-Royce share price While I see potential for a higher Rolls-Royce share price, a key question is: what will be the driver to move it? One possible factor could be the release of the company’s interim results, due next month. Rolls-Royce has repeatedly said it expects to become free cash flow positive in the second half of this year. An update on that target at the time of the interim results could lead to a rerating of the shares, either positively or negatively. The effects of the company’s cost savings programme ought also to show up more clearly now than it did before. If it looks like it has cut out costs without damaging Rolls-Royce’s reputation with customers, that could also provide a boost to the Rolls-Royce share price. For now, however, I continue to watch from the sidelines. I do not plan to buy Rolls-Royce shares in the absence of clear evidence of strong, sustained business recovery. The post Why is Rolls-Royce a penny stock? appeared first on The Motley Fool UK. Our #1 North American Stock For The ‘New-Age Space Race’ Billionaires like Jeff Bezos, Bill Gates, Elon Musk, and Mark Zuckerberg are already betting big money on the ‘new-age space race’, and for one very good reason… …because this is an industry that according to Morgan Stanley could be worth $1 TRILLION by 2040. But the problem is most of their investments are in private companies — meaning they’re largely off-limits for everyday investors. Fortunately, our team of analysts have identified one little-known company that’s at the cutting-edge of the space industry, and is currently trading at what looks like a VERY reasonable valuation… …for now. That’s why I want to urge you to check out our premium research on this top North American space stock ASAP. Simply click here to see find out how you can grab your copy today More reading What’s going on with the Rolls-Royce share price? Can the Rolls-Royce share price rise in the months ahead? Rolls-Royce shares: 1 reason to buy and 1 reason to sell Can the Rolls-Royce share price return to 200p? Is the Rolls-Royce share price cheap at 100p? Christopher Ruane has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  20. United States Exports - Spacecraft, Engine & Parts (Census Basis) (06/03/2021 - Trading Economics)
    Exports - Spacecraft, Engine & Parts (Census Basis) in the United States increased to 3 USD Million in January from 1 USD Million in December of 2020. Exports - Spacecraft, Engine & Parts (Census Basis in the United States averaged 4.45 USD Million from 1989 until 2021, reaching an all time high of 166.98 USD Million in February of 2020 and a record low of 0.05 USD Million in December of 1996. This page includes a chart with historical data for the United States Exports of Spacecraft, Engine & Parts.
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  21. The Rolls-Royce share price is climbing again. Here’s what I’d do (23/08/2021 - The Motley Fool UK)
    Rolls-Royce Group (LSE: RR) is gaining of late. And my Motley Fool colleague Rupert Hargreaves has recently offered a thought-provoking take on it. Well, my thoughts, at least, are provoked as I watch the Rolls-Royce share price continue the climb that’s taken it up 30% in a little over a month. That does just reverse an earlier decline, though, and the shares are flat overall in 2021. I have been making a mistake, along, I think, with a lot of other investors. I’ve been thinking about Rolls-Royce as if, once we’re finally out of all the pandemic damage, it will still be the same company of old. Until something like low-orbit space travel becomes economically feasible, we’re stuck with conventional aviation for getting get us any distance around the globe in a reasonable time. And the demand for Rolls-Royce’s engines, and maintenance and repair services, will still be there. That’s a bullish factor supporting the Rolls-Royce share price, for sure. Pandemic fears But two things might have changed the aviation business for good. One is the Covid-19 pandemic. Or rather, the knowledge of what a pandemic can really do. Until 2020, a global pandemic had been one of those end-of-the-world threats that we see in post-apocalyptic movies. Though scientists had been warning of the inevitability for decades, nobody really paid much attention to them. We now know the reality, and that we’ve been very lucky that Covid-19 has had such a relatively low mortality rate (so far, he says, not wanting to tempt evolution into coming up with a far worse variant). Will that hold people back from the skies? I’ve seen airlines talking of achieving 75% of pre-pandemic capacity by the end of 2021. But I have my doubts, and I see a real chance we won’t get back to the old ways for a while yet. Or the old Rolls-Royce share price. Hydrocarbon crisis Then there’s the fossil fuel energy crisis. The development of renewable energy sources for domestic and industrial needs, and for motor transport, is well under way. But there’s little sign of any commercially viable substitute for hydrocarbon-based aviation propulsion being realised any time soon. When alternative — presumably electric — aero engines become a thing, Rolls-Royce will surely be in the vanguard of their development. It’s not something that a newcomer is likely to take over, and the existing engine makers enjoy some formidable barriers to entry. But in the years before such technological change, how badly will hydrocarbon-based aviation suffer? It could be significant. Where will the Rolls-Royce share price go? Anyway, the bottom line is what does all this mean for the Rolls-Royce share price? In the medium term, I think it’s all about getting bums on plane seats again. To be specific, enough of them to get Rolls back to sustainable profit before its current liquidity becomes strained. If that happens, I think it could climb again. But for the long term, I don’t think we have a new valuation basis worked out yet. So I shall wait. The post The Rolls-Royce share price is climbing again. Here’s what I’d do appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Is the Rolls-Royce share price a value trap? Could the Rolls-Royce share price hit £1.50? Should I buy Rolls-Royce shares at 112p? Better buy for September: Aviva (LSE:AV) or Rolls-Royce (LSE:RR)? Shares to buy now: IAG (LSE: IAG) or Rolls-Royce (LSE: RR)? Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  22. Rolls-Royce shares: 1 reason to buy and 1 reason to sell (11/07/2021 - The Motley Fool UK)
    Rolls-Royce (LSE: RR) was one of the companies hardest hit by last year’s stock market crash. It didn’t really partake in the late 2020 recovery either. And the Rolls-Royce share price is still down around 65% over the past two years. Pandemic meant lockdown, lockdown meant nobody flying. Nobody flying meant no aircraft engine maintenance. Well, there was some, but well below normal levels. But with the end of Covid restrictions moving ever closer, many are heading off on their hols again. And that’s my chosen reason I’d think of buying Rolls-Royce shares. In a recovery situation, I want to see a troubled company’s business starting to pick up again. Or, at least, strong indications it’s about to happen any day now. I’m hoping we’ll see some hard evidence of recovery with first-half results, due on 5 August. Rolls-Royce share price: ready for the rebound? I think we might see a spark of interest in the Rolls-Royce share price in the days leading up to that. But in the meantime, I’m buoyed by the firm’s AGM statement from May. Chief executive Warren East said: “Looking ahead, we are confident that the significant restructuring actions we have taken in 2020 will deliver permanent cost reductions, positioning us well for the rebound in international air travel.“ So we have a leaner and more cost-efficient Rolls-Royce now, and that’s maybe not a bad thing anyway. I’ve always liked the company ,and from this direction it looks like a ‘buy’. But what’s the other angle, and why might I rate it a sell? In a word, cash. Rolls-Royce needed to take on a whole new financing deal just to keep going. Part of that involved raising around £2bn from disposals. But the company also raised £7.3bn from new debt and equity. That was in a year that resulted in a pre-tax loss of £2.9bn, and a free cash outflow of £4.2bn. Share price valuation Those are scary, scary numbers. And they make all previous valuation metrics utterly meaningless. With the degree of restructuring that’s been needed, we’re essentially looking at an an entirely new version of Rolls-Royce now. And it’ll surely take some time for markets to settle on a sensible long-term valuation. It’ll definitely take me some time to work out where I think the Rolls-Royce share price should be. I can’t see things settling this year. The company said it’s targeting positive free cash flow in the second half of 2021. And it hopes to reach at least £750m by 2022. If that comes off, my confidence will be boosted. But there’s still significant risk here. And my biggest fear is that the cash could run out and Rolls-Royce might need further financing. If that happens, a resulting combination of more debt and more equity dilution would throw all valuation measures further up in the air again. Hopefully, we’ll get a clearer idea of how the financial picture is looking once we have those H1 figures. Until then, I’m just watching. The post Rolls-Royce shares: 1 reason to buy and 1 reason to sell appeared first on The Motley Fool UK. Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading Can the Rolls-Royce share price return to 200p? Is the Rolls-Royce share price cheap at 100p? This is what I’m doing about the Rolls-Royce share price Should I buy Rolls-Royce shares today? Where will the Rolls-Royce share price go in July and beyond? Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  23. Should I buy Rolls-Royce shares at 112p? (19/08/2021 - The Motley Fool UK)
