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Melrose Industries

DB:27MA
Snowflake Description

Moderate growth potential second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
27MA
DB
£4B
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

Melrose Industries PLC engages in the aerospace, automotive, powder metallurgy, air and security, and other industrial businesses. The last earnings update was 26 days ago. More info.


Add to Portfolio Compare Print
  • Melrose Industries has significant price volatility in the past 3 months.
27MA Share Price and Events
7 Day Returns
2%
DB:27MA
9.2%
DE Electrical
9.9%
DE Market
1 Year Returns
-49.4%
DB:27MA
-8.2%
DE Electrical
-17.5%
DE Market
27MA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Melrose Industries (27MA) 2% -55.5% -60.3% -49.4% -57.9% -
DE Electrical 9.2% -20.6% -35.2% -8.2% -43.7% -44.1%
DE Market 9.9% -16.6% -24.8% -17.5% -24.5% -28.1%
1 Year Return vs Industry and Market
  • 27MA underperformed the Electrical industry which returned -8.2% over the past year.
  • 27MA underperformed the Market in Germany which returned -17.5% over the past year.
Price Volatility
27MA
Industry
5yr Volatility vs Market

27MA Value

 Is Melrose Industries undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Melrose Industries to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Melrose Industries.

DB:27MA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.6%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:27MA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.1%
Electrical Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.118 (1 + (1- 19%) (93.02%))
1.644
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.64
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.644 * 6.07%)
9.59%

Discounted Cash Flow Calculation for DB:27MA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Melrose Industries is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:27MA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 9.59%)
2020 339.46 Analyst x5 309.76
2021 521.95 Analyst x6 434.61
2022 513.83 Analyst x3 390.42
2023 508.04 Est @ -1.13% 352.24
2024 503.44 Est @ -0.91% 318.51
2025 499.66 Est @ -0.75% 288.46
2026 496.45 Est @ -0.64% 261.53
2027 493.63 Est @ -0.57% 237.29
2028 491.10 Est @ -0.51% 215.42
2029 488.76 Est @ -0.48% 195.63
Present value of next 10 years cash flows £3,003.00
DB:27MA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £488.76 × (1 + -0.39%) ÷ (9.59% – -0.39%)
£4,879.00
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £4,879.00 ÷ (1 + 9.59%)10
£1,952.91
DB:27MA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £3,003.00 + £1,952.91
£4,955.91
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £4,955.91 / 4,858.25
£1.02
DB:27MA Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:27MA represents 1.21968x of LSE:MRO
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.21968x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 1.02 x 1.21968
€1.24
Value per share (EUR) From above. €1.24
Current discount Discount to share price of €1.12
= -1 x (€1.12 - €1.24) / €1.24
10.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Melrose Industries is available for.
Intrinsic value
10%
Share price is €1.12 vs Future cash flow value of €1.24
Current Discount Checks
For Melrose Industries to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Melrose Industries's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Melrose Industries's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Melrose Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Melrose Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:27MA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in GBP £0.01
LSE:MRO Share Price ** LSE (2020-03-31) in GBP £0.92
Germany Electrical Industry PE Ratio Median Figure of 6 Publicly-Listed Electrical Companies 22.57x
Germany Market PE Ratio Median Figure of 399 Publicly-Listed Companies 16.31x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Melrose Industries.

DB:27MA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:MRO Share Price ÷ EPS (both in GBP)

= 0.92 ÷ 0.01

96.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Melrose Industries is overvalued based on earnings compared to the DE Electrical industry average.
  • Melrose Industries is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Melrose Industries's expected growth come at a high price?
Raw Data
DB:27MA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 96.64x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
67.7%per year
Germany Electrical Industry PEG Ratio Median Figure of 5 Publicly-Listed Electrical Companies 1x
Germany Market PEG Ratio Median Figure of 255 Publicly-Listed Companies 1.18x

*Line of best fit is calculated by linear regression .

DB:27MA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 96.64x ÷ 67.7%

1.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Melrose Industries is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Melrose Industries's assets?
Raw Data
DB:27MA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in GBP £1.55
LSE:MRO Share Price * LSE (2020-03-31) in GBP £0.92
Germany Electrical Industry PB Ratio Median Figure of 14 Publicly-Listed Electrical Companies 1.69x
Germany Market PB Ratio Median Figure of 571 Publicly-Listed Companies 1.43x
DB:27MA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:MRO Share Price ÷ Book Value per Share (both in GBP)

= 0.92 ÷ 1.55

0.59x

* Primary Listing of Melrose Industries.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Melrose Industries is good value based on assets compared to the DE Electrical industry average.
X
Value checks
We assess Melrose Industries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electrical industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electrical industry average (and greater than 0)? (1 check)
  5. Melrose Industries has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

