MONARCH CASINO & RESORT INC (MCRI) Stock Fundamental Analysis
NASDAQ:MCRI - Nasdaq - US6090271072 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to MCRI. MCRI was compared to 131 industry peers in the Hotels, Restaurants & Leisure industry. MCRI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. MCRI has a correct valuation and a medium growth rate. These ratings would make MCRI suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year MCRI was profitable.
In the past year MCRI had a positive cash flow from operations.
In the past 5 years MCRI has always been profitable.
MCRI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MCRI's Return On Assets of 11.15% is amongst the best of the industry. MCRI outperforms 87.02% of its industry peers.
Looking at the Return On Equity, with a value of 14.59%, MCRI is in the better half of the industry, outperforming 73.28% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.60%, MCRI belongs to the top of the industry, outperforming 89.31% of the companies in the same industry.
MCRI had an Average Return On Invested Capital over the past 3 years of 16.41%. This is in line with the industry average of 15.79%.
The last Return On Invested Capital (17.60%) for MCRI is above the 3 year average (16.41%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.15% | ||
| ROE | 14.59% | ||
| ROIC | 17.6% |
ROA(3y)11.75%
ROA(5y)9.74%
ROE(3y)15.45%
ROE(5y)13.62%
ROIC(3y)16.41%
ROIC(5y)13.04%
1.3 Margins
MCRI's Profit Margin of 14.72% is amongst the best of the industry. MCRI outperforms 87.79% of its industry peers.
MCRI's Profit Margin has improved in the last couple of years.
MCRI's Operating Margin of 24.09% is amongst the best of the industry. MCRI outperforms 87.02% of its industry peers.
In the last couple of years the Operating Margin of MCRI has grown nicely.
MCRI's Gross Margin of 54.43% is fine compared to the rest of the industry. MCRI outperforms 64.12% of its industry peers.
MCRI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.09% | ||
| PM (TTM) | 14.72% | ||
| GM | 54.43% |
OM growth 3Y-1.11%
OM growth 5Y7.55%
PM growth 3Y-7%
PM growth 5Y1.78%
GM growth 3Y-0.78%
GM growth 5Y1.1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MCRI is creating value.
The number of shares outstanding for MCRI has been reduced compared to 1 year ago.
Compared to 5 years ago, MCRI has more shares outstanding
There is no outstanding debt for MCRI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
MCRI has an Altman-Z score of 9.05. This indicates that MCRI is financially healthy and has little risk of bankruptcy at the moment.
MCRI's Altman-Z score of 9.05 is amongst the best of the industry. MCRI outperforms 93.89% of its industry peers.
There is no outstanding debt for MCRI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9.05 |
ROIC/WACC1.94
WACC9.09%
2.3 Liquidity
A Current Ratio of 0.73 indicates that MCRI may have some problems paying its short term obligations.
MCRI has a worse Current ratio (0.73) than 61.83% of its industry peers.
MCRI has a Quick Ratio of 0.73. This is a bad value and indicates that MCRI is not financially healthy enough and could expect problems in meeting its short term obligations.
MCRI's Quick ratio of 0.67 is on the low side compared to the rest of the industry. MCRI is outperformed by 61.07% of its industry peers.
MCRI does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.30% over the past year.
MCRI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.69% yearly.
Looking at the last year, MCRI shows a small growth in Revenue. The Revenue has grown by 4.64% in the last year.
The Revenue has been growing by 15.95% on average over the past years. This is quite good.
EPS 1Y (TTM)24.3%
EPS 3Y12.04%
EPS 5Y23.69%
EPS Q2Q%21.01%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y9.71%
Revenue growth 5Y15.95%
Sales Q2Q%6.84%
3.2 Future
The Earnings Per Share is expected to grow by 1.86% on average over the next years.
Based on estimates for the next years, MCRI will show a small growth in Revenue. The Revenue will grow by 3.18% on average per year.
EPS Next Y4.07%
EPS Next 2Y3.49%
EPS Next 3Y1.86%
EPS Next 5YN/A
Revenue Next Year5.4%
Revenue Next 2Y4.98%
Revenue Next 3Y3.18%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.24, which indicates a rather expensive current valuation of MCRI.
70.23% of the companies in the same industry are more expensive than MCRI, based on the Price/Earnings ratio.
MCRI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.86.
Based on the Price/Forward Earnings ratio of 19.31, the valuation of MCRI can be described as rather expensive.
62.60% of the companies in the same industry are more expensive than MCRI, based on the Price/Forward Earnings ratio.
MCRI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.24 | ||
| Fwd PE | 19.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MCRI is valued a bit cheaper than 70.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MCRI is valued cheaply inside the industry as 81.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.93 | ||
| EV/EBITDA | 9.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of MCRI may justify a higher PE ratio.
PEG (NY)4.72
PEG (5Y)0.81
EPS Next 2Y3.49%
EPS Next 3Y1.86%
5. Dividend
5.1 Amount
MCRI has a Yearly Dividend Yield of 1.18%. Purely for dividend investing, there may be better candidates out there.
MCRI's Dividend Yield is a higher than the industry average which is at 7.18.
