Added to YB: 2026-06-30
Pitch date: 2026-06-26
MRO.L [bullish]
Melrose Industries PLC
-1.49%
current return
Author Info
No bio for this author
Company Info
Melrose Industries PLC, together with its subsidiaries, designs and delivers aerospace components and systems for civil and defence markets in the United Kingdom, rest of Europe, North America, and internationally.
Market Cap
GBP 5.8B
Pitch Price
GBP 4.69
Price Target
6.80 (+47%)
Dividend
1.54%
EV/EBITDA
7.95
P/E
16.14
EV/Sales
2.11
Sector
Aerospace and Defense
Category
value
There's a 50%-margin monopoly hiding inside the airline industry that'll print cash for the next ten years - Melrose Industries PLC
MRO.L: UK aerospace (ex-GKN) holds hidden gem: 19 engine RRSP annuity contracts touching ~70% global flight hours, expecting £22B cash to 2050, 17 already cash-positive. At 475p (~£7.3B EV, 11x op profit), market discounts annuity at 15-18% vs fair 9-11%; at 10% annuity alone ~£7B, getting rest near free. Target 680p, downside ~400p. Weak USD tailwind.
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