27MA Future Performance

 How is Melrose Industries expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
67.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Melrose Industries expected to grow at an attractive rate?
  • Melrose Industries's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Melrose Industries's earnings growth is expected to exceed the Germany market average.
  • Melrose Industries's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:27MA Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:27MA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 67.7%
DB:27MA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 0.4%
Germany Electrical Industry Earnings Growth Rate Market Cap Weighted Average 69.2%
Germany Electrical Industry Revenue Growth Rate Market Cap Weighted Average 12.4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.4%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:27MA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:27MA Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,516
2022-12-31 10,873 1,166 530 7
2021-12-31 10,860 1,093 319 11
2020-12-31 9,947 874 -16 10
2020-03-31
DB:27MA Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-12-31 10,967 749 46
2019-09-30 11,258 687 -102
2019-06-30 11,458 624 -304
2019-03-31 10,032 499 -390
2018-12-31 8,605 373 -475
2018-09-30 6,184 255 -458
2018-06-30 3,853 137 -386
2018-03-31 2,973 85 -205
2017-12-31 2,092 32 -24
2017-09-30 1,981 -4 -8
2017-06-30 1,871 -40 8
2017-03-31 1,380 5 -16

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Melrose Industries's earnings are expected to grow significantly at over 20% yearly.
  • Melrose Industries's revenue is expected to grow by 0.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:27MA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Melrose Industries Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:27MA Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 0.11 0.11 0.11 2.00
2021-12-31 0.08 0.12 0.02 5.00
2020-12-31 0.01 0.08 -0.04 5.00
2020-03-31
DB:27MA Past Financials Data
Date (Data in GBP Millions) EPS *
2019-12-31 0.01
2019-09-30 -0.02
2019-06-30 -0.06
2019-03-31 -0.09
2018-12-31 -0.12
2018-09-30 -0.14
2018-06-30 -0.15
2018-03-31 -0.09
2017-12-31 -0.01
2017-09-30 0.00
2017-06-30 0.00
2017-03-31 -0.01

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Melrose Industries is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Melrose Industries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Melrose Industries has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

27MA Past Performance

  How has Melrose Industries performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Melrose Industries's growth in the last year to its industry (Electrical).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Melrose Industries's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Melrose Industries has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Melrose Industries has become profitable in the last year making it difficult to compare the DE Electrical industry average.
Earnings and Revenue History
Melrose Industries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Melrose Industries Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:27MA Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 10,967.00 46.00 1,986.00
2019-09-30 11,257.50 -102.00 2,185.00
2019-06-30 11,458.00 -304.00 2,452.00
2019-03-31 10,031.50 -389.50 2,293.50
2018-12-31 8,605.00 -475.00 2,135.00
2018-09-30 6,184.00 -457.50 1,620.50
2018-06-30 3,853.00 -386.00 1,038.00
2018-03-31 2,972.50 -205.00 759.50
2017-12-31 2,092.00 -24.00 481.00
2017-09-30 1,981.30 -8.10 482.25
2017-06-30 1,870.60 7.80 483.50
2017-03-31 1,379.95 -15.60 360.90
2016-12-31 889.30 -39.00 238.30
2016-09-30 569.35 -26.10 159.85
2016-06-30 249.40 -13.20 81.40
2016-03-31 255.25 -15.20 76.35
2015-12-31 261.10 -17.20 71.30
2015-09-30 268.65 -16.90 67.05
2015-06-30 276.20 -16.60 62.80
2015-03-31 300.25 -4.60 62.65
2014-12-31 324.30 7.40 62.50
2014-09-30 539.95 36.70 102.40
2014-06-30 755.60 66.00 142.30
2014-03-31 1,111.00 83.25 214.20
2013-12-31 1,466.40 100.50 286.10
2013-09-30 1,463.30 57.45 285.95
2013-06-30 1,460.20 14.40 285.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Melrose Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Melrose Industries used its assets less efficiently than the DE Electrical industry average last year based on Return on Assets.
  • Melrose Industries has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Melrose Industries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electrical industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Melrose Industries has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

27MA Health

 How is Melrose Industries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Melrose Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Melrose Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Melrose Industries's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Melrose Industries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Melrose Industries Company Filings, last reported 3 months ago.

