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Melrose Industries

LSE:MRO
Snowflake Description

Adequate balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MRO
LSE
£11B
Market Cap
  1. Home
  2. GB
  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 73 days ago. More info.


Add to Portfolio Compare Print
  • Melrose Industries has significant price volatility in the past 3 months.
MRO Share Price and Events
7 Day Returns
-1.2%
LSE:MRO
-0.6%
GB Electrical
-0.4%
GB Market
1 Year Returns
29.9%
LSE:MRO
28.7%
GB Electrical
4.4%
GB Market
MRO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Melrose Industries (MRO) -1.2% 8.1% 33.1% 29.9% 28.7% -88.1%
GB Electrical -0.6% 7.6% 32.9% 28.7% 24.4% -86%
GB Market -0.4% 1.5% 4.7% 4.4% 6.9% 2.9%
1 Year Return vs Industry and Market
  • MRO outperformed the Electrical industry which returned 28.7% over the past year.
  • MRO outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 4.4% over the past year.
Price Volatility
MRO
Industry
5yr Volatility vs Market

MRO 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.

LSE:MRO 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 10.6%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

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 LSE:MRO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Electrical Unlevered Beta Simply Wall St/ S&P Global 1.2
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.2 (1 + (1- 19%) (41.94%))
1.407
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.41
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.407 * 6.65%)
10.58%

Discounted Cash Flow Calculation for LSE:MRO 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.

LSE:MRO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 10.58%)
2020 495.69 Analyst x7 448.25
2021 767.78 Analyst x5 627.86
2022 861.00 Analyst x1 636.71
2023 927.68 Est @ 7.74% 620.37
2024 981.38 Est @ 5.79% 593.48
2025 1,024.76 Est @ 4.42% 560.41
2026 1,060.24 Est @ 3.46% 524.33
2027 1,089.84 Est @ 2.79% 487.39
2028 1,115.15 Est @ 2.32% 450.98
2029 1,137.38 Est @ 1.99% 415.95
Present value of next 10 years cash flows £5,365.00
LSE:MRO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £1,137.38 × (1 + 1.23%) ÷ (10.58% – 1.23%)
£12,306.62
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £12,306.62 ÷ (1 + 10.58%)10
£4,500.66
LSE:MRO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £5,365.00 + £4,500.66
£9,865.66
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £9,865.66 / 4,858.25
£2.03
LSE:MRO Discount to Share Price
Calculation Result
Value per share (GBP) From above. £2.03
Current discount Discount to share price of £2.23
= -1 x (£2.23 - £2.03) / £2.03
-9.7%

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

  • The current share price of Melrose Industries is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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
LSE:MRO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in GBP £-0.06
LSE:MRO Share Price ** LSE (2019-11-15) in GBP £2.23
United Kingdom of Great Britain and Northern Ireland Electrical Industry PE Ratio Median Figure of 8 Publicly-Listed Electrical Companies 19.35x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 753 Publicly-Listed Companies 16.93x

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

** Primary Listing of Melrose Industries.

LSE:MRO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

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

= 2.23 ÷ -0.06

-35.64x

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

  • Melrose Industries is loss making, we can't compare its value to the GB Electrical industry average.
  • Melrose Industries is loss making, we can't compare the value of its earnings to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Melrose Industries's expected growth come at a high price?
Raw Data
LSE:MRO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -35.64x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
46.4%per year
United Kingdom of Great Britain and Northern Ireland Electrical Industry PEG Ratio Median Figure of 5 Publicly-Listed Electrical Companies 0.93x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 561 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

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

  • Unable to calculate PEG ratio for Melrose Industries, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Melrose Industries's assets?
Raw Data
LSE:MRO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in GBP £1.60
LSE:MRO Share Price * LSE (2019-11-15) in GBP £2.23
United Kingdom of Great Britain and Northern Ireland Electrical Industry PB Ratio Median Figure of 19 Publicly-Listed Electrical Companies 2.08x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,305 Publicly-Listed Companies 1.52x
LSE:MRO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 2.23 ÷ 1.60

1.39x

* 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 GB 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.

