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Melrose Industries (MRO.L)

Industrials Out of favour

Melrose Industries is a British aerospace specialist that crafts engines and components for commercial and military aircraft.

£4.54

Is Melrose Industries a good stock for a UK beginner?

The honest version: Melrose Industries is a British aerospace specialist that crafts engines and components for commercial and military aircraft.

No rating · no target price · nothing for sale here
Price-22.8%
52-week range-10% past year
£4.54
Low £4.10High £6.85
Where today's price sits versus its past year - context, not a signal.
If you had put £1,000 into Melrose Industries
£772-23%

Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. Past performance is not a guide to the future, and it could just as easily have fallen.

Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'.
£5.66B
Avg volume: How many shares change hands on a typical day. Higher means it's easy to buy or exit without moving the price.
5.53M
Day range: The lowest and highest price the shares traded at during the latest day.
£4.10 – £4.68
52-week range: The lowest and highest the shares have traded over the past year - a sense of how wide the swings have been.
£4.10 – £6.85
P/E ratio: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth.
15.7
Dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone.
1.7%
Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down.
0.84
How bumpy is it?Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. 0.84
Calm
Wild
Roughly in step with the market

Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.

Why has it been moving?▲ +3% past week · ▼ -10% past year

Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.

The bull case

Next-generation fuel-efficient engines capture dominant market share.

The bear case

Prolonged aerospace downturn dampens demand for new aircraft parts.

What does Melrose Industries do?

Having previously bought and spruced up various manufacturing businesses before selling them on, this FTSE company now focuses purely on civil and defence aviation technology. Revenue flows in by designing and supplying high-tech engine parts to global planemakers like Airbus and Boeing. Keeping a close eye on airline travel demand and supply chain snarls is vital, as these heavily influence how smoothly the production lines hum.

VQGMI
Factor profile

On our factor screen it looks strongest on value and income, and weakest on momentum.

Value: How cheap the stock looks versus profits, sales and assets (higher = cheaper). 58Quality: How profitable and financially healthy the company is (higher = stronger). 33Growth: How fast revenue and earnings are growing (higher = faster). 34Momentum: How the share price has been trending recently (higher = stronger recent run). 9Income: The dividend income on offer and how sustainable it looks (higher = more/steadier). 38
Quick checks
What's strong
  • Exclusive focus on high-barrier aerospace engineering
  • Established relationships with major global planemakers
  • Improving earnings growth compared to past years
What to watch
  • Momentum screens low (9/100)
  • Supply chain bottlenecks slowing down factory outputs
  • Unexpected disruptions in global commercial airline travel
  • Rising costs for raw materials used in engine manufacturing

What do Melrose Industries's numbers mean?

P/E
16.1
This tells you how many pounds investors are currently paying for every pound of past yearly profit.
Gross margin
26.6%
For every pound of parts sold, about 26 pence remains after covering direct manufacturing costs before overheads.
Revenue growth
8.3%
The yearly increase in total money coming through the door from customers.
Dividend yield
1.6%
The annual cash payout relative to the share price, handed back to shareholders as a slice of company earnings.

Does Melrose Industries pay a dividend?

Yes - Melrose Industries currently pays a dividend of about 1.7% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.

More in Industrials

GE VernovaGlobal Payments Inc.Delta Air LinesVertiv Holdings CoHowmet Aerospace Inc.EMCOR Group, Inc.Southwest Airlines Co.Masco Corporation

What are the scenarios for Melrose Industries?

An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.

£7£5£4today · £5▲ Bull · £5• Base · £5▼ Bear · £4in 1 yearILLUSTRATIVE · NOT A PREDICTION OR PRICE TARGET
Bull
+5% to +12%Stronger airline demand boosts spare parts orders.
Base
0% to +5%Steady manufacturing output matching current delivery schedules.
Bear
-10% to -5%Supply chain delays hinder engine part deliveries.

What are the pros and cons of Melrose Industries?

3bull points
6bear points

How many points the write-up makes each way — a balance check, not a score or verdict.

The bull case3
  • Exclusive focus on high-barrier aerospace engineering
  • Established relationships with major global planemakers
  • Improving earnings growth compared to past years
The catch3
  • Past twelve-month share price performance has dipped
  • Heavy reliance on complex global supply chains
  • Exposed to broader economic wobbles affecting air travel
Key risks3
  • Supply chain bottlenecks slowing down factory outputs
  • Unexpected disruptions in global commercial airline travel
  • Rising costs for raw materials used in engine manufacturing
What would flip the thesis

The write-up's own warning lights — if these start happening, the case above changes.

Confidence: medium · data: GBP · flags: none · Charts by TradingView Lightweight Charts™
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Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →

This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.

Figures as of 2026-08-01. Prices may be delayed and numbers can go stale - always double-check before acting.