DB:27MA Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 7,551.00 3,553.00 317.00
2019-09-30 7,551.00 3,553.00 317.00
2019-06-30 7,781.00 3,922.00 365.00
2019-03-31 7,781.00 3,922.00 365.00
2018-12-31 8,261.00 3,769.00 421.00
2018-09-30 8,261.00 3,769.00 421.00
2018-06-30 7,828.00 3,868.00 430.00
2018-03-31 7,828.00 3,868.00 430.00
2017-12-31 1,885.00 588.00 20.00
2017-09-30 1,885.00 588.00 20.00
2017-06-30 1,984.80 709.40 40.90
2017-03-31 1,984.80 709.40 40.90
2016-12-31 2,162.80 582.00 44.00
2016-09-30 2,162.80 582.00 44.00
2016-06-30 474.70 0.00 51.40
2016-03-31 474.70 0.00 51.40
2015-12-31 2,845.40 0.00 2,451.40
2015-09-30 2,845.40 0.00 2,451.40
2015-06-30 1,311.70 787.90 50.90
2015-03-31 1,311.70 787.90 50.90
2014-12-31 1,573.70 573.90 70.50
2014-09-30 1,573.70 573.90 70.50
2014-06-30 1,494.30 865.90 115.90
2014-03-31 1,494.30 865.90 115.90
2013-12-31 2,187.90 343.70 200.40
2013-09-30 2,187.90 343.70 200.40
2013-06-30 1,895.10 1,174.10 104.50
  • Melrose Industries's level of debt (47.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (36.7% vs 47.1% today).
  • Debt is well covered by operating cash flow (21.1%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.4x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Melrose Industries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Melrose Industries has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

27MA Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.57%
Current annual income from Melrose Industries dividends. Estimated to be 5.11% next year.
If you bought €2,000 of Melrose Industries shares you are expected to receive €111 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Melrose Industries's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.68%).
  • Melrose Industries's dividend is above the markets top 25% of dividend payers in Germany (4.97%).
Upcoming dividend payment

Purchase Melrose Industries before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:27MA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Germany Electrical Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 2%
Germany Market Average Dividend Yield Market Cap Weighted Average of 323 Stocks 3.8%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:27MA Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.06 7.00
2021-12-31 0.05 12.00
2020-12-31 0.04 12.00
2020-03-31
DB:27MA Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2020-03-05 0.051 4.241
2019-04-08 0.046 2.289
2019-03-07 0.046 2.489
2018-04-10 0.042 2.167
2018-02-20 0.042 1.905
2017-08-31 0.033 1.540
2017-04-07 0.033 1.392
2017-03-02 0.033 1.451
2016-04-06 0.218 9.513
2016-03-03 0.218 6.277
2015-04-10 0.598 5.064
2015-03-04 0.598 3.062
2014-04-08 0.609 3.100
2014-03-05 0.609 2.793
2013-03-06 0.663 2.723
2012-03-07 1.135 4.706
2011-03-09 1.222 3.837
2010-03-10 0.855 3.002
2009-08-28 0.794 4.029

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Melrose Industries's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
X
Income/ dividend checks
We assess Melrose Industries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Melrose Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Melrose Industries has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

27MA Management

 What is the CEO of Melrose Industries's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Simon Peckham
COMPENSATION £1,049,000
AGE 56
TENURE AS CEO 7.8 years
CEO Bio

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 been a Member of the Administrative Board at Elster Group SE since August 24, 2012. He provides expertise in equity finance, corporate transactions and management of manufacturing industries. Mr. Peckham serves as Independent Non-Executive Director at Greensphere Capital PLC. He served as the Chief Operating Officer of Melrose Industries PLC since May 2003 and served as its Secretary. From October 2000 to May 2003, he worked for the equity finance division of The Royal Bank of Scotland and was involved in several high profile transactions. His earlier career was at Clifford Chance. He served as a Corporate Development Director at Wassall Plc. He has been an Executive Director of Melrose Industries PLC since May 29, 2003. He served as a Director of Royal Bank Private Equity. In 1990, he joined Wassall Plc and became an Executive Director of it in 1999. Mr. Peckham qualified as a solicitor in 1986.

CEO Compensation
  • Simon's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Simon's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Melrose Industries management team in years:

7.8
Average Tenure
53.5
Average Age
  • The average tenure for the Melrose Industries management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Simon Peckham

TITLE
CEO & Executive Director
COMPENSATION
£1M
AGE
56
TENURE
7.8 yrs

James Miller

TITLE
Executive Vice Chairman
COMPENSATION
£575K
AGE
67

David Roper

TITLE
Executive Vice Chairman
COMPENSATION
£583K
AGE
68

Geoffrey Martin

TITLE
Group Finance Director & Executive Director
COMPENSATION
£856K
AGE
51
TENURE
14.7 yrs

Liam Butterworth

TITLE
Chief Executive Officer of Automotive Division
AGE
48
TENURE
1.3 yrs

Joff Crawford

TITLE
Company Secretary
AGE
46
Board of Directors Tenure

Average tenure and age of the Melrose Industries board of directors in years:

3.3
Average Tenure
65
Average Age
  • The tenure for the Melrose Industries board of directors is about average.
Board of Directors

