Melrose Industries PLC
Melrose Industries PLC Fundamental Analysis
Melrose Industries PLC (MLSPF) shows moderate financial fundamentals with a PE ratio of 28.22, profit margin of 9.17%, and ROE of 11.10%. The company generates $3.4B in annual revenue with moderate year-over-year growth of 3.52%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MLSPF's fundamental strength across five key dimensions:
Efficiency Score
WeakMLSPF struggles to generate sufficient returns from assets.
Valuation Score
ModerateMLSPF shows balanced valuation metrics.
Growth Score
WeakMLSPF faces weak or negative growth trends.
Financial Health Score
ExcellentMLSPF maintains a strong and stable balance sheet.
Profitability Score
WeakMLSPF struggles to sustain strong margins.
Key Financial Metrics
Is MLSPF Expensive or Cheap?
P/E Ratio
MLSPF trades at 28.22 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MLSPF's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values Melrose Industries PLC at 3.13 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.54 times EBITDA. This is generally considered low.
How Well Does MLSPF Make Money?
Net Profit Margin
For every $100 in sales, Melrose Industries PLC keeps $9.17 as profit after all expenses.
Operating Margin
Core operations generate 14.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.10 in profit for every $100 of shareholder equity.
ROA
Melrose Industries PLC generates $4.31 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Melrose Industries PLC generates limited operating cash flow of $-22.46M, signaling weaker underlying cash strength.
Free Cash Flow
Melrose Industries PLC generates weak or negative free cash flow of $-124.03M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.10 in free cash annually.
FCF Yield
MLSPF converts -1.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.63
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How MLSPF Stacks Against Its Sector Peers
| Metric | MLSPF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.22 | 26.76 | Neutral |
| ROE | 11.10% | 1300.00% | Weak |
| Net Margin | 9.17% | -29570.00% (disorted) | Weak |
| Debt/Equity | 0.63 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.05 | 10.68 | Neutral |
| ROA | 4.31% | -1545134.00% (disorted) | Weak |
MLSPF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Melrose Industries PLC's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-51.61%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-92.26%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-122.44%
Industry Style: Cyclical, Value, Infrastructure
Declining