RYCEF (Rolls-Royce Holdings) ROCE %: 22.94% (As of Dec. 2025)


RYCEF Rolls-Royce Holdings PLC RYCEF
71 GF Score
Price $18.00
GF Value $8.27
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Rolls-Royce Holdings ROCE %?

Rolls-Royce Holdings RYCEF -0.90% 71 ROCE % is 22.94% as of Dec. 2025. GuruFocus rates RYCEF with a GF Score™ of 71/100 and a GF Value™ of $8.27 (Significantly Overvalued). The stock has 5 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Rolls-Royce Holdings's annualized ROCE % for the quarter that ended in Dec. 2025 was 22.94%.

Rolls-Royce Holdings  (OTCPK:RYCEF) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Rolls-Royce Holdings ROCE % Related Terms

Rolls-Royce Holdings ROCE % Historical Data

* Premium members only.

The historical data trend for Rolls-Royce Holdings's ROCE % 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.

Rolls-Royce Holdings ROCE % Chart

Rolls-Royce Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.25 -6.69 17.73 14.61 39.44

Rolls-Royce Holdings Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.27 18.90 10.64 53.66 22.94
RYCEF
71GF Score
Rolls-Royce Holdings PLC RYCEF
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Rolls-Royce Holdings ROCE % Calculation

Rolls-Royce Holdings's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=9688.086/( ( (45115.044 - 21192.162) + (51024.096 - 25819.277) )/ 2 )
=9688.086/( (23922.882+25204.819)/ 2 )
=9688.086/24563.8505
=39.44 %

Rolls-Royce Holdings's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=5959.84/( ( (51478.969 - 24719.132) + (51024.096 - 25819.277) )/ 2 )
=5959.84/( ( 26759.837 + 25204.819 )/ 2 )
=5959.84/25982.328
=22.94 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 22.94% mean?
Rolls-Royce Holdings (RYCEF) has a ROCE % of 22.94% as of Dec. 2025.
Is Rolls-Royce Holdings' ROCE % too high?
Rolls-Royce Holdings' current ROCE % is 22.94%. The Aerospace & Defense industry median ROCE % is 6.29. Rolls-Royce Holdings' value of 22.94% is 264.7% above this industry median. Overall, Rolls-Royce Holdings has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rolls-Royce Holdings' ROCE % compare to GE and RTX?
Rolls-Royce Holdings' ROCE % of 22.94% can be compared against companies in the Aerospace & Defense industry. The industry median ROCE % is 6.29. Rolls-Royce Holdings' value of 22.94% is 264.7% 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 ROCE % for an Aerospace & Defense company?
The median ROCE % among Aerospace & Defense companies is 6.29, based on 350 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rolls-Royce Holdings's current ROCE % of 22.94% is 264.7% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Aerospace & Defense industry, the median ROCE % is 6.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rolls-Royce Holdings's current ROCE % is 22.94%. 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 (RYCEF) is currently considered Significantly Overvalued. The stock's GF Value™ is $8.27, compared to a current price of $18.00 — trading 117.7% above its estimated fair value. The current ROCE % is 22.94% and 264.7% above the Aerospace & Defense industry median of 6.29. Rolls-Royce Holdings' overall GF Score™ is 71/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Rolls-Royce Holdings (RYCEF), the current ROCE % is 22.94% 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 (RYCEF) Overvalued in 2026?

Based on GuruFocus' analysis, Rolls-Royce Holdings stock appears to be overvalued. The current stock price of $18.00 is trading 117.7% above its estimated GF Value™ of $8.27. GuruFocus considers Rolls-Royce Holdings to be Significantly Overvalued.

Key valuation signals for RYCEF:

  • ROCE %: 22.94%
  • GF Value™: $8.27 vs. price of $18.00 (117.7% above fair value)
  • GF Score™: 71/100 with 5 warning signs
  • Industry Position: 264.7% above the Aerospace & Defense median

No single metric tells the full story. See the RYCEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Rolls-Royce Holdings Business Description

Address 90 York Way, Kings Place, London, GBR, N1 9FX
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.
71GF Score

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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$18.00
Price
$8.27
GF Value