MRO 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
46.4%
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 1.2%.
Growth vs Market Checks
  • Melrose Industries's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Melrose Industries's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:MRO Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:MRO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 46.4%
LSE:MRO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 1.5%
United Kingdom of Great Britain and Northern Ireland Electrical Industry Earnings Growth Rate Market Cap Weighted Average 42.7%
United Kingdom of Great Britain and Northern Ireland Electrical Industry Revenue Growth Rate Market Cap Weighted Average 4.1%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 12.5%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*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
LSE:MRO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 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.
LSE:MRO Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,553
2022-12-31 12,240 1,548 834 3
2021-12-31 12,163 1,572 743 7
2020-12-31 12,080 1,163 481 11
2019-12-31 11,795 838 347 10
2019-11-17
LSE:MRO Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
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
2016-12-31 889 51 -39
2016-09-30 569 23 -26

*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 1.5% 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
LSE:MRO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 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 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:MRO Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 0.16 0.17 0.16 2.00
2021-12-31 0.15 0.17 0.13 5.00
2020-12-31 0.11 0.15 0.09 6.00
2019-12-31 0.08 0.13 0.04 6.00
2019-11-17
LSE:MRO Past Financials Data
Date (Data in GBP Millions) EPS *
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
2016-12-31 -0.03
2016-09-30 -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 United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland 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.

MRO 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 does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Melrose Industries's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Melrose Industries's 1-year growth to the GB Electrical industry average as it is not currently profitable.
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 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:MRO Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
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
2013-03-31 1,255.65 2.90 237.25
2012-12-31 1,051.10 -8.60 188.70

*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.
  • It is difficult to establish if Melrose Industries has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Melrose Industries has efficiently used its assets last year compared to the GB Electrical industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Melrose Industries improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
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 0/6, 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.

MRO 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 4 months ago.

LSE:MRO Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
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
2013-03-31 1,895.10 1,174.10 104.50
2012-12-31 1,741.70 1,162.30 156.50
  • Melrose Industries's level of debt (50.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (57.7% vs 50.4% today).
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.

  • Whilst loss making Melrose Industries has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Melrose Industries has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -70.1% per year.
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 4/6, 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.

MRO 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
2.07%
Current annual income from Melrose Industries dividends. Estimated to be 2.53% next year.
If you bought £2,000 of Melrose Industries shares you are expected to receive £41 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 United Kingdom of Great Britain and Northern Ireland (1.97%).
  • Melrose Industries's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.34%).
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
LSE:MRO 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
United Kingdom of Great Britain and Northern Ireland Electrical Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 2.1%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 680 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

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

LSE:MRO Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.07 3.00
2021-12-31 0.06 9.00
2020-12-31 0.06 12.00
2019-12-31 0.05 11.00
2019-11-17
LSE:MRO Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-04-08 0.046 2.443
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
2009-03-11 0.778 7.155

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.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x 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 1.1%) - 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 2/6, see the detailed checks below.


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

MRO 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 7.5 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 United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

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

7.5
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
7.5 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
14.3 yrs

Liam Butterworth

TITLE
Chief Executive Officer of Automotive Division
AGE
48
TENURE
1 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:

2.9
Average Tenure
65
Average Age
  • The average tenure for the Melrose Industries board of directors is less than 3 years, this suggests a new board.
Board of Directors

Justin Dowley

TITLE
Independent Chairman
COMPENSATION
£85K
AGE
63

Simon Peckham

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

James Miller

TITLE
Executive Vice Chairman
COMPENSATION
£575K
AGE
67

David Roper

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

Geoffrey Martin

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

Liz Hewitt

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

David Lis

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

Archie Kane

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

Charlotte Twyning

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

Funmi Adegoke

TITLE
Independent Non-Executive Director
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
18. Mar 19 Sell David Lis Individual 15. Mar 19 15. Mar 19 -3,500 £1.85 £-6,490
18. Mar 19 Buy David Lis Individual 18. Mar 19 18. Mar 19 3,500 £1.85 £6,491
19. Dec 18 Buy David Lis Individual 18. Dec 18 18. Dec 18 25,000 £1.57 £39,197
19. Dec 18 Buy David Roper Individual 18. Dec 18 18. Dec 18 643,602 £1.55 £999,964
19. Dec 18 Buy Justin Dowley Individual 18. Dec 18 18. Dec 18 300,000 £1.55 £465,660
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.

