Melrose IndustriesMLSPF +3.80%67 Return-on-Tangible-Asset is 3.57% as of Dec. 2025. GuruFocus rates MLSPF with a GF Score™ of 67/100 and a GF Value™ of $8.53 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 3,074 Industrial Products companies, Melrose Industries ranks better than 78.72% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Melrose Industries's annualizedNet Income for the quarter that ended in Dec. 2025 was $228 Mil. Melrose Industries's average total tangible assets for the quarter that ended in Dec. 2025 was $6,369 Mil. Therefore, Melrose Industries's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 3.57%.
The historical rank and industry rank for Melrose Industries's Return-on-Tangible-Asset or its related term are showing as below:
MLSPF'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -18.38 Med: -2.27 Max: 11.8
Current: 8.05
During the past 13 years, Melrose Industries's highest Return-on-Tangible-Asset was 11.80%. The lowest was -18.38%. And the median was -2.27%.
MLSPF's Return-on-Tangible-Asset is ranked better than 78.72% of 3074
companies
in the Industrial Products industry
Industry Median: 3.235
vs MLSPF: 8.05
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Melrose Industries Return-on-Tangible-Asset Related Terms
Melrose Industries Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Melrose Industries's Return-on-Tangible-Asset 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.
MLSPF vs GEV, ETN, PH: Return-on-Tangible-Asset Comparison
For the Specialty Industrial Machinery subindustry, Melrose Industries's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Melrose Industries's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Melrose Industries's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
What does a Return-on-Tangible-Asset of 3.57% mean?
Melrose Industries (MLSPF) has a Return-on-Tangible-Asset of 3.57% as of Dec. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Melrose Industries and its competitors. According to the industry distribution chart, Melrose Industries ranks #654 out of 3074 companies in the Industrial Products industry, placing it in the top 21.3%.
Is Melrose Industries' Return-on-Tangible-Asset too high?
Melrose Industries' current Return-on-Tangible-Asset is 3.57%. The Industrial Products industry median Return-on-Tangible-Asset is 3.24. Melrose Industries' value of 3.57% is 10.4% above this industry median. Based on the distribution chart, Melrose Industries ranks #654 out of 3074 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 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Melrose Industries' Return-on-Tangible-Asset compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Melrose Industries ranks #654 out of 3074 companies for Return-on-Tangible-Asset. This places Melrose Industries in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.24. Melrose Industries' value of 3.57% is 10.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for an Industrial Products company?
The median Return-on-Tangible-Asset among Industrial Products companies is 3.24, based on 3,074 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Melrose Industries's current Return-on-Tangible-Asset of 3.57% is 10.4% above 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Melrose Industries and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Asset is 3.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melrose Industries's current Return-on-Tangible-Asset is 3.57%. 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 $8.53, compared to a current price of $6.55 — trading 23.2% below its estimated fair value. The current Return-on-Tangible-Asset is 3.57% and 10.4% above the Industrial Products industry median of 3.24. Melrose Industries' overall GF Score™ is 67/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Melrose Industries (MLSPF), the current Return-on-Tangible-Asset is 3.57% 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 $6.55 is trading 23.2% below its estimated GF Value™ of $8.53.
GuruFocus considers Melrose Industries to be Modestly Undervalued.
Key valuation signals for MLSPF:
Return-on-Tangible-Asset: 3.57%
GF Value™: $8.53 vs. price of $6.55 (23.2% below fair value)
Industry Position: 10.4% above the Industrial Products median (#654 of 3074)
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.
67GF Score
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