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Melrose Industries PLC (27M) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Melrose Industries PLC

27MMarket cap $7.41BPrice $5.9

Country🇬🇧United Kingdom

SectorIndustrials

IndustryAerospace & Defense

Designs and manufactures engines and structures powering the world's most advanced aircraft, supplying both Airbus and Boeing. After ditching its automotive and metals divisions, it now bets entirely on aerospace's post-pandemic comeback.

In Bastion Portfolios?

52W Return-28%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+11%7

Revenue Forecast

Rev CAGR (1y)+5%4

Rev CAGR (3y)+8%6

Rev CAGR (5y)+7%6

Earnings Forecast

EPS Growth Y+1+17%8

EPS Growth Y+2+31%9

EPS Growth Y+3+19%8

Quality

Margins

EBIT Margin8%4

Net Income Margin4%3

Free Cash Flow Margin5%4

Debt

Net Debt/EBITDA2.83

Efficiency

ROE6%3

ROA2%4

Earnings Stability44

GEAR+WEAK33

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)118

P/E Ratio (Forward 3y)89

P/BV2.07

EV Multiples

EV/EBITDA Fwd97

EV/EBIT Fwd118

Yield

Free Cash Flow Yield3.6%5

Dividend Yieldna–

Momentum

Short term

1 month return-8%3

3 month return-7%4

YTD return-20%2

Mid term

Price vs 52wHigh69%3

1 year return-28%2

Long term

3 year return+5%3

5 year return+970%10

Risk Shield

Price Risk

Beta0.94

Volatility38%5

Free Cash Flow

Free Cash Flow Margin5%4

Free Cash Flow Yield3.6%5

Quality

ROCE5%3

Earnings Stability44

Net Debt/EBITDA2.83

02Growth

Is it actually growing, and how fast?

27MMelrose Industries

Revenue FY25$4.8B

GROWTH RATING↗

AVERAGE59 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+11%7

Revenue, next 1Y+5%4

Revenue, next 3Y, CAGR+8%6

Revenue, next 5Y, CAGR+7%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+17%8

EPS growth, FY27E+31%9

EPS growth, FY28E+19%8

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 11%/yr over the last 3 years, ahead of 60% of companies worldwide.7/10

Earnings are set to grow faster than sales (EPS about 19%/yr vs revenue 8%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 59% of companies worldwide.

Revenue is set to grow 8%/yr over the next 3 years, in line with the market.5/10

Revenue grew 11%/yr over the last 3 years and is set to keep growing around 8%/yr.

Over five years revenue is set to grow 7%/yr, ahead of 50% of companies worldwide.6/10

WEAKNESSES

None flagged.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower. The one thing to watch: forward revenue growth is only about average.

03Price Momentum

Is the market behind it right now?

27MMelrose Industries

Total return Current−16.9%

Price return Current−25.6%

MOMENTUM RATING↗

WEAK25 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-8%3

3-month return-7%4

YTD return-20%2

MID & LONG-TERM▾SCORE

% of 52-week high69%3

1-year return-28%2

3-year return+5%3

5-year return+970%10

MOMENTUM ASSESSMENT

STRENGTHS

Strong long-term results. Long-term holders have seen +4.8% over three years and +970% over five, ahead of 60% of the market.

WATCH

Returns sit at the market level over three months (-7%).

WEAKNESSES

It's down 28% over the past year, now 31% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-8%) and so far this year (-20%).

BOTTOM LINE

Outperformer in a Drawdown

A proven multi-year compounder now in a meaningful pullback well below its 52-week high. This is the classic fork: either a buy-the-dip in an intact uptrend, or the early stage of a trend change. Wait for the short-term slide to stabilise before adding. The one thing to watch: the one-year trend is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Melrose Industries. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

27MMelrose Industries

Revenue FY25$4.8B

GROWTH RATING↗

AVERAGE59 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+11%7

Revenue, next 1Y+5%4

Revenue, next 3Y, CAGR+8%6

Revenue, next 5Y, CAGR+7%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+17%8

EPS growth, FY27E+31%9

EPS growth, FY28E+19%8

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 11%/yr over the last 3 years, ahead of 60% of companies worldwide.7/10

Earnings are set to grow faster than sales (EPS about 19%/yr vs revenue 8%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 59% of companies worldwide.

Revenue is set to grow 8%/yr over the next 3 years, in line with the market.5/10

Revenue grew 11%/yr over the last 3 years and is set to keep growing around 8%/yr.

Over five years revenue is set to grow 7%/yr, ahead of 50% of companies worldwide.6/10

WEAKNESSES

None flagged.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower. The one thing to watch: forward revenue growth is only about average.

03Price Momentum

Is the market behind it right now?

27MMelrose Industries

Total return Current−16.9%

Price return Current−25.6%

MOMENTUM RATING↗

WEAK25 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-8%3

3-month return-7%4

YTD return-20%2

MID & LONG-TERM▾SCORE

% of 52-week high69%3

1-year return-28%2

3-year return+5%3

5-year return+970%10

MOMENTUM ASSESSMENT

STRENGTHS

Strong long-term results. Long-term holders have seen +4.8% over three years and +970% over five, ahead of 60% of the market.

WATCH

Returns sit at the market level over three months (-7%).

WEAKNESSES

It's down 28% over the past year, now 31% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-8%) and so far this year (-20%).

BOTTOM LINE

Outperformer in a Drawdown

04Value

Are you paying a fair price for it?

Stop guessing on Melrose Industries. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community