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03 August 2021
12:35 hour

How much is the Rolls-Royce share price really worth?

The Motley Fool UK

08/05/2021 - 13:17

The Rolls-Royce share price looks undervalued based on its recent performance, but as this Fool explains, valuing the business isn't easy. The post How much is the Rolls-Royce share price really worth? appeared first on The Motley Fool UK.


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  1. 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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  2. 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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  3. 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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  4. 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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  5. 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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  6. If you haven’t yet, I recommend looking at this Rolls Royce Long ETF, as Rolls Royce is starting to pick up! Not a financial advisor. (23/02/2021 - Reddit Stock Market)
      submitted by   /u/CranusCranii [link]   [comments]
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  7. Rolls-Royce earnings: here’s what will help me decide to buy more shares (10/03/2021 - The Motley Fool UK)
    FTSE 100 stock Rolls-Royce (LSE:RR) will release its earnings report on Thursday 11th March at 9am. It is well expected that the company will report its biggest annual loss in history and go into depth about the detrimental impact the Covid-19 pandemic has had on the business. Nonetheless, I think there might be light at the end of the tunnel for Rolls-Royce shares. Here are the main reasons why I am re-entering Rolls-Royce albeit tentatively, as I think there is a chance that we see a positive rise of the share price after earnings. Rolls-Royce is expected to report its biggest loss ever The market is already expecting the company to have its biggest ever loss on record so that isn’t likely to spook the share price if it is indeed reported. In fact, International Airlines Group recently reported a loss of £7.5 billion and its share price rose 3.5%; I am hoping that we might see something like that for Rolls-Royce’s shares. Reasons the stock could rise I am hoping that the management comes out speaking upbeat on its recovery, especially in terms of its aerospace division. This division manufactures and services engines for the airline industry and makes up 50% of the company’s total earnings. Therefore, with the vaccination roll-out going better than expected in the UK and improving globally, this is positive for Rolls-Royce’s main revenue stream especially as more airlines are now travelling than they did in the fourth quarter. Additionally, I hope we hear more from management about this and that they provide upbeat guidance for the rest of the year, especially with foreign holidays from the UK set to be allowed from 17th May. Reasons Rolls-Royce shares could fall A key metric to focus on will be its liquidity position (cash). During the pandemic, the management team reacted quickly and raised money from a rights issue. They also took measures to cut-costs to make the business leaner, which I think has only made the company a more attractive proposition if it can survive this pandemic. However, if we were to hear that Rolls-Royce may need to do another round of financing, or if it raises concerns about its cash position being able to survive a longer-than-expected recovery, this could send the share price falling. Why I am buying Nevertheless, although the shares have recovered somewhat, they are still significantly down from Rolls-Royce’s pre-pandemic levels of over 600p. That’s why I think now, before its FY earnings, is a great chance to get into this stock. Therefore, I am buying more shares in this global brand in the hope of a boost after earnings, but I will be holding a little bit of money back in case a ‘buy the dip’ opportunity presents itself instead. 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 is rising. Should I buy shares now? Tesla has fallen 35%. How I think it affects the Rolls-Royce share price The Rolls-Royce share price: is this best investment for 2021 and beyond? The Rolls-Royce share price is around 110p. Should I buy shares now? Rolls-Royce shares: here’s how much a £1,000 investment a year ago would be worth today Joseph Clark holds 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 Rolls-Royce earnings: here’s what will help me decide to buy more shares appeared first on The Motley Fool UK.
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  8. 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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  9. Rolls-Royce shares: here’s how much a £1,000 investment a year ago would be worth today (04/03/2021 - The Motley Fool UK)
    A one-year time frame is a good benchmark when I look at an investment return. It doesn’t mean I’ll sell after one year, but enough time has passed for me to see the general trend of the stock. Judging a company over a shorter time might lead me to make the wrong call on the stock. One example is Rolls-Royce (LSE:RR) shares. One-year performance  A year ago, Rolls-Royce shares were trading at 208p. As I’m writing, the share price is 115p. From this I can clearly see that a £1,000 investment is worth less now than it previously was. In numerical terms, it’s down 45%, so my £1,000 would be worth approximately £550. As a rough barometer, the FTSE 100 index over this period is down as well. However, it’s down less than 3%, so Rolls-Royce shares are underperforming the benchmark. This move lower doesn’t appear to be a one-off. If I look back two years, the share price was at 305p. There have clearly been fundamental drivers that have caused the value of the company to decrease over the past few years.  One of these has been the “tangible and sustainable cultural and performance shift” that was reported in the 2019 results. Rolls-Royce had focused on repositioning the business in several key areas. This meant cutting headcount (seen in both 2019 and 2020) as well as trying to reduce net debt (gross debt reduced by £1.1bn in 2019). This understandably meant Rolls-Royce shares took a knock, as trying to transform a mature company will hurt in the short run before investors see the benefits. Another hit to Rolls-Royce shares came due to Covid-19 last year. The impact was felt in most industries, but particularly in the aerospace sector. Demand for maintenance of engines and new engine sales in the civil aerospace area dried up. Although demand in other areas (such as defence) held firm, Covid-19 definitely took its toll. Should I buy Rolls-Royce shares now? I could look at Rolls-Royce shares and think that the downward trend might continue. However, there comes a point when the share price simply can’t fall lower unless the business is looking like it will go bust.  In its latest trading update, Rolls-Royce confirmed it has £9bn of liquidity available. So I don’t think the business is remotely close to going under in the short term. Therefore, I do see Rolls-Royce shares as an opportunity for me to buy in. But before I do, I’d like to see the full-year 2020 results that are due out on March 11. Besides any major disaster, I’ll buy after results come out. I imagine the commentary with the results will stress caution, but could look ahead with optimism. Based on the vaccination numbers, flying hours should increase in H2, which indirectly will benefit Rolls-Royce. Ultimately, I don’t see air traffic (either civil or otherwise) remaining depressed in the long term. So this should gradually mean a return to sustainable profits for the business. The issue here though is simply the risk of the unknown. If more virus mutations surface or lockdowns are prolonged, Rolls-Royce shares will likely continue to trade lower. However, I can’t predict this, and have to accept this as a risk. But with this in mind, I’d still buy the stock. 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 is rising. Should I buy now? Will the Rolls-Royce share price recover in 2021? Will the Rolls-Royce share price reach 150p? Rolls-Royce share price: what I’d do given the upcoming full-year result Rolls-Royce shares: is it the right time to buy? 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 Rolls-Royce shares: here’s how much a £1,000 investment a year ago would be worth today appeared first on The Motley Fool UK.