    Rolls-Royce (LSE: RR) shares are currently trading around the 112p mark. In fact, the stock is up almost 30% in the past month. During the last year, the share price has increased by 25%. Rolls-Royce shares fell below 90p in July but now have rebounded. I’ve been bullish on the engine maker for sometime. The FTSE 100 company released its interim results a few weeks back and its numbers are improving. I’d buy the stock today and here’s why. The numbers In a nutshell, its operations are recovering. To me this is promising after 2020 was a turbulent time for the company. The key takeaway was that it managed to deliver a small profit in the six-month period compared to the colossal loss last year. Rolls-Royce has been focusing on elements that it can control. And I think most investors would agree that this is the most sensible approach. It has been disposing of non-core assets, reducing its cost base and improving its liquidity position. Of course these measures are going to improve the bottom line. But there’s only so much fat it can trim and disposals it can make. Free cash flow While free cash flow is still negative, it has drastically improved. The encouraging thing is that it has still maintained its 2021 targets. The firm still expects to turn free cash flow positive during the second half of this year. It also believes that it can achieve an improvement in full-year free cash outflow to approximately £2bn. The fact, that Rolls-Royce has stuck to these numbers means that things haven’t deteriorated. So far, it appears that the board has managed to stop the bleeding and stabilised the business. Civil Aerospace Let me be frank, the recovery of Rolls-Royce shares is dependent on its key unit, Civil Aerospace. Performance is improving and there’s a recovery in business aviation and domestic large engine flying activity. The company has been reducing its cost base in this division as well. What’s encouraging it that large engine LTSA flying hours were 43% of the 2019 level. This was up from 34% in the second half of 2020. While it has some way to go to return to pre-pandemic levels, at least it’s heading in the right direction. The firm also said that it has already seen a return to 2019 volumes of flying activity for its business aviation engines and for large engines operated on domestic routes. For me, this is reassuring. Risks Of course, the coronavirus crisis is far from over. And it will take time for economies to recover. In fact, Rolls-Royce has said that international travel is gradually returning to normality. But this has been hindered by the global variation in vaccination rates and ongoing travel restrictions. This could continue to place pressure on the stock. Should I buy? I reckon Rolls-Royce shares could rise further in 2021. Especially if it manages to turn free cash flow positive later this year. Business is slowly but surely picking up and the company has a strong brand. Hence I’d buy the stock at 112p. The post Should I buy Rolls-Royce shares at 112p? appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Better buy for September: Aviva (LSE:AV) or Rolls-Royce (LSE:RR)? Shares to buy now: IAG (LSE: IAG) or Rolls-Royce (LSE: RR)? The Rolls-Royce share price is rallying! Should I buy? Is the Rolls-Royce share price heading to 175p? Why I think the Rolls-Royce share price can rise more Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  24. The Rolls-Royce share price holds steady after big 2020 loss. Should I buy? (12/03/2021 - The Motley Fool UK)
    After a torrid 12 months, Rolls-Royce Group (LSE: RR) shareholders might finally have something to look forward to. After reporting an underlying pre-tax loss of almost £4bn for 2020 on Thursday, the aero engine maker told the BBC that “the worst is behind us.” The results didn’t make much difference to the Rolls-Royce share price, which has remained flat. The key thing, for me, is the cash situation. Rolls told us it has strengthened its liquidity to £9bn, with £7.3bn of new debt and equity. I’ve been largely convinced in recent months that this would suffice. And I feel more confident of that now, after hearing that the company is aiming to reach positive free cash flow during the second half of 2021. Rolls also hopes to see the figure reach as high as £750m “as early as 2022.” That has to be very much up in the air right now, though, as so much depends on our lockdown easing progress. I have mixed sentiments myself, and I see that in the market’s approach to the stock over the past few months. The Rolls-Royce share price saw something of a resurgence starting in October, on the back of positive coronavirus vaccine results. But that has eased off a bit and we’ve seen the shares fall back a little. A bad year, but I’d feared worse The implied level of caution is understandable. Even after the late 2020 uptick, we’re still looking at a 38% fall over the past 12 months. And to get the full feel of the pandemic impact, we need to look back to mid-February, which is when the stock market crash kicked off. Since then, Rolls-Royce is down 50%. Rolls-Royce makes its money from service and maintenance contracts for the engines it sells. It’s similar to the old Gillette razor model that Warren Buffett likes so much — sell the razors cheap, and then make the profit on the blades. That can be a profitable strategy during good times, and it has kept the Rolls-Royce share price going for decades. But just as shaving didn’t happen quite so often during lockdown, the same can be said for flying, but more so. With airline fleets close to grounded, engine flying hours in 2020 came in at just 43% of 2019’s figure. That’s tough on the Rolls-Royce business model, but it’s actually not as bad as I’d feared. It resulted in underlying revenue of £11.7bn, down from £15.4bn. And again, I’d been expecting worse than that. But would I buy now? Where will the Rolls-Royce share price go now? Rolls says it’s expecting engine flying hours to recover a bit in 2021, to around 55% of 2019 hours. And the company hopes to be back to 80% in 2022 as a base case. The problem is, the outlook is still so very uncertain. There’s clearly pent-up demand for holidays. But we really don’t know when it will be safe enough to fly, or whether any problematic Covid variants will emerge. I can see a case for the Rolls-Royce share price going either way in the remainder of 2021. And, though Rolls is a company I have long admired, I will wait and see. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Rolls-Royce share price: can it go back up to 200p? Why Rolls-Royce shares nudged higher today Can the Rolls-Royce share price keep climbing after today’s results? Rolls-Royce earnings: here’s what will help me decide to buy more shares The Rolls-Royce share price is rising. Should I buy shares now? Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Rolls-Royce share price holds steady after big 2020 loss. Should I buy? appeared first on The Motley Fool UK.
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  25. NSE Academy, GIFT SEZ sign pact to launch certification in international financial services (30/03/2021 - Financial Express)
    Besides, Vikram Limaye, MD and CEO of NSE said, "We are very happy to partner with GIFT SEZ and support its mission of building the first IFSC of truly global standards in India through our upskilling and training initiatives for the talent pool of organisations operating in the IFSC."
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  26. Rolls-Royce shares are nudging higher. Should I buy now? (19/03/2021 - The Motley Fool UK)
    We’re all aware of the pandemic roller coaster that Rolls-Royce (LSE: RR) shares have been on through the last year. At just above 125p a year ago, they then peaked at just below 140p in June before dipping below 40p in October. The share price has certainly kept investors on their toes. However, is the worst behind it? Pandemic losses 2020 left Rolls-Royce with a loss of almost £4bn. Rolls makes the majority of its money servicing aeroplane engines, an industry largely curtailed by Covid travel restrictions. In an effort to reduce its cost base, the firm slashed 7,000 jobs, in line with what boss Warren East described as “the largest restructuring in our recent history”. In October 2020, 6.4bn new shares were issued in an emergency move to raise new capital. Shareholders were able to purchase 10 new shares at 32p each for every three shares they owned. Though this raised £2bn, Rolls-Royce shares halved in value as a consequence, slumping to a 15-year low. This also drastically reduced the earnings per share, a key valuation metric for stock performance. Pre-pandemic problems Rolls-Royce shares were troubled even before the pandemic. In 2019, the company had to fork out £800m to remedy ongoing durability problems relating to the Trent 100 engines. This raised the total cost of Trent engine problems to £2.4bn for 2017-2023. Rolls therefore upped spending to get grounded aircraft back in the sky. This put excess strain on cash flow, which was magnified tenfold when the pandemic struck. Rolls-Royce shares’ future outlook But while 2020 proved disastrous for Rolls-Royce shares, it’s not all bad news. The company is planning to construct 16 mini-nuclear power plants as part of its small modular reactor programme. It’s expected to receive £200m towards the project from the UK government. Projects like these are essential to the UK if it wants to reach its target of zero emissions by 2050. And with Covid restrictions easing daily around the world, the travel sector is poised for huge growth in coming years. This is good news for Rolls, as it expects hours flown by its engines to increase 80% by 2022. For example, TUI still has 2.8m holidays booked for this summer, which will be delivered by Boeing 787 Dreamliners. These planes are powered by Rolls-Royce Trent 1000 engines. Civil aerospace accounts for a dominant slice of Rolls-Royce business. However, Rolls-Royce Defence actually saw growth of 8% throughout 2020, generating an underlying profit of £448m. Also, its Spanish subsidiary ITP Aero, which manufactures niche aero engine and gas turbine parts, made £68m profits. These ventures may help bolster Rolls-Royce shares’ future value. My Verdict The aerospace sector was decimated by the pandemic. Though cost-cutting and restructuring did take place, the truth is the company’s balance sheet is still shaky at best. The pandemic still isn’t over and a sluggish restart of global travel could continue to dent the business, whose share price was declining even before 2020. While the current share price rise may look enticing, there’s still a lot that could go wrong. Therefore, I won’t be adding Rolls-Royce shares to my post-pandemic portfolio. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Rolls-Royce shares: 3 reasons why I’m optimistic for 2021 I’d buy Rolls-Royce shares despite the big 2020 loss Rolls-Royce share price: 2 reasons why I’d buy after earnings The Rolls-Royce share price is above 100p: what next? Rolls-Royce share price: I think we’ve seen the bottom Dylan Hood owns no shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Rolls-Royce shares are nudging higher. Should I buy now? appeared first on The Motley Fool UK.