With a Dividend Yield of 1.18, MCRI pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
MCRI has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
28.06% of the earnings are spent on dividend by MCRI. This is a low number and sustainable payout ratio.
DP28.06%
EPS Next 2Y3.49%
EPS Next 3Y1.86%
102.37
+1.25 (+1.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners67.92%
Inst Owner Change-2.11%
Ins Owners23.21%
Ins Owner Change1%
Market Cap1.87B
Analysts74.55
Price Target101.39 (-0.96%)
Short Float %2.37%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Yearly Dividend1.19
Dividend Growth(5Y)N/A
DP28.06%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.38%
Min EPS beat(2)4.02%
Max EPS beat(2)18.74%
EPS beat(4)4
Avg EPS beat(4)12.26%
Min EPS beat(4)4.02%
Max EPS beat(4)20.88%
EPS beat(8)5
Avg EPS beat(8)2.67%
EPS beat(12)6
Avg EPS beat(12)1.12%
EPS beat(16)9
Avg EPS beat(16)1.98%
Revenue beat(2)2
Avg Revenue beat(2)1.81%
Min Revenue beat(2)0.23%
Max Revenue beat(2)3.39%
Revenue beat(4)4
Avg Revenue beat(4)1.67%
Min Revenue beat(4)0.23%
Max Revenue beat(4)3.39%
Revenue beat(8)5
Avg Revenue beat(8)0.82%
Revenue beat(12)7
Avg Revenue beat(12)0.8%
Revenue beat(16)9
Avg Revenue beat(16)1.62%
PT rev (1m)11.69%
PT rev (3m)12.95%
EPS NQ rev (1m)3.98%
EPS NQ rev (3m)3.66%
EPS NY rev (1m)0%
EPS NY rev (3m)1.47%
Revenue NQ rev (1m)2.41%
Revenue NQ rev (3m)2.25%
Revenue NY rev (1m)1.97%
Revenue NY rev (3m)1.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.24 | ||
| Fwd PE | 19.31 | ||
| P/S | 3.5 | ||
| P/FCF | 17.93 | ||
| P/OCF | 12.58 | ||
| P/B | 3.47 | ||
| P/tB | 3.65 | ||
| EV/EBITDA | 9.75 |
EPS(TTM)5.32
EY5.2%
EPS(NY)5.3
Fwd EY5.18%
FCF(TTM)5.71
FCFY5.58%
OCF(TTM)8.14
OCFY7.95%
SpS29.27
BVpS29.52
TBVpS28.04
PEG (NY)4.72
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.15% | ||
| ROE | 14.59% | ||
| ROCE | 22.75% | ||
| ROIC | 17.6% | ||
| ROICexc | 20.14% | ||
| ROICexgc | 21.3% | ||
| OM | 24.09% | ||
| PM (TTM) | 14.72% | ||
| GM | 54.43% | ||
| FCFM | 19.51% |
ROA(3y)11.75%
ROA(5y)9.74%
ROE(3y)15.45%
ROE(5y)13.62%
ROIC(3y)16.41%
ROIC(5y)13.04%
ROICexc(3y)17.94%
ROICexc(5y)14.16%
ROICexgc(3y)18.89%
ROICexgc(5y)14.91%
ROCE(3y)21.22%
ROCE(5y)16.86%
ROICexcg growth 3Y10.75%
ROICexcg growth 5Y23.79%
ROICexc growth 3Y10.64%
ROICexc growth 5Y23.89%
OM growth 3Y-1.11%
OM growth 5Y7.55%
PM growth 3Y-7%
PM growth 5Y1.78%
GM growth 3Y-0.78%
GM growth 5Y1.1%
F-Score7
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 83.34% | ||
| Cap/Sales | 8.3% | ||
| Interest Coverage | 156.5 | ||
| Cash Conversion | 81.68% | ||
| Profit Quality | 132.59% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 9.05 |
F-Score7
WACC9.09%
ROIC/WACC1.94
Cap/Depr(3y)95.66%
Cap/Depr(5y)184.37%
Cap/Sales(3y)9.04%
Cap/Sales(5y)17.42%
Profit Quality(3y)131.09%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)24.3%
EPS 3Y12.04%
EPS 5Y23.69%
EPS Q2Q%21.01%
EPS Next Y4.07%
EPS Next 2Y3.49%
EPS Next 3Y1.86%
EPS Next 5YN/A
Revenue 1Y (TTM)4.64%
Revenue growth 3Y9.71%
Revenue growth 5Y15.95%
Sales Q2Q%6.84%
Revenue Next Year5.4%
Revenue Next 2Y4.98%
Revenue Next 3Y3.18%
Revenue Next 5YN/A
EBIT growth 1Y9.89%
EBIT growth 3Y8.5%
EBIT growth 5Y24.7%
EBIT Next Year68.87%
EBIT Next 3Y20.48%
EBIT Next 5YN/A
FCF growth 1Y-20.42%
FCF growth 3Y4.73%
FCF growth 5YN/A
OCF growth 1Y-11.01%
OCF growth 3Y3.18%
OCF growth 5Y17.36%