Investors' Chronicle Rolls Royce, banking stocks and Smith & Nephew: The Companies and Markets Show
Feb 28, 2025
James Norrington, author of a deep dive into Rolls-Royce, discusses the company's impressive recovery, marked by a return to dividends and a 20% share price jump. He highlights the transformation in its civil aviation sector amidst post-COVID growth. Meanwhile, Jemma Slingo analyzes the UK banking landscape, revealing mixed performance among major banks while emphasizing opportunities for future growth amid valuation challenges. Both guests tackle insights on Smith & Nephew and other medical tech firms, underscoring market dynamics and investment strategies.
AI Snips
Chapters
Transcript
Episode notes
Rolls-Royce's Transformation Story
- Rolls-Royce's share price surged 20% after strong financial results and a buyback announcement.
- The company's transformation is driving growth, not just a COVID rebound.
Rolls-Royce: Beyond Large Engines
- Rolls-Royce's large engine flying hours are a key driver of free cash flow.
- Other business segments also perform well, contributing to the company's success.
Analyzing Complex Businesses
- Investors should analyze companies with many divisions, like Rolls-Royce, by examining earnings drivers.
- Focus on capital allocation, valuation, and profitability to make informed investment decisions.