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  10. 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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  11. 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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  12. Does the Rolls-Royce share price make me want to buy in 2021? (21/04/2021 - The Motley Fool UK)
    As stock market crash stories go, the Rolls-Royce Group (LSE: RR) one is not pretty. But is there going to be a happy ending? Disappointingly, the Rolls-Royce share price recovery has gone off the boil a little, and the price is down so far in 2021. Over the past two years, the damage amounts to a painful 68% fall. Rolls-Royce depends on civil aviation for the biggest slice of its income. And while planes were grounded and engines didn’t need maintenance and repair, income for Rolls was hammered. It’s important to remember, though, that that’s not all there is to Rolls-Royce. The firm also has power systems and defence divisions. Still, the grounding of passenger planes was tough. But things are starting to look better now. Or are they? Folks in the UK seem to be super keen to book their holidays in the sun (almost as keen as they are to get back to the pubs, it seems). And the early 2021 recovery in the Rolls-Royce share price was surely based on anticipation of a sun-seeking summer. Some transport firms, including TUI, have made positive sounds about the prospects for international summer holidays this year. It might happen, and the Rolls-Royce share price could head upwards again. New Covid fears But fresh Covid-19 waves have already started around the world. And only this week, the British Prime Minister warned that we’re likely to see a third wave this year. I doubt it will be as devastating as those already past. But I won’t be booking any flights just yet. The prospects for 2021 don’t really matter too much for me anyway. No, I’m thinking of the longer-term future for the Rolls-Royce share price. About what things will be like in, say, five years. And whether the current valuation of the company suggests the shares are a bargain. And that’s where I’m just not sure. Firstly, Rolls-Royce did get itself into a sustainable financial situation. At least, I think it did, for now at least. Unless things get stretched and the company has to go back to the markets for a fresh injection of cash, that is. Is that likely? If the aviation business doesn’t get going again fairly soon and Rolls doesn’t see an improving income stream, I wouldn’t be surprised. Rolls-Royce share price progress? So when will we see the cash flows needed for sustained Rolls-Royce share price progress? Some observers suggest that aviation could get back to 2019 levels by 2024-2025. But those are among the more optimistic guesses. There’s increasing pressure from climate change too, with carbon emissions targets being brought forward. I wouldn’t be at all surprised if 2019 turned out to be a peak year for leisure flights, not to be equalled for a long time. So, on the one hand, I’m seeing a company that looks undervalued on the face of it, and that I’ve liked for years. And I think the Rolls-Royce share price could indeed have a strong future. But there are just too many uncertainties between now and next year for me. So no, I’m not going to buy in 2021. Maybe 2022. 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 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? This is what I’d do about the Rolls-Royce share price right 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 Does the Rolls-Royce share price make me want to buy in 2021? appeared first on The Motley Fool UK.
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  13. 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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  14. Rolls-Royce share price: what’s in store in the coming months? (26/04/2021 - The Motley Fool UK)
    Rolls-Royce (LSE:RR) was one of the biggest losers of the stock market crash caused by Covid-19 last year. What is ahead for the Rolls-Royce share price in the coming months, and is there an opportunity here for me to pick up cheap shares? Rolls-Royce share price woes Between February 2020 and September 2020, the Rolls-Royce share price lost 80%. Across the whole of 2020, the Rolls-Royce share price declined by over 50%. Its debt levels rose as it borrowed to keep the lights on, and it also cut jobs and announced a rights issue to generate cash flow. In December, the Rolls-Royce share price experienced its highest post-Covid-19 price. Shares were trading for 135p per share. Since that time, however, the share price has fallen over 20%.  Challenges and outlook ahead Airlines are operating more than at this time last year. The issue here is that Covid-19 is still rife and there could be further restrictions if another wave hits. In terms of Rolls-Royce, I believe the overall outlook is improving. I do believe, as I write, the worst of the crisis is over. It has taken the necessary steps to see it through some tough times and has begun to shore up its once-beleaguered balance sheet. There are still some challenges it needs to overcome, however. In a recent trading update, Rolls-Royce predicted a free cash outflow in the region of £2bn in 2021. This is money that is going out of the business that its management team will need to find from somewhere. In the same update, it did mention its £9bn liquidity, which is a good sign in my opinion. This should help with the cash outflow mentioned. The Rolls-Royce share price could benefit in the future if ambitions are achieved. It believes it can generate over £700m of free cash flow by 2022. This is a projection based on past figures and flying hours of engines. Cash is king and this could put Rolls-Royce in a much better position.  My verdict I believe there is lots of recovery potential linked to the Rolls-Royce share price. The issue I have is that this recovery is linked to Covid-19. I don’t think it can handle another scenario whereby planes are grounded and it faces severe losses. It must be noted that different parts of the world are in different states related to the virus. The US seems to be flourishing from an aviation perspective and is a market Rolls-Royce can capitalise on. Asia is struggling right now with a deadly variant, and there seems to be another lockdown on the horizon over there. I believe the current Rolls-Royce share price is not reflective of its improving stature, and I think it will creep up over the coming months. I class it as a high-risk investment but I think it is priced quite low right now. It could make an interesting recovery play for my portfolio. Right now, I would not invest in Rolls Royce shares but will keep a keen eye on developments.  Away from Rolls Royce, here is a tech stock that recently underwent an IPO that I have examined. CEO’s £500,000,000 Stake on Industry’s “Uber” Revolution We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign. But with this opportunity it could get even better. Still only 55 years old, he sees the chance for a new “Uber-style” technology. And this is not a tiny tech startup full of empty promises. This extraordinary company is already one of the largest in its industry. Last year, revenues hit a whopping £1.132 billion. The board recently announced a 10% dividend hike. And it has been a superb Motley Fool income pick for 9 years running! But even so, we believe there could still be huge upside ahead. Clearly, this company’s founder and CEO agrees. Learn how you can grab this ‘Top Income Stock’ Report now More reading As the Rolls-Royce share price falls, I’m still buying Will the Rolls-Royce share price recover in the second half of 2021? Why I think I could double my money with the 100p Rolls-Royce share price The Rolls-Royce share price is crashing in April! Should I buy RR today? Does the Rolls-Royce share price make me want to buy in 2021? Jabran Khan has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Rolls-Royce share price: what’s in store in the coming months? appeared first on The Motley Fool UK.
