La vérité derrière un rendement de 125 % en un an
Operating in the aerospace manufacturing and industrial businesses, Melrose Industries PLC (LON: MRO) produces airframe and engine structures and electrical interconnection systems. These are utilized in the global aerospace industry across both civil and defense platforms. The company offers an extensive range of advanced aerospace systems, components, and technologies. The performance of Melrose Industries Over the last years, the company experienced a revenue growth of 2.83% (CAGR), which is far lower than the industry growth rate. However, last year the revenue grew by 13.5% compared to 2021. This growth was needed to compensate for the previous periods poor performance. During the Covid times, Melrose suffered as the revenue had shrunk by 31% in three years. Since the company does not have a positive net profit, the price-to-earning ratio is negative, which makes it invalid. The price-to-sales ratio of this MRO stock is 0.9x, which is lower than the average of 1.3x in the Aerospace and Defence industry in the United Kingdom. Given the 125.9% return that the MRO share price has given, this (P/S) ratio of 0.9x is justifiable. Further Decline is possible？ Although Melrose Industries P/S ratio is not unusual for companies in the industry, it is surprising given the anticipated decline in revenue.