10-19-2014, 02:11 PM
(This post was last modified: 10-19-2014, 02:12 PM by DividendDragon.)
Hey guys
Shares in rolls royce tumbled by 11% on Friday and I've been looking at them ever since.
The shares now sit 22% down on last year on the LSE.
The company is currently struggling due to pressed oil prices, sanctions on the Russian Federation and slowing emerging economies, namely China.
It's profit is set to decrease by 3% (Company estimates)
Dividends have increased since 2004 and are currently forecast to rise by 12%.
The Yiled at current price is 2.6% with a 9% growth rate (avarage over 5years)
It's payout ratio currently stands at 18.6% leaving plenty of room to crank up the dividends further in years to come.
It's dividend cover stood at 3 last year but there are fears that it could struggle to fully cover it's dividend payment this year.
The current downturn in the companies fortune represents a -2% EPS growth.
The company has little debt with a 0.42 debt/equity ratio.
It's current P/E stands at 13 compared to 19 a year ago and 14 a year before that.
I feel that a future rise in oil prices, increased defense spending (NATO members have pledged to spend 2% of GDP on defense), increased demand for commercial flights and a growing hunger for energy worldwide will help RollsRoyce return to good health.
This was a quick look at the company's fundamentals on the LSE
Again, I'm new to this so please let me know what I should have looked at but haven't in this quick look.
Lewys
Shares in rolls royce tumbled by 11% on Friday and I've been looking at them ever since.
The shares now sit 22% down on last year on the LSE.
The company is currently struggling due to pressed oil prices, sanctions on the Russian Federation and slowing emerging economies, namely China.
It's profit is set to decrease by 3% (Company estimates)
Dividends have increased since 2004 and are currently forecast to rise by 12%.
The Yiled at current price is 2.6% with a 9% growth rate (avarage over 5years)
It's payout ratio currently stands at 18.6% leaving plenty of room to crank up the dividends further in years to come.
It's dividend cover stood at 3 last year but there are fears that it could struggle to fully cover it's dividend payment this year.
The current downturn in the companies fortune represents a -2% EPS growth.
The company has little debt with a 0.42 debt/equity ratio.
It's current P/E stands at 13 compared to 19 a year ago and 14 a year before that.
I feel that a future rise in oil prices, increased defense spending (NATO members have pledged to spend 2% of GDP on defense), increased demand for commercial flights and a growing hunger for energy worldwide will help RollsRoyce return to good health.
This was a quick look at the company's fundamentals on the LSE
Again, I'm new to this so please let me know what I should have looked at but haven't in this quick look.
Lewys