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17 September 2021
21:28 hour

Rolls-Royce share price: what’s in store in the coming months?

The Motley Fool UK

26/04/2021 - 18:17

Jabran Khan looks at what could happen to the beleaguered Rolls Royce share price and wonders what could happen with this stock in the months ahead. 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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  1. 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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  2. The Rolls-Royce share price has fallen. Should I buy? (28/04/2021 - The Motley Fool UK)
    Shares in Rolls-Royce (LSE: RR) have been falling. The Rolls-Royce share price has tumbled 20% from its high last month. Over the past year, the shares have fallen 7%. Below I consider why this might be. I also explain my next move. Reopening prospects mixed Over the past year, the shares have tended to do well when there is optimism about a return to international travel. That is because a large part of the company’s business relies on aircraft engines being used. The more they are used, the greater the demand for servicing. Recently, news about reopening has been mixed. There has been a lifting of some restrictions in the UK, for example. But other markets like India may see fewer flights in the near future. The focus on the timing of broad reopening is important. The sooner flight traffic returns to normal, the sooner the company should be able to staunch its negative cash flow. But I think it is something of a red herring. When assessing the Rolls-Royce share price, I find it helpful to focus on the broad pathway to flight resumption, rather than just a granular calendar view. I expect travel to continue reopening overall even if the progression isn’t smooth. So I am optimistic that Rolls-Royce can return to free cash flow generation. Lack of control Another mitigating factor for the Rolls-Royce share price in my opinion has been the lack of any strong news from the company lately. That reflects the fact that the key drivers for improved performance are external to the company. The directors can’t accelerate the demand for flights, no matter how beneficial that would be for the company. Underlying investment case unchanged Sometimes the stock market generates a lot of noise. Compared to a month ago, I don’t think the future prospects for the Rolls-Royce share price have changed much. The company has not reduced its forecasts. The tough cost controls announced last year continue to take effect. The company still expects to stop bleeding cash in the second half of this year. So if I was bullish about the Rolls-Royce share price prospects, I would see the recent fall as a buying opportunity. I still think the shares could reach 150p this year, as I previously explained. That would be a 45% increase from today’s price in a matter of months. Yet I do not plan to take advantage of the recent share price fall. Why not? Risks to the Rolls-Royce share price The main reason I remain wary of buying Rolls-Royce shares is the lack of control I explained above. Currently the business prospects are mostly hostage to events. That means that even if the company makes its best efforts to prosper, the speed and scale of any recovery is substantially driven by external factors. The main factor is the resumption of flights at close to pre-pandemic levels. While I do expect that to happen at some stage, the timing remains unknown. Delays constitute further risk to the Rolls-Royce share price. I do think the share price could recover its recent losses and more. But for now, I am hunting for other shares that I think are less susceptible to demand shocks. 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: 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 The Rolls-Royce share price is crashing in April! Should I buy RR today? 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 has fallen. Should I buy? appeared first on The Motley Fool UK.
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  3. Is the Rolls-Royce share price a value trap? (21/08/2021 - The Motley Fool UK)
    Is the Rolls-Royce (LSE: RR) share price a value trap? This is a question I have been thinking about a lot over the past year.  Before I begin, I should first try and define what a value trap is. In the simplest sense, a value trap is a stock that looks cheap but is cheap for a reason. This is generally because its ability to earn income has been permanently impaired.  A value trap  The classic example is the newspaper industry. In the late 1800s and early 1900s, the newspaper industry was booming. There was virtually no other way to get news at the time, and hundreds of papers across the country all competed for readers. However, over the next 100 years, the industry changed entirely as first radio, then television and the Internet replaced the daily and evening papers. The newspaper industry today is only a fraction of its former self. As competition has grown, the industry’s ability to earn income has been permanently impaired. It is incredibly unlikely newspapers will ever be the primary source of news for the country ever again.  Is Rolls suffering the same fate? I do not think it is. For a start, it has a 30% market share in the engine market for wide-body civilian aircraft. This is unlikely to change any time soon as the technology is highly specialised and closely guarded.  The firm also has a robust nuclear energy and marine engineering business. Once again, both of these divisions benefit from the fact that the company only has a limited number of competitors globally.  Rolls-Royce share price outlook While I do not believe that the company’s ability to earn income has been permanently impaired, I think it has been reduced. Over the past 12 months, Rolls has laid off thousands of staff. At the same time, airlines have put orders for new aircraft on ice. There is no telling when they will return to place new orders. Even if orders start to grow, with its slimmer workforce, it is not clear at this stage if Rolls will be able to meet the demand.  All of this makes it challenging for me to place a value on the Rolls-Royce share price. After recent job cuts, the company is smaller than it was at the beginning of the pandemic. That means it is likely to remain so as the sector recovers. That is not to say it will not return to growth in the long run. It might just take several years.  Considering all of the above, I do not think the Rolls-Royce share price is a value trap. However, I would not buy the stock today. I think it is just too hard to tell what the future holds for this business, which has struggled to survive the past 18 months.  The post Is the Rolls-Royce share price a value trap? appeared first on The Motley Fool UK. Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices Make no mistake… inflation is coming. Some people are running scared, but there’s one thing we believe we should avoid doing at all costs when inflation hits… and that’s doing nothing. Money that just sits in the bank can often lose value each and every year. But to savvy savers and investors, where to consider putting their money is the million-dollar question. That’s why we’ve put together a brand-new special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… …because no matter what the economy is doing, a savvy investor will want their money working for them, inflation or not! Best of all, we’re giving this report away completely FREE today! Simply click here, enter your email address, and we’ll send it to you right away. More reading 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)? The Rolls-Royce share price is rallying! Should I buy? Rupert Hargreaves 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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  4. Could the Rolls-Royce share price fall below 100p? (27/05/2021 - The Motley Fool UK)
    One of the frustrating things for shareholders in Rolls-Royce (LSE: RR) in recent months has been its struggle to maintain altitude. The Rolls-Royce share price reached 127p in March. But since then it has moved markedly lower. Over the past year, it has lost 10% of its value. So might the shares might fall beneath 100p? Why has the Rolls-Royce share price been falling? One of the points to consider is what has been exerting downward pressure on the aerospace giant’s share price lately. The company is significantly exposed to air travel. The more hours planes with its engines installed fly, the greater its service revenue. Over the past couple of months, hopes of increased European travel have been dampened. I think that has affected the share price. Reasons to be bullish But I see some positive signs for the Rolls-Royce share price. For example, the company said this month that performance so far this year has been in line with expectations across all of its business units. That lack of nasty surprises should help restore some investor confidence in Rolls-Royce. The company has repeatedly said that it expects to turn free cash flow positive in the second half of this year. That would be big news, as lately it has been bleeding cash. If it is able to turn free cash flow positive, that will reassure investors about its liquidity. Last year, a rights issue was heavily dilutive. If shareholders are more comfortable about liquidity growing due to free cash flow, it could be positive for the Rolls-Royce share price. Will the shares fall below 100p? Despite what I regard as positive developments, the Rolls-Royce share price has been drifting downwards lately. If there are more reasons to doubt the speed and scale of European aviation recovery, I think that could easily push the shares below 100p. Any further delay to the free cash flow target would also hit the shares badly in my view. So, I don’t think the shares will necessarily stay above 100p. I could certainly see them falling below that level again. My move on the Rolls-Royce share price But I think the longer-term outlook for the Rolls-Royce share price remains good. Flying demand will come back, in my view – it’s just a matter of time. There are some promising signs outside Europe. Already in the US, for example, United Airlines has upgraded its second-quarter earnings forecast. Such improved demand should help Rolls-Royce. I still think the Rolls-Royce share price could get to 150p or higher this year. But I don’t like how sensitive the share price is to demand recovery in the aviation sector. It has no control over that so is effectively a hostage to fortune. For that reason, even though I do see potential upside, I’m not currently planning to buy Rolls-Royce shares. 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 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? Can the Rolls-Royce share price stay above 100p? The Rolls-Royce share price has been ticking upwards. Is it time to 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 Could the Rolls-Royce share price fall below 100p? appeared first on The Motley Fool UK.
