Rolls-Royce HoldingsLSE:RR. +2.01%69 OCF Yield % is 3.88 as of Jun. 25, 2026, which is 53% below its 10-year median of 8.23. GuruFocus rates LSE:RR. with a GF Score™ of 69/100 and a GF Value™ of £6.14 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 356 Aerospace & Defense companies, Rolls-Royce Holdings ranks better than 68.54% on this metric.
OCF Yield % is calculated as Cash Flow from Operations divided by Market Capitalization. It is a financial solvency ratio that compares the operating cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, OCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high operating cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Rolls-Royce Holdings OCF Yield % Related Terms
Rolls-Royce Holdings OCF Yield % Historical Data
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The historical data trend for Rolls-Royce Holdings's OCF Yield % 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 OCF Yield %, along with its competitors' market caps and OCF Yield % 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 OCF Yield % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's OCF Yield % distribution charts can be found below:
* The bar in red indicates where Rolls-Royce Holdings's OCF Yield % 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 (LSE:RR.) has a OCF Yield % of 3.88 as of Jun. 25, 2026. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Rolls-Royce Holdings and its competitors. This is 53% below median its historical median of 8.23. According to the industry distribution chart, Rolls-Royce Holdings ranks #112 out of 356 companies in the Aerospace & Defense industry, placing it in the top 31.5%.
Is Rolls-Royce Holdings' OCF Yield % too high?
Rolls-Royce Holdings' current OCF Yield % of 3.88 is 53% below median its 10-year median of 8.23. The Aerospace & Defense industry median OCF Yield % is 1.69. Rolls-Royce Holdings' value of 3.88 is 130.3% above this industry median. Based on the distribution chart, Rolls-Royce Holdings ranks #112 out of 356 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Rolls-Royce Holdings has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rolls-Royce Holdings' OCF Yield % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Rolls-Royce Holdings ranks #112 out of 356 companies for OCF Yield %. This puts Rolls-Royce Holdings in the upper half of its industry. The industry median OCF Yield % is 1.69. Rolls-Royce Holdings' value of 3.88 is 130.3% above this benchmark. While the company's 10-year median is 8.23 vs. the industry median of 1.69, 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 OCF Yield % for an Aerospace & Defense company?
The median OCF Yield % among Aerospace & Defense companies is 1.69, based on 356 companies in the industry. Companies in the top quartile (top 25%) have a OCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, OCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rolls-Royce Holdings's current OCF Yield % of 3.88 is 130.3% 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 OCF Yield % mean?
A high OCF Yield % can signal that a stock is expensive relative to its fundamentals. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Rolls-Royce Holdings and its competitors. For the Aerospace & Defense industry, the median OCF Yield % is 1.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rolls-Royce Holdings's current OCF Yield % is 3.88, which is 53% below median its own 10-year median of 8.23. 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 (LSE:RR.) is currently considered Significantly Overvalued. The stock's GF Value™ is £6.14, compared to a current price of £14.19 — trading 131.1% above its estimated fair value. The current OCF Yield % is 3.88, which is 53% below median its 10-year median of 8.23 and 130.3% above the Aerospace & Defense industry median of 1.69. Rolls-Royce Holdings' overall GF Score™ is 69/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is OCF Yield % calculated?
OCF Yield % is calculated from a company's financial statements. For Rolls-Royce Holdings (LSE:RR.), the current OCF Yield % is 3.88 as of Jun. 25, 2026. 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 (LSE:RR.) Overvalued in 2026?
Based on GuruFocus' analysis, Rolls-Royce Holdings stock appears to be overvalued.
The current stock price of £14.19 is trading 131.1% above its estimated GF Value™ of £6.14.
GuruFocus considers Rolls-Royce Holdings to be Significantly Overvalued.
Key valuation signals for LSE:RR.:
OCF Yield %: 3.88 (53% below median its 10-year median of 8.23)
GF Value™: £6.14 vs. price of £14.19 (131.1% above fair value)
Industry Position: 130.3% above the Aerospace & Defense median (#112 of 356)
No single metric tells the full story. See the LSE:RR. 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.
69GF Score
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