Rolls-Royce is a British engineering and aviation company incorporated in 2011 as a holding company to the Rolls-Royce brand, which was first established in 1904. The company is headquartered in Kings Place, London, and has been at this location since 2019.
It operates three core business sectors: civil aerospace, power systems, and defence, as well as being involved in the marine propulsion and energy sectors.
What does the company offer?
Rolls-Royce is the second-largest maker of aircraft engines after General Electric and one of the world’s largest defence contractors in 2018 in terms of revenue generated. Its aerospace department produces both military and civilian aircraft engines in joint ventures with European, American and Japanese companies, as well as independently. This also includes engines used by commercial airline companies, such as Boeing, Airbus and Tupolev.
It's the world leader in supplying marine propulsion equipment, with services including complete ship design, integrated propulsion, naval handling systems, electrical automation and control, and the manufacturing of diesel engines, gas turbines and deck machinery.
Rolls-Royce’s civil aerospace division accounts for almost half of the business’ workforce, powering over 11,000 engines and 35 types of aircraft around the world.
When the company was first incorporated, it held a workforce of approximately 40,000 staff. This increased to 55,000 in 2013, but declined to 44,000 in 2021, due to Covid-19’s impact on the aviation industry.
Between 2010 and 2018, the company invested £11bn into its research and development programmes to help launch new civil engines for the business aviation market, securing 2,700 orders for wide-body aircraft and business jets. The company received its largest order of £6.1bn to supply 50 engines for Emirates A380 planes in 2015.
Rolls-Royce share price overview
Rolls-Royce stock is listed on the London Stock Exchange under the ticker [RR] and is a constituent of the FTSE 100 index. The stock is considered by many investors to be a blue-chip or value stock due to its longevity within the stock market, and consistent financial stability.
Pre-2011, Rolls-Royce shares remained stable at above 200p per share, only briefly dipping below this price in August. From September 2011 to December 2013, they increased rapidly to reach an all-time high peak price of 436.17p per share. The share price suffered afterwards, reaching a low of 186.34p in January 2016. This can be attributed to global cuts on defence spending, and a company warning that it may need to cut its dividend by 50%.
The share price took a sharp drop in value in January 2020, falling to 53.11p over a period of eight months due to the global pandemic. Despite Rolls-Royce’s large market capitalisation and prominence within the UK stock market, some may consider it a penny stock as it trades for under £1.
The company typically releases its earnings reports in the second and fourth quarters of each year, most often at the start of August and the end of February.
How much is Rolls-Royce worth?
Rolls-Royce’s market capitalisation has risen and fallen over the past decade. In 2011, it had a market cap of £14.6bn, and it reached its all-time high of £33.2bn in December 2013. The company reached an all-time low market cap of £2.7bn in September 2020, due to the effects of the pandemic.