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  5. 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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  6. Why is the Rolls-Royce share price having such an uncertain June? (21/06/2021 - The Motley Fool UK)
    Rolls-Royce (LSE: RR) is one of the few FTSE 100 stocks that, as my Motley Fool colleague Rupert Hargreaves pointed out, has essentially gone nowhere over the past 12 months. It’s pretty much flat since the start of 2021 too. But looking a little closer, we can see the the Rolls-Royce share price has actually been through a lot of short-term ups and downs. Looking at June alone, Rolls shares have lurched between a high of 113.5p and a low of 104p. That’s a swing of 9% from lowest to highest, and way more volatile than the Footsie. Similarly sized ups and downs have been going on for months. It’s as if investors keep wanting to get in, keep thinking maybe the time is ripe for the recovery to start… and then it doesn’t take off and fades again, until the next time. I know it’s dangerous to read too much into short-term share price volatility. And I would never make an investing decision based on what the Rolls-Royce share price has done over the past few months or so. But if my speculations on investor sentiment are anywhere near the truth, they’re really just reflecting my own thoughts. I like the company The thing is, I’ve liked Rolls-Royce for a long time. And it’s one company that I’d really like to buy a chunk of at a cheap price. The company had hit a tough patch even before the pandemic brought a near halt to aviation. I reckon that presented a good buy at the time for investors with a long-term horizon. But it’s history now. I really do think the Rolls-Royce share price will recover from its current hammering. The only thing I just can’t get my head round is how long it might take for a sustainable profits recovery to set in. Oh, two things — and whether Rolls has the liquidity needed to see it through to such times. If it hasn’t, we might see further falls. In the past month, I can’t help feeling the delayed lifting of the UK’s final Covid-19 restrictions has made investors a bit twitchy again. Right now, Boris Johnson has said it’s “looking good” for the new target date of 19 July to be met. But, well, he’s said a lot of things over the years. Rolls-Royce share price uprating? So what are my thoughts now about the next stage for Rolls as an investment? To turn my own sentiment sufficiently bullish, I think I’ll need to see a positive set of results. In particular, I want to see how the balance sheet and cashflow situation are looking. Once we see clearer developments on those fronts, if we see them, I can see the Rolls-Royce share price enjoying an uprating. When might that come? First-half results should be with us on 5 August, and that’s really not very long now. By then, we should have firmer news on the pandemic front. And, hopefully, a bit of confidence returning to the aviation business. I’ll be waiting at least that long before I finally decide, and possibly a good bit longer. I think there’s probably a 50/50 chance that I’ll end up buying Rolls-Royce shares one day. The post Why is the Rolls-Royce share price having such an uncertain June? 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 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? Would I buy Rolls-Royce shares or International Consolidated Airlines Group shares? Where will the Rolls-Royce share price go in June? 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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  7. Is the Rolls-Royce share price cheap at 100p? (07/07/2021 - The Motley Fool UK)
    The Rolls-Royce (LSE:RR) share price has struggled to make headway over the past couple of months. We did see an impressive rally late last year from 40p to around 135p. Recently, the share price has since fallen back to trade in a range between 100p and 110p. Given that shares were trading above 200p at the start of last year, does the current price make it a cheap buy? A tight trading range I think there are a few reasons why the Rolls-Royce share price is currently trading in a tight range around 100p. Firstly, I think a lot of investors are waiting on the sidelines for half-year results. These are due out on 5 August. This should provide a more detailed picture of how the business has coped in the period when lockdown restrictions were starting to end. In theory, this should support the share price if the planned outlook financials are raised. However, nothing is certain at the moment, and so some are likely keeping their powder dry until August. Another reason for the lack of movement recently could be due to the policy regarding Covid-19 restrictions. The anticipated freedom day in June has been pushed back to later in July. The international travel traffic light system hasn’t been the most efficient process. This has meant that the amount of flights and commercial aviation has been limited. Due to the ties Rolls-Royce has to this sector, I’m not surprised that the share price hasn’t been able to find a positive catalyst to move higher. Is the current Rolls-Royce share price fair? It’s hard to confidently say that the Rolls-Royce share price is cheap at current levels around 100p. This is because what is cheap to me might not be to someone else.  A traditional method would be to look at the price-to-earnings ratio. Usually, a low ratio could indicate that a stock is undervalued and cheap. However, Rolls-Royce made a loss last year, so the ratio is negative.  It’s also hard to rank Rolls-Royce against other companies as it depends on what sector I put it in. If I compare it to BAE Systems with a P/E ratio of 11.3, then I would say the share price looks cheap. What about if I compare it to an aviation company like International Consolidated Airlines Group? IAG has an even more negative P/E ratio than Rolls-Royce. So I could argue that IAG offers better value than the current Rolls-Royce share price. I could also look internally at Rolls-Royce. If the half-year results show a reduction in debt and good cash savings, this should help to boost the net asset value. In turn, this naturally should help to push the Rolls-Royce share price higher, as the fundamental value of the business has increased.  2021 net debt (pre-disposals) is expected at £4bn, but potentially getting back £2bn with disposal proceeds. Again, I’m going to have to wait until next month for an update on how well this is going. Overall, I think the Rolls-Royce share price is fairly priced around 100p right now. However, results next month will allow me to get a much better picture in this regard, depending on earnings and debt levels. The post Is the Rolls-Royce share price cheap at 100p? 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 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? Rolls-Royce shares are below 100p. Should I buy? The Rolls-Royce share price: 3 things that could give it a boost jonathansmith1 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.
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  8. 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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  9. 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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  10. Is the Rolls-Royce share price a bargain at 115p? (04/09/2021 - The Motley Fool UK)
    After drifting below 100p in the middle of July, the Rolls-Royce (LSE: RR) share price has since moved back above 100p. It is currently changing hands around 115p, which is close to its 52-week high of 137p. After this performance, the stock has returned 62% over the past 12 months.  It looks to me as if investor sentiment towards the aerospace group is finally starting to improve. As sentiment improves, the stock price could push higher, although investors may baulk at paying a higher price if the company’s fundamentals do not justify the elevated valuation.  As such, I have been wondering if the Rolls-Royce share price looks cheap at current levels or if it has moved too far too fast.  Rolls-Royce share price valuation  It is always challenging to place a value on loss-making businesses. Unfortunately, Rolls is projected to remain loss-making for the next few years. Moreover, it is difficult to tell if the aviation industry will ever recover to 2019 levels of activity.  Hopefully, the industry will not need to recover fully for Rolls to return to profit. The company slashed operating costs last year in an attempt to rightsize itself in the post-pandemic world. This should help the group pull itself out of the hole it currently finds itself in when the market starts to recover. Rolls posted an underlying operating profit of £307m in the first half of its financial year thanks to these cost reductions. For the full year, the enterprise is projected to report a loss of £162m. Management believes the business will start generating free cash flow over the next 12 months. If it does, that will make it easier for me to value the Rolls-Royce share price. Based on current forecasts, the company will earn £370m in 2022 and as much as £750m in free cash flow. These numbers suggest the stock is trading at a forward price-to-earnings (P/E) multiple of 25 and a free cash flow yield of 7.8%.  I think that free cash flow yield makes the stock look cheap. Other equities are trading at a free cash flow yield of less than 4%. This implies the stock could more than double from current levels.  Just forecasts  However, these are just forecasts at this stage. As I noted above, there is no guarantee the company will hit these earnings and cash flow targets. If it does not, investor sentiment could crumble. If management fails to reduce the cash outflow, Rolls could even have to raise new capital.  With this being the case, while I think the Rolls-Royce share price does look cheap based on management’s growth projections, I am well aware there is a lot that could go wrong between now and the end of 2022. As such, I am not going to buy the stock at current levels. I am happy to wait on the sideline and see what happens to the group’s growth during the next 24 months before taking a position.  The post Is the Rolls-Royce share price a bargain at 115p? appeared first on The Motley Fool UK. Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices Make no mistake… inflation is coming. Some people are running scared, but there’s one thing we believe we should avoid doing at all costs when inflation hits… and that’s doing nothing. Money that just sits in the bank can often lose value each and every year. But to savvy savers and investors, where to consider putting their money is the million-dollar question. That’s why we’ve put together a brand-new special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… …because no matter what the economy is doing, a savvy investor will want their money working for them, inflation or not! Best of all, we’re giving this report away completely FREE today! Simply click here, enter your email address, and we’ll send it to you right away. More reading 3 reasons why I’d buy Rolls-Royce shares today 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 Rupert Hargreaves 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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  11. 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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  12. 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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  13. What’s happening to the Rolls-Royce share price? (29/05/2021 - The Motley Fool UK)
    The Rolls-Royce (LSE: RR) share price has performed poorly over the past few months. Year-to-date, the stock has returned just 3.7%. Over the past 12 months, it is off nearly 10%.  However, over the same time frame, the company’s underlying fundamental performance has improved markedly.  So, what is really happening to the Rolls-Royce share price? Why are investors still giving the stock the cold shoulder despite its improving fundamentals?  Rolls-Royce share price outlook Two weeks ago, Rolls-Royce issued a trading update for the first few months of 2021. The market had been expecting another update from the business following a rough performance from the company in 2020. Towards the end of last year, management had stated that the company was on track to become free cash flow positive by the second half of 2021. Investors were waiting to see if the company still believed this was possible. As it turns out, management believes it is. According to the company’s latest trading update, management sees it reaching this goal as vaccinations bring the pandemic under control and travellers return to the skies.  This is incredibly positive news. The Rolls-Royce share price has been under pressure for much of the past year due to concerns about the company’s balance sheet and rising losses. The fact that management believes the group will be free cash flow positive at some point in the next six-to-nine months suggests these balance sheet pressures are now behind it. If the company meets its cash flow target, it can focus on growth, but this could be a long way off yet.  Risks and challenges Unfortunately, the company is not out of the woods yet, despite the progress it has made over the past few months.  Vaccinations are making a big impact, but outbreaks are still occurring around the world. It could be several years before the group returns to 2019 levels of sales and profitability. In the meantime, management will have to remain laser-focused on keeping costs low and maximising profitability. Another significant coronavirus outbreak could cause massive disruption. This would undoubtedly throw a spanner in the works of the company’s recovery plans. It may even have to raise more cash from investors if losses return.  I think this is the primary reason why the Rolls-Royce share price has performed the way it has in 2021. Yes, the company seems to be through the worst of the storm, but it still faces a long road to recovery. And any setback could force the business to make some hard choices.  With that being the case, I’m not going to be buying a large holding in Rolls-Royce any time soon. I might be tempted to take a small position, but considering the risks facing the enterprise, I reckon there are better opportunities on the market that would prevent me spending a lot on RR shares. 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 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? Can the Rolls-Royce share price stay above 100p? Rupert Hargreaves 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 What’s happening to the Rolls-Royce share price? appeared first on The Motley Fool UK.
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  14. Can the Rolls-Royce share price bounce back? (05/05/2021 - The Motley Fool UK)
    2020 was a rough year for the Rolls-Royce (LSE:RR) share price. After crashing by nearly 50% in March, the stock continued its downward trajectory until early October. The business serves multiple industries. But around half of its income comes from the sale and maintenance of aircraft engines. When travel restrictions prevented planes from taking off, a large portion of its revenue stream evaporated. So seeing the stock collapse is not that surprising to me. But is that all about to change? And should I be adding this business to my portfolio? The recovery starts In October last year, the Rolls-Royce share price reached its lowest point since 2003. But since then, it’s been on the rise. In fact, it’s up by around 165% over the last seven months. What’s causing this growth? The business managed to secure a £5bn rescue package that brought it back from the brink of bankruptcy. Meanwhile, with the vaccine rollout progressing relatively quickly, it looks like the airline sector is finally starting to take off again. Here in the UK, holiday travel is on track to return later this month. And domestic flights in the US and China are already increasing. This is undoubtedly good news for Rolls-Royce, and so seeing its share price rise as more planes return to the sky is understandable. It’s worth remembering that initially, the majority of resumed flights are likely to be short-haul, and the firm’s engines are generally used on long-haul aircraft. So it may take a while longer before Rolls-Royce sees its revenue making a complete recovery. But based on current forecasts, it is expected to return to profitability by 2022. And with the worst seemingly over, it looks like a potential turning point for the business. The risks that lie ahead The return of travel is an encouraging sign. But even after the pandemic comes to an end, Rolls-Royce will still have many challenges to overcome, the first of which is its debt. As it stands, it has around £7.3bn of loan obligations on its balance sheet. That racks up a pretty expensive interest bill, and with no operating profits at this time, the firm is having to burn through cash to keep up with payments. Needless to say, over the long term, this is unsustainable. And if it’s not able to return to profitability in 2022 as planned, I think it’s likely that the company will need to raise additional capital. Naturally, this will likely hurt the Rolls-Royce share price. The management team has announced its intentions to dispose of non-core assets to build up its cash balance. However, its latest attempt to sell its Bergen Engines subsidiary failed after the Norwegian government blocked the transaction out of national security concerns. And with the currently weak market sentiment, it could take some time before another buyer is found. The bottom line The return of international travel does make me cautiously optimistic about the Rolls-Royce share price. However, I think its recovery will be a multi-year process, during which many things could go wrong. Personally, I don’t believe the risk is worth the potential reward, especially since there are other more promising investment opportunities available today. I won’t be adding this stock to my portfolio. But there is another stock I’ve got my eye on because… “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 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? Rolls-Royce share price: what’s in store in the coming months? Zaven Boyrazian 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. The post Can the Rolls-Royce share price bounce back? appeared first on The Motley Fool UK.
