Well, it turned out that I was right Rolls-Royce (LSE: RR). Earlier I wrote that already such a similar price of Rolls-Royce shares may escalate if the aviation engineer announced that he was doing well and raised his goals again. Hey, presto, in its fleeting results over the past week the company has just done this. The price of Rolls-Royce has increased to a recent level of all time.

His growth was stunning. Up by 80% this year, FTSE 100 It is now 1 234% Higher than five years ago.

Compare this with a 55% profit in the index during this period and the scale of Rolls’s achievements is clearly perceptible.

I missed the last profits after selling my Rolls shares some time ago. Could there be time to add them back to my portfolio?

Strong business results

The jump price did not seem out of nowhere.

For the first six months of the year, Rolls recorded a profit before taxation of 4.8 billion GBP. This was a huge jump of 1.4 billion pounds for an equivalent period last year. By their own measure, the company underlies profit before tax, which amounted to 1.7 billion pounds. This was much smaller than the statutory form, but still much higher than the previous year 1.0 billion GBP.

Either way, Rolls’s profitability has jumped. According to the company’s own words, during this periodSignificant improvement in year by year in all key financial indicators“.

But the price of Rolls-Royce shares did not jump to the recent level of all time only because of good performance, some of which, I think, were already valued. Part of the violent escalate reflected what I had previously identified as a possible factor for the share price-a good escalate in the company’s performance purposes.

This year’s operating profit goal was abolished from 2.7 billion £ -2.9 billion GBP to 3.1 billion £ -3.2 billion GBP. It is forecasted that free cash flows for a year will be 3.0 billion £ -3.1 billion, compared to 2.7 billion £ -2.9 billion earlier.

This company is on fire!

I have to admit that I am impressed. As part of the current management of Rolls-Royce, he not only set hard financial goals, but was also able to deliver them-and raise them.

Is it still? The wind is in Rolls sails. As its results showed, the demand for civil aviation is high for both initial sales and servicing. The demand for power systems is also high, and revenues from this division are growing by fifth year.

Meanwhile, while the company’s defense department recorded an escalate in revenues per year by 1%, the demand from Western rule is high and I expect business to grow in the coming years.

Despite this, the growing price of Rolls-Royce shares means that the company now has a market capitalization of 90 billion pounds. It looks high to me. The company’s results have changed – but part of its basic market dynamics is not.

In the key civil aviation market, we know from experience that a sudden unexpected event, such as a pandemic or a terrorist attack, can fall overnight. I do not think that the risk is reflected at the current price of Rolls-Royce, so it will not invest.