The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Melrose Industries Pretax Margin % Related Terms
Melrose Industries Pretax Margin % Historical Data
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The historical data trend for Melrose Industries's Pretax 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 Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Melrose Industries's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Melrose Industries's Pretax 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.
Melrose Industries (MLSPF) has a Pretax Margin % of 4.76% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Melrose Industries and its competitors. According to the industry distribution chart, Melrose Industries ranks #711 out of 3038 companies in the Industrial Products industry, placing it in the top 23.4%.
Is Melrose Industries' Pretax Margin % too high?
Melrose Industries' current Pretax Margin % is 4.76%. The Industrial Products industry median Pretax Margin % is 5.85. Melrose Industries' value of 4.76% is 18.6% below this industry median. Based on the distribution chart, Melrose Industries ranks #711 out of 3038 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. 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' Pretax Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Melrose Industries ranks #711 out of 3038 companies for Pretax Margin %. This places Melrose Industries in the top 23% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 5.85. Melrose Industries' value of 4.76% is 18.6% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for an Industrial Products company?
The median Pretax Margin % among Industrial Products companies is 5.85, based on 3,038 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Melrose Industries's current Pretax Margin % of 4.76% is 18.6% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Melrose Industries and its competitors. For the Industrial Products industry, the median Pretax Margin % is 5.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melrose Industries's current Pretax Margin % is 4.76%. 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 Pretax Margin % is 4.76% and 18.6% below the Industrial Products industry median of 5.85. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Melrose Industries (MLSPF), the current Pretax Margin % is 4.76% 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:
Pretax Margin %: 4.76%
GF Value™: $8.74 vs. price of $6.18 (29.3% below fair value)
Industry Position: 18.6% below the Industrial Products median (#711 of 3038)
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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