MRO News

Simply Wall St News

If You Had Bought Melrose Industries (LON:MRO) Shares Five Years Ago You'd Have A Total Return Of 258%

Melrose Industries isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. … As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth. … In the last half decade, Melrose Industries saw its revenue increase by 57% per year.

Simply Wall St -

What Should You Know About Melrose Industries PLC's (LON:MRO) Capital Returns?

You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Therefore, looking at how efficiently Melrose Industries is able to use capital to create earnings will help us understand your potential return. … View our latest analysis for Melrose Industries

Simply Wall St -

Is Melrose Industries PLC (LON:MRO) As Strong As Its Balance Sheet Indicates?

Melrose Industries PLC (LON:MRO), a large-cap worth UK£10.74b, comes to mind for investors seeking a strong and reliable stock investment. … Most investors favour these big stocks due to their strong balance sheet and high market liquidity, meaning there are an adundance of stock in the public market available for trading. … In times of low liquidity in the market, these firms won’t be left high and dry.

Simply Wall St -

Should You Buy Melrose Industries PLC (LON:MRO) For Its Dividend?

Over the past 10 years, Melrose Industries PLC (LON:MRO) has returned an average of 4.00% per year to shareholders in terms of dividend yield. … Does Melrose Industries tick all the boxes of a great dividend stock? … Check out our latest analysis for Melrose Industries

Simply Wall St -

Breaking Down Melrose Industries PLC's (LON:MRO) Ownership Structure

I am going to take a deep dive into Melrose Industries PLC’s (LON:MRO) most recent ownership structure, not a frequent subject of discussion among individual investors. … A company's ownership structure is often linked to its share performance in both the long- and short-term. … While these are more of a long-term investor’s concern, short-term investors may find the impact of institutional trading overwhelming enough to lose out on what could be a potential opportunity.

Simply Wall St -

Can Melrose Industries PLC (LON:MRO) Improve Your Portfolio Returns?

Broadly speaking, there are two types of risk you should consider when investing in stocks such as MRO. … The first type is company-specific risk, which can be diversified away by investing in other companies to reduce exposure to one particular stock. … The second risk is market-wide, which arises from investing in the stock market.

Simply Wall St -

Should You Buy Melrose Industries PLC (LON:MRO)?

Let's talk about the popular Melrose Industries PLC (LON:MRO). … A question to answer is whether Melrose Industries's current trading price of £2.08 reflective of the actual value of the? … Let’s take a look at Melrose Industries’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Melrose Industries PLC (LON:MRO): Time For A Financial Health Check

Big corporations are much sought after by risk-averse investors who find diversified revenue streams and strong capital returns attractive. … Today we will look at Melrose Industries’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself

Simply Wall St -

Melrose Industries PLC's (LON:MRO) Shift From Loss To Profit

Melrose Industries PLC's (LON:MRO):. … Melrose Industries PLC, together with its subsidiaries, designs and manufactures electricity generating equipment for the power generation, industrial, oil and gas, and offshore sectors in the United Kingdom, Europe, North America, and internationally. … View out our latest analysis for Melrose Industries

Simply Wall St -

Are Earnings Prospects Improving For Loss-Making Melrose Industries PLC's (LON:MRO)?

In this article, I will take a look at Melrose Industries PLC's (LSE:MRO) most recent earnings update (31 December 2017) and compare these latest figures against its performance over the past few years, along with how the rest of MRO's industry performed. … View our latest analysis for Melrose Industries How Did MRO's Recent Performance Stack Up Against Its Past? … Each year, for the past half a decade Melrose Industries's revenue growth has been relatively unexciting, with an annual growth rate of 0.91%, on average.

Simply Wall St -

MRO 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
MRO
Exchange: LSE
Founded: 2003
£10,819,333,802
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
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: 2019/11/17 21:50
End of day share price update: 2019/11/15 00:00
Last estimates confirmation: 2019/11/13
Last earnings filing: 2019/09/05
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


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.