Melrose IndustriesMLSPF +2.64%67 ROC (Joel Greenblatt) % is 34.95% 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 3,060 Industrial Products companies, Melrose Industries ranks better than 93.43% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Melrose Industries's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 34.95%.
The historical rank and industry rank for Melrose Industries's ROC (Joel Greenblatt) % or its related term are showing as below:
MLSPF'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -24.97 Med: -6.08 Max: 70.5
Current: 69.61
During the past 13 years, Melrose Industries's highest ROC (Joel Greenblatt) % was 70.50%. The lowest was -24.97%. And the median was -6.08%.
MLSPF's ROC (Joel Greenblatt) % is ranked better than 93.43% of 3060
companies
in the Industrial Products industry
Industry Median: 11.775
vs MLSPF: 69.61
Melrose Industries's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Melrose Industries ROC (Joel Greenblatt) % Related Terms
Melrose Industries ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Melrose Industries's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Specialty Industrial Machinery subindustry, Melrose Industries's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Melrose Industries's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Melrose Industries's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT 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.
What does a ROC (Joel Greenblatt) % of 34.95% mean?
Melrose Industries (MLSPF) has a ROC (Joel Greenblatt) % of 34.95% as of Dec. 2025. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Melrose Industries and its competitors. According to the industry distribution chart, Melrose Industries ranks #201 out of 3060 companies in the Industrial Products industry, placing it in the top 6.6%.
Is Melrose Industries' ROC (Joel Greenblatt) % too high?
Melrose Industries' current ROC (Joel Greenblatt) % is 34.95%. The Industrial Products industry median ROC (Joel Greenblatt) % is 11.78. Melrose Industries' value of 34.95% is 196.8% above this industry median. Based on the distribution chart, Melrose Industries ranks #201 out of 3060 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' ROC (Joel Greenblatt) % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Melrose Industries ranks #201 out of 3060 companies for ROC (Joel Greenblatt) %. This places Melrose Industries in the top 7% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 11.78. Melrose Industries' value of 34.95% is 196.8% 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 ROC (Joel Greenblatt) % for an Industrial Products company?
The median ROC (Joel Greenblatt) % among Industrial Products companies is 11.78, based on 3,060 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Melrose Industries's current ROC (Joel Greenblatt) % of 34.95% is 196.8% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Melrose Industries and its competitors. For the Industrial Products industry, the median ROC (Joel Greenblatt) % is 11.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melrose Industries's current ROC (Joel Greenblatt) % is 34.95%. 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 $8.69, compared to a current price of $6.41 — trading 26.2% below its estimated fair value. The current ROC (Joel Greenblatt) % is 34.95% and 196.8% above the Industrial Products industry median of 11.78. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Melrose Industries (MLSPF), the current ROC (Joel Greenblatt) % is 34.95% 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 $6.41 is trading 26.2% below its estimated GF Value™ of $8.69.
GuruFocus considers Melrose Industries to be Modestly Undervalued.
Key valuation signals for MLSPF:
ROC (Joel Greenblatt) %: 34.95%
GF Value™: $8.69 vs. price of $6.41 (26.2% below fair value)
Industry Position: 196.8% above the Industrial Products median (#201 of 3060)
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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