Fact based stock research
Melrose (LSE:MRO)

GB00BNR5MZ78

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Melrose stock research in summary

melroseplc.net

ANALYSIS: With an Obermatt Combined Rank of 53 (better than 53% compared with investment alternatives), Melrose (Industrial Conglomerates, United Kingdom) shares have above-average financial characteristics compared with similar stocks. Shares of Melrose are a good value (attractively priced) with a consolidated Value Rank of 55 (better than 55% of alternatives), show above-average growth (Growth Rank of 61) but are riskily financed (Safety Rank of 22), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 53, is a buy recommendation based on Melrose's financial characteristics. As the company Melrose's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 55) and above-average growth (Obermatt Growth Rank of 61), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 22) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	55
Growth Rank	61
Safety Rank	22
Combined Rank	53

Country	United Kingdom
Industry	Industrial Conglomerates
Index	FTSE All Shares, FTSE 100, FTSE 350, Dividends Europe, Electromobility
Size class	Large

14-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Melrose

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	86	56	22	55
GROWTH
GROWTH	5	75	46	61
SAFETY
SAFETY	65	74	46	22
SENTIMENT
SENTIMENT	32	96	70	^new
360° VIEW
360° VIEW	52	96	45	^new

Most recent update of the stock research: 14-Jul-2025. Financial reporting date used for calculating ranks: 31-Dec-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Melrose is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	86	56	22	55
GROWTH
GROWTH	5	75	46	61
SAFETY
SAFETY	65	74	46	22
COMBINED
COMBINED	71	89	18	53

Last update of combined financial performance: 14-Jul-2025. Stock analysis on combined financial performance: The higher the rank of Melrose the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 55 (better than 55% compared with alternatives), Melrose shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Melrose. Only Price-to-Profit (also referred to as price-earnings, P/E) indicates good stock value with a rank of 58, which means that the stock price compared with what market professionals expect for future profits is lower than for 58% of comparable companies, indicating a good value concerning Melrose's profit levels. But Price-to-Sales is 32 which means that the stock price compared with what market professionals expect for future profits is higher than for 68% of comparable companies, indicating a low value concerning Melrose's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 41 and for dividend yield, which is lower than for 55% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 55, is a buy recommendation based on Melrose's stock price compared with the company's operational size and dividend yields. Can we rely on only one good value indicator? Only if we know the company well. In this case, a high Price-to-Profit Rank, while Price-to-Sales and Price-to-Book are both below the market typical levels, means that the company can charge higher prices for its products and needs less capital to produce them. If this is sustainable, then Melrose is a good investment because profits count most in enterprise valuations. The low dividend yield indicates that the company is confident it can do something with the generated cash that is more valuable than paying the profits out to the shareholders in the form of dividends. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	64	30	25	32
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	41	33	27	58
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	92	57	34	41
DIVIDEND YIELD
DIVIDEND YIELD	71	47	36	45
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	86	56	22	55

Last update of Value Rank: 14-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Melrose; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 61 (better than 61% compared with alternatives), Melrose shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Melrose. Sales Growth has a value of 53 which means that currently professionals expect the company to grow more than 53% of its competitors. Profit Growth with a value of 55 and Capital Growth with a rank of 94 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 37, which means that stock returns have recently been below 63% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 61, is a buy recommendation for growth and momentum investors. Melrose has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for Melrose, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	10	61	42	53
PROFIT GROWTH
PROFIT GROWTH	45	18	33	55
CAPITAL GROWTH
CAPITAL GROWTH	31	79	100	94
STOCK RETURNS
STOCK RETURNS	35	99	42	37
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	5	75	46	61

Last update of Growth Rank: 14-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Melrose.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 22 (better than 22% compared with alternatives), the company Melrose has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Melrose is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Melrose and the other two below average. Leverage is at a rank of 50 meaning the company has a below-average debt-to-equity ratio. It has less debt than 50% of its competitors.Refinancing is at a rank of 8, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 92% of its competitors. Liquidity is at a rank of 32, meaning that the company generates less profit to service its debt than 68% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 22 (worse than 78% compared with alternatives), Melrose has a financing structure that is significantly riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Melrose are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Melrose and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	55	82	84	50
REFINANCING
REFINANCING	66	16	8	8
LIQUIDITY
LIQUIDITY	28	73	30	32
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	65	74	46	22

Last update of Safety Rank: 14-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Melrose and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	79	64	^new
OPINIONS CHANGE
OPINIONS CHANGE	29	94	28	^new
PRO HOLDINGS
PRO HOLDINGS	14	35	67	^new
MARKET PULSE
MARKET PULSE	61	78	66	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	32	96	70	^new

Last update of Sentiment Rank: 14-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Melrose.
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