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  27. Is the Rolls-Royce share price heading to 175p? (13/08/2021 - The Motley Fool UK)
    Jet engine specialist Rolls-Royce Holdings (LSE: RR) has edged ahead of the market over the last 12 months, gaining 19%, versus a 15% rise for the FTSE 100. But the Rolls-Royce share price is still a long way below its pre-Covid levels. The good news is that things are improving. Rolls reported a profit for the first half of 2021. Management says the group is on track to start generating surplus cash during the second half of the year. With the stock hovering around 110p, I’ve been wondering if it’s the right time to buy. Getting back to normal? It’s probably a bit soon to suggest Rolls-Royce is back to normal. But I’m sure chief executive Warren East has now put the foundations into place for a successful recovery. Businesses being targeted for disposal should raise £2bn to help repay debt. Cost savings are expected to total more than £1bn by the end of this year. In the meantime, the group has access to up to €7.5bn in cash, if needed. Of course, companies can’t simply cut their way to growth. Rolls is still investing in developing its existing engines and in zero emission technology for the future. Operationally, the company’s defence business has delivered stable profits throughout the pandemic. In civil aerospace, which has been hit hard by travel restrictions, the company says private jet and domestic flying activity has already returned to 2019 levels. International travel is lagging behind, but Rolls says that, in total, large engine flying hours reached 43% of 2019 levels during the first half of the year. How high can the Rolls-Royce share price go? I expect the global aviation market to gradually return to normal over the next two years. Rolls-Royce’s profits should follow. Broker forecasts suggest the group will report a pre-tax profit of £373m in 2021. Analysts expect this figure to rise to £591m in 2022 and to £807m in 2023. With Rolls-Royce shares trading at around 110p, as I write, these price the stock on 22 times 2022 forecast earnings, falling to a multiple of 15 times earnings in 2023. I think there’s still some room for growth, on a medium-term view. If I bought Rolls-Royce shares today, I’d probably hope for a price of 150p, over time. Unfortunately, I think 175p may be a little too high. Although that’s still a long way below the 230p share price seen before the pandemic, we have to remember that Rolls-Royce has issued a lot of new shares over the last year. Issuing new share causes dilution — future profits must be divided among a larger number of shares. This means that future earnings per share are likely to be lower than in the past, even if profits recover. Lower earnings per share mean a lower share price, based on the company’s historic valuation levels. Would I buy Rolls-Royce shares at today’s price? Possibly. I think it’s a good business with valuable technology and a big share of the long-haul aviation market. It’s a stock I’d be happy to own. The post Is the Rolls-Royce share price heading to 175p? appeared first on The Motley Fool UK. Our 5 Top Shares for the New “Green Industrial Revolution" It was released in November 2020, and make no mistake: It’s happening. The UK Government’s 10-point plan for a new “Green Industrial Revolution.” PriceWaterhouse Coopers believes this trend will cost £400billion… …That’s just here in Britain over the next 10 years. Worldwide, the Green Industrial Revolution could be worth TRILLIONS. It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead! Access this special "Green Industrial Revolution" presentation now More reading Why I think the Rolls-Royce share price can rise more 3 reasons why the Rolls-Royce share price jumped 10% last week The Rolls-Royce share price jumped this week. Would I still buy? Rolls-Royce shares: 3 reasons why I’d buy Are Rolls-Royce shares now a bargain? Roland Head has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  28. Can the Rolls-Royce share price maintain its momentum? (26/06/2021 - The Motley Fool UK)
    The last time I wrote about Rolls-Royce (LSE: RR), its share price was just at about 100p. And to me, it looked like it was ready to dip more in the short term. I was wrong. It has been consistently above the mark since.  But can it continue to stay there? I think there are reasons that both favour the trend and that can send its share price tumbling below 100p again. Supportive environment for the Rolls-Royce share price #1. Stock markets are buoyant: The fact that the stock markets in general are rising is a good sign. The FTSE 100 index has been making steady gains over time, even though on a day-to-day basis it really looks like it is going nowhere.  This shows up in individual shares’ prices too, and Rolls-Royce is one of them. In much of the past year, its price has either remained around the 100p mark or just a bit below it. It is only during the months right before the stock market rally of November that it slid sharply.  #2. Aviation is in for better times: The outlook for the sector is also improving. Aviation has been one of the worst impacted industries during the pandemic. Rolls-Royce derives a large part of its revenue from supply of aircraft engines. So, it was impacted too.  In fact, it still is. Even while much of the economy has reopened, air travel still remains limited. But as vaccinations proceed at speed, it is only a matter of time before travel becomes commonplace once again. Its share price has doubled since November, in anticipation. Pandemic and prices could play spoilsport #1. Persistent uncertainty: However, when considering buying the stock, I also need to bear in mind that we never know what new twist in the corona tale awaits. New variants have slowed down the bounce back. And Rolls-Royce itself is cautious in providing an outlook going by the uncertainty that exists.  #2. Oil price rise: Moreover, air travel may remain weak even after it is allowed. Potential travellers could choose to be cautious for some time. Oil prices are rising. And crude oil may even touch $100 a barrel this year. This would push up travel prices. Coming out of a year of economic uncertainty, furloughs, and government support, it could be a put off.  Can the Rolls-Royce share price stay above 100p? Since Rolls-Royce is sensitive to news flow at this time, its share price can react a lot. It may even plunge significantly if there are any untoward developments. Still, I am optimistic that it may not happen. In the past year, its share price has risen by only 8%. This means that it was not significantly lower than 100p even then. As I was saying earlier, it did slide down for a few months, but was soon back up. I think the real question now is whether it can continue rising over time. I maintain that it can. But I am waiting for a real turnaround before considering buying the stock for my portfolio.  The post Can the Rolls-Royce share price maintain its momentum? appeared first on The Motley Fool UK. Our 5 Top Shares for the New “Green Industrial Revolution" It was released in November 2020, and make no mistake: It’s happening. The UK Government’s 10-point plan for a new “Green Industrial Revolution.” PriceWaterhouse Coopers believes this trend will cost £400billion… …That’s just here in Britain over the next 10 years. Worldwide, the Green Industrial Revolution could be worth TRILLIONS. It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead! Access this special "Green Industrial Revolution" presentation now More reading The Rolls-Royce share price is up 170%. Should I buy now? Will the Rolls-Royce share price rise in July? Here’s why I’m avoiding Rolls-Royce shares Why is the Rolls-Royce share price having such an uncertain June? What’s going on with the Rolls-Royce share price? Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  29. The Rolls Royce share price is below 100p – so is it a buy? (20/07/2021 - The Motley Fool UK)
    I have to say that whenever the Rolls-Royce (LSE: RR) share price is below the rather arbitrary 100p per share level, I’m tempted to look into whether buying the shares is worthwhile. Well, that’s the case right now. At the time of writing the shares have dipped to around 90p. Hard to imagine that five years ago, the shares were 250p and at the start of 2020 they were 233p. A lot has changed since then. Are there reasons for optimism? One of the biggest potential reasons to be cheerful has to be around the resumption of travel. With many Britons double vaccinated, holidays could be back on the cards. Although restrictions in other countries and slower progress in long-haul destinations like Australia may hold back progress towards travel resuming as normal anytime soon. Rolls-Royce is likely to accelerate away from a reliance on commercial airlines and exciting new technologies like modular nuclear power stations, as well as more work in the defence industry, could make earnings more reliable and stable. Given how badly the shares have done, there’s the paradox that any good news – especially any pleasant surprises – could well see the Rolls-Royce share price do well. I suspect expectations are now so low that there could be significant upside. The CEO has been at Rolls-Royce since 2015, so there’s a steady hand at the helm. At this difficult time a settled and competent management team is absolutely vital and I think it’s reassuring to any investor. Once the worst of the pandemic is over Roll-Royce can once again target better cash flow. All that said, its chair is set to change later on this year, but hopefully by October we’ll be starting to see more air travel and Rolls-Royce getting off its knees. The bad news for the Rolls-Royce share price It’s much easier to find bad news. Revenues are unlikely to recover to anywhere near normal levels soon. In 2022 it’s forecast revenues will still be significantly below where they were in 2015. The company has been loss-making for the last few years and margins have fallen through the floor. Not all the problems with the Rolls-Royce share price can be blamed on the pandemic. Remember, the Trent engine problems meant the engineer was hemorrhaging money before anyone had heard of Covid-19. For now, given it makes so much money from how many air miles planes fly, Rolls-Royce remains at the mercy of the pandemic. Would I invest? That’s why on balance I think there are better investments than Rolls-Royce out there. Given the challenges the company faces, I think buying the shares is a gamble and one I’m personally unlikely to take. But if the shares dip even further, I may reconsider that view as a rather contrarian long-term investment. The post The Rolls Royce share price is below 100p – so is it a buy? appeared first on The Motley Fool UK. Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading Can the Rolls-Royce share price recover in 2021? 3 FTSE 100 shares to buy after the ‘Freedom Day’ crash Will the Rolls-Royce share price keep falling? How low can the Rolls-Royce share price go? The Rolls-Royce share price falls again! Here’s what I’m doing about it Andy Ross owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  30. The Rolls-Royce share price is falling: should I buy now? (29/04/2021 - The Motley Fool UK)
    The Rolls-Royce (LSE: RR) share price has been struggling in the past year. One of the main reasons is that air travel has been reduced during the pandemic. The aerospace segment makes around 50% of the company’s revenues.  I would like to understand if it’s a good time to buy the stock after carefully analysing the company. Why the Rolls-Royce share price might rise The company began cost-reduction initiatives last year. It is the largest restructuring program in the company’s history. The management expects to save more than £1.3bn in annual costs. It further plans to sell off non-core assets in the next couple of years.  Covid-19 vaccination programs are progressing well in many parts of the globe. The air travel and the tourism sectors will gradually open. Recently, the President of the European Commission said that fully vaccinated Americans will be allowed to travel to Europe. This is positive for travel stocks and companies like Rolls-Royce, which benefits from increased air travel. The company has good liquidity, which has been increased to £9bn. The management is confident that its liquidity is sufficient even for a “severe but plausible” downside scenario. Another positive thing is that most of the debt is long-dated. This will improve the cash balance. Also, it expects to be cash positive later this year. However, this will depend on air travel.  The bear case  The aerospace segment is competitive. It faces tough competition from companies like GE. The engines are usually sold at cost or for very little profit. The company makes money when it service the engines or by selling parts. However, that depends on flying hours. Now, with most of aircraft grounded this has caused a problem for the company. Also, problems with the company’s Trent 1000 engine might also put some pressure on profits. The Trent 1000 engine powers Boeing‘s 787 aircraft. The turbine blades have been wearing faster than expected on some engines. The company expects a cash outflow of £2bn in the year 2021. This year will also be a challenging year for the company. If Covid-19 cases increase then the figures might be even worse. This would further put downward pressure on the Rolls-Royce share price. The company has planned for disposing of non-core assets. However, market sentiment is weak at the moment. So, any sales could take longer or the price achieved might be low. Also, it will need regulatory approvals from different governments. For example, Bergen Engines, a subsidiary of Rolls-Royce based in Norway, was supposed to be sold to a Russian company. However, the Norwegian government blocked the deal citing national security concerns. Final view I would consider buying Rolls-Royce shares in the coming months. I understand that this year might continue to be tough for the company. However, in the long term, I think the company can withstand challenges due to the management’s restructuring efforts and strong liquidity position. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The Rolls-Royce share price has fallen. Should I buy? Rolls-Royce share price: what’s in store in the coming months? As the Rolls-Royce share price falls, I’m still buying Will the Rolls-Royce share price recover in the second half of 2021? Why I think I could double my money with the 100p Rolls-Royce share price Royston Roche has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Rolls-Royce share price is falling: should I buy now? appeared first on The Motley Fool UK.
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  31. Rolls-Royce shares: should I buy? (22/02/2021 - The Motley Fool UK)
    Rolls-Royce (LSE: RR) shares have had a lot of attention lately, but the stock has been falling. So if it has taken a hit, is now a buying opportunity? I think so and I’d buy Rolls-Royce shares in my portfolio.  Civil Aerospace I can’t deny that Roll-Royce’s main business, the Civil Aerospace division has been severely hit by the coronavirus pandemic. I think what makes it worse is that revenue from this business accounts for over 50% of the company’s total earnings. But what does the Civil Aerospace division do? In a nutshell, it manufactures and services engines for the airline industry. So it’s no surprise that it has been hit by the pandemic. Global restrictions have meant little travel travel, thereby having a knock-on effect on the need for Rolls-Royce’s services. Now that there’s a mass vaccination programme under way, I expect air travel to start recovering slowly. I reckon there’s pent-up demand for people to holiday abroad. This in turn should start having a positive impact on Rolls-Royce shares. In its December trading update, Rolls-Royce reported that the Civil Aerospace business is gradually recovering. The number of large engine flying hours at the time was 42% of 2019’s level. While no one can predict the shape and timing of the recovery in air traffic, Rolls-Royce expects travel to pick up in the second half of 2021. By this time, I’d expect vaccines to have been rolled out a significant portion of the UK and global population Liquidity During the coronavirus crisis, Rolls-Royce improved its liquidity position. It raised money from a rights issue, and secured additional loans, as well as drawing on its existing cash reserves. Rolls-Royce took further measures by implementing cost-cutting measures and disposing of certain assets. To me, these steps have not only made the firm leaner but have also strengthened the balance sheet. According to its latest update, Rolls-Royce has access to £9bn in liquidity. It forecasts £2bn in cash outflow for 2021. For now, I reckon it can weather the storm and I’d buy the shares. Risks I think the biggest risk right now facing Rolls-Royce share is that no one knows how long this pandemic and restrictions will persist for. If this crisis drags on, this may place a strain on the business and liquidity reserves. Furthermore, if air travel doesn’t pick up in the second half of 2021 then Rolls-Royce may have to raise further capital. Another round of financing may not be well received by investors and could impact the share price. Defence business Clearly, I don’t think all is lost with Roll-Royce shares. I believe investors have become fixated on the company’s Civil Aerospace business and have forgotten that it has other divisions as well. In fact, I’d like to highlight its Defence business, which accounts for 20% of earnings. What I like about Rolls-Royce shares is that the defence business throughout the pandemic has been resilient. The company has defence contracts with the UK and US governments. It also has a strong order book and 2021 forecast sales are well covered. For now, I’m happy with the stable revenue visibility from this division.  “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Rolls-Royce share price: how the company is preparing for the air taxi market The Rolls-Royce share price is back above 100p, but I wouldn’t buy the stock yet The Rolls-Royce share price is rising this week. Should I buy? The Rolls-Royce share price is under £1: should I buy today? What I think Covid-19 variants mean for the Rolls-Royce share price Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Rolls-Royce shares: should I buy? appeared first on The Motley Fool UK.
