# Melrose Industries PLC (MRO.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Machinery. Price 494p, market value 6.2 billionp.

## Valuation
- **P/E (trailing): 38.0×** (5-yr avg 2028.8×, 3-yr avg 2028.8×). Melrose Industries PLC trades at 38.0× trailing earnings, well below its own five-year average of 2028.8×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 10.9×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.01**. A PEG of 0.01 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.9×**. Each dollar of revenue is priced at 0.9×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.2×**. The shares trade at 2.2× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 5.0×**. Enterprise value is 5.0× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: -1.6%** (5-yr avg -0.0%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 2.6%**. The inverse of the P/E: 2.6% of the price is earned each year.

## Profitability
- **Gross margin: 25.2%**. Melrose Industries PLC keeps 25.2% of revenue after the direct cost of what it sells.
- **Operating margin: 12.5%**. 12.5% of revenue is left after running the business.
- **Net margin: 10.3%**. 10.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 13.1%**. 13.1% on shareholders' equity is solid.
- **Return on invested capital: 17.1%**. Return on all capital, debt included, is 17.1%: comfortably above what that capital costs.
- **Return on assets: 4.2%**. Each dollar of assets produces 4.2% of profit.

## Growth
- **Revenue growth (1 yr): 3.5%** (3-yr -21.9%/yr, 5-yr -12.8%/yr). Revenue grew 3.5% over the last year, against -12.8% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 873.3%**. Earnings per share rose 873.3%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 0.67**. Debt is 0.67 times equity, moderate leverage.
- **Net debt / EBITDA: 1.1×**. It would take 1.1 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 3.8×**. Operating profit covers interest 3.8× over, a safe margin.
- **Current ratio: 0.98** (quick 0.67). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 1.94**. A Z-score of 1.94 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.51%** (0p per share, trailing). Melrose Industries PLC yields 1.51%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 22%**. 22% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 1**. 1 straight year of increases.
- **Shareholder yield: 11.2%**. Dividends plus net buybacks return 11.2% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (15 analysts). 15 analysts cover Melrose Industries PLC; the consensus is buy, with an average price target of 672p (+36% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -17.7%** (YTD -13.8%, 3-mo 10.4%). The shares are down 17.7% over twelve months including dividends.
- **From 52-week high: -27.9%** (20.5% above the low). Trading 28% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 57**. An RSI of 57 is neutral.
- **Beta (1 yr): 1.50** (volatility 36%). Beta of 1.50 against the FTSE All-Share: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=MRO.L · Page: https://foliofundamentals.com/stocks/mro.l

Not investment advice.