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  15. 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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  16. Why I think the Rolls-Royce share price can rise more (11/08/2021 - The Motley Fool UK)
    Last week Rolls-Royce (LSE: RR) surprised with a net profit for the first half of 2021. The FTSE 100 aero engine manufacturer was seriously affected by the lockdown last year, since a big part of its sales come from the civil aviation business. And as we know all too well, 2020 was not exactly the year for travel.   So it was not expected to recover this fast. Moreover, Roll-Royce’s earnings woes date back far longer than just the pandemic. Even earlier it was clocking losses. So it looks like a pretty impressive feat to me.  Is the Rolls-Royce share price undervalued? Its share price has already made gains since. And I think that if it is able to sustain its performance, it could rise higher. To assess this, I did a quick forecast based on its latest earnings. If its net profit remains unchanged in the second half of the year from the first half, it will end 2021 with £786m as statutory net earnings. At today’s market capitalisation, these numbers reflect a price-to-earnings (P/E) ratio of around 12 times.  However, the P/E of the FTSE 100 index as a whole is about 15 times. This means that Rolls-Royce’s earnings ratio is less than that for the index as a whole. Since, it is a stock with potential, now that travel is possible, I think its share price would gravitate closer to the average earnings ratio over time. At a P/E of 15 times for the company, its share price would rise by around 28% to 140p.  And this is when I have assumed that neither the company’s net profits nor the FTSE 100 index’s P/E ratio are likely to be any higher in the next few months. In other words, these are fairly conservative, if quite rough, estimates. It is possible for its share price to be far higher in another few months.  The downside At the same time, I think it is also possible that its earnings upside may not continue. I say this for two reasons. One, the latest increase was unexpected because it was supported by a big tax credit, which made up for 71% of the profits. This item may or may not support profits in the future.  I think the numbers on underlying net profits or even operating profits are a better measure of the real upturn in its fortunes. These can help in getting a more rounded picture for the Rolls-Royce share price trajectory over time.  My takeaway At the same time, the company is also undergoing restructuring, which includes a disposals programme, so headline earnings may still continue to surprise.  As a result, I think the Rolls-Royce share price can rise more which ever way I look at it, at least in the short term. However, for my long-term investments, I would still consider the stock carefully. And wait for reliable profits from its business, not repeating one-off bump-ups in earnings. The post Why I think the Rolls-Royce share price can rise more 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 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? What do the Rolls-Royce results mean for its 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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  17. What’s going on with the Rolls-Royce share price? (19/06/2021 - The Motley Fool UK)
    Over the past 12 months, the Rolls-Royce (LSE: RR) share price has essentially moved sideways. The stock has returned -1.5% since this time last year. By comparison, the FTSE All-Share Index has returned 22%. This is a bit of an unfair comparison because the pandemic has severely impacted Rolls-Royce. It suffered one of the most substantial drops in revenue and profitability of any large UK company.  It makes more sense to compare the performance of the Rolls-Royce share price to that of other pandemic-hit businesses such as IAG, easyJet and Tui. But even compared to these stocks, Rolls has underperformed. The three firms outlined above have returned 11%, 24%, and 47%, respectively, over the past 12 months. Tui has achieved this performance even though it’s been bailed out three times by the German government during this period.   Looking at these figures, I’ve been wondering, what’s going on with the Rolls-Royce share price?  Improving outlook  Rolls’ largest division is its aerospace business. This involves the sale and maintenance of engines for the civil aviation industry. The company gets paid based on the number of flying hours its machines rack up. Therefore, when the aviation industry was effectively grounded this time last year, group revenues plunged.  Since then, the industry has started to recover. Air traffic around the world is currently around two-thirds of 2019 levels. As the outlook for the sector has improved, it’s had a positive impact on Rolls’ outlook. The company expects to be cash flow break-even in the second half of the year. This should draw a line under its pandemic losses.  Unfortunately, it seems as if the market is sceptical the company can hit this target. That appears to be the primary reason why the Rolls-Royce share price has underperformed.  It wouldn’t be the first time the company has missed targets. In the past, the group has repeatedly overpromised and underperformed. Therefore, I think the market doesn’t believe in management’s outlook.  Is the Rolls-Royce share price a buy?  I reckon this could be an opportunity for risk-tolerant investors. Despite its improving outlook, the stock still looks cheap. Although there’s always going to be the risk that the company will miss management’s growth targets.  With that being the case, I’d buy the stock for my portfolio today as a speculative recovery play. However, I’m well aware this isn’t a risk-free investment. I think there’s a very high chance the company will underperform this year. If it does, the stock could continue to languish.  That’s why I’d only buy a small speculative position for my portfolio. While I think the Rolls-Royce share price has recovery potential, the global travel and aviation industry outlook is incredibly uncertain. Unfortunately, there’s nothing the company can do about this uncertainty.  The post What’s going on with the Rolls-Royce share price? 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 Should I buy Tirupati Graphite shares? Will the Rolls-Royce share price ever get back to 200p? Would I buy Rolls-Royce shares or International Consolidated Airlines Group shares? Where will the Rolls-Royce share price go in June? What’s happening to the Rolls-Royce share price? Rupert Hargreaves 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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  18. 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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  19. 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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  20. 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)
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  21. 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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  22. What do the Rolls-Royce results mean for its share price? (05/08/2021 - The Motley Fool UK)
    Aeronautical engineer Rolls-Royce (LSE: RR) issued its interim results today. They cover the first half of the financial year. Why does that matter for the Rolls-Royce share price? In short, the City sees the Rolls-Royce results an up-to-date indicator of business health, with clues to how the business may perform in the future. Here I explain what that might mean for the share price. The big issue: free cash flow I previously flagged that the main thing I would be looking for in today’s Rolls-Royce results was any update on its expectation of turning free cash flow positive in the current half. That matters because liquidity concerns dogged the shares last year. Issuing new shares to boost liquidity was one reason Rolls-Royce shares fell last year, as it diluted existing shareholders. That is an ongoing risk with a capital intensive business such as Rolls-Royce. Being free cash flow positive matters because it means that there is more hard cash coming in the door than going out. That provides a stronger liquidity cushion for a company. In the results, Rolls-Royce again reiterated its target to turn free cash flow positive this half. It said explicitly, “We continue to expect to turn free cash flow positive sometime during the second half of this year”. Negative free cash flow in the past six months stood at £1.2bn, which is a sharp drop from last year. So the company expects negative cash flow to keep falling until it reverts to being positive. I think management credibility now depends on delivering this target as it has stated it so often. I think turning free cash flow positive could help boost the Rolls-Royce share price. Rolls-Royce results show a return to profit While cash flow is critical, the accounting concept of profit also matters in assessing a company’s prospects. In the half, Rolls-Royce recorded a profit of £393m, versus a huge loss of £5.4bn in the equivalent period last year. That equates to earnings per share of 4.7p. If that is maintained in the second half, it suggests that the company is currently trading at a prospective price-to-earnings ratio of around 11 or 12. That is fairly low so, following the Rolls-Royce results, I see upside potential for the shares. However, the valuation may reflect ongoing risks. For example, while aviation demand is returning, it is doing so in fits and starts. That means that the first half performance won’t necessarily be repeated in the following six months, for example if new travel restrictions are put in place. No dividend in the Rolls-Royce results The company did not announce any interim dividend. That is not surprising to me, as the company is still in a recovery phase. It makes sense to keep as much money as possible in the business while it rebuilds. Even if the company wanted to pay a dividend, it wouldn’t be allowed. A loan it drew down during the first half precludes it from paying any dividends until 2023. Rolls-Royce results summary There was much positive news in the results, including a recovery in revenues and profits. I think the repeated target of returning to free cash flow in the current half is significant. I expect the results to be well-received, which could help boost the Rolls-Royce share price. The post What do the Rolls-Royce results mean for its share price? 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 recovery at Rolls-Royce is happening! Should I buy the shares now? Will this news help get the Rolls-Royce share price moving? The Rolls-Royce share price zooms past 100p. What’s next? Will the Rolls-Royce share price rise in August? Can the Rolls-Royce share price return to pre-pandemic levels? 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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  23. What’s going on with the Rolls-Royce share price? (12/07/2021 - The Motley Fool UK)
    Rolls-Royce (LSE: RR) is in a funk. Again. The Rolls-Royce share price is trading at below 100p levels today after managing to hold up above these levels for much of the past month.  Much progress for Rolls-Royce This is mystifying. The outlook for aviation is better now than it has been at any time in the past year. Supply and service of civil aircraft engines is Rolls-Royce’s biggest revenue source, so that is good news. Also, its other business segments are in a healthy place.  And Rolls-Royce also has plans in place for the future. It is in the process of forming a partnership with Cavendish Nuclear, an engineering company, to facilitate the development of Rolls-Royce’s small nuclear power plants. In another bid to support clean energy, the company is also set to launch the fastest electric plane.   To me, these look like developments with great potential as we move towards a cleaner, greener future. Whether or not they add to the company’s bottom line remains to be seen, but for now that is tomorrow’s question. Why the share price drop? So why the drop in share price? I think one glaring reason is that the pandemic continues. It is true that vaccinations are happening speedily. It is also true that the intensity of Covid-19 has declined. However, it is equally true that coronavirus cases are on the rise. And while we are all looking forward to ‘Freedom Day’ next week, there is also a possibility that restrictions may come back after the summer. The worst affected from this ongoing uncertainty, is of course the aviation sector.  It is no coincidence then, that Rolls-Royce is hardly the only aviation related stock to decline in the recent months. FTSE 100 airline giant International Consolidated Airlines Group and the FTSE 250 low-cost airline easyJet, are other casualties of this uncertainty.  With constant change in expectations, I can see why investors appear undecided about the Rolls-Royce share price. I had predicted as much, when I wrote about it in May. My takeaway was that its situation is volatile, and that is how it has stayed. Even though by last month, it was beginning to look like I might have been wrong. What would I do now? So what would I do about the Rolls-Royce stock now? I think it is a wait and watch situation for now. Unlike airline stocks, I have been particularly cautious about Rolls-Royce because even pre-pandemic its financial performance left a lot to be desired. So even if all goes back to normal, there is limited confidence in the company’s performance. This will also translate into limited share price increases.  Instead, if I want to buy stocks in the aviation pack, I think the likes of easyJet are a better buy for me. As a low-cost airline its bounce back can be faster.  The post What’s going on with the Rolls-Royce share price? 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 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? This is what I’m doing about the Rolls-Royce share price Manika Premsingh 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.
