MELCO RESORTS & ENTERT-ADR (MLCO) Stock Fundamental Analysis
NASDAQ:MLCO - Nasdaq - US5854641009 - ADR - Currency: USD
Taking everything into account, MLCO scores 3 out of 10 in our fundamental rating. MLCO was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. MLCO may be in some trouble as it scores bad on both profitability and health. MLCO has a decent growth rate and is not valued too expensively.
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.
The reported operating cash flow has been mixed in the past 5 years: MLCO reported negative operating cash flow in multiple years.
1.2 Ratios
MLCO has a Return On Assets (0.78%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 5.89%, MLCO is in line with its industry, outperforming 53.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | N/A | ||
| ROIC | 5.89% |
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's Profit Margin of 1.29% is in line compared to the rest of the industry. MLCO outperforms 41.67% of its industry peers.
In the last couple of years the Profit Margin of MLCO has declined.
MLCO's Operating Margin of 10.60% is in line compared to the rest of the industry. MLCO outperforms 55.30% of its industry peers.
In the last couple of years the Operating Margin of MLCO has declined.
The Gross Margin of MLCO (36.43%) is worse than 69.70% of its industry peers.
MLCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.6% | ||
| PM (TTM) | 1.29% | ||
| GM | 36.43% |
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.
Compared to 1 year ago, MLCO has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.38, we must say that MLCO is in the distress zone and has some risk of bankruptcy.
MLCO has a worse Altman-Z score (0.38) than 79.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.38 |
ROIC/WACC0.68
WACC8.62%
2.3 Liquidity
MLCO has a Current Ratio of 1.21. 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 Current ratio, with a value of 1.21, MLCO is in the better half of the industry, outperforming 64.39% of the companies in the same industry.
A Quick Ratio of 1.18 indicates that MLCO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.18, MLCO is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 139.37% over the past year.
The earnings per share for MLCO have been decreasing by -31.23% on average. This is quite bad
MLCO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.06%.
MLCO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.16% yearly.
EPS 1Y (TTM)139.37%
EPS 3YN/A
EPS 5Y-31.23%
EPS Q2Q%122.86%
Revenue 1Y (TTM)14.06%
Revenue growth 3Y32.09%
Revenue growth 5Y-4.16%
Sales Q2Q%10.78%
3.2 Future
The Earnings Per Share is expected to grow by 62.67% on average over the next years. This is a very strong growth
MLCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.60% yearly.
EPS Next Y182.51%
EPS Next 2Y120.32%
EPS Next 3Y87.83%
EPS Next 5Y62.67%
Revenue Next Year7.27%
Revenue Next 2Y6.15%
Revenue Next 3Y5.49%
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 55.03.
The rest of the industry has a similar Price/Earnings ratio as MLCO.
Compared to an average S&P500 Price/Earnings ratio of 27.41, MLCO is valued quite expensively.
A Price/Forward Earnings ratio of 15.12 indicates a correct valuation of MLCO.
75.00% of the companies in the same industry are more expensive than MLCO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MLCO to the average of the S&P500 Index (35.19), we can say MLCO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.03 | ||
| Fwd PE | 15.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MLCO indicates a somewhat cheap valuation: MLCO is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.58 |
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 87.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y120.32%
EPS Next 3Y87.83%
5. Dividend
5.1 Amount
No dividends for MLCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:MLCO (7/14/2025, 12:17:00 PM)
8.805
+0.11 (+1.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners37.28%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.75B
Analysts75.79
Price Target7.33 (-16.75%)
Short Float %6.27%
Short Ratio2.62
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)142.79%
Min EPS beat(2)-160.64%
Max EPS beat(2)446.22%
EPS beat(4)2
Avg EPS beat(4)68.64%
Min EPS beat(4)-160.64%
Max EPS beat(4)446.22%
EPS beat(8)4
Avg EPS beat(8)-109.71%
EPS beat(12)7
Avg EPS beat(12)-61.48%
EPS beat(16)9
Avg EPS beat(16)-44.92%
Revenue beat(2)0
Avg Revenue beat(2)-2.15%
Min Revenue beat(2)-3.73%
Max Revenue beat(2)-0.58%
Revenue beat(4)1
Avg Revenue beat(4)-1.21%
Min Revenue beat(4)-3.73%
Max Revenue beat(4)0.52%
Revenue beat(8)2
Avg Revenue beat(8)-1.6%
Revenue beat(12)2
Avg Revenue beat(12)-7.83%
Revenue beat(16)2
Avg Revenue beat(16)-8.41%
PT rev (1m)1.95%
PT rev (3m)-6.8%
EPS NQ rev (1m)28.78%
EPS NQ rev (3m)-17.46%
EPS NY rev (1m)18.73%
EPS NY rev (3m)3.38%
Revenue NQ rev (1m)1.34%
Revenue NQ rev (3m)1.9%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.03 | ||
| Fwd PE | 15.12 | ||
| P/S | 0.79 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.58 |
EPS(TTM)0.16
EY1.82%
EPS(NY)0.58
Fwd EY6.62%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS11.18
BVpS-3.11
TBVpS-5.29
PEG (NY)0.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | N/A | ||
| ROCE | 7.45% | ||
| ROIC | 5.89% | ||
| ROICexc | 5.89% | ||
| ROICexgc | 6.82% | ||
| OM | 10.6% | ||
| PM (TTM) | 1.29% | ||
| GM | 36.43% | ||
| 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 Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.98 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 0.38 |
F-ScoreN/A
WACC8.62%
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)139.37%
EPS 3YN/A
EPS 5Y-31.23%
EPS Q2Q%122.86%
EPS Next Y182.51%
EPS Next 2Y120.32%
EPS Next 3Y87.83%
EPS Next 5Y62.67%
Revenue 1Y (TTM)14.06%
Revenue growth 3Y32.09%
Revenue growth 5Y-4.16%
Sales Q2Q%10.78%
Revenue Next Year7.27%
Revenue Next 2Y6.15%
Revenue Next 3Y5.49%
Revenue Next 5Y5.6%
EBIT growth 1Y165.47%
EBIT growth 3YN/A
EBIT growth 5Y-8.18%
EBIT Next Year111.25%
EBIT Next 3Y32.78%
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%