MELCO RESORTS & ENTERT-ADR (MLCO)
US5854641009 - ADR
MLCO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. The financial health of MLCO is average, but there are quite some concerns on its profitability. MLCO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MLCO has reported negative net income.
In the past year MLCO had a positive cash flow from operations.
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
MLCO's Return On Assets of -3.31% is on the low side compared to the rest of the industry. MLCO is outperformed by 77.61% of its industry peers.
With a Return On Invested Capital value of 3.03%, MLCO is not doing good in the industry: 61.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.31% | ||
| ROE | N/A | ||
| ROIC | 3.03% |
ROA(3y)-7.48%
ROA(5y)-6.5%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MLCO's Operating Margin of 7.39% is in line compared to the rest of the industry. MLCO outperforms 46.27% of its industry peers.
MLCO's Operating Margin has declined in the last couple of years.
MLCO's Gross Margin of 37.41% is on the low side compared to the rest of the industry. MLCO is outperformed by 69.40% of its industry peers.
MLCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.39% | ||
| PM (TTM) | N/A | ||
| GM | 37.42% |
OM growth 3YN/A
OM growth 5Y-8.05%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y50.54%
GM growth 5Y0.91%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MLCO is destroying value.
Compared to 1 year ago, MLCO has less shares outstanding
MLCO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MLCO has an improved debt to assets ratio.
2.2 Solvency
MLCO has an Altman-Z score of 0.15. This is a bad value and indicates that MLCO is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.15, MLCO is not doing good in the industry: 79.10% of the companies in the same industry are doing better.
The Debt to FCF ratio of MLCO is 21.45, which is on the high side as it means it would take MLCO, 21.45 years of fcf income to pay off all of its debts.
MLCO has a Debt to FCF ratio of 21.45. This is comparable to the rest of the industry: MLCO outperforms 48.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 21.45 | ||
| Altman-Z | 0.15 |
ROIC/WACC0.38
WACC7.92%
2.3 Liquidity
A Current Ratio of 1.40 indicates that MLCO should not have too much problems paying its short term obligations.
The Current ratio of MLCO (1.40) is better than 69.40% of its industry peers.
MLCO has a Quick Ratio of 1.37. This is a normal value and indicates that MLCO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.37, MLCO is in the better half of the industry, outperforming 72.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
MLCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.71%, which is quite impressive.
Looking at the last year, MLCO shows a very strong growth in Revenue. The Revenue has grown by 179.67%.
MLCO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.16% yearly.
EPS 1Y (TTM)61.71%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q36.75%
Revenue 1Y (TTM)179.67%
Revenue growth 3Y29.76%
Revenue growth 5Y-6.16%
Revenue growth Q2Q224.42%
3.2 Future
The Earnings Per Share is expected to grow by 34.98% on average over the next years. This is a very strong growth
Based on estimates for the next years, MLCO will show a quite strong growth in Revenue. The Revenue will grow by 12.71% on average per year.
EPS Next Y131.02%
EPS Next 2Y69.48%
EPS Next 3Y49.11%
EPS Next 5Y34.98%
Revenue Next Year21%
Revenue Next 2Y14.12%
Revenue Next 3Y12.23%
Revenue Next 5Y12.71%
3.3 Evolution
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
The Price/Earnings Ratio is negative for MLCO. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 36.87 indicates a quite expensive valuation of MLCO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MLCO is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.41. MLCO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 36.87 |
4.2 Price Multiples
MLCO's Enterprise Value to EBITDA ratio is in line with the industry average.
MLCO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MLCO is cheaper than 92.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.82 | ||
| EV/EBITDA | 11.61 |
4.3 Compensation for Growth
MLCO's 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 49.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y69.48%
EPS Next 3Y49.11%
5. Dividend
5.1 Amount
MLCO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MELCO RESORTS & ENTERT-ADR
NASDAQ:MLCO (5/3/2024, 7:06:12 PM)
After market: 7.3 +0.06 (+0.83%)7.24
+0.09 (+1.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.16B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 36.87 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.31% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.39% | ||
| PM (TTM) | N/A | ||
| GM | 37.42% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)61.71%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y131.02%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)179.67%
Revenue growth 3Y29.76%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y