Melrose IndustriesMLSPF -3.02%69 Gross Margin % is 26.75% as of Dec. 2025, which is 34% above its 10-year median of 19.95. GuruFocus rates MLSPF with a GF Score™ of 69/100 and a GF Value™ of $8.74 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 3,003 Industrial Products companies, Melrose Industries ranks worse than 50.52% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Melrose Industries had a gross margin of 26.75% for the quarter that ended in Dec. 2025 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Melrose Industries Gross Margin % Related Terms
Melrose Industries Gross Margin % Historical Data
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The historical data trend for Melrose Industries's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Industrial Machinery subindustry, Melrose Industries's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Melrose Industries Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Melrose Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Melrose Industries's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Melrose Industries (MLSPF) has a Gross Margin % of 26.75% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Melrose Industries and its competitors. This is 34% above median its historical median of 19.95. Over the past decade, Melrose Industries' Gross Margin % has ranged from 11.25 to 31.21. According to the industry distribution chart, Melrose Industries ranks #1517 out of 3003 companies in the Industrial Products industry, placing it in the top 50.5%.
Is Melrose Industries' Gross Margin % too high?
Melrose Industries' current Gross Margin % of 26.75% is 34% above median its 10-year median of 19.95. Over the past 10 years, this metric has ranged from a low of 11.25 to a high of 31.21. The Industrial Products industry median Gross Margin % is 26.79. Melrose Industries' value of 26.75% is 0.1% below this industry median. Based on the distribution chart, Melrose Industries ranks #1517 out of 3003 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Melrose Industries has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Melrose Industries' Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Melrose Industries ranks #1517 out of 3003 companies for Gross Margin %. This places Melrose Industries in the lower half of its industry. The industry median Gross Margin % is 26.79. Melrose Industries' value of 26.75% is 0.1% below this benchmark. Historically, Melrose Industries' own Gross Margin % has ranged from 11.25 to 31.21 over the past decade. While the company's 10-year median is 19.95 vs. the industry median of 26.79, Melrose Industries has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.79, based on 3,003 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Melrose Industries's current Gross Margin % of 26.75% is 0.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Melrose Industries and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melrose Industries's current Gross Margin % is 26.75%, which is 34% above median its own 10-year median of 19.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Melrose Industries stock overvalued right now?
Based on GuruFocus' analysis, Melrose Industries (MLSPF) is currently considered Modestly Undervalued. The stock's GF Value™ is $8.74, compared to a current price of $6.18 — trading 29.3% below its estimated fair value. The current Gross Margin % is 26.75%, which is 34% above median its 10-year median of 19.95 and 0.1% below the Industrial Products industry median of 26.79. Melrose Industries' overall GF Score™ is 69/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Melrose Industries (MLSPF), the current Gross Margin % is 26.75% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Melrose Industries (MLSPF) Overvalued in 2026?
Based on GuruFocus' analysis, Melrose Industries stock appears to be undervalued.
The current stock price of $6.18 is trading 29.3% below its estimated GF Value™ of $8.74.
GuruFocus considers Melrose Industries to be Modestly Undervalued.
Key valuation signals for MLSPF:
Gross Margin %: 26.75% (34% above median its 10-year median of 19.95)
GF Value™: $8.74 vs. price of $6.18 (29.3% below fair value)
Industry Position: 0.1% below the Industrial Products median (#1517 of 3003)
No single metric tells the full story. See the MLSPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Melrose Industries is a UK-based company that manufactures engines and structures products for all major OEMs across civil and defense markets. The company employs 13,032 people and generates approximately 75% of its revenue from the civil market, manufacturing engines and structures for major OEMs in both civil and defense sectors.In the civil market, the company operates in 90% of existing fleets in service and is a demonstrator partner in the GTF and CFM RISE next-generation engines for narrow-body aircraft.
69GF Score
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