MELCO RESORTS & ENTERT-ADR (MLCO) Stock Fundamental Analysis
NASDAQ:MLCO - US5854641009 - ADR
10.07 USD
+0.17 (+1.72%)
10.1 USD
+0.03 (+0.3%)
We assign a fundamental rating of 3 out of 10 to MLCO. MLCO was compared to 131 industry peers in the Hotels, Restaurants & Leisure industry. MLCO has a bad profitability rating. Also its financial health evaluation is rather negative. MLCO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
MLCO had positive earnings in the past year.
In the past 5 years MLCO reported 4 times negative net income.
In multiple years MLCO reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of MLCO (0.73%) is worse than 61.83% of its industry peers.
With a Return On Invested Capital value of 6.04%, MLCO perfoms like the industry average, outperforming 54.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.73% | ||
| ROE | N/A | ||
| ROIC | 6.04% |
ROA(3y)-4.46%
ROA(5y)-7.3%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MLCO has a Profit Margin of 1.16%. This is in the lower half of the industry: MLCO underperforms 61.83% of its industry peers.
In the last couple of years the Profit Margin of MLCO has declined.
MLCO has a Operating Margin (10.26%) which is in line with its industry peers.
In the last couple of years the Operating Margin of MLCO has declined.
With a Gross Margin value of 36.85%, MLCO is not doing good in the industry: 67.94% of the companies in the same industry are doing better.
MLCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.26% | ||
| PM (TTM) | 1.16% | ||
| GM | 36.85% |
OM growth 3YN/A
OM growth 5Y-4.19%
PM growth 3YN/A
PM growth 5Y-32.1%
GM growth 3Y11.79%
GM growth 5Y-0.24%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MLCO is destroying value.
MLCO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MLCO has been reduced compared to 5 years ago.
MLCO has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.44, we must say that MLCO is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.44, MLCO is doing worse than 78.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.44 |
ROIC/WACC0.68
WACC8.88%
2.3 Liquidity
A Current Ratio of 1.16 indicates that MLCO should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.16, MLCO is doing good in the industry, outperforming 61.07% of the companies in the same industry.
A Quick Ratio of 1.13 indicates that MLCO should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.13, MLCO is doing good in the industry, outperforming 62.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
MLCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 141.16%, which is quite impressive.
The earnings per share for MLCO have been decreasing by -31.23% on average. This is quite bad
Looking at the last year, MLCO shows a quite strong growth in Revenue. The Revenue has grown by 12.40% in the last year.
The Revenue has been decreasing by -4.16% on average over the past years.
EPS 1Y (TTM)141.16%
EPS 3YN/A
EPS 5Y-31.23%
EPS Q2Q%-71.43%
Revenue 1Y (TTM)12.4%
Revenue growth 3Y32.09%
Revenue growth 5Y-4.16%
Sales Q2Q%14.54%
3.2 Future
Based on estimates for the next years, MLCO will show a very strong growth in Earnings Per Share. The EPS will grow by 64.10% on average per year.
The Revenue is expected to grow by 5.60% on average over the next years.
EPS Next Y301.62%
EPS Next 2Y145.66%
EPS Next 3Y99.64%
EPS Next 5Y64.1%
Revenue Next Year10.29%
Revenue Next 2Y6.81%
Revenue Next 3Y5.8%
Revenue Next 5Y5.6%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
MLCO is valuated quite expensively with a Price/Earnings ratio of 77.46.
MLCO's Price/Earnings ratio is in line with the industry average.
MLCO is valuated expensively when we compare the Price/Earnings ratio to 27.17, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.90, the valuation of MLCO can be described as correct.
Based on the Price/Forward Earnings ratio, MLCO is valued cheaply inside the industry as 81.68% of the companies are valued more expensively.