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  15. Rolls-Royce share price: could the company be a Tesla competitor in the future? (10/02/2021 - The Motley Fool UK)
    Could Tesla affect the Rolls-Royce (LSE:RR) share price? Here’s what I think.  Currently, numerous Tesla competitors occupy a strange position in the market. Although they compete against a company with immense resources, many Tesla competitors have high valuations. For many bulls, it seems the thinking is, If Tesla is worth a lot, companies in the same sector as Tesla might be worth a lot too. We’ll have to see whether that thinking proves correct. Given Tesla’s bullish valuation, the market expects Elon Musk’s company to capture a lot of market share in the future. If that happens, many Tesla competitors might not have as much market share themselves. On the other hand, companies with great execution in the future could always beat expectations. Speaking of Tesla competitors, some investors believe Rolls-Royce could become one. Here’s why some think that and what I reckon it could mean for Rolls-Royce share price. Tesla competitor? When people hear the name Rolls-Royce, many think of aviation and aircraft engines. Indeed if Rolls-Royce and Tesla were to compete in a big way, I reckon it could be in the area of electric aircraft such as ‘flying taxis’. Given where emission regulations are going and how battery technology is expected to improve, electric flying taxis will likely be economically competitive one day. Since manufacturing quality aircraft engines is one of Rolls-Royce’s specialities, I think it’s only natural to think the company might enter the market to sell electric engines for those flying taxis in the future. If Rolls-Royce management decides on that path, I reckon the company could also come up with a flying taxi of its own one day. Given Tesla’s has immense financial resources, some investors think the company could also enter the electric aircraft market one day. If Rolls-Royce and Tesla both were to sell electric aircraft at some point, the two would could indeed be meaningful competitors. Whether that ever actually happens, however, is very uncertain. When asked about the potential for electric planes in the near term, Elon Musk said, I think it’s incredibly difficult to bring an aircraft to production and meet all the regulatory requirements worldwide. It’s a very difficult thing… It takes a massive amount of effort to do any one of these things, so you can’t do them all. Given Musk’s comments, perhaps it’s not likely that Tesla will compete in the electric aircraft market in the near future. Nevertheless, the market could be so huge that I believe it could still be a possibility in the long run. How I reckon it could affect the Rolls-Royce share price Because I don’t see Rolls-Royce meaningfully competing against Tesla any time soon, I don’t think the Rolls-Royce share price will benefit from being perceived as a Tesla competitor. Many believe electric planes that carry hundreds of people are decades away. Although electric taxis could become viable sooner, they could still be a quite a number of years off. Nevertheless, I’d still hold Rolls-Royce stock. I think the current Rolls-Royce share price is attractive given the company’s long-term potential in future green fields. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading 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 Rolls-Royce share price has declined almost 30%. Here’s what I’d do Jay Yao has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Rolls-Royce share price: could the company be a Tesla competitor in the future? appeared first on The Motley Fool UK.
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  16. 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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  17. 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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  18. 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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  19. The Rolls-Royce share price could be on the road to recovery (27/07/2021 - The Motley Fool UK)
    With the Rolls-Royce (LSE: RR) share price dropping below 100p, I am tempted to buy this stock before the civil aerospace company’s recovery becomes fully realised. But with possible further damage to the aviation sector brewing because of new variants of coronavirus such as the Delta variant, some investors might see this share as one to be avoided. Here, I explain why I will be betting on a favourable future in 2021 for Rolls-Royce. Another lockdown could be devastating for Rolls-Royce First things first, I need to look at what another lockdown could mean for the Rolls-Royce share price. With no planes in the air due to travel restrictions, Rolls-Royce would continue to lose revenue on its maintenance contracts as these are dependent on airtime. This would be a big blow for the company because these contracts contribute to Rolls-Royce’s main bulk of revenue, whereas the company only just about breaks even on the initial sale. However, this is just speculation for now, and the situation looks a lot better than it did last year. Rolls-Royce is not making any adaptations to its recovery plan for the time being, and with air travel having its busiest weekend since the pandemic hit, I am quite hopeful that this is a sign of positive things to come. Rolls-Royce restructuring programme Following on from its cost saving plan from 2020, Rolls-Royce estimated that it saved £1bn beyond its expectations before the pandemic arrived. The company now aims to reach £1.3bn in operating costs and capital spend savings by the end of next year. Of course, we can see that Rolls-Royce is steadfastly committed to its restructuring programme as it temporarily shut down its plant in Renfrewshire this week. With the company continuing to do good on its word to cut costs, I am convinced that its commitment will lead to more investor confidence on the Rolls-Royce share price. Further, the balance sheet looks a lot healthier than compared to last year, and the threat of bankruptcy is no longer in sight. This is mainly because the company secured £7.3m in additional liquidity in 2020. If the company meets its expectations of turning cash flow positive in the second half of 2021, then I think this success will attract a lot of buyers. This could lead to a very profitable return for me if I add this share to my portfolio before Rolls-Royce announces its interim results on the 5th of August. Will the Rolls-Royce share price recover? The dark times of Covid-19 could very well be behind us, but with this new Delta variant and any more variants to come, the situation could change very quickly. The effects of another lockdown would most likely damage Rolls-Royce’s progress, and its thoughts of turning cash flow positive would become an all-forgotten dream. However, I think that the current situation points in a more positive direction. Passengers are flying again, and the government is putting more countries on the green list. I also have confidence that Rolls-Royce’s restructuring procedure will put it on the road to recovery. Whilst it may still be a bit of a bumpy ride for the Rolls-Royce share price, I will be buying this stock as a recovery play. The post The Rolls-Royce share price could be on the road to recovery 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 I’d avoid the Rolls-Royce share price and buy this FTSE 100 stock instead Can the Rolls-Royce share price hold out until the end of 2021? 5 reasons to buy Rolls-Royce shares – and why I’m not Are these 2 FTSE 100 travel stocks a bargain? Would I buy Rolls-Royce shares at 8-month lows? John Town has no position in 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. 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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  21. The Rolls-Royce share price is rising. Should I buy shares now? (10/03/2021 - The Motley Fool UK)
    Shares in Rolls Royce (LSE: RR) have moved around a fair bit lately. The share price is up 10% so far this year. In this past month alone it’s put on 20%. That performance hasn’t been enough to get the Rolls-Royce share price back to where it was, though — it’s still 40% lower than this time last year. Here I will look at why the share price has been rising and consider whether I ought to add Rolls-Royce to my portfolio right now. The Rolls-Royce share price received a vaccine boost The company’s recent share price increase has coincided with growing vaccination roll out. As an aeroplane engine maker and servicer, the company’s fortunes are tied to demand for air travel. Rising vaccination rates ought to see more countries ease travel restrictions. That is good for Rolls-Royce, as the greater utilisation of engines, the higher the demand for servicing. However, while vaccination rates are rising, air travel is still nowhere near its normal level. The company clearly expects demand to increase. It said it should be cash flow positive in the second half of this year. However, its prior estimate of how fast air travel would return was adjusted downward. I think it is too early to say with any certainty whether air travel demand will actually come back to anything close to normal levels even by the end of this year. The company has substantial liquidity so should be able to ride out the storm even if it doesn’t turn cash flow positive in the second half. But that liquidity has come at a cost, most notably a large dilution of shares in last year’s rights issue. The challenge to the Rolls-Royce share price isn’t just about demand from airlines. I think it also reflects some investor nervousness that the company’s much-enlarged share float reduces the benefit to the shares even if the business does recover fully. Hunting for better options I find some aspects of the investment case for Rolls-Royce persuasive. It has a well-admired engineering expertise and reputation. The aircraft engine market is expensive and difficult to enter, so players like Rolls-Royce have a position of strength. Its installed base of engines virtually guarantees service revenues for years and sometimes decades to come, although a demand shock such as a future pandemic could affect them. In that sense, the company comes close to having the sort of economic moat Warren Buffett appreciates. But the pandemic has shown up some weaknesses in the company’s business model too. It is highly sensitive to demand, which is largely outside its control. Even with budget savings such as the elimination of 7,000 positions last year, the fixed costs of developing and servicing plane engines are high. That is one reason I think the Rolls-Royce share price is still well below its former level, even after the recent increase. Life getting back to normal will improve business prospects for the company. But for pandemic recovery picks I am more attracted by pub operators like J. D. Wetherspoon or transport companies like Go-Ahead. Their structural economics appeal to me more than those of Rolls-Royce, and demand recovery could come faster than it may for the aero engines market. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Tesla has fallen 35%. How I think it affects the Rolls-Royce share price The Rolls-Royce share price: is this best investment for 2021 and beyond? The Rolls-Royce share price is around 110p. Should I buy shares now? Rolls-Royce shares: here’s how much a £1,000 investment a year ago would be worth today The Rolls-Royce share price is rising. Should I buy now? christopherruane has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Rolls-Royce share price is rising. Should I buy shares now? appeared first on The Motley Fool UK.
