Rolls-Royce (LSE: RR.) shares cost just over £1 a piece five years ago. Back then, you could buy almost 10,000 shares with a £10k lump sum.

Since then, they’ve soared 1,041.2% to reach an eye-watering £11.62 a share (as of 22 April 2026). So what would a £10,000 investment score today?

A meagre 862 shares.

That means someone who bought back then could sell their shares today for 11.4 times the value. That’s a spectacular return in just five years. But does that mean investors today have missed out on all the best gains?

Changing times

Those savvy investors who bought five years ago are probably very happy with their investment. But I wonder how many are questioning whether to sell, since the shares are down 3.14% this year.

Does that mean the rally is over and the rest of us missed out?

Not necessarily, but the economic landscape seems to be shifting. Let’s compare how today’s market differs from back then.

Macro, mood, and bank rates

April 2021 was a reopening-led market: lockdown restrictions were easing, rates were ultra-low, and investors were mainly buying recovery stories.

Today is a much tougher market: rates and gilt yields are far higher, so investors care more about cash flow, margins, and dividends.

Most importantly, Rolls-Royce itself has transformed. It’s moved from a survival/recovery case to a business with strong profits, free cash flow, net cash, and a reinstated dividend.

So what does that mean for investors?

• Huge share price rise means the ‘easy gains’ have passed.
• Rolls must keep delivering rather than just keep recovering.
• Interest rates have risen from 0.1% to 3.75%.
• Cash flow and margin trajectory must support the high valuation.

So can Rolls keep the good times rolling?

Financial analysis

Numbers-wise, Rolls continues to impress. Its 2025 results show underlying operating profit of £3.5bn, free cash flow of £3.3bn, and net cash of £1.9bn.

Furthermore, it reinstated dividends and launched a £7bn-£9bn buyback programme for 2026-2028. Those are compelling figures even for the most aggressive growth stock.

But valuation and sentiment are weighing heavily on future gains. That explains why the share price has been stagnant this year, despite strong numbers.

So is it still worth considering?

Short-term risks

Middle East tensions and oil price volatility are key risks for Rolls, compounded by macroeconomic and execution challenges. What do those look like? Here’s a few potential challenges that threaten profits:

• Higher interest rates
• Sticky inflation
• A weakening US dollar
• Geopolitical pressures

But this doesn’t entirely negate the long-term narrative. Now that the recovery has been cemented in, Rolls could shift to being a reliable, defensive income stock in the coming years.

So while it’s still worth considering in the long-term, it’s not necessarily a growth play. If I were holding the shares, I’d consider reducing my position and looking at growth-orientated FTSE 100 stocks with lower valuations.

Just off the top of my head, 3i Group and Barratt Redrow look interesting right now. But that’s just two opportunities I’ve been eyeing up lately…