MELCO RESORTS & ENTERT-ADR (MLCO) Stock Fundamental Analysis
NASDAQ:MLCO - Nasdaq - US5854641009 - ADR - Currency: USD
We assign a fundamental rating of 3 out of 10 to MLCO. MLCO was compared to 133 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.
MLCO had negative earnings in 4 of the past 5 years.
In multiple years MLCO reported negative operating cash flow during the last 5 years.
1.2 Ratios
MLCO has a Return On Assets (0.78%) which is in line with its industry peers.
With a Return On Invested Capital value of 5.89%, MLCO perfoms like the industry average, outperforming 52.63% 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
Looking at the Profit Margin, with a value of 1.29%, MLCO is in line with its industry, outperforming 41.35% of the companies in the same industry.
In the last couple of years the Profit Margin of MLCO has declined.
With a Operating Margin value of 10.60%, MLCO perfoms like the industry average, outperforming 53.38% of the companies in the same industry.
MLCO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 36.43%, MLCO is doing worse than 69.92% of the companies in the same industry.
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.
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
Based on the Altman-Z score of 0.31, we must say that MLCO is in the distress zone and has some risk of bankruptcy.
MLCO has a Altman-Z score of 0.31. This is amonst the worse of the industry: MLCO underperforms 81.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.31 |
ROIC/WACC0.76
WACC7.73%
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.
MLCO's Current ratio of 1.21 is fine compared to the rest of the industry. MLCO outperforms 63.91% of its industry peers.
MLCO has a Quick Ratio of 1.18. This is a normal value and indicates that MLCO is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of MLCO (1.18) is better than 66.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
MLCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 139.37%, which is quite impressive.
The earnings per share for MLCO have been decreasing by -31.23% on average. This is quite bad
The Revenue has grown by 14.06% in the past year. This is quite good.
The Revenue has been decreasing by -4.16% on average over the past years.
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 62.91% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.07% on average over the next years.
EPS Next Y137.93%
EPS Next 2Y105.43%
EPS Next 3Y82.13%
EPS Next 5Y62.91%
Revenue Next Year6.86%
Revenue Next 2Y4.85%
Revenue Next 3Y5.21%
Revenue Next 5Y6.07%
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
With a Price/Earnings ratio of 37.06, MLCO can be considered very expensive at the moment.
MLCO's Price/Earnings is on the same level as the industry average.
MLCO is valuated rather expensively when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
MLCO is valuated reasonably with a Price/Forward Earnings ratio of 11.71.
80.45% of the companies in the same industry are more expensive than MLCO, based on the Price/Forward Earnings ratio.
MLCO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.06 | ||
| Fwd PE | 11.71 |
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 69.17% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.51 |
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.
A more expensive valuation may be justified as MLCO's earnings are expected to grow with 82.13% in the coming years.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y105.43%
EPS Next 3Y82.13%
5. Dividend
5.1 Amount
No dividends for MLCO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.93
-0.16 (-2.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners39.16%
Inst Owner Change-5.64%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.52B
Analysts75.79
Price Target6.8 (14.67%)
Short Float %4.25%
Short Ratio1.35
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%
Min Revenue beat(2)-3.42%
Max Revenue beat(2)-0.58%
Revenue beat(4)1
Avg Revenue beat(4)-1.13%
Min Revenue beat(4)-3.42%
Max Revenue beat(4)0.52%
Revenue beat(8)2
Avg Revenue beat(8)-1.56%
Revenue beat(12)2
Avg Revenue beat(12)-7.81%
Revenue beat(16)2
Avg Revenue beat(16)-8.39%
PT rev (1m)-4.65%
PT rev (3m)-15.71%
EPS NQ rev (1m)-35.91%
EPS NQ rev (3m)-26.84%
EPS NY rev (1m)-5.91%
EPS NY rev (3m)-41.01%
Revenue NQ rev (1m)0.79%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.06 | ||
| Fwd PE | 11.71 | ||
| P/S | 0.53 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.51 |
EPS(TTM)0.16
EY2.7%
EPS(NY)0.51
Fwd EY8.54%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS11.18
BVpS-3.11
TBVpS-5.29
PEG (NY)0.27
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 | 0.31 |
F-ScoreN/A
WACC7.73%
ROIC/WACC0.76
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 Y137.93%
EPS Next 2Y105.43%
EPS Next 3Y82.13%
EPS Next 5Y62.91%
Revenue 1Y (TTM)14.06%
Revenue growth 3Y32.09%
Revenue growth 5Y-4.16%
Sales Q2Q%10.78%
Revenue Next Year6.86%
Revenue Next 2Y4.85%
Revenue Next 3Y5.21%
Revenue Next 5Y6.07%
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%