The historical rank and industry rank for Rolls-Royce Holdings's Net Margin % or its related term are showing as below:
RYCEY'
s Net Margin % Range Over the Past 10 Years
Min: -27.59 Med: -3.43 Max: 27.54
Current: 27.54
RYCEY's Net Margin % is ranked better than 94.24% of 347
companies
in the Aerospace & Defense industry
Industry Median: 4.9
vs RYCEY: 27.54
Rolls-Royce Holdings (OTCPK:RYCEY) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Rolls-Royce Holdings Net Margin % Related Terms
Rolls-Royce Holdings Net Margin % Historical Data
* Premium members only.
The historical data trend for Rolls-Royce Holdings's Net 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 Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's Net Margin % distribution charts can be found below:
* The bar in red indicates where Rolls-Royce Holdings's Net 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 Net Margin % of 12.16% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Rolls-Royce Holdings and its competitors. According to the industry distribution chart, Rolls-Royce Holdings ranks #20 out of 347 companies in the Aerospace & Defense industry, placing it in the top 5.8%.
Is Rolls-Royce Holdings' Net Margin % too high?
Rolls-Royce Holdings' current Net Margin % is 12.16%. The Aerospace & Defense industry median Net Margin % is 4.90. Rolls-Royce Holdings' value of 12.16% is 148.2% above this industry median. Based on the distribution chart, Rolls-Royce Holdings ranks #20 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' Net Margin % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Rolls-Royce Holdings ranks #20 out of 347 companies for Net Margin %. This places Rolls-Royce Holdings in the top 6% of its industry — outperforming the majority of peers. The industry median Net Margin % is 4.90. Rolls-Royce Holdings' value of 12.16% is 148.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for an Aerospace & Defense company?
The median Net Margin % among Aerospace & Defense companies is 4.90, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rolls-Royce Holdings's current Net Margin % of 12.16% is 148.2% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Rolls-Royce Holdings and its competitors. For the Aerospace & Defense industry, the median Net Margin % is 4.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rolls-Royce Holdings's current Net Margin % is 12.16%. 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 Net Margin % is 12.16% and 148.2% above the Aerospace & Defense industry median of 4.90. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Rolls-Royce Holdings (RYCEY), the current Net Margin % is 12.16% 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:
Net Margin %: 12.16%
GF Value™: $8.42 vs. price of $18.60 (120.9% above fair value)
Industry Position: 148.2% above the Aerospace & Defense median (#20 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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