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  24. Will the Rolls-Royce share price bounceback in 2021? (06/04/2021 - The Motley Fool UK)
    With a 12% fall in the Rolls Royce (LSE: RR) share price in the past three weeks, this question comes up yet again. The Rolls-Royce share price has seen plenty of ups and downs in the past year (though it’s up almost 9.5% over 12 months) given the company’s heightened sensitivity related to all sorts of developments from vaccines to its own finances.  Why did the share price fall? The Rolls-Royce share price fall coincided with the Norwegian government stopping the sale of its marine engines manufacturer, Bergen Engines, to a Russian company. Bergen Engines is a Norway-based business. The Norwegian government sees the sale as a security threat, because it has no security co-operation with Russia.  What does the blocked Bergen Engines’ sale mean for the company? Hiving off Bergen Engines can be seen in the context of the company’s big restructuring, which started almost a year ago. As Rolls-Royce puts it in its release regarding this subsidiary “Bergen Engines….is not core to our long-term strategy”.   Besides slowing-down its overhaul, the blocked sale also means a delay in raising finances. With its business at a near standstill in 2020, Rolls-Royce has planned to raise £2bn through disposals to keep itself well funded. This adds to the company’s other efforts at fundraising, which have included significant new equity and debt, in the past year.  What’s next for the Rolls-Royce share price? Delays in financing itself, especially in these uncertain times, is negative news for the company. There is no way of knowing how long it will take for Rolls-Royce to find another buyer.  Yet, it is one of the many developments that can impact Rolls-Royce right now. Recently, the company started building the world’s biggest aero-engine, which will provide greater fuel-efficiency. Also, it runs on sustainable fuel, which is made of waste products.  Clean energy is a growing focus area for both policy makers and consumers, so this sounds like a step in the right direction. But I think the biggest impact on the Rolls-Royce share price will be from its future financial developments. Some improvements should be visible later this year, as air travel comes back to some extent. I think these can have a positive impact on the company’s stock market performance. Would I buy the shares? While I think that the Rolls-Royce share price can rise over the next few months, albeit unevenly, I am hesitant to make a long-term call on it yet. The reason is that there is still too much up in the air right now.  Rolls-Royce was loss-making even before the pandemic struck, and now it is in an even worse place. I am cautiously positive on the stock given that it has a reputable position in a specialised industry, which cannot be replicated easily. At the same time, its financials are in an undeniable funk too.  I am watching it for a turnaround before buying the share for the long haul.  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 Will the Rolls-Royce share price keep climbing? Hargreaves Lansdown investors are buying Rolls-Royce shares and IAG. Here’s what I’d do The Rolls-Royce share price: amazing value for my ISA? 2 aerospace stocks I’d buy Rolls-Royce shares: Norway blocks its sale. Should I be worried? 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. The post Will the Rolls-Royce share price bounceback in 2021? appeared first on The Motley Fool UK.
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  25. The Rolls-Royce share price is rallying! Should I buy? (13/08/2021 - The Motley Fool UK)
    It’s been a good few weeks for the Rolls-Royce (LSE:RR) share price. The UK aerospace company saw its stock rise by a respectable 10%, pushing its 12-month performance to just under 22%. That’s hardly stellar growth in comparison to some of the tech stocks out there. But for a struggling business that was significantly impacted by the pandemic, it’s some encouraging progress. So, what’s behind this upward movement? And should I be adding it to my portfolio? The rising Rolls-Royce share price The financial position of Rolls-Royce seems to be heading in a positive direction. The management team recently released its half-year earnings report with some promising results. First and foremost, the risk of bankruptcy that Rolls-Royce was facing in 2020 seems to have subsided. The net debt position is still firmly in the red at around £3.1bn. However, thanks to successful re-negotiations with creditors, the company has no debt maturities until 2024. This certainly provides some breathing space to get the balance sheet in a stronger position. And the reinvigoration process has only been accelerated thanks to the successful sale of Bergen Engines to Langley Holdings. As a reminder, the sale of Bergen is part of a refocusing effort to raise £2bn through disposals. This is a particularly exciting milestone, as an earlier attempt to sell the business had been blocked out of national security concerns. While travel restrictions are slowly being eased, the airline industry continues to suffer from disruptions. Consequently, revenue for Rolls-Royce over the last six months fell by 9% compared to a year ago. But thanks to the firm’s operational restructuring, it actually managed to turn a modest underlying profit of £307m versus a loss of £1.63bn last year. So, I’m not surprised to see the Rolls-Royce share price taking off. There’s still a long road ahead As encouraging as these latest figures are, Rolls-Royce is not out of the woods yet. The next debt maturity may be a couple of years out, but the interest bills will keep on coming. With such a vast surge in borrowings to keep the company afloat in 2020, interest expense has risen considerably. Rolls-Royce has had to pay out £116m on loan interest fees in the last six months. Combining this with the £171m paid to cover lease expenses, 93% of its underlying profits are being gobbled up. That only leaves a tiny portion left to reinvest, pay down debt or return capital to shareholders. That’s not a healthy sign in my experience. And consequently, it could lead to the Rolls-Royce share price delivering lacklustre performance over the long term. Final thoughts Overall, Rolls-Royce looks like it’s in a much stronger position since I last looked at this business. And with the vaccine rollout enabling the recovery of the travel industry, the firm’s revenue from the sale and maintenance of aircraft engines could be swiftly returning. Having said that, I’m still not tempted to add this business to my portfolio at the moment. Why? Because I think there are far better and safer investing opportunities to be found elsewhere. The post The Rolls-Royce share price is rallying! Should I buy? appeared first on The Motley Fool UK. Opportunities such as… 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 Is the Rolls-Royce share price heading to 175p? 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 Zaven Boyrazian 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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  26. Why I prefer the Lloyds dividend to the Rolls-Royce share price (04/09/2021 - The Motley Fool UK)
    When searching for bargains in the FTSE 100, a number of blue-chip names pop out. While the recent Rolls-Royce (LSE: RR) share price rise means that the engineer is no longer a penny stock, that’s not true for bank Lloyds (LSE: LLOY). Right now I would rather have Lloyds in my portfolio for its dividend than Rolls-Royce for any potential capital gain. Here’s why. Dividends as passive income Dividends can make an excellent source of passive income. While I don’t always go for income stocks, dividend potential is a consideration for me a lot of the time. Dividends are never guaranteed: neither Lloyds nor Rolls-Royce made payouts last year, for example. But while in the case of Lloyds that was due to a regulatory constraint, for Rolls-Royce it was because the company needed to shore up liquidity. Fast forward to today and Lloyds has restored its dividend. So far this year, its interim dividend of 0.67p might not sound like anything to write home about. But given its penny share status, that dividend alone equates to an annual yield of 1.5%. If the bank returns to its prior policy of the interim dividend representing around one third of the total annual payout, that suggests a forward yield of 4.5%. By contrast, Rolls-Royce continues to pay no dividend. Indeed, the conditions on a loan it has drawn mean it cannot pay any dividends until 2023 at the earliest. Even then, dividends aren’t assured. That is true for Lloyds too – no dividend is ever guaranteed. An increase in bad loans could hurt Lloyds’ profit and make it cut its dividend again, for example. But currently from a dividend perspective, I would feel much happier having Lloyds in my portfolio than Rolls-Royce. The Rolls-Royce share price as a possible source of gain However, dividends aren’t the only game in town. It’s also possible for an investor like myself to benefit from share price appreciation. The Lloyds share price has increased 62% over the past year and Rolls-Royce has gained 50%. I’d have welcomed either result with open arms. I think there is further possible upside for both shares. If Lloyds can continue to record bumper profits – its statutory profit in the first half was £3.9bn – I think it could boost the bank’s share price. Meanwhile, at Rolls-Royce, increasing demand for air travel could boost both revenues and profits. Additionally, the company’s anticipated return to free cash flow positivity in the current half-year period could boost the Rolls-Royce share price. That’s because it would help to allay liquidity concerns. However, if aviation demand stalls or the cash flow target isn’t met, there is a risk the Rolls-Royce share price could fall. But Lloyds faces risks too. For example, its foray into becoming a landlord could hurt its profitability. My next move I do see potential for appreciation in the Rolls-Royce share price. But for now I plan to hold my Lloyds shares without adding Rolls-Royce to my portfolio. That’s for two reasons. First, the dividend prospects for Lloyds in the next several years seem much better. Secondly, Lloyds has had a strongly performing business but Rolls-Royce remains a turnaround story. Either could make a misstep, but there’s often less room for error in a turnaround situation. The post Why I prefer the Lloyds dividend to the Rolls-Royce share price appeared first on The Motley Fool UK. Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices Make no mistake… inflation is coming. Some people are running scared, but there’s one thing we believe we should avoid doing at all costs when inflation hits… and that’s doing nothing. Money that just sits in the bank can often lose value each and every year. But to savvy savers and investors, where to consider putting their money is the million-dollar question. That’s why we’ve put together a brand-new special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… …because no matter what the economy is doing, a savvy investor will want their money working for them, inflation or not! Best of all, we’re giving this report away completely FREE today! Simply click here, enter your email address, and we’ll send it to you right away. More reading Is the Rolls-Royce share price a bargain at 115p? The Lloyds share price: time to buy the dip? Where will the Lloyds share price move in the future? The Lloyds share price drops since June. Is it a bargain now? How long could it be until the Lloyds share price gains serious momentum? Christopher Ruane owns shares in Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. 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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  27. Why is the Rolls-Royce share price falling? (10/02/2021 - The Motley Fool UK)