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  22. 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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  23. 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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  24. 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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  25. Can the Rolls-Royce share price recover in 2021? (20/07/2021 - The Motley Fool UK)
    The Rolls-Royce (LSE: RR) share price has been falling. In fact, the stock is currently trading below 90p. But despite the recent fall, I’m optimistic that the Rolls-Royce share price can recover in 2021. I’d buy the stock on this dip. Here’s why. Why is the Rolls-Royce share price falling? In short, Rolls-Royce has exposure to the civil aviation space. It makes most of its money from selling aircraft engines and servicing them. And so if people are travelling less this will impact the company’s revenues. It’s pretty simple to understand why the share price fell last year. The pandemic caused a lot of uncertainty. But the same is happening again. Up until a month ago, the stock was recovering. But Covid-19 case numbers are on the rise in the UK again, driven by the Delta variant. Hospitalisations and deaths are also increasing, but thankfully not at the same rate. Couple this with restrictions being eased and this has created uncertainty in the markets. In fact, the FTSE 100 index was down over 2% yesterday, which highlights that investors may be thinking that the UK government is opening up the economy too soon. Another lockdown hasn’t been ruled out and it has caused a degree of uneasiness. Of course, this is going to impact travel-related stocks and Rolls-Royce is one of them. It doesn’t help when Health Minister Sajid Javid is having to self isolate after testing positive for Covid-19. At the same time the UK Prime Minister and Chancellor are having to isolate as well. So should I buy? I’m worried that the number of coronavirus cases are rising. And I reckon the number could rise further now that the economy has reopened. Of course, this is going to have a knock-on effect on the Rolls-Royce share price.  But for now I’m encouraged by the fact that the number of hospitalisation and deaths aren’t increasing as fast as case rates. On this basis, I’d buy Rolls-Royce shares on the dips. I think that in the long term, the company can weather the coronavirus storm. It’s worth noting here that the company still expects to turn free cash flow positive at some point in the second half of 2021. It reckons travel will recover and also its cost savings initiatives should start paying off. This has yet to be seen. In fact, the firm expects to announce its interim results on 5 August. So I’ll have a better understanding if the company remains on track. For now, Rolls-Royce has sufficient liquidity and its earnings from its defence sector as well as the money from its disposals to rely on. It also has a strong brand and reputation. Hence I think the stock can recover in 2021. But if things do get worse, it may come to the market and ask for more money. I don’t think this will be viewed positively by investors as it means that times are still tough for the company. This may impact the Rolls-Royce share price. And there’s no guarantee that it will be able to raise the funds. As I said, I feel it has done enough so far and taken the right steps. I think this Covid-19 uncertainty has created a buying opportunity and I’d buy the stock on the dips. I think the stock can recover in 2021. The post Can the Rolls-Royce share price recover in 2021? 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 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 The Rolls-Royce share price is falling in July: here’s why I’d buy Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  26. 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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  27. 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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  28. 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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  29. Tesla has fallen 35%. How I think it affects the Rolls-Royce share price (09/03/2021 - The Motley Fool UK)
    With it having such a large market cap, Tesla’s fortunes affect many other stocks. Given how influential Tesla is, it’s not out of the question that it indirectly affects Rolls-Royce (LSE:RR) too. With Tesla shares declining from around $880 in late January to $563 on 8 March, here’s how I think it affects the Rolls-Royce share price. Tesla & Rolls-Royce  In the past, I think demand for many electric-related stocks increased due to Tesla’s success. Although many electric stocks don’t really have anything in common with Tesla, some in the market probably thought they did (or anticipated the correlation) and bought shares of the companies. The buying somehow caused more buying and many electric stocks rallied when Tesla rallied. Given that air taxi stocks are electric, I reckon they benefited from Tesla’s success as well. This is despite Tesla not being an air taxi stock itself.  I think Rolls-Royce could benefit if air taxi stocks are in high demand (despite Rolls-Royce also not being an air taxi stock itself — yet). If demand for air taxi stocks is strong, air taxi startups could find it easier to raise money. With more money, they could spend more on R&D and potentially bring a product to the mass market faster. If air taxis become market ready faster, demand for air taxi propulsion systems could increase faster. Assuming Rolls-Royce is the leader in air taxi propulsion systems like it wants to be in the future, RR could stand to benefit with more potential growth too.  By that reasoning, Tesla shares falling could indirectly lower demand for air taxi stocks and indirectly negatively affect Rolls-Royce. Is it the case in practice? While the ‘Tesla affects Rolls-Royce’ fundamental reasoning sounds compelling, the Rolls-Royce share price hasn’t really reflected it. While Tesla shares have surged in 2020, for example, RR actually decreased substantially. As a result, I don’t think Tesla falling 35% from its highs actually affects the Rolls-Royce share price all that much. The market, in my view, seems to be more focused on Rolls-Royce’s civil aerospace business rather than its future potential air taxi propulsion business. Civil aviation gets more media attention, and Rolls-Royce’s near-term fundamentals depend a lot more on civil aviation than air taxi propulsion. The Rolls-Royce share price: what I’d do Rolls-Royce has uncertainty. The Rolls-Royce share price might not do well if air travel doesn’t recover like the market expects. Given that it’s a new market, it’s also not clear if Rolls-Royce will succeed in the air taxi propulsion system market like the company has in the traditional jet engine market. The British company will likely have a lot of competition in that category. Nevertheless, I think the market isn’t really reflecting the potential value in Rolls-Royce’s air taxi propulsion business because it’s still in its very early stages. It also hasn’t gotten much press as management hasn’t really advertised it. As the technology progresses, however, I reckon the market perception of the British company’s air taxi propulsion business could increase. Given the business’ potential and the potential for air travel to eventually recover with the vaccine rollouts, I’d buy and hold shares at the current Rolls-Royce share price. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). 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Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading The Rolls-Royce share price: is this best investment for 2021 and beyond? The Rolls-Royce share price is around 110p. Should I buy shares now? Rolls-Royce shares: here’s how much a £1,000 investment a year ago would be worth today The Rolls-Royce share price is rising. Should I buy now? Will the Rolls-Royce share price recover in 2021? Jay Yao has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Tesla. 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 Tesla has fallen 35%. How I think it affects the Rolls-Royce share price appeared first on The Motley Fool UK.
