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 131 industry peers in the Hotels, Restaurants & Leisure industry. MLCO may be in some trouble as it scores bad on both profitability and health. 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 was profitable.
MLCO had negative earnings in 4 of the past 5 years.
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's Return On Assets of 0.78% is on the low side compared to the rest of the industry. MLCO is outperformed by 60.31% of its industry peers.
MLCO has a Return On Invested Capital (5.89%) which is comparable to the rest of the 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 has a worse Profit Margin (1.29%) than 60.31% of its industry peers.
MLCO's Profit Margin has declined in the last couple of years.
MLCO has a Operating Margin (10.60%) which is comparable to the rest of the industry.
MLCO's Operating Margin has declined in the last couple of years.
The Gross Margin of MLCO (36.43%) is worse than 69.47% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 0.39, we must say that MLCO is in the distress zone and has some risk of bankruptcy.
MLCO has a Altman-Z score of 0.39. This is amonst the worse of the industry: MLCO underperforms 81.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.39 |
ROIC/WACC0.69
WACC8.57%
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.
The Current ratio of MLCO (1.21) is better than 63.36% 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.
MLCO has a better Quick ratio (1.18) than 66.41% 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.
MLCO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -31.23% yearly.
Looking at the last year, MLCO shows a quite strong growth in Revenue. The Revenue has grown by 14.06% in the last year.
Measured over the past years, MLCO shows a decrease in Revenue. The Revenue has been decreasing by -4.16% on average per year.
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
MLCO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 62.67% yearly.
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 Year7.71%
Revenue Next 2Y5.49%
Revenue Next 3Y4.99%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 54.00 indicates a quite expensive valuation of MLCO.
MLCO's Price/Earnings ratio is in line with the industry average.
MLCO is valuated expensively when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.83, which indicates a correct valuation of MLCO.
Based on the Price/Forward Earnings ratio, MLCO is valued a bit cheaper than 70.99% of the companies in the same industry.
MLCO is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54 | ||
| Fwd PE | 14.83 |
4.2 Price Multiples
62.60% of the companies in the same industry are more expensive than MLCO, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.61 |
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 87.83% in the coming years.
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 (8/6/2025, 11:05:31 AM)
8.64
-0.14 (-1.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners37.28%
Inst Owner Change-1.69%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.68B
Analysts75.79
Price Target8.81 (1.97%)
Short Float %4.62%
Short Ratio2.01
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)20.3%
PT rev (3m)23.67%
EPS NQ rev (1m)57.72%
EPS NQ rev (3m)8.36%
EPS NY rev (1m)14.18%
EPS NY rev (3m)11.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)2.21%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54 | ||
| Fwd PE | 14.83 | ||
| P/S | 0.77 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.61 |
EPS(TTM)0.16
EY1.85%
EPS(NY)0.58
Fwd EY6.74%
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 | 0.39 |
F-ScoreN/A
WACC8.57%
ROIC/WACC0.69
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 Year7.71%
Revenue Next 2Y5.49%
Revenue Next 3Y4.99%
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%