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  32. The Rolls-Royce share price is under £1: should I buy today? (17/02/2021 - The Motley Fool UK)
    After hitting a high of 135p in early December, shares in aero engine maker Rolls-Royce Holdings (LSE: RR) have slumped due to the impact of renewed lockdown restrictions. Rolls-Royce’s share price has fallen by more than 25% since 3 December, to under 100p. On a 12-month view, Rolls shares have now fallen by nearly 60%. Ouch. Are Rolls-Royce shares a potential bargain? My colleague Graham Chester thinks they might be. I agree. But if I bought the shares today, I’d expect a rough ride before the company returns to reliable profitability. Here’s why. What’s the worst that could happen? I think it’s fair to say that many people underestimated the impact of the coronavirus pandemic. I think most businesses were unprepared too. They had not planned for a scenario where their revenue streams would be shut off by a health emergency and subsequent government action. I’m not here to discuss the politics of this situation. But the reality is that in 2021, Rolls-Royce expects to record engine flying hours that are 45% lower than in 2019. No business can be expected to shrug off such a big loss. Rolls expects to see a cash outflow of £2bn this year, despite cost-saving measures. Can things get worse? Rolls-Royce is banking on a recovery in flying hours during the second half of the year. But I don’t think we can be sure of this just yet. One risk I can see is that countries will return to normal this summer but might keep their borders closed for longer to protect against new virus variants. Why I think the stock could be cheap One challenge for Rolls-Royce is that it doesn’t make much money from selling its jet engines. Profits mostly come from after-sales servicing and support. In normal times, this business generates plenty of cash. This is the key to my belief that Rolls-Royce shares could be cheap at their current price. If I buy the stock, I’ll mentally write off 2021. Anything could happen and I expect the firm’s results to be awful. But from 2022 onwards, I believe the business should be operating pretty much as normal. At that point, I think the changes being made by CEO Warren East should start to deliver results. Rolls-Royce’s own forecasts suggest that it could generate surplus cash each year (known as free cash flow) of £750m “as early as 2022”. I reckon that hitting this target would make the business look cheap at current levels, with a price-to-free cash flow ratio of just 2.5. Rolls-Royce share price: my view I think Rolls-Royce’s valuation reflects a couple of risks for potential shareholders like me. The first is simply that the outlook is still very uncertain. A return to normal is not yet in sight. The second risk is probably more serious, in my view. Rolls-Royce has taken on around £4bn of new debt over the last year to help it survive the pandemic. At some point this borrowed cash will need to be repaid. However, even when I include the impact of Rolls’ increased borrowings, my sums tell me that at a share price of £1, Rolls-Royce could be a good addition to my long-term holdings. I’ve not decided whether to buy Rolls-Royce just yet. But this business is now on my watch list of shares to consider buying. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading What I think Covid-19 variants mean for the Rolls-Royce share price Rolls-Royce share price: why I’d follow the Archer Aviation SPAC Rolls-Royce and Cineworld: are these UK shares too risky to buy now? The Rolls-Royce share price is down 66% this year. Here’s what I’d do now Rolls-Royce share price: could the company be a Tesla competitor in the future? Roland Head has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Rolls-Royce share price is under £1: should I buy today? appeared first on The Motley Fool UK.
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  33. Will the Rolls-Royce share price soar in May? (02/05/2021 - The Motley Fool UK)
    I can’t resist an interesting turnaround stock. Right now, they don’t get much bigger or more interesting than Rolls-Royce (LSE: RR), whose share price has doubled since October. Unfortunately, the aero engine maker’s performance hasn’t been so good over longer periods. Rolls-Royce stock is flat on a year ago, and down by 60% over three years. With a return to normal now on the cards in many parts of the world, should I consider buying some Rolls-Royce shares for my Stocks & Shares ISA? A turning point? Rolls-Royce sells jet engines for airliners, but it makes most of its profits from aftersales maintenance and support services. When aircraft are grounded, airlines don’t need these services because the engines aren’t in use. However, that situation is starting to change. Aero engineer Meggitt reports that domestic flying in markets such as the US and China has already rebounded strongly. Here in the UK, the government is expected to start lifting restrictions on travel to Europe in May. It’s all good news. The only catch is that most of the routes opening up now are short-haul flights. Rolls-Royce engines are generally fitted to larger wide-body aircraft that are reserved for long-haul routes. Rolls-Royce isn’t expected to return to profit until 2022. But the stock market always looks forward and I think we’re at a turning point. In my view, the outlook for Rolls-Royce will start to improve during the second half of this year. What if we stop flying? Rightly or wrongly, I don’t think environmental concerns will stop people returning to the air. Video conferencing is useful, but it’s no substitute for face-to-face business meetings with new people. Likewise, you can’t lie on the beach or visit foreign cities on Zoom. For these reasons, I believe Rolls-Royce will see a gradual return to normal over the next couple of years. The pandemic has been painful for this FTSE 100 stalwart. But I think the changes made over the last year are likely to support stronger profits in the future. The only concern I have about buying Rolls-Royce shares now is whether the price is right. Rolls-Royce share price: too high or too low? All the most successful investments I’ve made have had one thing in common. I’ve bought the shares at the right price. So how does Rolls-Royce stack up today? On a short-term view, Rolls-Royce still looks fully priced to me. Broker forecasts suggest earnings of 4p per share in 2022. This prices the stock on 25 times forecast earnings. However, earnings are expected to rise to 7.2p per share in 2023, which values Rolls on a more modest 14 times forecast earnings. I can also see another attraction. The company hopes to start generating free cash flow (surplus cash) from its operations during the second half of 2021. CEO Warren East is targeting annual free cash flow of £750m in 2022, or soon after. I reckon this will be enough to allow the group to start paying back some of the loans it’s used to survive the pandemic. To be honest, I don’t know whether the Rolls stock will rise in May. But, on a longer-term view, I’d be comfortable buying Rolls-Royce while the share price is around 100p. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading FTSE 100 shares: 3 I’m considering for my ISA The Rolls-Royce share price is falling: should I buy now? The Rolls-Royce share price has fallen. Should I buy? Rolls-Royce share price: what’s in store in the coming months? As the Rolls-Royce share price falls, I’m still buying Roland Head has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Zoom Video Communications. The Motley Fool UK has recommended Meggitt. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Will the Rolls-Royce share price soar in May? appeared first on The Motley Fool UK.
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  34. Why Rolls-Royce shares nudged higher today (11/03/2021 - The Motley Fool UK)
    UK-based engineering company Rolls-Royce Holdings (LSE: RR) released its full-year results report today. And the shares nudged higher in early trading. The power and propulsion systems maker said the impact of Covid-19 on the performance of the business in 2020 was “severe”. The Civil Aerospace division has been hardest hit. And the pandemic continues to affect the near-term outlook. However, the firm expects positive free cash flow in the second half of 2021 and “at least” £750m as early as 2022. Before the coronavirus crisis in 2019, Rolls-Royce reported underlying core free cash flow of £911m. The hard-hitting Rolls-Royce restructuring programme The directors said their positive expectation depends on the pace of recovery in engine flying hours and the firm’s ongoing restructuring programme. In 2020, the firm saved more than £1bn from “in-year cash mitigations”, compared to its pre-Covid plans. And there’s a target to raise “at least” £2bn from disposals. On top of that, new debt and equity strengthened the firm’s liquidity by £9bn. The figure comprises £3.5bn cash and £5.5bn undrawn credit facilities. Rolls-Royce reported “strong” progress with its fundamental restructuring programme. And that includes cutting 7,000 permanent and contractor job roles, mostly from Civil Aerospace. The company expects the number of terminations to rise to more than 9,000 roles by the end of 2022. Chief executive Warren East reckons its actions have enhanced the resilience of the overall business and improved operational efficiency “permanently”. Today’s figures show the Civil Aerospace business produced an underlying operating loss of almost £2.6bn in 2020. However, operating profit from other divisions reduced the overall loss to just under £2bn. In 2019 before the pandemic, Civil Aerospace delivered an underlying operating profit of £44m and the overall figure from all divisions came in at £808m. But Rolls-Royce said the pandemic has altered the outlook for the civil aviation industry in the short and medium terms. A mixed outlook Looking ahead, the company expects a rebound in global GDP and the lifting of travel restrictions to drive recovery in the business. The directors think engine flying hours in 2021 will rise to around 55% of 2019 levels in the industry. But the global vaccination programmes should enable the lifting of travel restrictions. And the firm’s “base case” assumption is engine flying hours could rise to 80% of 2019 levels during 2022. However, the directors expect large engine deliveries to remain at the current lower levels “for the next few years”. In the Power Systems division, the outlook is more optimistic. The company said the shorter-cycle nature of the business means many of its end markets should recover by the end of 2021. The directors expect revenues to recover in the division by 2022. And the Defence division has a “strong” order book suggesting the potential for “steady growth” in the medium term. However, the company has no immediate plans for restarting shareholder dividend payments. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Can the Rolls-Royce share price keep climbing after today’s results? Rolls-Royce earnings: here’s what will help me decide to buy more shares The Rolls-Royce share price is rising. Should I buy shares now? Tesla has fallen 35%. How I think it affects the Rolls-Royce share price The Rolls-Royce share price: is this best investment for 2021 and beyond? Kevin Godbold has no position in any share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why Rolls-Royce shares nudged higher today appeared first on The Motley Fool UK.
