Melrose Industries Plc (MRO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Melrose Industries Plc

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Thruvision Group Plc

Senior Plc

Velocity Composites Plc

Why is Melrose Industries Plc ?

Poor Management Efficiency with a low ROCE of 3.44%

The company has been able to generate a Return on Capital Employed (avg) of 3.44% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.05 times

Poor long term growth as Operating profit has grown by an annual rate 23.80% of over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.05 times
The company has been able to generate a Return on Equity (avg) of 3.94% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 23.80% of over the last 5 years

Flat results in Jun 26

DEBT-EQUITY RATIO (HY) Highest at 64.81 %
DEBTORS TURNOVER RATIO(HY) Lowest at 3.55 times
INVENTORY TURNOVER RATIO(HY) Lowest at 4.69 times

With ROE of 7.98%, it has a fair valuation with a 2.11 Price to Book Value

Over the past year, while the stock has generated a return of -17.84%, its profits have fallen by -0.2% ; the PEG ratio of the company is 14.1

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Melrose Industries Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Melrose Industries Plc

-17.84%

-0.66

34.96%

FTSE 100

18.59%

1.58

11.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-16.36%

EBIT Growth (5y)

23.80%

EBIT to Interest (avg)

1.08

Debt to EBITDA (avg)

1.54

Net Debt to Equity (avg)

0.48

Sales to Capital Employed (avg)

0.85

Tax Ratio

20.94%

Dividend Payout Ratio

24.75%

Pledged Shares

Institutional Holding

ROCE (avg)

3.66%

ROE (avg)

3.94%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.11

EV to EBIT

18.77

EV to EBITDA

9.43

EV to Capital Employed

1.73

EV to Sales

2.06

PEG Ratio

14.10

Dividend Yield

149.15%

ROCE (Latest)

9.24%

ROE (Latest)

7.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

PRE-TAX PROFIT(Q)

Highest at GBP 145 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 45%

RAW MATERIAL COST(Y)

Fallen by -94.6% (YoY

CASH AND EQV(HY)

Highest at GBP 200 MM

DIVIDEND PER SHARE(HY)

Highest at GBP 3.55

NET SALES(Q)

Highest at GBP 1,873 MM

-6What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 64.81 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.55 times

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.69 times

DIVIDEND PER SHARE(HY)

Lowest at GBP 3.55

Here's what is working for Melrose Industries Plc

Pre-Tax Profit

Highest at GBP 145 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (GBP MM)

Net Sales

Highest at GBP 1,873 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Cash and Eqv

Highest at GBP 200 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at GBP 3.55

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Dividend Payout Ratio

Highest at 45%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -94.6% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Melrose Industries Plc

Debt-Equity Ratio

Highest at 64.81 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 3.55 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Inventory Turnover Ratio

Lowest at 4.69 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend per share

Lowest at GBP 3.55

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (GBP)