LSE:MRO

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Executive Summary

Melrose Industries PLC engages in the aerospace, automotive, powder metallurgy, air management, and other industrial businesses. More Details


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Melrose Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MRO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.5%

MRO

2.4%

GB Electrical

0.07%

GB Market


1 Year Return

-37.5%

MRO

-6.4%

GB Electrical

-15.4%

GB Market

Return vs Industry: MRO underperformed the UK Electrical industry which returned -6.4% over the past year.

Return vs Market: MRO underperformed the UK Market which returned -15.4% over the past year.


Shareholder returns

MROIndustryMarket
7 Day2.5%2.4%0.07%
30 Day20.2%18.3%2.2%
90 Day34.8%27.0%-2.1%
1 Year-37.5%-37.5%-6.3%-6.4%-12.1%-15.4%
3 Year-37.8%-40.5%-10.7%-14.3%-8.4%-19.7%
5 Year183.4%-92.7%186.5%-87.6%16.4%-9.7%

Price Volatility Vs. Market

How volatile is Melrose Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Melrose Industries undervalued compared to its fair value and its price relative to the market?

0.88x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: MRO (£1.33) is trading above our estimate of fair value (£0.55)

Significantly Below Fair Value: MRO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MRO is unprofitable, so we can't compare its PE Ratio to the GB Electrical industry average.

PE vs Market: MRO is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MRO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MRO is good value based on its PB Ratio (0.9x) compared to the GB Electrical industry average (2.1x).


Next Steps

Future Growth

How is Melrose Industries forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

97.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: MRO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MRO's is expected to become profitable in the next 3 years.

Revenue vs Market: MRO's revenue (5.7% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: MRO's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MRO's Return on Equity is forecast to be low in 3 years time (5.5%).


Next Steps

Past Performance

How has Melrose Industries performed over the past 5 years?

-44.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRO is currently unprofitable.

Growing Profit Margin: MRO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MRO is unprofitable, and losses have increased over the past 5 years at a rate of 44.5% per year.

Accelerating Growth: Unable to compare MRO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MRO is unprofitable, making it difficult to compare its past year earnings growth to the Electrical industry (-13.9%).


Return on Equity

High ROE: MRO has a negative Return on Equity (-5.11%), as it is currently unprofitable.


Next Steps

Financial Health

How is Melrose Industries's financial position?


Financial Position Analysis

Short Term Liabilities: MRO's short term assets (£3.3B) exceed its short term liabilities (£3.1B).

Long Term Liabilities: MRO's short term assets (£3.3B) do not cover its long term liabilities (£7.6B).


Debt to Equity History and Analysis

Debt Level: MRO's debt to equity ratio (53.2%) is considered high.

Reducing Debt: MRO's debt to equity ratio has reduced from 57.3% to 53.2% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable MRO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MRO is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 33.3% per year.


Next Steps

Dividend

What is Melrose Industries's current dividend yield, its reliability and sustainability?

1.46%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MRO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MRO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MRO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MRO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MRO is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MRO's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.4yrs

Average management tenure


CEO

Simon Peckham (57 yo)

8.42yrs

Tenure

UK£976,000

Compensation

Mr. Simon A. Peckham has been Executive Director of GKN Holdings plc since April 19, 2018. He has been the Chief Executive Officer and Managing Director at Elster Group SE since August 24, 2012. He has bee ...


CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD1.27M) is below average for companies of similar size in the UK market ($USD2.84M).

Compensation vs Earnings: Simon's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Simon Peckham
CEO & Executive Director8.42yrsUK£976.00k0.36%
£ 23.1m
James Miller
Executive Vice Chairmanno dataUK£601.00k0.38%
£ 24.4m
David Roper
Co- Founder & Executive Vice Chairman8.42yrsUK£602.00k0.33%
£ 21.4m
Geoffrey Martin
Group Finance Director & Executive Director15.25yrsUK£794.00k0.15%
£ 9.8m
Liam Butterworth
Chief Executive Officer of Automotive Division1.92yrsno datano data
Jonathon Crawford
Company Secretaryno datano datano data

8.4yrs

Average Tenure

54.5yo

Average Age

Experienced Management: MRO's management team is seasoned and experienced (8.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Simon Peckham
CEO & Executive Director8.42yrsUK£976.00k0.36%
£ 23.1m
James Miller
Executive Vice Chairmanno dataUK£601.00k0.38%
£ 24.4m
David Roper
Co- Founder & Executive Vice Chairman8.42yrsUK£602.00k0.33%
£ 21.4m
Geoffrey Martin
Group Finance Director & Executive Director15.25yrsUK£794.00k0.15%
£ 9.8m
Justin Dowley
Independent Chairmanno dataUK£350.00k0.032%
£ 2.1m
Archibald Kane
Independent Non-Executive Director3.25yrsUK£85.00k0.0010%
£ 66.5k
Elizabeth Hewitt
Senior Independent Director1.75yrsUK£110.00k0.0043%
£ 280.8k
David Lis
Independent Non-Executive Director4.42yrsUK£95.00k0.0095%
£ 609.9k
Charlotte Twyning
Independent Non-Executive Director2yrsUK£75.00k0.0014%
£ 93.6k
Funmi Adegoke
Independent Non-Executive Director1yrUK£19.00kno data

3.8yrs

Average Tenure

66yo

Average Age

Experienced Board: MRO's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MRO insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Melrose Industries PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Melrose Industries PLC
  • Ticker: MRO
  • Exchange: LSE
  • Founded: 2003
  • Industry: Heavy Electrical Equipment
  • Sector: Capital Goods
  • Market Cap: UK£6.454b
  • Shares outstanding: 4.86b
  • Website: https://www.melroseplc.net

Number of Employees


Location

  • Melrose Industries PLC
  • Leconfield House
  • Curzon Street
  • London
  • Greater London
  • W1J 5JA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MROLSE (London Stock Exchange)YesNew Ordinary SharesGBGBPOct 2003
27MADB (Deutsche Boerse AG)YesNew Ordinary SharesDEEUROct 2003
MLSP.FOTCPK (Pink Sheets LLC)YesNew Ordinary SharesUSUSDOct 2003
MROLBATS-CHIXE (BATS 'Chi-X Europe')YesNew Ordinary SharesGBGBPOct 2003
MROS NBMV (Bolsa Mexicana de Valores)YesNew Ordinary SharesMXMXNOct 2003
MLSY.YOTCPK (Pink Sheets LLC)UNSPONSRED ADSUSUSDDec 2018

Biography

Melrose Industries PLC engages in the aerospace, automotive, powder metallurgy, air management, and other industrial businesses. Its Aerospace segment provides airframe and engine structures, and electrica ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 20:59
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.