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  35. Should I buy FTSE 100 shares BP or Rolls-Royce for my ISA in July? (27/06/2021 - The Motley Fool UK)
    I’m currently on the lookout for top FTSE 100 stocks to buy this July. Should I buy one, both, or neither of these British blue chip shares for my Stocks and Shares ISA? Should I ride the oil price recovery with BP? Oil prices have risen strongly over the course of June on signs of tightening supplies. They’re up more than five-and-a-half bucks from $70 per barrel at the start of the month. And they’ve just touched their most expensive since October 2018. Does this momentum provide a good reason to buy shares in BP (LSE: BP) this July? Prices of the black stuff are rising as soaring demand drains fuel inventories. But I’m not convinced that oil will keep booming in a blow to profits at FTSE 100 firms BP and Royal Dutch Shell. It’s a matter of time before US shale producers plug their hardware back into the ground en masse to ride the economic recovery. OPEC+ producers will also be increasingly eager to end their supply curbs to make money from the rising commodity price. I also worry about the future of Big Oil as demand for green energy takes off. BP has been making serious moves to bulk up its position in the renewables market more recently. And the Footsie firm has the clout to keep increasing its exposure here to deliver big long-term profits. But BP still has a mountain to climb to transition away from oil and make a splash with green energy. I’d rather buy pure-play renewable stocks to ride this theme. Is Rolls-Royce a better FTSE 100 stock to buy? I’m not tempted to invest in FTSE 100 engineer Rolls-Royce (LSE: RR) next month either. The Covid-19 crisis is far from over and this continues to cast a pall over UK airline stocks and the companies that help them take to the skies. Rolls-Royce said in May that large engine flying hours were around 40% of pre-coronavirus levels during in the four months to April. This is basically unchanged since the end of 2020 as lawmakers keep travel barriers up despite mass vaccinations. This stagnation is especially troubling given the huge amounts of debt Rolls-Royce has on its books. Net debt stood at £3.6bn in December. I think the engine builder might tap investors for more cash or accrue more debt just to survive. Now it’s true that a bright long-term outlook for the aviation sector could mean big profits for Rolls-Royce in the years ahead. Mordor Intelligence reckons the commercial aircraft market will grow from $85.3bn last year to $194.5bn in 2026, driven by soaring air traffic in Asia Pacific. But in my opinion the near-term risks to Rolls-Royce far outweigh the possible rewards over a longer time horizon. This is why I won’t be buying the engineer or its FTSE 100 colleague BP. The post Should I buy FTSE 100 shares BP or Rolls-Royce for my ISA in July? appeared first on The Motley Fool UK. I’d much rather buy these top shares identified by The Motley Fool’s team of expert stock finders. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading Top British stocks for July Can the Rolls-Royce share price maintain its momentum? The Rolls-Royce share price is up 170%. Should I buy now? Will the Rolls-Royce share price rise in July? Here’s why I’m avoiding Rolls-Royce shares Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  36. Will the Rolls-Royce share price rise in July? (25/06/2021 - The Motley Fool UK)
    The Rolls-Royce Holdings (LSE: RR) share price has been grounded over the last year. As I write, the aero engine firm’s shares have risen by just 5% since June 2020. That leaves them well behind the 15% gain delivered by the FTSE 100 over the same period. I reckon investors have put Rolls in a holding pattern while they wait to see when air travel will really get started again. But with travel restrictions now being lifted more widely, will July be the month when the market takes a fresh look at Rolls-Royce shares? What do we know already? The last trading update from Rolls-Royce came in May. CEO Warren East said that flying hours during the first four months of 2021 were 60% below 2019 levels. This was pretty much as expected. Flying on long-haul routes has been supported by cargo demand and airlines preserving their airport slots by flying near-empty planes. East said that vaccination progress in the US and UK was “encouraging” but admitted the timing of a wider recovery was still “uncertain”. Rolls-Royce’s other business units were said to be performing as expected, with defence especially strong. A turning point? Rolls-Royce expects to start generating free cash flow “at some point during the second half of 2021.” When this happens will depend on how quickly engine flying hours recover, driving up billable revenue. I reckon this could be a key turning point for the Rolls-Royce share price. Free cash flow is essential to Rolls’ recovery. Without this, the group can’t start to repay debt. More widely, I think investors may be waiting to see if East can deliver on his free cash flow forecasts. Even before the pandemic, these targets were a key part of his turnaround strategy. The next trading update from Rolls-Royce is due on 5 August. I’ll be watching closely for any changes to the company’s forecasts. Rolls-Royce share price: up in July? At about 108p, Rolls-Royce stock has already risen by 170% from the lows of 40p seen when the company launched a £5bn refinancing last October. After such strong gains, is a recovery already priced into the shares? I estimate that Rolls-Royce’s current valuation is about 20% below the level seen at the end of 2019, including debt. If profits return to pre-pandemic levels, I can see some room for further share price gains. Broker forecasts also seem quite encouraging to me. Consensus forecasts for 2022 price Rolls’ stock on 25 times earnings. This multiple falls to 15 times earnings for 2023, when profits are expected to rise above 2019 levels. If international travel really takes off in July, then I think we could see Rolls-Royce’s share price move higher next month. However, I think a fair level of recovery is already priced into the stock. Any disappointments could cause the price to slump again. For this reason, I won’t be buying Rolls-Royce shares at current levels. I don’t think the potential rewards are big enough to outweigh the risks. The post Will the Rolls-Royce share price rise in July? appeared first on The Motley Fool UK. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Here’s why I’m avoiding Rolls-Royce shares Why is the Rolls-Royce share price having such an uncertain June? What’s going on with the Rolls-Royce share price? Should I buy Tirupati Graphite shares? Will the Rolls-Royce share price ever get back to 200p? Roland Head has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  37. Rolls Royce: the crown jeweled of the U.K (26/08/2021 - Reddit Stocks)
    Does anyone have any input on Rolls—Royce (RYCEY)? I’ve been looking into it for a bit now, and would think it’ll be a good long term hold, especially with the moves they’re doing in order to have flow of capital. This is also a UK “crown jeweled” company which means they would step in if they have to in order for them to avoid bankruptcy. There’s also a high short interest which could potentially have some from of a squeeze. Thanks in advance.   submitted by   /u/First_Class_5498 [link]   [comments]
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  38. The Rolls-Royce share price continues to fall: should I buy now? (15/07/2021 - The Motley Fool UK)
    After falling over 50% in 2020, Rolls-Royce (LSE: RR) has followed a downward trend in 2021 – down 11% year-to-date. After a bullish run at the tail end of 2020, many thought that RR was back on the rise. However, currently around 90p, can the share price rise back to the levels it was once at? Let’s take a look. Why has the RR share price fallen? Covid obviously had a major impact on the Rolls-Royce share price, with it falling over 40% early in the pandemic. However, it was experiencing problems prior to this. It suffered problems with its Trent 1000 engine, an issue that proved expensive for the firm. This negatively impacted its operating profit and cash flow. The issues it was experiencing were not helped by the pandemic, of course. In response to the global crisis, it announced a plan to cut up to 9,000 jobs, nearly a fifth of its workforce, while also staring at a £4bn loss for 2020. As my colleague Manika Premsingh mentioned, the wholesale cancellation of flights last year, plus the uncertainty we are experiencing now as we see countries transition from green, amber, or red and back again, has led to a decline in aviation-related stocks over the course of the past 18 months. This has deflated investor confidence – the effect clearly seen through a drop in the firm’s share price. Can the Rolls-Royce share price take-off again? Yet it is not all bad news. As a reaction to the pandemic, costs cuts were put in place to save the firm £1.3bn. From a long-term outlook, such savings could help it streamline operations generally. The aviation sector will (eventually) return to what it once was, and with a more streamlined model Rolls-Royce should benefit from this. Its half-year results are due for release on 5 August, which will give us some signs as to how effective the cost-saving programme has been. If positive, the Rolls-Royce share price could see a boost. The recent news of the go-ahead for ‘Freedom Day’ on 19 July is also positive. As restrictions ease further, adding to the ongoing vaccination programme, the aviation sector could have a strong summer as more and more people look to jet out on holiday. This, of course, is dependent on the government not making a U-turn should cases rise post-Freedom Day. And it also relies heavily on the amber and red lists of countries not growing (which isn’t guaranteed). Should I buy? The Rolls-Royce share price has had a turbulent few years. The ongoing pandemic fills me with doubt and its performance hinges on the government’s eagerness to withdraw current travel restrictions. The results released in early August will also provide investors with a clear sign of if the firm is on track with the cost-savings programme. Long term, I can see the the share price rising, but I am wary. I intend to keep it on my watchlist until the half-year results, while also tracking travel restriction movements post-Freedom Day. The post The Rolls-Royce share price continues to fall: should I buy now? appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The Rolls-Royce share price is falling. Is the stock one to buy? Why is Rolls-Royce a penny stock? What’s going on with the Rolls-Royce share price? Can the Rolls-Royce share price rise in the months ahead? Rolls-Royce shares: 1 reason to buy and 1 reason to sell Charlie Keough does not own shares in Rolls-Royce. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  39. How low can the Rolls-Royce share price go? (19/07/2021 - The Motley Fool UK)
    It’s been a challenging time for aircraft engine makers and Rolls-Royce (LSE: RR) is no exception. With the Rolls-Royce share price losing a third of its value since early December, the question some investors will be asking is: how low can it go? Here I consider what is driving the share price lower – and where it might go next. The Rolls-Royce share price has fallen Although the Rolls-Royce share price has lost ground in recent months, it is almost unchanged over the past year, shedding just under 2%. That it is behind the FTSE 100 gain of 10% in that period, but it is far from terrible. The announcement of vaccines late last year helped boost the Rolls-Royce share price. Investors anticipated travel demand increasing. Since then, the shares have fallen back to roughly where they were a year ago. That suggests the outlook now is similar to then. But is that right? Aviation demand is coming back I think UK investors may be overemphasising local news when it comes to the pace of aviation recovery. In some markets, civil aviation is back with a vengeance. The world’s biggest civil aviation market is normally the US. US carrier Delta said last week domestic leisure demand is back to pre-pandemic levels. That doesn’t mean flying is back to normal. Business demand remains subdued, and European markets are behind the US in reopening. Nonetheless, what the US shows is that once passengers can fly again, many of them will.  