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  30. Can the Rolls-Royce share price return to 200p? (10/07/2021 - The Motley Fool UK)
    At the beginning of 2020, the Rolls-Royce (LSE: RR) share price changed hands for around 232p. But then the coronavirus pandemic struck. As the aviation industry around the world was grounded, the firm had to fight for its survival. Investors, fearing the worst, fled, and the value of the company’s shares plunged. By the beginning of October 2020, the Rolls-Royce share price had fallen below 40p, a decline of 84% from the year-end 2019 level.  Over the past 12 months, the stock has regained some of its losses. The stock is up around 8% over the past year.  And now the aviation industry is starting the claw back its pandemic losses, the outlook for the Rolls-Royce share price is beginning to improve.  I think there’s even a chance the stock could return to 200p at some point in the future.  Rolls-Royce share price outlook Over the past year, the pandemic has forced Rolls to take defensive action. It has reduced activity and slashed thousands of jobs.  The company is a much smaller enterprise today than it was two years ago. This suggests the value of the business has been permanently impaired. Unfortunately, that implies the stock may never return to pre-2019 levels, although this is only a rough guide. It’s impossible to say what the future holds for any stock price.  That’s not to say the Rolls-Royce share price can’t return to 200p. Back in 2019, the stock was changing hands for around 300p. I think it’s unlikely it’ll return to this level anytime soon.  However, management is targeting free cash flow of around £750m in the next two years. If the company can hit this target, it would be trading at a free cash flow yield of about 9%. Peers in the aerospace and defence sector are trading at a free cash flow yield of around 3-5%.  These metrics imply the stock could be worth almost double its current valuation if it hits its free cash flow target.  That is a big IF. The third wave of coronavirus has already disrupted the company’s cash flow target. Another coronavirus wave, or an engineering setback, could blow up these projections.  On a knife-edge  As such, it seems to me as if the stock is on a bit of a knife-edge. It needs everything to go right over the next few years and win more business to hit its growth targets.  If growth doesn’t live up to expectations, investor sentiment may take a hit as the company disappoints yet again.  Based on these takeaways, I’d be happy to buy the stock for my portfolio as a speculative investment. I think it could be incredibly undervalued if everything goes right over the next two to three years. I believe it could get closer to its former heights. Nevertheless, it’s clear this isn’t an investment for the faint-hearted. Any number of other things could go wrong that would cause additional problems across the group.  The post Can the Rolls-Royce share price return to 200p? 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 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? Rolls-Royce shares are below 100p. 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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  31. The Rolls-Royce share price hits 100p! Is it time to buy this FTSE 100 stock? (28/07/2021 - The Motley Fool UK)
    It has been an extremely challenging 18 months for Rolls-Royce (LSE: RR), with the pandemic causing absolute havoc, especially in the civil aerospace division. This has seen the company incur very large losses, and the Rolls-Royce share price even dropped to below 40p at one point. But with the country starting to return to normality, there is some hope that the business can recover. At over 100p, should I therefore be buying this FTSE 100 stock now? The year of 2020 It’s fair to say that the majority of UK companies struggled during 2020. Nonetheless, due to its ties with the aviation sector, Rolls-Royce was one of the biggest strugglers. This was confirmed in the company’s full-year trading update, where it reported a loss of over £3.1bn. Such a large loss included the effects of impairment charges, restructuring costs, and lower revenues. To survive, the firm had to take drastic measures. For instance, at the end of October last year, the company managed to raise £2bn through issuing nearly £6.5bn new shares. Due to the dilution of shares, this caused the Rolls-Royce share price to fall by around 64%. It also limits the likelihood of the share price returning to its pre-pandemic prices, unless the company is in the financial position to buy back some of these shares. There is no possibility of this happening for a long time. On the flipside, this secondary offering of shares, alongside debt issuances, did manage to strengthen liquidity to £9bn. This included £3.5bn in cash and £5.5bn in undrawn credit facilities. The company also hopes to reach £1.3bn in annual cost savings by the end of 2022. All of this means that I am confident the company will survive, and it reduces the risk of investing. This is one reason to buy shares as a recovery stock. What’s next? Of course, with international flights still far below 2019 levels, Rolls-Royce faces a number of challenges. The high number of global coronavirus cases at the moment therefore remains an extremely pressing issue. Despite this, the company still hopes to start generating cash again at some point during the second half of this year. It is also important to recognise that the Rolls-Royce business has more to it than just its civil aerospace division. Indeed, last year, its defence sector accounted for 29% of the firm’s revenues. It also had underlying operating profits of £448m. As such, I believe this sector could have a positive effect on the upcoming half-year results, which may see the Rolls-Royce share price gain further momentum. Can the Rolls-Royce share price rise further? I feel that the Rolls-Royce share price is still in for a very turbulent 2021. Clearly, the civil aerospace division will carry on struggling, and losses look set to continue for the foreseeable future. There is also no proposition of any shareholder returns until at least 2023. As such, while I feel there is some upside potential, and bankruptcy does not seem likely, there are still too many problems with the company for me to invest. The post The Rolls-Royce share price hits 100p! Is it time to buy this FTSE 100 stock? 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 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 Can the Rolls-Royce share price hold out until the end of 2021? 5 reasons to buy Rolls-Royce shares – and why I’m not Stuart Blair 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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  32. 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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  33. 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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  34. Rolls-Royce share price is around 100p. Here’s what I’d do (22/02/2021 - The Motley Fool UK)
