Rolls-Royce HoldingsRYCEY +0.38%70 FCF Margin % is 16.48% as of Dec. 2025, which is 244% above its 10-year median of 4.79. GuruFocus rates RYCEY with a GF Score™ of 70/100 and a GF Value™ of $8.42 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 347 Aerospace & Defense companies, Rolls-Royce Holdings ranks better than 88.76% on this metric.
The historical rank and industry rank for Rolls-Royce Holdings's FCF Margin % or its related term are showing as below:
RYCEY'
s FCF Margin % Range Over the Past 10 Years
Min: -34.45 Med: 4.79 Max: 16.88
Current: 16.88
During the past 13 years, the highest FCF Margin % of Rolls-Royce Holdings was 16.88%. The lowest was -34.45%. And the median was 4.79%.
RYCEY's FCF Margin % is ranked better than 88.76% of 347
companies
in the Aerospace & Defense industry
Industry Median: 0.64
vs RYCEY: 16.88
Rolls-Royce Holdings FCF Margin % Related Terms
Rolls-Royce Holdings FCF Margin % Historical Data
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The historical data trend for Rolls-Royce Holdings's FCF Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Aerospace & Defense subindustry, Rolls-Royce Holdings's FCF Margin %, along with its competitors' market caps and FCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rolls-Royce Holdings FCF Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Rolls-Royce Holdings's FCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Rolls-Royce Holdings (RYCEY) has a FCF Margin % of 16.48% as of Dec. 2025. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Rolls-Royce Holdings and its competitors. This is 244% above median its historical median of 4.79. According to the industry distribution chart, Rolls-Royce Holdings ranks #39 out of 347 companies in the Aerospace & Defense industry, placing it in the top 11.2%.
Is Rolls-Royce Holdings' FCF Margin % too high?
Rolls-Royce Holdings' current FCF Margin % of 16.48% is 244% above median its 10-year median of 4.79. The Aerospace & Defense industry median FCF Margin % is 0.64. Rolls-Royce Holdings' value of 16.48% is 2475% above this industry median. Based on the distribution chart, Rolls-Royce Holdings ranks #39 out of 347 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Rolls-Royce Holdings has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rolls-Royce Holdings' FCF Margin % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Rolls-Royce Holdings ranks #39 out of 347 companies for FCF Margin %. This places Rolls-Royce Holdings in the top 11% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 0.64. Rolls-Royce Holdings' value of 16.48% is 2475% above this benchmark. While the company's 10-year median is 4.79 vs. the industry median of 0.64, Rolls-Royce Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for an Aerospace & Defense company?
The median FCF Margin % among Aerospace & Defense companies is 0.64, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rolls-Royce Holdings's current FCF Margin % of 16.48% is 2475% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Rolls-Royce Holdings and its competitors. For the Aerospace & Defense industry, the median FCF Margin % is 0.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rolls-Royce Holdings's current FCF Margin % is 16.48%, which is 244% above median its own 10-year median of 4.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rolls-Royce Holdings stock overvalued right now?
Based on GuruFocus' analysis, Rolls-Royce Holdings (RYCEY) is currently considered Significantly Overvalued. The stock's GF Value™ is $8.42, compared to a current price of $18.60 — trading 120.9% above its estimated fair value. The current FCF Margin % is 16.48%, which is 244% above median its 10-year median of 4.79 and 2475% above the Aerospace & Defense industry median of 0.64. Rolls-Royce Holdings' overall GF Score™ is 70/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Rolls-Royce Holdings (RYCEY), the current FCF Margin % is 16.48% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rolls-Royce Holdings (RYCEY) Overvalued in 2026?
Based on GuruFocus' analysis, Rolls-Royce Holdings stock appears to be overvalued.
The current stock price of $18.60 is trading 120.9% above its estimated GF Value™ of $8.42.
GuruFocus considers Rolls-Royce Holdings to be Significantly Overvalued.
Key valuation signals for RYCEY:
FCF Margin %: 16.48% (244% above median its 10-year median of 4.79)
GF Value™: $8.42 vs. price of $18.60 (120.9% above fair value)
Industry Position: 2475% above the Aerospace & Defense median (#39 of 347)
No single metric tells the full story. See the RYCEY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rolls-Royce operates three core business segments: civil aerospace, power systems, and defense. The civil aerospace segment builds engines powering wide-body aircraft, regional and business jets, and offers aftermarket services. Twenty years ago, the firm pioneered full-service flight hour contracts with the TotalCare package. Power systems provides power solutions to multiple end markets (defense, agriculture, marine, and power generation) while the defense business provides military, ground vehicle and naval propulsion solutions.
70GF Score
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