Other revenue streams In addition, it’s also worth noting that civil aviation is only one of Rolls-Royce’s business areas. Admittedly it is crucial to the company. But that shouldn’t overshadow the fact that the company derives substantial income from areas such as defence and power systems. They have proven more robust during the pandemic than civil aviation. Sentiment over facts So, if civil aviation demand is set to recover, why has the Rolls-Royce share price continued to weaken? Partly I think that investors have soured on the company. Tumbling revenues last year combined with a highly dilutive rights issue meant that the investment case looked weaker than before. But even before the pandemic, Rolls-Royce had been struggling to impress investors. It had issued a profit warning in 2019. Once sentiment takes hold in the stock market, share valuations can become detached from underlying financial analysis. That’s why I think the Rolls-Royce share price could still move lower from here. Despite a lower share price and a recovering aviation market, the shares still seem to have fallen out of favour with the City. My next move on the Rolls-Royce share price So does that represent a buying opportunity for my portfolio? For now, I don’t think so. The company has repeatedly said it expects to turn cash flow positive in the second half. There is a risk that if it revises that date, the shares could yet fall further. The stuttering nature of travel recovery in Europe could also continue to affect sentiment towards the shares, even if other markets return to health. I still think the Rolls-Royce share price could move up this year. But that is not assured. The next move could be further down from here – there is nothing to stop the shares continuing to move lower. The post How low can the Rolls-Royce share price go? appeared first on The Motley Fool UK. Our #1 North American Stock For The ‘New-Age Space Race’ Billionaires like Jeff Bezos, Bill Gates, Elon Musk, and Mark Zuckerberg are already betting big money on the ‘new-age space race’, and for one very good reason… …because this is an industry that according to Morgan Stanley could be worth $1 TRILLION by 2040. But the problem is most of their investments are in private companies — meaning they’re largely off-limits for everyday investors. Fortunately, our team of analysts have identified one little-known company that’s at the cutting-edge of the space industry, and is currently trading at what looks like a VERY reasonable valuation… …for now. That’s why I want to urge you to check out our premium research on this top North American space stock ASAP. Simply click here to see find out how you can grab your copy today More reading The Rolls-Royce share price falls again! Here’s what I’m doing about it The Rolls-Royce share price is falling in July: here’s why I’d buy I’m avoiding the Rolls-Royce share price. I prefer this FTSE AIM stock The Rolls-Royce share price continues to fall: should I buy now? The Rolls-Royce share price is falling. Is the stock one to buy? Christopher Ruane has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  40. PFC, REC sign pact with KHEL to finance hydropower project in Bhutan (11/03/2021 - Money Works 4 Me)
    The companies have entered into a pact to finance a 600-megawatt hydroelectric project at Trashiyangtse in the neighbouring country
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  41. Rolls-Royce share price: what I’d do given the upcoming full-year result (25/02/2021 - The Motley Fool UK)
    Although shares are still down by around half over the last 12 months, Rolls-Royce (LSE:RR) shares have rallied recently. As of 24 February, the Rolls-Royce share price is up over 9% over the last week and 14% over the last month. Given that the aerospace engine maker reports its 2020 full-year results on 11 March, the Rolls-Royce share price could have further moves ahead of it. If the results and guidance are better than expected, shares could go higher. If they don’t meet expectations, shares could decline. With the upcoming full-year result, here’s what I’d do. The upcoming full-year result In terms of Rolls-Royce’s upcoming full-year result, I’ll look for several things. First, I’d look to see if management updates widebody engine flying hours guidance. Civil aviation is a big part of the company’s business and weakness in the area is one reason why management forecasted a free cash flow outflow of around £2bn in 2021. That amount of expected free cash outflow didn’t meet many analyst estimates. If guidance for wide-body engine flying hours is stronger than expected during the full-year result, however, I reckon the Rolls-Royce share price could rise. Second, I’ll look to see if management updated cash flow guidance. Specifically, I want to see if management is more confident on their free cash flow target for next year. As of late January, management seemed to be hedging somewhat on their target, as they said their goal is “to deliver at least £750 million of free cash flow (excluding disposals) as early as 2022, contingent on the expected recovery in engine flying hours”. If management doesn’t say the contingent part in the full year result report, I’ll be more optimistic on the stock. I’ll also look for any hints of how the ITP Aero sale process is going. If management gets a higher than expected price for ITP Aero, I reckon there is a chance that the market could value Rolls-Royce’s other assets higher too. If that occurs, I think it could help the Rolls-Royce share price. Lastly, I’m been keen to see if management gives any updates on their green strategy. For various reasons whether deserved or not, the market is currently pretty optimistic on many green stocks. If that optimism continues and Rolls-Royce successfully sells itself as more of a green stock itself, I reckon there’s potential for higher stock prices. The Rolls-Royce share price: what I’d do I’d buy and hold shares given the current Rolls-Royce share price. Although it might take longer than expected due to the spread of Covid-19 variants, I nevertheless think a recovery in civil aviation will happen. Companies like GlaxoSmithKline are working on potential vaccine candidates for variants that might be ready as soon as next year and the number of existing new cases is falling in many areas of the world. Longer term, I think Rolls-Royce has potential to add a lot of value by servicing propulsion systems for the electric air taxi market. With this said, Rolls-Royce shares could decline if its full-year results don’t meet expectations. If the time to civil aviation recovery lasts longer than expected or if management makes bad capital allocation decisions, the stock might not do well. The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading Rolls-Royce shares: is it the right time to buy? The Rolls-Royce share price: have we seen the bottom? Rolls-Royce share price is around 100p. Here’s what I’d do Rolls-Royce shares: should I buy? Rolls-Royce share price: how the company is preparing for the air taxi market Jay Yao has no position in any of the shares mentioned. The Motley Fool UK has recommended GlaxoSmithKline. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Rolls-Royce share price: what I’d do given the upcoming full-year result appeared first on The Motley Fool UK.
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  42. Can the Rolls-Royce share price rise in the months ahead? (12/07/2021 - The Motley Fool UK)
    The Rolls-Royce (LSE: RR) share price has followed a disappointing trajectory over the past few years. Climbing to 130p near the end of 2020, it seemed the stock may have been gaining momentum. However, this was not the case. Currently sitting at 97p, the Rolls-Royce share price has hovered around the 100p mark for most of 2021. It’s up only 6% year-on-year and this raises the question: can the share price rise higher over the next few months? Rolls-Royce share price problems The pandemic hit Rolls-Royce hard. The firm was forced to cut 7,000 jobs in the face of a £4bn loss for 2020. Rolls makes most of its money servicing aeroplane engines, but with the travel industry grinding to a halt during the pandemic, business dried up. This forced the company to issue 6.4bn new shares in October 2020. While this raised £2bn, it halved the value of the share price, vastly reducing the earnings per share. 2020 was a bad year for Rolls-Royce, but the firm was experiencing problems even before the pandemic. In 2019, problems with its Trent 1000 engines forced the firm to fork out nearly £800m. This raised the total cost of Trent 1000 engine setbacks to £2.4bn for 2017-23. These expenses put a huge strain on free cash flow, something the firm could not afford going into the pandemic. Results dependent On 5 August, Rolls will be publishing its half-year results. This will offer investors insight into the future direction of the business. The firm itself has set out several targets for the last six months of 2021 and for 2022. These include turning free cash flow positive by the end of 2021 and achieving annualised savings of over £1.3bn by the end of 2022. The half-year results should give investors a closer idea of the progress of these targets. If targets are looking achievable, I believe we will see positive growth in the Rolls-Royce share price. However, these targets are heavily reliant on the increase of engine flying hours. If travel problems linked to the pandemic persist, it could vastly reduce the likelihood of these targets being reached. Will the shares climb higher this month? I expect the August results will be a good indication of the direction of the Rolls-Royce share price in the coming months. However, this month’s share price will rely on a broader range of factors. The UK is set to abandon all Covid-19 restrictions on 19 July. If this is pushed back (again) it will likely hinder any immediate Rolls-Royce share price growth. In addition to this, in an interview with Bloomberg this month, Engineering and Technology Director Simon Burr asserted his optimism in moving beyond the Trent 1000 jet engine problems. Encouraging statements like this are great for investors’ confidence and could help drive up the Rolls-Royce share price. I think it’s hard to say if the share price will rise in the immediate future. It has shared its plans to overcome 2020 problems and the August results should highlight the probability of these targets being achieved. If the results bring good news, I think we could see a rise in the Rolls-Royce share price immediately afterwards and in the coming months. The post Can the Rolls-Royce share price rise in the months ahead? appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Rolls-Royce shares: 1 reason to buy and 1 reason to sell Can the Rolls-Royce share price return to 200p? Is the Rolls-Royce share price cheap at 100p? This is what I’m doing about the Rolls-Royce share price Should I buy Rolls-Royce shares today? Dylan Hood has no positions in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  43. The Rolls-Royce share price is falling. Is the stock one to buy? (14/07/2021 - The Motley Fool UK)
    The Rolls-Royce (LSE: RR) share price is around 91p as I write. But it’s been slipping since late June and today’s weakness extends the move. For context, the price knocked on the door of 130p as recently as mid-March. And a year ago it was around 89p. The outlook drives the Rolls-Royce share price Of course, price alone doesn’t tell the whole story. The Covid-19 pandemic caused massive upheavals in the operations of the business and threatened the company’s very survival. And mitigating actions taken by the directors included a large refinancing and restructuring programme. The past 18 months or so have been painful for the company and its shareholders. But, to me, the weak share price today looks like it’s down to one thing — the resurgence of Covid-19. Even the UK government has changed its tune regarding so-called ‘freedom day’ due on 19 July in England. To my ears, the government’s messaging now urges far more caution than it did earlier. So investors are probably right to be wary about reopening stocks right now. For example, I heard Boris Johnson say no action is being ruled out to fight the pandemic by the UK government. If restrictions do end up returning, full business recovery for Rolls-Royce and other companies could move further away. Waiting for a recovery in engine flying hours Other stocks are suffering as well. Although that’s no consolation for Rolls-Royce shareholders. But weak shares include names such as Stagecoach, Go-Ahead, International Consolidated Airlines, and Saga among many more. However, the longer-term outlook for the Rolls-Royce business looks quite promising. Much of the firm’s trade relies on planes being in the air to generate engine sales and demand for maintenance. And on 13 May the company said engine flying hours were 40% of 2019 levels in the first four months of 2021. That outcome was driven by cargo flights and key routes remaining open. But Rolls-Royce needs a return to big-scale airline passenger traffic to make a significant difference to the business. And that outcome is very much dependant on what happens next with the pandemic. But the directors pointed to the rollout of vaccination programmes and increased testing as encouraging signs. Meanwhile, the outlook for the firm’s Power Systems and Defence operations is positive. Those areas have been less affected by the pandemic and are recovering well from the setback. Expectations for positive cash flow In May the directors thought the business would “turn free cash flow positive at some point during the second half of 2021.” However, they also said their guidance depends on the timing of the recovery in engine flying hours. It seems rational for the Rolls-Royce share price to drift lower as cases of Covid-19 climb. But at some point, surely, life will resume without restrictions. Meanwhile, should I buy the stock? It’s very hard to put a value on Rolls-Royce. The extent of the eventual recovery in engine flying hours is unknown. So, I’m assuming the stock market is correct with its assessment of the company’s immediate prospects and that the share price is where it should be. So, for the time being, I’m avoiding this one. However, I could be wrong in my assessment and the stock could rise fast if news improves regarding Covid-19 infection rates. We’ll hear more from Rolls-Royce with an update scheduled for 5 August. The post The Rolls-Royce share price is falling. Is the stock one to buy? appeared first on The Motley Fool UK. Meanwhile, this one has caught my gaze… Our #1 North American Stock For The ‘New-Age Space Race’ Billionaires like Jeff Bezos, Bill Gates, Elon Musk, and Mark Zuckerberg are already betting big money on the ‘new-age space race’, and for one very good reason… …because this is an industry that according to Morgan Stanley could be worth $1 TRILLION by 2040. But the problem is most of their investments are in private companies — meaning they’re largely off-limits for everyday investors. Fortunately, our team of analysts have identified one little-known company that’s at the cutting-edge of the space industry, and is currently trading at what looks like a VERY reasonable valuation… …for now. That’s why I want to urge you to check out our premium research on this top North American space stock ASAP. Simply click here to see find out how you can grab your copy today More reading Why is Rolls-Royce a penny stock? What’s going on with the Rolls-Royce share price? Can the Rolls-Royce share price rise in the months ahead? Rolls-Royce shares: 1 reason to buy and 1 reason to sell Can the Rolls-Royce share price return to 200p? Kevin Godbold has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  44. 