Justin Dowley

TITLE
Independent Chairman
COMPENSATION
£85K
AGE
63

Simon Peckham

TITLE
CEO & Executive Director
COMPENSATION
£1M
AGE
56
TENURE
16.8 yrs

James Miller

TITLE
Executive Vice Chairman
COMPENSATION
£575K
AGE
67

David Roper

TITLE
Executive Vice Chairman
COMPENSATION
£583K
AGE
68
TENURE
7.8 yrs

Geoffrey Martin

TITLE
Group Finance Director & Executive Director
COMPENSATION
£856K
AGE
51
TENURE
14.7 yrs

Liz Hewitt

TITLE
Senior Independent Director
COMPENSATION
£80K
AGE
63
TENURE
1.2 yrs

David Lis

TITLE
Independent Non-Executive Director
COMPENSATION
£72K
AGE
69
TENURE
3.8 yrs

Archie Kane

TITLE
Independent Non-Executive Director
COMPENSATION
£69K
AGE
67
TENURE
2.7 yrs

Charlotte Twyning

TITLE
Independent Non-Executive Director
COMPENSATION
£17K
TENURE
1.4 yrs

Funmi Adegoke

TITLE
Independent Non-Executive Director
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Melrose Industries individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
16. Mar 20 Buy Charlotte Twyning Individual 13. Mar 20 13. Mar 20 6,766 €1.65 €11,139
10. Mar 20 Buy Charlotte Twyning Individual 10. Mar 20 10. Mar 20 5,718 €1.99 €11,362
09. Mar 20 Buy David Roper Individual 06. Mar 20 06. Mar 20 541,570 €2.11 €1,140,916
09. Mar 20 Buy Simon Peckham Individual 09. Mar 20 09. Mar 20 147,652 €1.94 €286,562
09. Mar 20 Buy Justin Dowley Individual 09. Mar 20 09. Mar 20 145,000 €1.95 €282,994
X
Management checks
We assess Melrose Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Melrose Industries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

27MA News

Simply Wall St News

27MA Company Info

Description

Melrose Industries PLC engages in the aerospace, automotive, powder metallurgy, air and security, and other industrial businesses. Its Aerospace segment supplies airframe and engine structures, landing gears, specialist technologies, and aftermarket services for commercial and military aircraft. The company’s Automotive segment designs, develops, manufactures, and integrates driveline technologies for car manufacturers; and operates as an all-wheel drive systems integrator and electric powertrain systems engineer. Its Powder Metallurgy segment offers powder metal solutions and precision powder metal parts for the automotive and industrial sectors; and produces powder metal. The company’s Nortek Air & Security segment manufactures and sells split-system and packaged air conditioners, heat pumps, furnaces, air handlers, and parts for the residential replacement and new construction markets; and custom designed and engineered products and systems for non-residential applications. It also manufactures ventilation products for the professional remodeling and replacement, residential new construction, and do-it-yourself markets. In addition, this segment manufactures and distributes convenience and security products primarily for residential applications; and audiovisual equipment for the residential audio video and professional video markets. Its Other Industrial segment manufactures and distributes ergonomic technology workstations; electricity generating equipment; engineered power management products, systems, and service solutions; and off-highway wheels, as well as metallic structures for automotive and off-highway markets. The company has operations in the United Kingdom, rest of Europe, North America, and internationally. The company was formerly known as New Melrose Industries PLC and changed its name to Melrose Industries PLC in November 2015. Melrose Industries PLC was founded in 2003 and is headquartered in London, the United Kingdom.

Details
Name: Melrose Industries PLC
27MA
Exchange: DB
Founded: 2003
£5,036,324,242
4,858,254,963
Website: http://www.melroseplc.net
Address: Melrose Industries PLC
Leconfield House,
Curzon Street,
London,
Greater London, W1J 5JA,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE MRO New Ordinary Shares London Stock Exchange GB GBP 28. Oct 2003
OTCPK MLSP.F New Ordinary Shares Pink Sheets LLC US USD 28. Oct 2003
DB 27MA New Ordinary Shares Deutsche Boerse AG DE EUR 28. Oct 2003
BRSE 27MA New Ordinary Shares Berne Stock Exchange CH CHF 28. Oct 2003
BMV MROS N New Ordinary Shares Bolsa Mexicana de Valores MX MXN 28. Oct 2003
BATS-CHIXE MROL New Ordinary Shares BATS 'Chi-X Europe' GB GBP 28. Oct 2003
OTCPK MLSY.Y UNSPONSRED ADS Pink Sheets LLC US USD 07. Dec 2018
Number of employees
Current staff
Staff numbers
60,908
Melrose Industries employees.
Industry
Heavy Electrical Equipment
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/31 23:06
End of day share price update: 2020/03/31 00:00
Last estimates confirmation: 2020/03/31
Last earnings filing: 2020/03/05
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.