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Melrose Industries PLC (MRO) Fair Value & Analysis

Industrials · GB · Market cap 5.8B GBX

MI Melrose Industries PLC MRO · LSE
Price£4.66
Fair Value£5.12
Upside+9.9%
Quality51/100
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Evidence: High Range £2.91 – £7.79 📤 Share as image

Fair value as of: Jul 17, 2026

From 26 valuation models · updated 4 days ago

Fair value updated Jul 17, 2026, revised from £5.11 to £5.12 (+0.2%) since Jun 24, 2026. Share price −2.2% over the past month.

Price vs Fair Value (12 months)

£6.83 £4.53 Fair Value £5.12 Jul 2025 Jul 2026

12‑month range £4.53 – £6.83 · fair‑value band £2.91 – £7.79 · the £4.66 price screens below the £5.12 fair value. As of Jul 17, 2026.

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Analysis

Melrose Industries PLC (MRO) currently trades at £4.66, while our model-based Fair Value estimate is £5.12, implying the stock looks roughly 9.9% fairly valued today. We read business quality at 51/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Melrose Industries PLC generated revenue of £3.6B at a net margin of 10.3%. Revenue grew 8.3% year over year. It earns a return on equity of 13.1%. Net debt stands at £1.7B. Fundamentals as of Jul 17, 2026

Our scenario range runs from £2.91 (bear case) to £7.79 (bull case); at £4.66, the current price sits within that range. For context, the median of 10 Industrials peers we cover trades at -44% fair-value upside, at 10%, MRO screens cheaper than that median.

Key figures & financial health

Revenue (TTM) 3.6B GBX
Revenue growth (YoY) +8.3%
Net margin 10.3%
Return on equity 13.1%
Free cash flow 128M GBX FY2025
P/E ratio 16.0
More key figures
Operating margin 8.4%
EPS (TTM) £0.2900
Dividend yield 1.5%
EPS growth (YoY) +181%
Net debt 1.7B GBX FY2025

Figures from reported company fundamentals (EODHD) · as of Jul 17, 2026. TTM = trailing twelve months.

About the company

Melrose Industries PLC, together with its subsidiaries, designs and delivers aerospace components and systems for civil and defence markets in the United Kingdom, rest of Europe, North America, and internationally. The company operates through Engines and Airframes segments. The Engines segment offers structural engineered components; parts repair; commercial and aftermarket contracts; engine mount structures; fan cases and turbine cases; and shafts and rotating components to engines original equipment manufacturers. The Airframes segment provides civil and defence air frames, including lightweight composite and metallic structures; electrical distribution systems and components; wing structures; empennage; fuselage; electrical wiring interconnection systems ("EWIS"); landing gear and ice protection systems; and aircraft transparencies to airframe original equipment manufacturers. The company was formerly known as New Melrose Industries PLC and changed its name to Melrose …

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Melrose Industries PLC reported revenue of £3.6B in FY2025 versus £6.7B in FY2021, a compound −14.3%/yr. Reported net income was £370M in FY2025.

Revenue −14.3%/yr
FY21 £6.7B
FY22 £7.5B
FY23 £3.4B
FY24 £3.5B
FY25 £3.6B
Net income
FY21 −£500M
FY22 −£292M
FY23 −£1.0B
FY24 −£49.0M
FY25 £370M

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Cite: Fair Value Calculator (2026). "Melrose Industries PLC Fair Value". https://www.fairvalue-calculator.com/stock/MRO

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Frequently asked questions

Is Melrose Industries PLC (MRO) undervalued?
As of Jul 17, 2026, our model estimates a fair value of £5.12 versus a price of £4.66, about +10% (fairly valued). Model-based estimate, not financial advice.
What is the fair value of MRO?
Our model-based fair value for Melrose Industries PLC is £5.12 (as of Jul 17, 2026), built from audited fundamentals. The current price is £4.66.
What is the quality score of MRO?
Melrose Industries PLC has a Quality Score of 51/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Melrose Industries PLC (MRO)?
Melrose Industries PLC reported trailing-twelve-month revenue of about £3.6B (latest available figure, as of Jul 17, 2026).
What is the net profit margin of MRO?
The net profit margin of Melrose Industries PLC is about 10.3%, meaning it keeps roughly 10.3% of revenue as net income. Based on the latest reported figures.
Does Melrose Industries PLC pay a dividend?
Melrose Industries PLC currently shows a dividend yield of about 1.53% relative to its recent price (as of Jul 17, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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Not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.