3 reasons why I’d buy Rolls-Royce shares today (01/09/2021 - The Motley Fool UK)
    Over the last few months, I’ve been gradually getting more interested in jet engine specialist Rolls-Royce Holdings (LSE: RR). I’m now considering buying its shares for my portfolio. Ready for recovery Rolls-Royce operates a pay-as-you-go business model. The firm’s jet engines are sold at a loss and the company makes money from servicing and repairs, which are linked to flying hours. This model went badly wrong last year when airlines were forced to ground their fleets. But in more normal times, I think this business should generate reliable, predictable revenues. Flying levels are recovering. The company said large engine flying hours rose to 43% of 2019 levels during the first half of this year, up from 34% during the second half of 2020. Unfortunately, many of the remaining Covid-19 travel restrictions affect the long-haul routes flown by wide-body airliners. Around 50% of these use Rolls-Royce engines. This is delaying the group’s recovery, but I can’t see any reason why air travel won’t gradually return to normal over the next couple of years. As this happens, I think Rolls-Royce shares should perform well. Boardroom refresh In October, Rolls-Royce will get a new chairperson. Anita Frew will replace Sir Ian Davis, who’s been in the role for nine years. Frew is currently chair of FTSE 100 chemicals group Croda International, whose share price has risen by 170% over the last five years. I regard Croda as a very good quality business, so I’d be happy for some of the same fairy dust to be sprinkled over Rolls-Royce. More realistically, of course, turning Rolls around is likely to be a hard slog. I’m also a little concerned that Frew may be spreading herself too thinly. As far as I can tell, she plans to remain chair of Croda after she takes up the Rolls-Royce position in October. She’s also a non-executive director at mining giant BHP Group. That’s a lot of big roles, in my view. Rolls-Royce shares: cheap? In my experience, even the best share is only a good buy at the right price. Rolls-Royce’s has risen by 60% over the last year, but remains below pre-pandemic levels. Broker forecasts suggest the group will return to profitability next year. Analysts’ consensus estimates price the stock on 22 times 2022 forecast earnings, falling to 15 times in 2023. I think this looks like a reasonable entry point to start buying. Of course, there are still some risks. Chief executive Warren East needs to deliver on his target of strong cash generation. This will be needed to start reducing the group’s £4.9bn net debt. Rolls also needs to invest in projects that will deliver a viable path to net zero. Work is underway on electric and hydrogen power solutions. But at this early stage I think there’s a risk Rolls-Royce could be left behind by smaller and more innovative competitors. No investment’s guaranteed. But for the next few years, I’m pretty confident we’ll see Rolls-Royce’s business return to normal. In my view, this should lead to several years of rising earnings. That’s why I’d consider buying Rolls-Royce shares today. The post 3 reasons why I’d buy Rolls-Royce shares today appeared first on The Motley Fool UK. Our 5 Top Shares for the New “Green Industrial Revolution" It was released in November 2020, and make no mistake: It’s happening. The UK Government’s 10-point plan for a new “Green Industrial Revolution.” PriceWaterhouse Coopers believes this trend will cost £400billion… …That’s just here in Britain over the next 10 years. Worldwide, the Green Industrial Revolution could be worth TRILLIONS. It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead! Access this special "Green Industrial Revolution" presentation now More reading I’ll buy Rolls-Royce shares when this happens Will the Rolls-Royce share price rise higher in September? Top British stocks for September The Rolls-Royce share price is climbing again. Here’s what I’d do Is the Rolls-Royce share price a value trap? Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended Croda International. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  45. Will the Rolls-Royce share price fly this summer holiday season? (06/05/2021 - The Motley Fool UK)
    The euphoria surrounding last year’s Rolls-Royce Holdings (LSE: RR) share price revival has faded as investors take a more realistic view of its prospects. Incredibly, its stock quadrupled between October and December last year, and investors who bought at the right time will have made a fortune. Sadly, I wasn’t one of them. Despite a second wind in February, the Rolls Royce share price trades at the same level as this time last year, and is down two-thirds measured over three years. More investors will have lost big money on this FTSE 100 stock than made it. The aircraft engine manufacturer generates most of its revenues from maintenance and service contracts. These are based on miles flown and they collapsed as Covid grounded global fleets. Management has adopted the usual measures facing troubled companies, including rescue packages, non-core asset sales, laying off staff, restructuring, scrapping dividends and so on. FTSE 100 pandemic victim Yet it can only do so much to cut costs and prop up the Rolls-Royce share price. Ultimately, it needs customers to start flying their planes again. I fear this year’s summer holiday season may prove another washout, as governments remain reluctant to risk a Covid resurgence by freeing people to travel in large numbers. Vaccination passports may help, but will people fly with the same alacrity as before? Many will recoil at the thought of sitting in a crowded plane with strangers, followed by hours queuing at passport control after all the social distancing campaigns we’ve been through. And if Covid continues to ravage parts of Asia and Latin America, many countries look set to remain off-limits for some time to come. There’s some good news as the US and China resume domestic flights, but the international long-haul market will take even longer to put right. This is where Rolls-Royce has most of its market. The Rolls-Royce share price may fly low for a while In March, Rolls-Royce reported a worse-than-expected £4bn annual loss but stood by predictions that cash would start flowing again in the second half of this year.  I might be too pessimistic here. We could see a Rolls-Royce share price revival. Vaccines are working. Flight activity has to pick up from here, albeit slowly. Defence sales are up. The group’s Power Systems and ITP units look promising. Investors may decide it has been oversold. I find the stock hard to judge, though, as I cannot assess the Rolls-Royce share price using traditional measures such as the P/E ratio, operating margins, and return on capital employed. And there’s no dividend while I wait for management to turn this crate around. Rolls-Royce is barred from returning cash to shareholders before the end of next year, at the earliest. One figure does jump out. Rolls-Royce has £7.3bn of loan obligations. So I don’t think its share price is cheap enough to count as a bargain. In fact, it looks like a risky way to play the post-Covid recovery. It’s not for me. There are much more promising stocks out there. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Can the Rolls-Royce share price bounce back? Will the Rolls-Royce share price soar in May? FTSE 100 shares: 3 I’m considering for my ISA The Rolls-Royce share price is falling: should I buy now? The Rolls-Royce share price has fallen. Should I buy? Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Will the Rolls-Royce share price fly this summer holiday season? appeared first on The Motley Fool UK.
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  46. Where will the Rolls-Royce share price go in June? (31/05/2021 - The Motley Fool UK)
    Rolls-Royce (LSE: RR) has had one of the rockiest rides of the pandemic. Rolls has been up and down so far in 2021, going nowhere really in May. And we’re still looking at a fall of more than 60% over the past two years. Now, I’m going to say right up front, I’ve no idea where the Rolls-Royce share price is going to go in June. But we’re heading for developments that should affect the longer term. And I still can’t work out whether to buy Rolls-Royce shares as a recovery pick. For one, the next step in pandemic opening up is scheduled for 21 June. On that day, the government has pencilled in the removal of the final legal restrictions on social and business movements. Saying that, there’s that Indian variant thing. And the Prime Minister has already said we might have to wait a bit longer to get our full freedoms back. Further delays could see the Rolls-Royce share price weaken in June. Still, the opening up that we’re already enjoying is having its effect. In particular, sun-seekers are heading for the beaches again. And some travel-related shares are recovering. International Consolidated Airlines shares are up 26% so far in 2021, with easyJet not far behind with a 21% gain. TUI hasn’t had such a good year so far though, dropping a few percent. And the Rolls-Royce share price is down 4%. Rolls-Royce share price drivers It’s probably going to be a while before the travel sector recovery feeds through to Rolls-Royce. It’ll take time before engine maintenance requirements start to ramp up again. The other critical thing is that Rolls-Royce suffered big loss in 2020, and needed a major financial rescue package. There’s still cash on the books to keep the aerospace engineer going for a while yet. But will it be enough to last until profits return? The uncertainty behind that question must, surely, weigh heavily on the Rolls-Royce share price for at least a few months yet. At full-year results time, Rolls wasn’t in a position to make much in the way of predictions. That’s not surprising, as the company spoke of the uncertainties of the near- and medium-term outlook for civil aviation. It’s all about cash And we shouldn’t expect the cash situation to reverse in the current year. With those results, Rolls said it expects free cash flow to turn positive in the second half of 2021. But it still expects to suffer a free cash outflow of around £2bn for the full year. The company is hoping for positive free cash flow in 2022 of at least £750m. But that depends critically on the pace of recovery in flying hours, and the success of the firm’s cost-cutting strategy. I’m keenly awaiting first-half results due on 5 August. Any updates on the expected cash flow situation could drive the Rolls-Royce share price in either direction. In the meantime, any positive news from the aviation business in June and beyond would be welcome. I’m not buying yet. I’m going to wait for the clouds of uncertainty to clear a bit. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading What’s happening to the Rolls-Royce share price? Could the Rolls-Royce share price fall below 100p? This is what I’m doing about the Rolls-Royce share price! As the Rolls-Royce share price remains cheap, I’d invest £3k Is it time to act on the Rolls-Royce share price? Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Where will the Rolls-Royce share price go in June? appeared first on The Motley Fool UK.
