Melrose Industries PLC
MRO: XLON (GBR)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| GBX 521.00 | Tckj | Ntwrryzg |
We Initiate Coverage of Melrose Industries With a Wide Moat and Fair Value Estimate of GBX 870
Business Strategy and Outlook
Melrose Industries, through GKN Aerospace, is a leading engine and structure components supplier, with 70% of its revenue coming from long-term contracts in which the company is the sole-source provider. In the engine segment, the company has a well-balanced portfolio across narrow-body and wide-body aircraft, acting as a Tier 1 supplier with established positions on 90% of active engines, with risk and revenue-sharing partnerships for 74% of them. The company is a long-term partner with all engine original equipment manufacturers such as Pratt & Whitney, GE, Safran, and Rolls-Royce.