    Over the last month or so the Rolls-Royce (LSE: RR) share price has fallen nearly 15%. That’s worse than the 5% of the FTSE 100. Over 12 months the fall is 60%. So why have the shares continued to fall? Should investors be worried?  Reasons for the Rolls-Royce share price decline New variants of Covid are a source of concern. Although the UK is doing well with the vaccine rollout, many other countries are struggling and there are supply constraints, as the EU/AstraZeneca row highlighted. And the UK, South Africa and Brazil variations have all reignited pandemic concerns. That has implications for travel and, by extension, for Rolls-Royce. A January trading update from the engineer has probably also weighed on the share price. The company revised down forecasts for widebody engine flying hours to 55% of 2019 levels from a 70% estimate last October. It added to this by saying that it expected to lose £2bn in cash as a result. Cashflow was something it was looking to improve, so the setback, while understandable in the context of Covid-19, is still disappointing. Yet emerging technologies like modular nuclear power and electric aircraft could offer a way forward for Rolls-Royce and boost the shares.  But for now, the virus dictates the future of the Rolls-Royce share price. The company can invest in nuclear, marine and other industries to offset some of the aviation losses, but investors (including me) still seem concerned about the company’s flying prospects in the short term, at least. What I plan to do about this potential value share I’m also a little concerned. Even in light of the Rolls-Royce share price being cheaper than it was a month ago and far less than it was a year ago, I’ll avoid the shares. For me they carry too much risk, and a recovery is too fragile. In some ways RR resembles a value share, as it has fallen so much in the wake of challenging trading conditions and the its poor financial performance. With multiple problems to contend with, I’d rather invest in some shares with strong growth potential, rather than the volatile Rolls-Royce share price. An alternative FTSE 100 share One share that I’d rather invest in is the high-yielding insurer, Aviva (LSE: AV). A new CEO is slimming down the business, which should make it easier to manage, and perhaps even attract a takeover from a larger company. That’s happened within the industry, for example with RSA Insurance, so there is a precedent. The shares have a dividend yield of 3.79% and it also seems to show signs of being good value with a P/E of just five.  As a financial share it was particularly hard hit in the sell-off about 12 months ago. That means there’s plenty of room for a share price recovery if the economy improves, I think. On the downside there’s a risk it could underperform if the economy remains weak. Also, its disposals mean it’s now more reliant on the UK and Ireland for earnings so any poor performance here could hurt the share price.  Overall though, I’d prefer to add Aviva shares to my portfolio as the Rolls-Royce share price still looks very volatile.   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 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 Rolls-Royce share price has declined almost 30%. Here’s what I’d do The Rolls-Royce share price: here’s what I’d do right now The Rolls-Royce share price has fallen again. Should I buy the stock now? 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. The post Why is the Rolls-Royce share price falling? appeared first on The Motley Fool UK.
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  28. I’ll buy Rolls-Royce shares when this happens (30/08/2021 - The Motley Fool UK)
    Over the past few months, I have written about Rolls-Royce (LSE: RR) shares on several occasions. Whenever I have covered the company, I have consistently concluded that its future is too uncertain. As such, I have decided to stay away.  That does not necessarily mean that I will be avoiding the company forever. I think the coronavirus pandemic has dealt the business a significant blow over the past 18 months, but it is still a world leader in the aerospace engineering sector. And I think this advantage will be critical in driving the firm’s recovery in the years ahead.  The outlook for Rolls-Royce shares There are two things I want to see before I would be happy to buy shares in the aerospace company. First of all, I would like to see a sustained recovery in global air traffic. Rolls sells its engines at cost and earns money on maintenance contracts that are linked to flying hours. The longer a plane spends in the air, the more money the group is owed. Therefore, without a sustained recovery in global air traffic, the company’s sales and earnings will remain depressed. Rolls-Royce shares will not recover if earnings remain under pressure.  I also want to see a substantial pickup in demand for new aircraft. Airlines have been cancelling or postponing orders for new planes throughout the pandemic as they try to survive the crisis. This has understandably had a knock-on effect on the business. However, if carriers start to place new orders, we could see a sustained increase in the company’s sales and profits. This would almost certainly indicate the organisation is heading in the right direction.  In the best-case scenario, the world will begin to open up in 2022. Airlines will rush to make the most of pent-up consumer demand for travel and place new orders while bringing more planes back into service. And this jump in demand would translate into higher sales and profits for Rolls-Royce shares.  Risks and challenges Unfortunately, it is impossible to say at this stage when either of the above will happen. There are some signs that the aviation industry is recovering in the US, but the highly profitable transatlantic route is still virtually grounded. And the same goes for the rest of the international travel market. As these international routes are usually the most lucrative for airlines, they are unlikely to start placing new orders for aircraft until these routes are generating an income again.  At the same time, we do not know if or when another coronavirus variant will emerge and how dangerous this variant will be. A new variant could lead to renewed shutdowns, which would almost certainly set the group’s recovery back months and have a detrimental impact on Rolls-Royce shares.  So all in all, I would buy shares in the company when there is a sustained increase in air traffic activity. However, until we hit that point, I will be avoiding the stock.  The post I’ll buy Rolls-Royce shares when this happens appeared first on The Motley Fool UK. Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices Make no mistake… inflation is coming. Some people are running scared, but there’s one thing we believe we should avoid doing at all costs when inflation hits… and that’s doing nothing. Money that just sits in the bank can often lose value each and every year. But to savvy savers and investors, where to consider putting their money is the million-dollar question. That’s why we’ve put together a brand-new special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… …because no matter what the economy is doing, a savvy investor will want their money working for them, inflation or not! Best of all, we’re giving this report away completely FREE today! Simply click here, enter your email address, and we’ll send it to you right away. More reading 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? Could the Rolls-Royce share price hit £1.50? Rupert Hargreaves 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 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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  30. 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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  31. 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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  32. 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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  33. The Rolls-Royce share price has dropped. Would I buy it now? (10/09/2021 - The Motley Fool UK)
    Until a few months ago, the Rolls-Royce (LSE: RR) share price was languishing in penny stock territory. But after it reported surprise profits in the last quarter, the stock has been consistently trading above 100p levels.  Rolls-Royce share price tumbles It remains there even now, but the share price has come off some 6% in the past two weeks. At any other time, I may have chalked it up to a routine market fluctuation, that can balance itself out in time. Not now. I have been watching pandemic sensitive stocks closely since I learned about the possibility of a firebreak lockdown, following the recent increases in Covid-19 cases. So far, they have broadly reacted with a softening in share price. In fact, the FTSE 100 index has also been weak recently, indicating some overall bearishness.  If this lockdown actually happens, I will stay away from travel and travel-related stocks, considering the damage caused to them last year. They had only just begun to emerge from the worst of the pandemic, when the challenges began afresh. Since the virus is even more potent during the winter months, which will come around soon enough, I am now even more cautious about these stocks.  What’s going for it There is of course a possibility that the fast progress on vaccinations, booster jabs, and the cooling off in travel after the summer months can control further spread of the virus. And investor bullishness can return to the stock markets. If that happens, I think the future for Rolls-Royce could actually look good.  Since its positive results, it has also reported winning a government contract along with a consortium of organisations. Even more recently, it has entered into a contract with South Africa’s Airlink to service its aircrafts for the next 10 years. In sum, the company’s business appears to be progressing well. I am particularly heartened by signs of growth in its civil aviation segment, which was its biggest revenue generator before the pandemic.  My takeaway In a recent article on the company, I said that the Rolls-Royce share price will be impacted by three factors. One, overall market mood. Two, macro conditions. And three, its own news flow. So far, the third of these is going in its favour. The macro economy has not given any reasons for red flags either. That leaves us with the market’s mood, which I reckon will depend on how the coronavirus situation develops. Even earlier, I was waiting for more signs of genuine recovery in the company before buying the stock. So far, it has shown profits for only one quarter and that too because of a big tax credit. Additionally, there is a rise in pandemic risk once again. This tips the balance against the Rolls-Royce stock for me, at least for now. I will watch how the situation evolves before making a call. The post The Rolls-Royce share price has dropped. Would I buy it now? 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 3 reasons why Rolls-Royce’s share price could soar! 3 of the best FTSE 100 index shares to buy right now Why I think the Rolls-Royce share price is a bargain Is the rising Rolls-Royce share price a buying opportunity? Why I prefer the Lloyds dividend to 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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  34. Can the Rolls-Royce share price return to pre-pandemic levels? (02/08/2021 - The Motley Fool UK)
    The Rolls-Royce (LSE:RR) share price has had quite a rough time since the pandemic began. With the travel industry being decimated, the engineering firm saw one of its primary revenue channels shrivel. Meanwhile, its losses skyrocketed, sending its stock crashing down. Recently, the Rolls-Royce share price has been creeping upward. Over the last 12 months, the FTSE 100 stock is up by over 25%. It’s still far from returning to pre-pandemic levels. However, with its half-year results just a few days away, is that about to change? Let’s take a look at what might be in store for the business and whether I should be adding it to my portfolio. The initial collapse of the Rolls Royce share price The management team has had to take drastic measures over the last 18 months. Due to a £3.1bn loss, some serious capital needed to be raised. This resulted in a significant chunk of debt being added to the balance sheet, the suspension of shareholder dividends, and a large number of new shares being issued. The latter, in turn, caused a significant dilution effect that’s partially responsible for the swift decline in the Rolls-Royce share price. But as unpleasant as this was, it seems to have been a prudent move, in my opinion. It enabled the management team to quickly improve the business’s liquidity. And keep the lights on while Covid-19 ravaged the world economy. But now that vaccine rollouts are underway, and travel restrictions are being eased, will the share price finally begin its recovery? The potential for growth Last week, London’s largest airports, Heathrow and Gatwick, reported the biggest surge in passenger traffic since the pandemic began. To me, it’s not surprising. Now that lockdown restrictions in the UK have ended, many individuals and families are determined to go on holiday. And after more than a year in confinement, I think that’s pretty understandable. This is fantastic news for the Rolls-Royce share price. With planes finally returning to the skies, the demand for the company’s maintenance services is bound to increase. As will its gross income. What’s more, with corporate and government budgets becoming less influenced by Covid-19, I think the revenue from Rolls-Royce’s Power Systems and Defence segments is likely to start rising again as well. The bottom line Until the half-year report is released on Thursday, this remains largely speculation. But should the money start flowing again, especially to its civil aerospace segment, then I think it’s likely that the share price will begin to rise once more. Having said that, it could be several years before it returns to pre-pandemic levels. As mentioned earlier, a primary catalyst behind the fall of Roll-Royce’s share price was the dilution effect from issuing new shares. These will eventually need to be repurchased to undo this dilution. But with a large pile of debt to contend with, it could be some time before any share buyback programme is announced, let alone the reintroduction of dividends. Over the long term, a complete recovery may be possible. But for now, I’m keeping Rolls-Royce on my watchlist. It will stay there until the business sheds more light on its current situation later this week. The post Can the Rolls-Royce share price return to pre-pandemic levels? appeared first on The Motley Fool UK. Personally, I’m far more interested in… “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 Would I buy Rolls-Royce shares at 100p? The Rolls-Royce share price hits 100p! Is it time to buy this FTSE 100 stock? 2 FTSE 100 shares I’m buying after ‘freedom day’ The Rolls-Royce share price could be on the road to recovery I’d avoid the Rolls-Royce share price and buy this FTSE 100 stock instead Zaven Boyrazian 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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  35. Will the Rolls-Royce share price reach 150p this year? (24/03/2021 - The Motley Fool UK)
