Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Melrose Industries's 5-Year RORE % for the quarter that ended in Dec. 2025 was 75.83%.
The industry rank for Melrose Industries's 5-Year RORE % or its related term are showing as below:
MLSPF's 5-Year RORE % is ranked better than 86.27% of 2665
companies
in the Industrial Products industry
Industry Median: 4.9
vs MLSPF: 75.83
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Melrose Industries 5-Year RORE % Related Terms
Melrose Industries 5-Year RORE % Historical Data
* Premium members only.
The historical data trend for Melrose Industries's 5-Year RORE % 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 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 5-Year RORE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Melrose Industries's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Melrose Industries's 5-Year RORE % 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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Dec. 2025 and 5-year before.
Melrose Industries (MLSPF) has a 5-Year RORE % of 75.83 as of Dec. 2025. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Melrose Industries and its competitors. According to the industry distribution chart, Melrose Industries ranks #366 out of 2665 companies in the Industrial Products industry, placing it in the top 13.7%.
Is Melrose Industries' 5-Year RORE % too high?
Melrose Industries' current 5-Year RORE % is 75.83. The Industrial Products industry median 5-Year RORE % is 4.90. Melrose Industries' value of 75.83 is 1447.6% above this industry median. Based on the distribution chart, Melrose Industries ranks #366 out of 2665 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' 5-Year RORE % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Melrose Industries ranks #366 out of 2665 companies for 5-Year RORE %. This places Melrose Industries in the top 14% of its industry — outperforming the majority of peers. The industry median 5-Year RORE % is 4.90. Melrose Industries' value of 75.83 is 1447.6% 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 5-Year RORE % for an Industrial Products company?
The median 5-Year RORE % among Industrial Products companies is 4.90, based on 2,665 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Melrose Industries's current 5-Year RORE % of 75.83 is 1447.6% 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 5-Year RORE % mean?
A high 5-Year RORE % can signal that a stock is expensive relative to its fundamentals. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Melrose Industries and its competitors. For the Industrial Products industry, the median 5-Year RORE % is 4.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melrose Industries's current 5-Year RORE % is 75.83. 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 5-Year RORE % is 75.83 and 1447.6% above the Industrial Products industry median of 4.90. 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 5-Year RORE % calculated?
5-Year RORE % is calculated from a company's financial statements. For Melrose Industries (MLSPF), the current 5-Year RORE % is 75.83 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:
5-Year RORE %: 75.83
GF Value™: $8.69 vs. price of $6.41 (26.2% below fair value)
Industry Position: 1447.6% above the Industrial Products median (#366 of 2665)
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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