ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Melrose Industries's annualizedNet Income for the quarter that ended in Dec. 2025 was $228 Mil.
Melrose Industries's average Total Assets over the quarter that ended in Dec. 2025 was $10,057 Mil. Therefore, Melrose Industries's annualized ROA % for the quarter that ended in Dec. 2025 was 2.26%.
The historical rank and industry rank for Melrose Industries's ROA % or its related term are showing as below:
MLSPF'
s ROA % Range Over the Past 10 Years
Min: -9.58 Med: -0.95 Max: 5.43
Current: 4.96
During the past 13 years, Melrose Industries's highest ROA % was 5.43%. The lowest was -9.58%. And the median was -0.95%.
MLSPF's ROA % is ranked better than 63.65% of 3081
companies
in the Industrial Products industry
Industry Median: 3.06
vs MLSPF: 4.96
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Melrose Industries ROA % Related Terms
Melrose Industries ROA % Historical Data
* Premium members only.
The historical data trend for Melrose Industries's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Melrose Industries's ROA % distribution charts can be found below:
* The bar in red indicates where Melrose Industries's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
Melrose Industries (MLSPF) has a ROA % of 2.26% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Melrose Industries and its competitors. According to the industry distribution chart, Melrose Industries ranks #1120 out of 3081 companies in the Industrial Products industry, placing it in the top 36.4%.
Is Melrose Industries' ROA % too high?
Melrose Industries' current ROA % is 2.26%. The Industrial Products industry median ROA % is 3.06. Melrose Industries' value of 2.26% is 26.1% below this industry median. Based on the distribution chart, Melrose Industries ranks #1120 out of 3081 companies in the Industrial Products industry, which is above 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' ROA % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Melrose Industries ranks #1120 out of 3081 companies for ROA %. This puts Melrose Industries in the upper half of its industry. The industry median ROA % is 3.06. Melrose Industries' value of 2.26% is 26.1% 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 ROA % for an Industrial Products company?
The median ROA % among Industrial Products companies is 3.06, based on 3,081 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Melrose Industries's current ROA % of 2.26% is 26.1% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Melrose Industries and its competitors. For the Industrial Products industry, the median ROA % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melrose Industries's current ROA % is 2.26%. 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 ROA % is 2.26% and 26.1% below the Industrial Products industry median of 3.06. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Melrose Industries (MLSPF), the current ROA % is 2.26% 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:
ROA %: 2.26%
GF Value™: $8.74 vs. price of $6.18 (29.3% below fair value)
Industry Position: 26.1% below the Industrial Products median (#1120 of 3081)
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
Get the complete analysis for MLSPF
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MLSPF has been successfully added to your 