    Many shareholders in Rolls-Royce (LSE: RR) have been preparing for take-off in recent months. The Rolls-Royce share price is down 11% over the past year. But it has returned an impressive 165% since the start of October. So for some shareholders, the price movements have been very profitable. Here I take a look at both bull and bear cases for Rolls-Royce. I then consider whether the Rolls-Royce share price could rise to 150p this year. A Rolls-Royce bull case The company is one of the world’s leading manufacturers and maintenance providers for aircraft engines. This is a highly skilled industry with high capital expenditure requirements and lead times stretching into years or even decades. That means the competitive barriers to entry are high. The Rolls-Royce brand name and engineering expertise are well-regarded. This helps give it pricing power. It also builds customer loyalty. That could help the Rolls-Royce share price because the majority of the company’s profits are generated not by engine sales but servicing. In 2019, for example, the company sold £3.2bn of civil aircraft engines. But it recorded a further £4.9bn in service revenues for the sector. Even with flying hours reduced by the pandemic, 2020 service revenues came in at £2.8bn. Not just civil aviation Additionally, there is more to Rolls-Royce than just civil aviation. Defence spending tends to be more resilient than consumer travel. Last year, the company’s defence business actually grew underlying revenue by 4% to £3.4bn. It also grew underlying operating profit by 8%, to £448m. The company also has a power systems division. While its revenue and profit also suffered last year, at least it is not also tied to consumer travel demand. Defence and power systems provided 51% of company revenue in 2020. Unlike civil aviation, both turned in an underlying operating profit. With liquidity of £9bn coming into 2021, the company looks able to wait for a full recovery in demand. This month it reiterated its expectation that it would turn cash flow positive in the second half of this year. That appeals to me because I like buying shares in cash generative companies. A bear case on the Rolls-Royce share price Set against this, demand for flying is coming back slower than hoped. Limited vaccination programmes and ongoing lockdowns in many countries are stymying travel. In October Rolls-Royce had said it expected 2021 widebody flying hours to be around 70% of 2019 levels, but it has since reduced that forecast to 55%. Less flying hours means less service revenue. The reduced forecast may push back the date when the company can achieve its free cash flow target of at least £750m. The company has been seeking to improve liquidity further through cost cuts and disposals. But this week it was announced that the Norwegian government has stopped the sale of its power business in Norway. The company still plans to raise at least £2bn from disposals by early 2022. But this may now require a different approach. I think the shares can reach 150p The Rolls-Royce share price has performed strongly in the past few months. I think further good news, such as more flying hours being logged, could help propel the shares higher, maybe to 150p in 2021. But key factors – such as demand – remain outside the company’s control. I would prefer to invest in a company with a clearer short-term demand outlook. I’m still not buying Rolls-Royce. “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 Can management use technology to boost the Rolls-Royce share price? Can the Rolls-Royce share price surge if it overcomes this huge trend? Rolls-Royce shares are nudging higher. Should I buy now? Rolls-Royce shares: 3 reasons why I’m optimistic for 2021 I’d buy Rolls-Royce shares despite the big 2020 loss 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 Will the Rolls-Royce share price reach 150p this year? appeared first on The Motley Fool UK.
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  36. The Rolls-Royce share price is rising this week. Should I buy? (18/02/2021 - The Motley Fool UK)
    For years, I’ve liked Rolls-Royce (LSE: RR), but I’ve never got around to buying. Whenever the time came for me to make an investment, Rolls never quite made the top of my list. Maybe the Rolls-Royce share price looked a bit too high at the time. Or, more usually, there’s just something else I liked better. Warren Buffett famously spoke of investing in Gillette, and the warm feeling he got every morning when he thought of the millions around the world shaving with a new blade. I’ve always had similar feelings watching airline departures and arrivals. And thinking of all those lucrative maintenance contracts bringing in the cash for Rolls-Royce. But no comparison is perfect. Chins are still being shaved around the world during Covid lockdown. But the planes aren’t flying, and the Rolls-Royce share price has suffered. We’ve seen a modest climb this week though. Since market close last Friday, Rolls-Royce shares are up 8%, as I write. But I’d never make an investment decision based solely on short-term share price moves. And the bigger picture isn’t so pretty. Feeling bullish We’re close to a year on from the start of the Covid-19 stock market crash. And, in that year, the Rolls-Royce share price has fallen 58%. But it had been slipping even before that. Over the past two years, Rolls-Royce shares are down 70%. So we’re looking at a pandemic catastrophe on top of an existing downward trend. So why am I starting to feel positive towards the stock? Well, my reason is essentially that I still see the long-term business as sound. When Rolls-Royce will get back to profit, I really can’t guess. And I still expect the rest of 2021 to be rocky for the Rolls-Royce share price. Then there’s the huge amount of debt the company’s had to take on, amounting to around £4bn now. That will have to be addressed some day. But, for now, the key question is whether Rolls will make it through the rest of this crunch year. The firm’s latest update at the end of January essentially said things are in line with expectations. Rolls expects free cash outflow of around £2bn in 2021, and I could see a few eyes watering at the prospects of that. But at the end of 2020, the company had around £9bn in liquidity — which it described as “at the upper end of the previously guided range.” Rolls-Royce share price cheap? Rolls-Royce is hoping for an upturn in the aviation business in the second half of the year. And that’s where I think the big risk lies. The Covid vaccination programme is progressing reasonably well. But there almost seems to be a new virus variant every week. And the government is still urging against booking fly-away holidays just yet. Still, with the Rolls-Royce share price around £1, or less, I really am tempted to buy. But I still don’t know whether I will. Again, it’ll depend on what other options might look more promising when the time for my next purchase comes along. 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 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 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 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 is rising this week. Should I buy? appeared first on The Motley Fool UK.
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  37. 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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  38. Will the Rolls-Royce share price ever get back to 200p? (08/06/2021 - The Motley Fool UK)
    If I look at a list of the most volatile stocks of 2020, Rolls-Royce (LSE:RR) would definitely be on it. From trading at highs just below 700p in February, it traded well below 100p in October. Yet so far in 2021, it has been a completely different story for the Rolls-Royce share price. It has been anchored around the 100p level for several months now. With a lack of any meaningful move higher, will the shares ever break back towards 200p? Last year versus now It’s important to differentiate between this year and last year when analysing the Rolls-Royce share price. The crash and volatility seen in 2020 was because of investors processing a lot of news about the company. It quickly became apparent that with global lockdowns, commercial aviation was going to take a hit. People simply would be unable to travel abroad, meaning passenger flying miles would decrease. This meant less maintenance and new engines were required from Rolls-Royce.  Even though other areas of the business (such as defence) didn’t suffer as badly, the size of the aviation arm of the company meant that the Rolls-Royce share price fell considerably by the end of Q1. The volatility for the rest of the year mirrored the state of the pandemic. Past performance doesn’t perfectly predict future returns, but it does give me some clues. Given that the volatility last year was due to concern by investors, the calm of the past few months tells me that investors are now more neutral. A catalyst for the Rolls-Royce share price? Neutral isn’t really what I’d want though if I held shares in Rolls-Royce right now. I’d be wanting to see it moving higher and trying to head back to 200p or above. The low price today could be a buying opportunity for me, of course. But right now, I don’t have enough information on where the price might go next to warrant me buying the shares, despite that low price.  From one angle, the next move could be higher given the fact that the Rolls-Royce share price has consolidated at current levels for a sustained period. This is a change from the falling price seen for much of 2020. The fact that the price has stopped falling, and is steady, does offer some positivity. From my point of view, to break higher I’d need to see a catalyst. For example, if summer overseas travel restrictions were lifted in the UK, I’d expect the share price to jump. Ultimately, any sign that airline operators will be increasing flights should be positive for Rolls-Royce. Aside from external news like the above, the internal health of the company could drive the Rolls-Royce share price higher. The half-year 2021 results are due out in the first week of August. If cost-cutting measures are on track to save the £1.3bn+ in annual cost savings targeted by the end of 2022, this would be a lift for the shares. More clarity on the restructure (lower capital spend in commercial aviation and more into power systems and defence) could also help. I think the current range around 100p could continue until we get more news out about summer travel plans and half-year results. If both sets of news are positive, then I think momentum could carry the shares to 200p by year end. 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 Would I buy Rolls-Royce shares or International Consolidated Airlines Group shares? Where will the Rolls-Royce share price go in June? 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! jonathansmith1 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 ever get back to 200p? appeared first on The Motley Fool UK.
