Rolls-Royce – that’s why the stock is now too good to look away

Rolls-Royce – that’s why the stock is now too good to look away


ROLLS-ROYCE HOLDINGS develops innovative engines and researches distributed small nuclear power plants. Both topics to come. The share price has however fallen significantly. That gets you started. By Martin Bluemel

The luxury car manufacturer and the engine manufacturer Rolls-Royce were one and the same company: after Rolls-Royce went bankrupt in 1971, however, they separated. From 2011, the engine manufacturer then traded as Rolls-Royce Holdings and is also listed under this name on the London Stock Exchange. Side fact: The company also owns an original and world famous logo. You own all the rights to it, while BMW, as the parent company of the car manufacturer Rolls-Royce, is only allowed to use it.

The holdings are best known for building aircraft engines and components for aviation and military. The mainstay of the business is over all engine maintenance. This was an area of ​​focus during the pandemic, but should contribute more to operating results as international aviation returns to normal.

The “development of electric drives” division, which they took over from Siemens, is also exciting in the aerospace sector. Here it was created in autumn 2021 A prototype electric plane set a new speed record for all-electric vehicles. The company is also innovative in another way: together with Hyundai, they want to build a car for air taxis that is based on hydrogen fuel cells. There should be an example of this in 2025.

Your nuclear power plant in the backyard

In addition to aviation, Rolls-Royce also works in the areas of transportation and energy technology. Here they are also currently working on a small nuclear plant that is supposed to supply energy in a decentralized and safe way. This is interesting right now, because the Russian sanctions and the European Union’s plan to withdraw from fossil fuels have brought nuclear energy into the discussion. The UK and Finland, among others, are increasingly relying on nuclear power plants again. In addition, Belgium has announced that it intends to postpone denuclearization for ten years.

However, the share price has recently fallen sharply – a turning point for speculators.