MLCO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 77.46 | ||
| Fwd PE | 13.9 |
4.2 Price Multiples
MLCO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MLCO is cheaper than 61.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.12 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MLCO's earnings are expected to grow with 99.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y145.66%
EPS Next 3Y99.64%
5. Dividend
5.1 Amount
No dividends for MLCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.07
+0.17 (+1.72%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners37.44%
Inst Owner Change-8.56%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.28B
Analysts76.84
Price Target10.57 (4.97%)
Short Float %4.3%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)-73.01%
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)180.41%
Min EPS beat(2)-85.4%
Max EPS beat(2)446.22%
EPS beat(4)2
Avg EPS beat(4)55.93%
Min EPS beat(4)-160.64%
Max EPS beat(4)446.22%
EPS beat(8)3
Avg EPS beat(8)-122.71%
EPS beat(12)7
Avg EPS beat(12)-68.14%
EPS beat(16)9
Avg EPS beat(16)-49.98%
Revenue beat(2)1
Avg Revenue beat(2)0.39%
Min Revenue beat(2)-3.73%
Max Revenue beat(2)4.5%
Revenue beat(4)2
Avg Revenue beat(4)0.18%
Min Revenue beat(4)-3.73%
Max Revenue beat(4)4.5%
Revenue beat(8)2
Avg Revenue beat(8)-1.36%
Revenue beat(12)3
Avg Revenue beat(12)-5.68%
Revenue beat(16)3
Avg Revenue beat(16)-8%
PT rev (1m)19.91%
PT rev (3m)55.53%
EPS NQ rev (1m)26.4%
EPS NQ rev (3m)20.17%
EPS NY rev (1m)42.17%
EPS NY rev (3m)68.8%
Revenue NQ rev (1m)3.57%
Revenue NQ rev (3m)3.08%
Revenue NY rev (1m)2.82%
Revenue NY rev (3m)3.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 77.46 | ||
| Fwd PE | 13.9 | ||
| P/S | 0.87 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.12 |
EPS(TTM)0.13
EY1.29%
EPS(NY)0.72
Fwd EY7.19%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS11.58
BVpS-3.36
TBVpS-5.37
PEG (NY)0.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.73% | ||
| ROE | N/A | ||
| ROCE | 7.64% | ||
| ROIC | 6.04% | ||
| ROICexc | 6.04% | ||
| ROICexgc | 6.93% | ||
| OM | 10.26% | ||
| PM (TTM) | 1.16% | ||
| GM | 36.85% | ||
| FCFM | N/A |
ROA(3y)-4.46%
ROA(5y)-7.3%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-5.26%
ROICexc growth 3YN/A
ROICexc growth 5Y-5.51%
OM growth 3YN/A
OM growth 5Y-4.19%
PM growth 3YN/A
PM growth 5Y-32.1%
GM growth 3Y11.79%
GM growth 5Y-0.24%
F-ScoreN/A
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.95 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 0.44 |
F-ScoreN/A
WACC8.88%
ROIC/WACC0.68
Cap/Depr(3y)74.46%
Cap/Depr(5y)83.11%
Cap/Sales(3y)19.86%
Cap/Sales(5y)24.03%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)141.16%
EPS 3YN/A
EPS 5Y-31.23%
EPS Q2Q%-71.43%
EPS Next Y301.62%
EPS Next 2Y145.66%
EPS Next 3Y99.64%
EPS Next 5Y64.1%
Revenue 1Y (TTM)12.4%
Revenue growth 3Y32.09%
Revenue growth 5Y-4.16%
Sales Q2Q%14.54%
Revenue Next Year10.29%
Revenue Next 2Y6.81%
Revenue Next 3Y5.8%
Revenue Next 5Y5.6%
EBIT growth 1Y102.7%
EBIT growth 3YN/A
EBIT growth 5Y-8.18%
EBIT Next Year122.76%
EBIT Next 3Y34.31%
EBIT Next 5YN/A
FCF growth 1Y-9.29%
FCF growth 3YN/A
FCF growth 5Y-3.37%
OCF growth 1Y0.64%
OCF growth 3YN/A
OCF growth 5Y-5.61%