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  39. The Rolls-Royce share price is crashing in April! Should I buy RR today? (21/04/2021 - The Motley Fool UK)
    As a value investor, I love bottom fishing, whereby I trawl through crashed share prices looking for ‘fallen angels’. These are otherwise sound companies whose shares have steeply declined. In March 2020’s market meltdown, dozens of FTSE 100 companies were in this category. So my wife and I invested all of our cash into shares a year ago, with spectacular returns since. But while bargain-hunting in the Footsie today, I spotted an unfamiliar face: Rolls-Royce Holdings (LSE: RR.). Alas, the Rolls-Royce share price has had a bad week (and month). The Rolls-Royce share price crashed in 2020 At its five-year peak, the Rolls-Royce share price topped 375p in August 2018. However, it had a tough 2019, closing the year at 234.45p. Then Covid-19 shut down air travel worldwide and air miles flown collapsed by at least 80%. This destroyed the share prices of airlines and their suppliers, including RR. Thus, the Rolls-Royce share price had a bad time last year. At the low of 2 October 2020, RR shares closed at a mere 38.98p. That’s a loss of over 195p, with the shares crashing by more than 80%. Rolls-Royce rockets from October 2020 Happily, over the past seven months, Rolls shares have soared. From early October, the Rolls-Royce share price staged an almighty comeback. With news arriving after Halloween of several Covid-19 vaccines, RR shares boomed. On 3 December, they closed at 134.90p (up almost 96p), for a whopping 246% gain in just two months. Clever or lucky buyers of RR shares at the October low would then be sitting on almost 3.5 times their money. Wow. Since December, the Rolls-Royce share price has eased back, but rose to close at 127.20p on 17 March. Since then, it’s been on a bit of a downer and, recently, the Rolls-Royce share price has dropped significantly. Over one week, it is down 7.8%, putting it at #99 in the FTSE 100. Over one month, it has dived 15.2%, the worst performance in the Footsie. Ouch. Would I buy Rolls-Royce shares at under £1? This decline brings to mind one of my favourite Ben Graham quotes. The ‘father of value investing’ advised, “A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price”. Do I like Rolls-Royce Holdings as a business? You bet. As a multinational aerospace and defence company around since 1904, it has a storied history. It designs, manufactures, and sells world-class power systems for aviation and other industries. But the collapse in air travel clobbered the Rolls-Royce share price. As I write, it trades at 99.9p on Wednesday afternoon. I would buy big with the Rolls-Royce share price below £1, if not for one worry. In order to survive 2020, RR raised huge sums in bonds and loans, thus bashing its balance sheet. RR’s net debt (including leases) of £3.6bn is approaching half of its market value of £8.4bn. But the company has £3.5bn in cash and £5.5bn in undrawn credit to ride out future storms. Although this debt mountain scares me, I lack any potential growth stocks in my family portfolio. On balance, I’d take a small punt today on Rolls-Royce getting back on track from 2022 onwards! 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 Does the Rolls-Royce share price make me want to buy in 2021? 2 ways the Rolls-Royce share price could benefit from the reopening economy Is the Rolls-Royce share price undervalued? Is reopening important for the Rolls-Royce share price? Should I invest in Rolls-Royce or Aston Martin shares right now? Cliffdarcy 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 crashing in April! Should I buy RR today? appeared first on The Motley Fool UK.
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  40. Will the Rolls-Royce share price keep falling? (20/07/2021 - The Motley Fool UK)
    The Rolls-Royce (LSE: RR) share price has slumped over the past six months. The stock is off around 11% since the middle of January. This has wiped out most of the company’s gains over the past year. The stock is now up just 2.2% over the past 12 months. It’s impossible to pinpoint the exact reason why the stock has been falling recently. And if it’ll continue to do so. However, it looks to me as if the market is starting to become concerned about the group’s recovery prospects. With new variants of coronavirus spreading worldwide, these could disrupt the aerospace industry’s recovery in the months ahead.  Bad news for the Rolls-Royce share price  Such a development would almost certainly be bad news for the company. Most of the engines it sells to the civil aviation industry are sold on maintenance contracts. Under these contracts, Rolls only breaks even on the initial sale. The real money is made on the maintenance contracts sold with the engines. Unfortunately, these contracts tend to be linked to the number of flying hours each machine completes. Therefore, if aircraft are grounded, Rolls won’t get paid.  The above suggests that the company may miss its own target to return to cash flow break-even in the second half of 2021 if virus variants lead to additional lockdowns.  Of course, this is just speculation at this stage. The company hasn’t yet admitted it’ll miss its targets. Further, figures show that air travel has recovered to around 90% of pre-pandemic levels in the United States at least. If this trend continues, I think the Rolls-Royce share price will likely find some support and slow its declines as the industry’s fundamentals continue to improve.  As the world’s vaccination programme continues to gain traction, I think it’s likely we’ll see this outcome. As long as passengers continue to fly, Rolls will continue to generate cash, which will support the group’s balance sheet and the share price. Disagreements  Still, it seems that some investors disagree with this view. They appear to believe that the company’s outlook is deteriorating as new variants of coronavirus disrupt reopening plans. I think this remains a genuine risk to the firm’s prospects but, overall, governments seem determined to reopen economies, and I believe the Rolls-Royce share price will benefit from this.  At the same time, the company’s balance sheet is much stronger than it was this time last year. The immediate threat of bankruptcy has been removed. The group has billions of pounds of financial flexibility and headroom in its borrowing facilities. I think this provides the business breathing space to deal with further shutdowns, if necessary.  After considering all of the above, I think the Rolls-Royce share price will likely continue to decline as the market tries to digest news regarding virus variants. However, I believe the group’s fundamentals should only improve from last year’s devastation, which could drive the stock higher in the years ahead.  As such, I’d buy Roll-Royce shares for my portfolio today as a speculative investment. The post Will the Rolls-Royce share price keep falling? 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 How low can the Rolls-Royce share price go? 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? Rupert Hargreaves 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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  41. 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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  42. Will the Rolls-Royce share price rise in August? (02/08/2021 - The Motley Fool UK)
    Shares in Rolls-Royce (LSE: RR) have lately been showing the sort of movement more associated with the company’s engines. Moving down to become a penny share and now gaining altitude again, the shares have certainly encountered some heavy weather. But the Rolls-Royce share price is 30% higher than it was a year ago. Can it now go higher? Demand recovery is in progress One of the drivers for the Rolls-Royce share price is the utilisation rate of its installed engine base. They higher the flying hours, the greater the need for servicing. That is good for Rolls-Royce’s service revenues. There have already been signs of growing civil aviation demand recovery in markets like the US. Recently there has been similar news closer to home. Last week, for example, Ryanair said that it is seeing “a strong rebound of pent up travel demand into August and September” which it expects will continue in the following months. Rival Easyjet referred to “bookings surges experienced following selective easing of travel restrictions”. That sort of improvement in the number of passengers taking flights should be good for the Rolls-Royce share price, as long as it is sustained. The company also derives revenues from a number of businesses apart from civil aviation, such as defence. Performance in those business units has not weakened as much as that of the civil aviation division during the pandemic. If civil aviation demand continues to improve, I think Rolls-Royce could soon be reporting stronger performance throughout its business. That could help boost the Rolls-Royce share price. Cash flow news this week The company is set to release its interim results this Thursday. I think that could be an important event for the Rolls-Royce share price. Part of the nervousness investors have had about Rolls-Royce is its liquidity. Will it need to repeat the very dilutive rights issue it had last year? The company has repeatedly said that it expects to become cash flow positive in the second half of this year. If it does that, investors’ liquidity concerns will ease. That could help boost the share price. If Thursday’s results are good, that could lift the Rolls-Royce share price. But the thing I will most be keeping my eye on is the cash flow news. I expect the company to update on its target in the interim results. If it says it still expects to become cash flow positive in the second half – which is now underway – I see it as positive for the Rolls-Royce investment case. Rolls-Royce share price outlook for August So, what does that mean for the Rolls-Royce share price in August and beyond? If the interim results are strong, I think it could provide a boost for the shares. I therefore think that the Rolls-Royce share price could rise in August. But I also see risks. Demand recovery may be slower than expected, hurting the restoration of positive cash flow. Further lockdowns could mean future demand falling again. The dilutive rights issue last year points up the risk of any future liquidity crunch leading to further dilution. I’ll be digesting Thursday’s results eagerly, but for now am not tempted by the Rolls-Royce share price. The post Will the Rolls-Royce share price rise in August? 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 Can the Rolls-Royce share price return to pre-pandemic levels? Would I buy Rolls-Royce shares at 100p? The Rolls-Royce share price hits 100p! Is it time to buy this FTSE 100 stock? 2 FTSE 100 shares I’m buying after ‘freedom day’ The Rolls-Royce share price could be on the road to recovery 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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  43. 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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  44. The Rolls-Royce share price is above 100p: what next? (16/03/2021 - The Motley Fool UK)
    In the last six months, the Rolls-Royce (LSE: RR) share price has been as low as 40p per share and as high as 140p. Now back above the possibly important psychological marker of 100p, would I add the engineer’s shares to my portfolio? What’s happening with the Rolls-Royce share price? It’s worth noting that although the shares have increased a lot over the last month, over a longer timeframe they’ve performed poorly. In 2018, the shares reached 375p. In early 2014 they were over 400p. Even comparing Rolls-Royce to another engineer like Weir Group or Melrose, shows that its share price has underperformed. Weir and Melrose have made gains over the last 12 months, while Rolls-Royce has lost ground.   That could either mean Rolls-Royce could bounce back stronger, or that there are just greater concerns about the company versus other broadly comparable businesses. I fear it may be the latter. Yet the last month has been a bit stronger. This momentum has, I think, more to do with the rotation to value stocks over growth stocks, rather than specifically a vote of confidence in Rolls-Royce itself. More than just a temporary blip Covid only amplified problems that Rolls-Royce had. It wasn’t firing on all cylinders before the pandemic, as I have pointed out before. There were issues with cash flow and its Trent 100 engines, to give just two examples. Neither of these can easily be ignored, they are pretty major problems.  Even as Covid fades, and we have a roadmap in the UK out of lockdown, there’s still a lot of uncertainty around the engineer. Its wide-body planes will likely be less in demand for now, even as air travel increases. That’s because I’d suspect most people will likely take short breaks until they feel comfortable flying long-haul again. That means lower demand for bigger planes.  The impact of the pandemic will likely hurt its cash flow for years too. This year it’s expected to spend £4.2bn. Turning this situation around will take a lot of management time and require a lot of action, including likely further cost-cutting.  Those issues with the Trent 100 engines are still not fully resolved and have been eating up profits even before the pandemic. It’s hard to quantify what impact this has on the firm’s reputation, but it can’t do the brand any good.  What could help boost the shares? On the flipside of this gloomy picture we have both short-term and long-term opportunities. In the short term, the share price could benefit from being seen as a Covid recovery share. Longer term, reliable defence income and moving into new emerging technologies, such as modular nuclear reactors, could boost growth and investor sentiment. In the end the simple answer to the question of whether I’d add Rolls-Royce shares to my portfolio is probably not. For me there are other Covid recovery stocks that are better value and that could make for more profitable long-term holdings. 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: 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? Rolls-Royce share price: can it go back up to 200p? 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. The post The Rolls-Royce share price is above 100p: what next? appeared first on The Motley Fool UK.