    The Rolls-Royce (LSE:RR) share price has likely reflected the recent battle between Covid-19 vaccines and variants. Initially, the Pfizer vaccine candidate news really beat efficacy estimates in November and the Rolls-Royce share price rallied. Later, Covid-19 variants spread and made the prospect of a fast recovery in civil aviation more distant. The Rolls-Royce share price fell as a result. With the Rolls-Royce share price now close to the 100p level and everything that’s happened, here’s what I’d do. Vaccines versus variants In the battle between the vaccine and the variants, it’s not the end of the world for Rolls-Royce. While the spread of Covid-19 variants has slowed the recovery in civil aviation, the company still expects to turn cash flow positive at some point in the second half of 2021, according to a trading update released earlier in the year. Management is also confident that they are well positioned for the future given the company’s liquidity of around £9bn. At its current stage, I reckon the Covid-19 vaccines are getting a slight upper hand on the variants. Production of Covid-19 vaccines has ramped up higher and the number of new cases has fallen in many parts of the world. If the number of new cases continue to decline sharply, there is the possibility that civil aviation recovery expectations could increase and this could potentially benefit the Rolls-Royce share price. There could also be hope in the future against variants. Companies like GlaxoSmithKline and CureVac are, for instance, working on multivalent mRNA Covid-19 vaccine candidates that could target variants more effectively. The two companies, which are working together, hope to bring a multivalent product onto the market next year. If the late stage results of those multivalent vaccine candidates are positive, I reckon that civil aviation recovery expectations could increase. With this said, Covid-19 is constantly mutating and there is potential for a new strain to hinder civil aviation more than expected. As a result, the Rolls-Royce share price could always decline. Rolls-Royce share price: what I’d do Given the current information on Covid-19 variants and the current Rolls-Royce share price, I’d buy shares. Making quality and dependable jet engines is one of the hardest things in the world to do. It takes a lot of engineering know-how that I think gives Rolls-Royce a potential competitive advantage in future growth sectors. I think civil aviation will eventually recover and RR could be a good investment as a result. I could be wrong, however, if a new Covid-19 variant spreads and becomes a big problem. I’d also follow the annual result report next month, particularly when it comes to future guidance (if management provides any). If Rolls-Royce beats the market’s real estimates on earnings or guidance, I could see how the stock could go higher. I could also see the stock going lower if the results are underwhelming. I’d also be interested in how the company’s planned sale process of ITP Aero is going. I reckon a higher than expected sale price could help the stock. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Rolls-Royce shares: should I buy? Rolls-Royce share price: how the company is preparing for the air taxi market The Rolls-Royce share price is back above 100p, but I wouldn’t buy the stock yet The Rolls-Royce share price is rising this week. Should I buy? The Rolls-Royce share price is under £1: should I buy today? Jay Yao has no position in any of the shares mentioned. The Motley Fool UK has recommended GlaxoSmithKline. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Rolls-Royce share price is around 100p. Here’s what I’d do appeared first on The Motley Fool UK.
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  35. The Rolls-Royce share price is rising. Should I buy now? (03/03/2021 - The Motley Fool UK)
    Rolls-Royce (LSE: RR) shares are popular right now. Last week, Rolls-Royce was the fifth most purchased stock on Hargreaves Lansdown. Meanwhile, on Trading 212, RR is currently the 7th most owned stock overall. This interest in the stock appears to be pushing its share price up. Is this a share I should buy for my own portfolio? Let’s take a look at the investment case. Rolls-Royce shares: the bull case I can see why Rolls-Royce shares are popular at the moment. For starters, the share price has been hit hard due to Covid-19 disruption. Over the last year, RR is down about 50%. As a result, the company has a market cap of just £2.2bn right now. If the prospects for the airline industry improve (which I think they will eventually), Rolls-Royce shares could rise. That’s because the company generates a substantial proportion of its revenues from the manufacturing and servicing of engines for the commercial aviation industry. Secondly, there’s been a lot of talk this year about all-electric planes and ‘air taxis’ and some investors believe that Rolls-Royce could be a big player in these areas. Recently, Rolls-Royce has been developing a high-performance electric aeroplane named Spirit of Innovation. This has completed its first runway taxiing tests, ahead of a first flight, which is expected to take place this spring. “This system and the capabilities being developed will help position Rolls-Royce as a technology leader offering power systems to the urban air mobility market,” said Rob Watson, director of Rolls-Royce Electrical, after the tests. This development certainly looks interesting. Going forward, air mobility could be a genuine source of growth for Rolls-Royce. Is RR a good fit for my portfolio? Having said all that, I’m not convinced that Rolls-Royce shares are a great fit for my portfolio at the moment. I like to invest in companies that are consistently profitable, cash generative, financially sound, and that generate a high return on capital employed. In other words, I like high-quality businesses. Companies like Apple, Microsoft, and dotDigital are some good examples. Companies that have these kinds of attributes tend to be good investments over time. Looking at Roll-Royce’s financial track record, it’s not so impressive. In recent years, the company has posted big losses on a number of occasions (well before Covid-19). And even when it was profitable, return on capital employed was not that high. Meanwhile, Stockopedia gives Rolls-Royce an Altman Z1 score of -0.19 which indicates a “serious risk of financial distress” within the next two years. Overall, Rolls-Royce does not appear to me to be a high-quality business. Better stocks to buy In conclusion, I do think Rolls-Royce shares have the potential to keep rising in the short term. If the airline industry picks up, the company should benefit. However, Rolls-Royce is not the kind of stock I’d buy for my portfolio. I think there are much better stocks I could buy right now that are more suited to my goals (generating strong returns over the long term) and risk tolerance. Like this one…. 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 Will the Rolls-Royce share price recover in 2021? Will the Rolls-Royce share price reach 150p? Rolls-Royce share price: what I’d do given the upcoming full-year result Rolls-Royce shares: is it the right time to buy? The Rolls-Royce share price: have we seen the bottom? Edward Sheldon owns shares in Apple, Microsoft, dotDigital, and Hargreaves Lansdown. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Apple and Microsoft. The Motley Fool UK has recommended dotDigital Group and Hargreaves Lansdown. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Rolls-Royce share price is rising. Should I buy now? appeared first on The Motley Fool UK.