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  47. Rolls-Royce share price: I think we’ve seen the bottom (14/03/2021 - The Motley Fool UK)
    The Rolls-Royce Holdings (LSE: RR) share price has fallen by 25% over the last year. The stock is still down by 50% from its pre-pandemic levels. I’m not surprised the shares haven’t recovered fully. Rolls’ revenue fell by 37% last year and the group reported a £3.2bn loss. However, CEO Warren East has taken decisive action to raise cash and restructure the business. I expect these efforts to pay off, supporting a strong recovery over time. Now that the future looks more secure, should I buy Rolls-Royce shares? I’ve been taking a fresh look. What I learned from Rolls’ results Rolls’ best-known business is its civil aerospace division, which makes and supports jet engines for airliners. With most airlines grounded for much of last year, flying hours were down by 57%. Revenue from this business fell by 37%, leading to a £2bn operating loss. However, civil aerospace is only one part of this large business. I believe the other parts of the group could help support Rolls-Royce’s share price as the business recovers. The biggest contributor to profits last year was Rolls’ defence division. This business generated an underlying operating profit of £448m in 2020, up by 8% from 2019. Defence activity hasn’t really suffered in the pandemic, providing great stability. Another source of profits was the power systems operation. This makes engines for ships and other industrial markets. Power systems generated an underlying profit of £178m in 2020. Although this was 50% lower than in 2019, Rolls says demand is already recovering. Finally, the ITP Aero business, which makes parts for jet engines, delivered a £68m profit. Rolls-Royce is actually trying to sell ITP Aero at the moment and says it’s in conversations with a number of buyers. I’d guess they’ll be reassured by the ongoing profitability of this business, which is supported by defence revenue as well as civil aviation. Rolls-Royce share price: is it cheap? Although Rolls’ stock is still trading 50% below pre-pandemic levels, I’m not sure how cheap it really is. The reason for this is that the company issued 6.4bn new shares last year when it raised £2bn in a rights issue. This rescue fundraising increased Rolls’ total share count from 1.9bn to 8.3bn. The number of shares issued by a company is important when calculating earnings per share. Even if the total profit is flat, earnings per share will fall if new shares are issued. This is known as dilution. Rolls-Royce reported an underlying profit of £306m in 2019, giving underlying earnings of 15.9p per share. I estimate that earnings would fall to just 3.7p per share if the same profit was generated today. At the time of writing, Rolls-Royce’s share price is 114p. This values the stock at 30 times 2019 earnings, after dilution. Broker forecasts for 2022 suggest that next year’s profits will be at a similar level to 2019. That means the stock is valued on 30 times forecast earnings, too. For me, that isn’t cheap enough. Although I expect Rolls’ profits to rise above this level in the future, I don’t want to pay too much for future growth. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading I’m tempted by the Rolls-Royce share price. Here’s why I’m not buying FTSE 100 stock watch: will the Rolls-Royce share price recover? The Rolls-Royce share price holds steady after big 2020 loss. Should I buy? Rolls-Royce share price: can it go back up to 200p? Why Rolls-Royce shares nudged higher today Roland Head has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Rolls-Royce share price: I think we’ve seen the bottom appeared first on The Motley Fool UK.
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  48. The Rolls-Royce share price is down 66% this year. Here’s what I’d do now (14/02/2021 - The Motley Fool UK)
    The aviation industry has had quite a year. Covid-10-related travel restrictions have battered airlines and plane makers. One of the FTSE 100‘s biggest losers over the last 12 months is British Airways owner IAG (LSE:IAG). FTSE 250-listed easyJet has also seen its share price plummet. An unwelcome addition to that list is British favourite Rolls-Royce Holdings (LSE:RR.). The Rolls-Royce share price has been hurt badly over the last year. It is now down 61% compared to last February. The company announced it is closing its jet engine factories for two weeks this summer to save cash. This will affect 19,000 staff members in its civil aerospace branch. How has Rolls-Royce negotiated the pandemic? Rolls-Royce’s balance sheet has been badly affected by the crisis as its airline customers have grounded planes. The company’s profits are closely linked to how many hours their engines are in flight. With engine flying hours down 42% in 2020, it has had to make cost savings of more than £1bn. Despite all the doom and gloom, some analysts see the current Rolls-Royce share price of 91p as extremely attractive. In a broker note on Thursday, analysts at Deutsche Bank turned bullish on the stock. The German bank said it had seen early signs of recovery in domestic markets and that it expects vaccine rollouts to spark a recovery in airline travel. Forecasts, of course, can change based on future developments and can’t be relied on. My own outlook isn’t so enthusiastic outlook for the short term, but I do believe airline travel will return to a version of normality in the long term.  Is the grass greener on the other side? Some other Fool commentators have suggested the shares could rise based on Rolls-Royce’s early involvement in a move towards electric jet engines. I think it’s still too early to say where that will go just yet — the technology is only at the stage of flying 200 miles on a single charge. Energy companies will be coming under increasing pressure from governments in coming years to adopt greener energy models. The fact that Rolls-Royce is already investing in electric vehicles is positive, and the growth potential could be massive in this area. Rolls-Royce has traditionally been considered a ‘quality’ stock, but it wouldn’t be the first time such a traditional name flopped in the stock market. The group is still cautious about its outlook. In its most recent trading update, it said: “Enhanced restrictions are delaying the recovery of long-haul travel over the coming months compared to our prior expectations, placing further financial pressure on our customers and the wider aviation industry, all of which are impacting our own cash flows in 2021”. That doesn’t inspire me with the confidence to add Rolls-Royce shares to my portfolio right now. While cash flow has improved somewhat, I still see the price as too unstable for me. I will be keeping a close eye on the stock as 2021 progresses though. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Rolls-Royce share price: could the company be a Tesla competitor in the future? Should I invest in Rolls-Royce shares now? Why is the Rolls-Royce share price falling? I think the Rolls-Royce share price could benefit from this potential trillion dollar market Why I think the 94p Rolls-Royce share price could double my money conorcoyle owns shares of easyJet. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Rolls-Royce share price is down 66% this year. Here’s what I’d do now appeared first on The Motley Fool UK.
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  49. The Rolls-Royce share price is rising. Should I buy shares now? (10/03/2021 - The Motley Fool UK)
    Shares in Rolls Royce (LSE: RR) have moved around a fair bit lately. The share price is up 10% so far this year. In this past month alone it’s put on 20%. That performance hasn’t been enough to get the Rolls-Royce share price back to where it was, though — it’s still 40% lower than this time last year. Here I will look at why the share price has been rising and consider whether I ought to add Rolls-Royce to my portfolio right now. The Rolls-Royce share price received a vaccine boost The company’s recent share price increase has coincided with growing vaccination roll out. As an aeroplane engine maker and servicer, the company’s fortunes are tied to demand for air travel. Rising vaccination rates ought to see more countries ease travel restrictions. That is good for Rolls-Royce, as the greater utilisation of engines, the higher the demand for servicing. However, while vaccination rates are rising, air travel is still nowhere near its normal level. The company clearly expects demand to increase. It said it should be cash flow positive in the second half of this year. However, its prior estimate of how fast air travel would return was adjusted downward. I think it is too early to say with any certainty whether air travel demand will actually come back to anything close to normal levels even by the end of this year. The company has substantial liquidity so should be able to ride out the storm even if it doesn’t turn cash flow positive in the second half. But that liquidity has come at a cost, most notably a large dilution of shares in last year’s rights issue. The challenge to the Rolls-Royce share price isn’t just about demand from airlines. I think it also reflects some investor nervousness that the company’s much-enlarged share float reduces the benefit to the shares even if the business does recover fully. Hunting for better options I find some aspects of the investment case for Rolls-Royce persuasive. It has a well-admired engineering expertise and reputation. The aircraft engine market is expensive and difficult to enter, so players like Rolls-Royce have a position of strength. Its installed base of engines virtually guarantees service revenues for years and sometimes decades to come, although a demand shock such as a future pandemic could affect them. In that sense, the company comes close to having the sort of economic moat Warren Buffett appreciates. But the pandemic has shown up some weaknesses in the company’s business model too. It is highly sensitive to demand, which is largely outside its control. Even with budget savings such as the elimination of 7,000 positions last year, the fixed costs of developing and servicing plane engines are high. That is one reason I think the Rolls-Royce share price is still well below its former level, even after the recent increase. Life getting back to normal will improve business prospects for the company. But for pandemic recovery picks I am more attracted by pub operators like J. D. Wetherspoon or transport companies like Go-Ahead. Their structural economics appeal to me more than those of Rolls-Royce, and demand recovery could come faster than it may for the aero engines market. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Tesla has fallen 35%. How I think it affects the Rolls-Royce share price The Rolls-Royce share price: is this best investment for 2021 and beyond? The Rolls-Royce share price is around 110p. Should I buy shares now? Rolls-Royce shares: here’s how much a £1,000 investment a year ago would be worth today The Rolls-Royce share price is rising. Should I buy now? christopherruane has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Rolls-Royce share price is rising. Should I buy shares now? appeared first on The Motley Fool UK.
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