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  45. Is the rising Rolls-Royce share price a buying opportunity? (06/09/2021 - The Motley Fool UK)
    When I last covered the Rolls–Royce (LSE: RR) share price in July, it was struggling to break above the 100p barrier. The shares are now sitting 17% higher at 111p, bringing one-year returns to just under 50%. Having been decimated by the pandemic, it seems sentiment towards the aerospace giant may finally be improving. Still way off pre-pandemic levels, this stock could continue climbing – so is now the right time to buy in? Ready for take-off The Rolls-Royce pandemic recovery seems to be taking flight. The 2021 half-year results backed up this view. Underlying operating profit reached £307m, contrasting with a £1.6bn loss in the same period for 2020. The company is still operating with a negative cash flow, but the figure has been reduced by over £1.5bn compared to 2020 H1. These metrics give me confidence that the Rolls-Royce share price can continue to pick up. The business has also emerged from the pandemic as a much more streamlined entity. The firm was forced to cut 7,000 jobs in 2020 due to a $4bn crippling loss. A further 2,000 jobs were announced to be cut in 2021 and Rolls said this process is now 90% complete. These cuts should help strengthen the firm’s liquidity position and rebuild the balance sheet, with it targeting £2bn free cash flow for the year. The firm also announced the appointment of Anita Frew as a non-executive director. Frew will also be replacing Sir Ian Davis as chairperson in October. Frew is the current chair of chemicals company Croda International, which has seen huge success over the last five years. New management, coupled with a streamlined balance sheet, could be a recipe for success over the coming years. If this is the case, I expect we could see the Rolls-Royce share price reach its pre-pandemic levels once again, or even push higher. Rolls-Royce share price risks Good news aside, there are still risks moving forward for Rolls. One risk I am aware of is the rising threat of inflation. The Bank of England has warned that inflation may creep to 4% as the economy fully reopens and people begin spending normally again. If this is the case, it opens the door to increasing interest rates. This is very bad news for a company that currently has £4bn debt. In addition to this, it is still going to be some time before flight numbers are back to normal levels. Analysts at McKinsey estimate the aviation sector won’t reach pre-pandemic levels until 2024. As Rolls makes the bulk of its money servicing jet engines, this may place a lid on business. In turn, this may also halt the Rolls-Royce share price growth. Overall, I think the coming months may still prove shaky for Rolls. That being said, I do like the long-term outlook for the firm. I will be placing this stock on my watchlist. The post Is the rising Rolls-Royce share price a buying opportunity? 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 Why I prefer the Lloyds dividend to the Rolls-Royce share price Is the Rolls-Royce share price a bargain at 115p? 3 reasons why I’d buy Rolls-Royce shares today I’ll buy Rolls-Royce shares when this happens Will the Rolls-Royce share price rise higher in September? Dylan Hood has no position in any shares mentioned above. 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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  46. HAL, Rolls-Royce sign pact for Make-in-India Adour Engine Parts for global markets (14/09/2021 - Money Works 4 Me)
    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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  47. 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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  48. I’m avoiding the Rolls-Royce share price. I prefer this FTSE AIM stock (15/07/2021 - The Motley Fool UK)
    Rolls-Royce (LSE:RR.) had a 2020 to forget. And the Rolls-Royce share price has continued to fall in 2021. I prefer another FTSE stock that I believe is a good option for my portfolio. Rolls-Royce share price continues to falter in 2021 Rolls-Royce was already having issues prior to Covid-19, like the Trent 1000 engine problem which cost $1bn to rectify. The pandemic saw RR cut approximately 9,000 jobs and was staring down the barrel of a multi-billion dollar loss for 2020.  As I write, the Rolls-Royce share price is down by nearly 15% in 2021. I can currently buy shares in RR for 92p per share. In 2020 alone, its share price fell by 54% from 234p to 107p per share.  I believe there could be better days ahead for Rolls-Royce, however. It has undergone a cost-cutting exercise which will help save it over £1bn. Next, the aviation sector as a whole will eventually return to what it was pre-Covid-19 although this may take a few years. Finally, the rollout of the vaccine will help normality resume and, in turn, help RR. Rolls-Royce is due to release first-half results in August. I am not buoyed by the Rolls-Royce share price currently but will check out these results. For now, I will avoid Rolls-Royce for my portfolio and look to other FTSE stocks. FTSE AIM stock falls to make it cheap ASOS (LSE:ASC) released its most recent results today. A negative reaction has caused a drop in its share price. I think this could be a prime buying opportunity to add ASOS shares to my portfolio. Unlike the Rolls-Royce share price, the ASOS share price has performed well in 2021 until the beginning of July. It rose by 5% from 4881p per share to 5150p. As I write, the ASOS shares are trading for 3920p per share. This is a remarkable 23% dip in 2021 overall. At current levels it is at its cheapest point since August last year. Traditional clothing retailers were hit hard by the Covid-19 pandemic but e-commerce clothing giants such as ASOS benefited. In ASOS’s trading statement for the four months to June, retail sales rose by 36% year-on-year to £1.24bn. UK sales rose by 60% year-on-year while international sales rose 15% compared to the same period last year. Despite ASOS experiencing strong sales, I believe investors have reacted negatively to news that trading had slowed in recent weeks. The final three weeks of the trading period was described as “more muted” due to Covid-19 uncertainty and poor weather. ASOS said it expects such trading volatility to continue in the short term. In addition to this, global supply chain issues with freight and delivery will hamper ASOS too. My verdict on ASOS I think comparing just the ASOS share price and Rolls-Royce share price to consider which to buy would be the wrong way of looking at things. There is lots more to consider and I much prefer FTSE AIM incumbent ASOS despite its share price drop today. I am fully aware of the challenges ASOS faces with headwinds expected from supply chain issues and the ongoing pandemic affecting operations and sales. Despite that, its share price drop has presented an excellent opportunity to add ASOS shares to my portfolio just now. The post I’m avoiding the Rolls-Royce share price. I prefer this FTSE AIM stock 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 The ASOS share price collapses to 11-month lows! Is now the time to buy? 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? Why is Rolls-Royce a penny stock? What’s going on with the Rolls-Royce share price? Jabran Khan has no position in any shares mentioned. The Motley Fool UK has recommended ASOS. 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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  49. The Rolls-Royce share price: 3 things that could give it a boost (29/06/2021 - The Motley Fool UK)
    The one thing that really could give Rolls-Royce (LSE: RR) a boost is an end to travel restrictions. But the reverse is happening right now amid a Covid-19 Delta variant surge. As a result, the Rolls-Royce share price ended Monday down 5.6%, as travel-related stocks declined across the board. Rather than opening up to British travellers, Spain and Portugal have both announced new restrictions. They include the need for vaccination certificates and negative tests, with quarantine as an alternative. Rolls-Royce isn’t the only one suffering, as TUI, International Consolidated Airlines, and the other airlines have all lost ground. We might see some respite should the UK’s restrictions end as hoped on 19 July. But while we still face continually changing pandemic uncertainty, I really can’t see the Rolls-Royce share price getting that one boost that it really needs just yet. Still, pandemic problems will surely only delay the Rolls recovery, won’t they? I mean, that recovery is sure to come, isn’t it? I’m convinced there will be a recovery, but I’m concerned over how long it will take. And the shape of the company that comes out of it could have an impact on Rolls’ long-term valuation. Debt, balance sheet What I’m getting at here is the balance sheet. And progress on that front is the next thing that I think could help the Rolls-Royce share price. Rolls is disposing of its Spanish subsidiary ITP Aero, for around €1.5bn, and that will surely help. The rescue package at Rolls got the company out of its crisis. But it involved taking on £7.3bn in new debt in the 2020 year. I think that’s manageable, providing the company can maintain sufficient liquidity to keep it going until the cash flow taps start opening again. If it can’t, we could see a further round of fundraising. And that would surely hammer the share price again. Right now, we’re looking at a race between Rolls-Royce’s business turnaround and the cash running out. The closer we get to knowing which will win, the greater the effect we should see on the share price. Rolls-Royce share price, medium term These are two nebulous issues, so is there anything more concrete? Well, first-half results are due on 5 August. And I expect the update will be one of the most keenly awaited in the FTSE 100 this year. And everyone will presumably be looking to the state of the firm’s balance sheet. With flying hours hardly changed so far this year, I’ll be looking for anything suggesting that possible further refinancing is on the cards. I’ll be hoping we don’t get it, and looking for upbeat outlook news. If the company makes optimistic noises regarding its balance sheet, and appears confident that it has enough liquidity, I think the shares could get a boost. I do see a strong long-term future for the company. But in the short-to-medium term, I fear events are more likely to have a negative effect than positive. I will not buy for now. The post The Rolls-Royce share price: 3 things that could give it a boost appeared first on The Motley Fool UK. 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 Should I buy FTSE 100 shares BP or Rolls-Royce for my ISA in July? 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? 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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