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  36. Should I buy Rolls-Royce shares for my portfolio today? (25/03/2021 - The Motley Fool UK)
    It seems that everywhere I look, people are talking about Rolls-Royce (LSE: RR) shares, and so I’m not surprised to see that it is one of the most popular traded companies in the UK right now. Up until mid-March, the Rolls-Royce share price had soared by almost 25%. However, since then the company’s shares have almost given up those gains, falling more than 17% as of market close on March 24. Over the last 12 months, they are down by almost 25% at the time of writing. However, I agree with my Foolish colleague Christopher Ruane that the Rolls-Royce share price will reach 150p this year, but following this dip, should I buy the stock for my portfolio today? Why are Rolls-Royce shares falling? Its share price began declining immediately following its full-year 2020 financial earnings release earlier this month, which revealed that: Total sales fell 24% to £11.8 billion. Total losses accrued to £4 billion. It suffered a £1.7 billion finance charge. I wasn’t too surprised to see that things hadn’t gone very well for the aerospace company. After all, its biggest business segment, Civil Aerospace, took a nosedive thanks to Covid-19-induced travel restrictions. This is still a major risk for Rolls-Royce shares going forward, as there is no guarantee that life will return to normal any time soon (although these two top FTSE stocks that I’m buying before the summer will certainly be relying on such an event). However, with major European markets such as Germany and France reporting rising coronavirus cases in the past month, there is a very real threat to Rolls-Royce’s share price if the situation should deteriorate. Should I buy the stock? I don’t think that Rolls-Royce shares will be able to stage a major comeback this year if lockdown restrictions and vaccination levels don’t go as currently planned, which is far from guaranteed, so I am under no illusions that I am taking a risk by adding it to my portfolio. But I am going to take that risk anyway as Rolls-Royce’s share price continues to fall. Call me an optimist, but I’m still hopeful that widespread reopenings and some return to normalcy will return as 2021 drags on. And, at the end of the day, the company is still one of the world’s leading manufacturers and maintenance providers for aircraft engines — a job that I believe will be in high demand when reopenings come. What excites me in relation to the Rolls-Royce share price is the amount of maintenance that will be required once more planes get back in the air. To put how important this maintenance revenue is for Rolls-Royce into perspective, the company sold £3.2 billion of civil aircraft engines in 2019 but recorded a further £4.9 billion in service revenues for the sector. Even in 2020, with Covid-19 severely limiting flights worldwide, service revenues came in at £2.8 billion. Even taking away the fact that the company’s defense revenue actually grew by 4% to £3.4 billion last year, I expect the Rolls-Royce share price to grow even further when the thousands of currently grounded planes around the world suddenly need inspections before hitting the skies once more. I think that Rolls-Royce shares are a bargain for my portfolio today. as I expect its share price to grow as normality returns.  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 Will the Rolls-Royce share price reach 150p this year? 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 Jamie Adams 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 Should I buy Rolls-Royce shares for my portfolio today? appeared first on The Motley Fool UK.
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  37. 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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  38. 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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  39. 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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  40. 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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  41. 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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  42. 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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  43. 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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  44. 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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  45. This is what I’m doing about the Rolls-Royce share price (07/07/2021 - The Motley Fool UK)
    It’s perhaps no surprise to see the Rolls-Royce Holdings (LSE: RR) share price still struggling for liftoff. The FTSE 100 company has failed to rally like many other cyclical UK shares as the continuing Covid-19 emergency keeps travel restrictions in place in many regions. Rolls-Royce’s share price has advanced just 8% over the past 12 months. That’s significantly below the 15% rise the broader FTSE 100 has enjoyed in that time. But are UK share investors missing a trick by not buying in? Why Rolls-Royce’s share price could fly There are several reasons why Rolls-Royce could soar in the second half of 2021. These include: #1: A fresh decline in Covid-19 cases as vaccine programmes continue. This would lead to airlines taking to the skies en masse again, allowing Rolls-Royce’s engines to start clocking up air miles again and brightening the long-term demand outlook for its hardware. Yesterday, Germany loosened curbs for travellers from several countries and it’s thought other European countries could follow its lead in the days and weeks ahead. #2: Divestment activity continues. A banged-up balance sheet is one of the reasons why Rolls-Royce’s share price has failed to ignite. The engineer has previously said it expects net debt to balloon to £4bn by the end of this year. So it has to get busy with asset sales to repair investor confidence. Happily, the business said it was “progressing well on our disposal programme” when it last updated the market in May. #3: Cost-cutting actions impress. News on disposals will be keenly watched when Rolls-Royce releases half-year financials on 5 August. So will details on the FTSE 100 firm’s planned £1.3bn worth of annualised cost savings (“good progress” has been made with cost reductions, Rolls-Royce recently said). Any positive news on either front could drive the company’s share price much higher. However… All that said, there are clearly big risks to Rolls-Royce’s share price too. Perhaps the most obvious is the ongoing public health emergency and what this will mean for the reopening of the aviation industry. Despite vaccine rollouts, the number of global coronavirus cases is again rising. The emergence of the Delta variant is responsible for this most recent uptick. And the outbreak of other variants since this particular edition became widespread is casting concern for the airlines — and by extension Rolls-Royce — for further down the line. This is, of course, particularly dangerous for the FTSE 100 firm, given its enormous debt pile. Sure, August’s financials might show encouraging progress on asset sales and cost-cutting. But this will likely count for little if signs emerge that travel barriers are set to remain in place, or possibly even tighten. The Rolls-Royce share price doesn’t look that cheap, in my opinion, given these dangers. The firm is expected to bounce back into profit next year. But, at a current price of 102p, it commands a high P/E ratio above 30 times for 2022. I’m simply not prepared to risk my hard-earned cash on such an expensive and high-risk UK share. The post This is what I’m doing about the Rolls-Royce share price 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 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 Should I buy FTSE 100 shares BP or Rolls-Royce for my ISA in July? Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  46. Rolls-Royce share price: can it go back up to 200p? (12/03/2021 - The Motley Fool UK)
    Rolls-Royce (LSE: RR) faced big challenges in 2020, and its full-year results released Thursday only confirm that. Interestingly though, the Rolls Royce share price has risen, presumably on the news.  Why the Rolls-Royce share price is up I think the Rolls-Royce share price rose for two reasons.  One, poor results were already priced in. Support services to aviation is the big revenue source for RR. Since travel in 2020 was restricted, RR was bound to feel the impact. The company’s updates have been reflecting this. So have weak trends in the Rolls-Royce share price.  Two, times are changing. The worst of the pandemic now seems to be behind us. And travel is expected to be back soon. Rolls-Royce will be back in business, because of this.  Optimism about this recovery is evident in RR’s outlook. It says “Looking ahead over the next couple of years….we expect the rebound in global GDP and lifting of travel restrictions to drive our recovery”.  According to the International Monetary Fund, global growth will be 5.5% in 2021 after a fall in world output in 2020. It is expected to rise by another 4.2% in 2022.  This can bode well for RR, which expects hours flown by its engines to increase to 80% of the levels seen in 2019 by 2022. This is a big jump in the 55% levels expected for 2021.  Why the RR share price can cross 200p This is somewhat encouraging and I think it can increase RR’s share price further. The Rolls-Royce share price is presently at 115p, which is already an increase of around three times from the lows we saw last year.  I think it may well be possible now that the RR share price can rise back up to its pre-pandemic levels of 200p and above. Besides the improving environment for RR and its outlook, I think there are two other reasons it can happen.  One, other coronavirus and lockdown impacted stocks like Lloyds Bank and Cineworld have recently seen a jump in their share prices back up to pre-pandemic times. For investors still looking for post-market crash bargains, RR is still among them. Two, the US government just passed a massive fiscal stimulus of $1.9trn. If these funds are indeed spent in the manner intended — to improve infrastructure and economic wellbeing that creates higher consumption — we could see a boom in US growth. This in turn, will impact the rest of the world positively. Moreover, it could mean another stock market rally, which could raise share prices across the board, including the Rolls-Royce share price.  A word of caution Much can still go wrong. The pandemic is not over. The threat of coronavirus variants still lurks. Further, RR’s financials are weak and will take their own time to recover. This adds to the fact that RR was in an uncertain place even earlier.  Attractive as the Rolls-Royce share price might look for the near future, I would consider the downside too before making a long-term investment in the stock. 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 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? Tesla has fallen 35%. How I think it affects the Rolls-Royce share price Manika Premsingh has no position in any of the shares mentioned. 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. The post Rolls-Royce share price: can it go back up to 200p? appeared first on The Motley Fool UK.
