Melrose IndustriesMLSPF -2.10%67 Return-on-Tangible-Equity is 163.50% as of Dec. 2025. GuruFocus rates MLSPF with a GF Score™ of 67/100 and a GF Value™ of $8.69 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 2,971 Industrial Products companies, Melrose Industries ranks better than 99.97% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Melrose Industries's annualized net income for the quarter that ended in Dec. 2025 was $228 Mil. Melrose Industries's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $139 Mil. Therefore, Melrose Industries's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 163.50%.
The historical rank and industry rank for Melrose Industries's Return-on-Tangible-Equity or its related term are showing as below:
MLSPF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -408.42 Med: -154 Max: -3.67
Current: Negative Tangible Equity
During the past 13 years, Melrose Industries's highest Return-on-Tangible-Equity was -3.67%. The lowest was -408.42%. And the median was -154.00%.
MLSPF's Return-on-Tangible-Equity is ranked better than 99.97% of 2971
companies
in the Industrial Products industry
Industry Median: 6.74
vs MLSPF: Negative Tangible Equity
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Melrose Industries Return-on-Tangible-Equity Related Terms
Melrose Industries Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Melrose Industries's Return-on-Tangible-Equity 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-Equity Comparison
For the Specialty Industrial Machinery subindustry, Melrose Industries's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Melrose Industries's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Melrose Industries's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 163.50% mean?
Melrose Industries (MLSPF) has a Return-on-Tangible-Equity of 163.50% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Melrose Industries and its competitors. According to the industry distribution chart, Melrose Industries ranks #1 out of 2971 companies in the Industrial Products industry, placing it in the top 0%.
Is Melrose Industries' Return-on-Tangible-Equity too high?
Melrose Industries' current Return-on-Tangible-Equity is 163.50%. The Industrial Products industry median Return-on-Tangible-Equity is 6.74. Melrose Industries' value of 163.50% is 2325.8% above this industry median. Based on the distribution chart, Melrose Industries ranks #1 out of 2971 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-Equity compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Melrose Industries ranks #1 out of 2971 companies for Return-on-Tangible-Equity. This places Melrose Industries in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.74. Melrose Industries' value of 163.50% is 2325.8% 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-Equity for an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.74, based on 2,971 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Melrose Industries's current Return-on-Tangible-Equity of 163.50% is 2325.8% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Melrose Industries and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melrose Industries's current Return-on-Tangible-Equity is 163.50%. 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 $8.69, compared to a current price of $6.25 — trading 28.1% below its estimated fair value. The current Return-on-Tangible-Equity is 163.50% and 2325.8% above the Industrial Products industry median of 6.74. 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Melrose Industries (MLSPF), the current Return-on-Tangible-Equity is 163.50% 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 $6.25 is trading 28.1% below its estimated GF Value™ of $8.69.
GuruFocus considers Melrose Industries to be Modestly Undervalued.
Key valuation signals for MLSPF:
Return-on-Tangible-Equity: 163.50%
GF Value™: $8.69 vs. price of $6.25 (28.1% below fair value)
Industry Position: 2325.8% above the Industrial Products median (#1 of 2971)
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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