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  47. Hargreaves Lansdown investors are buying Rolls-Royce shares. Should I buy too? (10/05/2021 - The Motley Fool UK)
    Rolls-Royce (LSE: RR) continues to be one of the most popular stocks on the London Stock Exchange. Last week, for example, RR was the fourth most purchased stock on Hargreaves Lansdown. Should I buy Rolls-Royce shares for my own portfolio? Let’s take a look at the investment case.  Rolls-Royce shares: is the outlook improving? Rolls-Royce has been hit hard by the Covid-19 pandemic. In its full-year 2020 results, for example, the company reported a loss of £4bn for the year. That compares to a profit of £306m in 2019. Earnings per share came in at -67p versus 5.44p the year before. The main reason Rolls-Royce has been impacted so badly by Covid-19 is that it generates a large proportion of its revenues from the manufacturing and servicing of commercial aircraft engines. With many planes grounded during the pandemic, sales and profits have taken a hit. The outlook for Rolls-Royce appears to be improving now, however. Across the world, people are being vaccinated and this means that travel could resume very soon. There is no doubt that demand to travel is high. If we do all start travelling again soon, Rolls-Royce should benefit. Profits are likely to rise. This could boost the shares.  “Looking ahead over the next couple of years, we are encouraged by the outlook for vaccinations and testing and we expect the rebound in global GDP and lifting of travel restrictions to drive our recovery,” the group said recently. Risks As always in investing, however, it’s all about risk versus reward. And with Rolls-Royce shares, there are plenty of risks to be aware of. One is that, at this stage, it’s hard to know how long it will take for the travel industry to fully recover. So, it’s hard to make forecasts about the future. Recently, Rolls-Royce advised that the near-term outlook “remains uncertain” and “highly sensitive” to the developments of the Covid-19 virus and the related measures taken by governments around the world. It added that in the current environment, near-term financial forecasting is more difficult and the potential range of outcomes wider. Until the travel industry recovers, Rolls-Royce is likely to continue losing money. This year, City analysts expect the group to generate a net loss of about £210m. The company said in its full-year results that it expects negative free cash flow of around £2bn this year. Another issue is the debt on the balance sheet. At the end of 2020, the group had net debt of around £3.6bn (including lease liabilities). This adds risk to the investment case. Stockopedia gives Rolls-Royce an ‘Altman Z1’ score (a measure of financial health) of -0.04 which indicates a “serious risk of financial distress” within the next two years. If profits and cash flows don’t pick up soon, the group may have to raise capital. This could hurt the share price. Finally, it’s worth pointing out that Rolls-Royce does not have a good track record when it comes to generating shareholder wealth. Just look at the share price over the long run. Over the years, RR has been very inconsistent in terms of its profitability, which is not ideal from an investment point of view. Weighing everything up, I don’t think the risks are worth it here. All things considered, I think there are other, much safer stocks I could buy today. Like this one… 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 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? FTSE 100 shares: 3 I’m considering for my ISA Edward Sheldon owns shares in London Stock Exchange and Hargreaves Lansdown. The Motley Fool UK has recommended Hargreaves Lansdown. 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 Hargreaves Lansdown investors are buying Rolls-Royce shares. Should I buy too? appeared first on The Motley Fool UK.
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  48. Rolls-Royce share price: why I’d follow the Archer Aviation SPAC (15/02/2021 - The Motley Fool UK)
    When most people hear the name Rolls-Royce (LSE:RR), they think of Rolls-Royce Motors and the ultra luxury vehicles. Yet Rolls-Royce doesn’t own the Rolls-Royce Motors brand name. Bayerische Motoren Werke (BMW) does. Rather than the car market, what’s actually more relevant to the Rolls-Royce share price is the aviation market. In pre-pandemic 2019, for example, RR’s civil aerospace division alone accounted for 51% of its underlying sales. When the aviation market didn’t do well last year due to the pandemic, the company’s fundamentals significantly worsened. Due to the headwinds in civil aviation and other factors, the Rolls-Royce share price has fallen over 60% in the last 12 months when taking into account the rights issue last year. Given the aircraft industry’s importance to Rolls-Royce, here’s why I’d follow electric aircraft startup Archer Aviation, and its associated special purpose acquisition company (SPAC). What’s Archer Aviation? I think Archer Aviation’s success could have an effect on the Rolls-Royce share price. Here’s more on Archer. Archer Aviation is an electric aircraft startup. According to the company’s website, Archer Aviation is working on an electric vertical take-off and landing aircraft that the company hopes will travel up to 150 miles per hour for a distance of up to 60 miles. The company has some traction. According to MarketWatch, Archer Aviation won a $1bn order from United Airline Holdings for its potential products, with the airline having an option to purchase $500m more. Archer Aviation could be targeting a big trend, as the electric air mobility market could be huge in the future. Time is money for a lot of people, and flying taxis could save a lot of time in some commutes by avoiding congestion. Furthermore, electric aircraft typically emit less carbon dioxide than normal aircraft and thus are a more sustainable transportation solution. Recently, Archer agreed to go public through a SPAC. Specifically, a SPAC named Atlas Crest Investment Corp merged with Archer Aviation in a deal that is expected to close in the second quarter of this year. So far the market reaction to the Archer Aviation SPAC has been positive, as the stock of Atlas Crest Investment Corp has surged over 30% since its IPO. Why I think Archer could matter for the Rolls-Royce share price Given the Rolls-Royce share price hasn’t done very well over the last 12 months, I think the company could use some good headlines for once. Although Archer isn’t directly related to Rolls-Royce, Archer is in Rolls-Royce’s industry. If the Archer SPAC’s valuation outperforms, I think it could help RR. If Archer and its SPAC is worth a lot, I reckon some investors could view Rolls-Royce’s electric growth potential in a more positive light. That could potentially help market sentiment. If the market sends the Archer SPAC stock substantially higher, I think the success could shift some attention away from RR’s weak civil aviation business and more towards the company’s more promising green divisions and opportunities. Given the company’s potential in future green fields such as electric planes, I’d hold Rolls-Royce shares. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading Rolls-Royce and Cineworld: are these UK shares too risky to buy now? The Rolls-Royce share price is down 66% this year. Here’s what I’d do now Rolls-Royce share price: could the company be a Tesla competitor in the future? Should I invest in Rolls-Royce shares now? Why is the Rolls-Royce share price falling? Jay Yao has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Rolls-Royce share price: why I’d follow the Archer Aviation SPAC appeared first on The Motley Fool UK.
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  49. 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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