MONARCH CASINO & RESORT INC (MCRI) Stock Fundamental Analysis
NASDAQ:MCRI - Nasdaq - US6090271072 - Common Stock - Currency: USD
MCRI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. Both the health and profitability get an excellent rating, making MCRI a very profitable company, without any liquidiy or solvency issues. MCRI has a correct valuation and a medium growth rate. These ratings could make MCRI a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year MCRI was profitable.
MCRI had a positive operating cash flow in the past year.
Each year in the past 5 years MCRI has been profitable.
MCRI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of MCRI (12.93%) is better than 89.31% of its industry peers.
MCRI has a Return On Equity of 16.90%. This is in the better half of the industry: MCRI outperforms 75.57% of its industry peers.
MCRI has a Return On Invested Capital of 16.49%. This is amongst the best in the industry. MCRI outperforms 85.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MCRI is significantly above the industry average of 10.84%.
The 3 year average ROIC (16.10%) for MCRI is below the current ROIC(16.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.93% | ||
| ROE | 16.9% | ||
| ROIC | 16.49% |
ROA(3y)12.78%
ROA(5y)10.36%
ROE(3y)16.58%
ROE(5y)14.3%
ROIC(3y)16.1%
ROIC(5y)12.85%
1.3 Margins
MCRI has a Profit Margin of 16.82%. This is amongst the best in the industry. MCRI outperforms 89.31% of its industry peers.
MCRI's Profit Margin has improved in the last couple of years.
MCRI's Operating Margin of 22.83% is amongst the best of the industry. MCRI outperforms 83.97% of its industry peers.
MCRI's Operating Margin has improved in the last couple of years.
The Gross Margin of MCRI (53.71%) is better than 64.12% of its industry peers.
In the last couple of years the Gross Margin of MCRI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.83% | ||
| PM (TTM) | 16.82% | ||
| GM | 53.71% |
OM growth 3Y-1.12%
OM growth 5Y7.54%
PM growth 3Y1.31%
PM growth 5Y7.14%
GM growth 3Y-0.78%
GM growth 5Y1.1%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MCRI is creating some value.
Compared to 1 year ago, MCRI has less shares outstanding
Compared to 5 years ago, MCRI has more shares outstanding
There is no outstanding debt for MCRI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 8.61 indicates that MCRI is not in any danger for bankruptcy at the moment.
MCRI has a Altman-Z score of 8.61. This is amongst the best in the industry. MCRI outperforms 93.89% of its industry peers.
There is no outstanding debt for MCRI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.08 | ||
| Altman-Z | 8.61 |
ROIC/WACC1.73
WACC9.53%
2.3 Liquidity
MCRI has a Current Ratio of 0.57. This is a bad value and indicates that MCRI is not financially healthy enough and could expect problems in meeting its short term obligations.
MCRI has a worse Current ratio (0.57) than 70.99% of its industry peers.
A Quick Ratio of 0.51 indicates that MCRI may have some problems paying its short term obligations.
MCRI has a worse Quick ratio (0.51) than 70.99% of its industry peers.
MCRI does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
MCRI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.86%, which is quite good.
Measured over the past years, MCRI shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.69% on average per year.
Looking at the last year, MCRI shows a small growth in Revenue. The Revenue has grown by 4.13% in the last year.
Measured over the past years, MCRI shows a quite strong growth in Revenue. The Revenue has been growing by 15.95% on average per year.
EPS 1Y (TTM)17.86%
EPS 3Y12.04%
EPS 5Y23.69%
EPS Q2Q%46.24%
Revenue 1Y (TTM)4.13%
Revenue growth 3Y9.71%
Revenue growth 5Y15.95%
Sales Q2Q%4.94%
3.2 Future
MCRI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.12% yearly.
MCRI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.24% yearly.
EPS Next Y2.57%
EPS Next 2Y2.94%
EPS Next 3Y1.12%
EPS Next 5YN/A
Revenue Next Year2.94%
Revenue Next 2Y2.85%
Revenue Next 3Y2.24%
Revenue Next 5YN/A
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.06, which indicates a rather expensive current valuation of MCRI.
Based on the Price/Earnings ratio, MCRI is valued a bit cheaper than the industry average as 76.34% of the companies are valued more expensively.
MCRI is valuated rather cheaply when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.61, which indicates a rather expensive current valuation of MCRI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MCRI indicates a somewhat cheap valuation: MCRI is cheaper than 71.76% of the companies listed in the same industry.
MCRI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.06 | ||
| Fwd PE | 17.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MCRI indicates a somewhat cheap valuation: MCRI is cheaper than 71.76% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MCRI is valued a bit cheaper than the industry average as 79.39% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.55 | ||
| EV/EBITDA | 9.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MCRI does not grow enough to justify the current Price/Earnings ratio.
MCRI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.03
PEG (5Y)0.76
EPS Next 2Y2.94%
EPS Next 3Y1.12%
5. Dividend
5.1 Amount
MCRI has a Yearly Dividend Yield of 1.30%.
MCRI's Dividend Yield is a higher than the industry average which is at 3.13.
Compared to an average S&P500 Dividend Yield of 2.27, MCRI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
5.2 History
MCRI has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
25.89% of the earnings are spent on dividend by MCRI. This is a low number and sustainable payout ratio.
DP25.89%
EPS Next 2Y2.94%
EPS Next 3Y1.12%
89.4
-3.19 (-3.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners65.96%
Inst Owner Change-77.37%
Ins Owners22.76%
Ins Owner Change-0.05%
Market Cap1.65B
Analysts48
Price Target93.64 (4.74%)
Short Float %2%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Yearly Dividend5.91
Dividend Growth(5Y)N/A
DP25.89%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.29%
Min EPS beat(2)5.2%
Max EPS beat(2)5.39%
EPS beat(4)2
Avg EPS beat(4)-1.61%
Min EPS beat(4)-11.74%
Max EPS beat(4)5.39%
EPS beat(8)2
Avg EPS beat(8)-5.5%
EPS beat(12)5
Avg EPS beat(12)-2.14%
EPS beat(16)8
Avg EPS beat(16)2.18%
Revenue beat(2)1
Avg Revenue beat(2)0.18%
Min Revenue beat(2)-0.53%
Max Revenue beat(2)0.89%
Revenue beat(4)2
Avg Revenue beat(4)0.94%
Min Revenue beat(4)-2.49%
Max Revenue beat(4)5.9%
Revenue beat(8)3
Avg Revenue beat(8)-0.47%
Revenue beat(12)5
Avg Revenue beat(12)0.99%
Revenue beat(16)8
Avg Revenue beat(16)2.56%
PT rev (1m)17.99%
PT rev (3m)25.75%
EPS NQ rev (1m)-2.71%
EPS NQ rev (3m)-2.71%
EPS NY rev (1m)2.24%
EPS NY rev (3m)2.24%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)1.12%
Revenue NY rev (3m)1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.06 | ||
| Fwd PE | 17.61 | ||
| P/S | 3.2 | ||
| P/FCF | 18.55 | ||
| P/OCF | 11.65 | ||
| P/B | 3.21 | ||
| P/tB | 3.38 | ||
| EV/EBITDA | 9.63 |
EPS(TTM)4.95
EY5.54%
EPS(NY)5.08
Fwd EY5.68%
FCF(TTM)4.82
FCFY5.39%
OCF(TTM)7.68
OCFY8.59%
SpS27.98
BVpS27.84
TBVpS26.46
PEG (NY)7.03
PEG (5Y)0.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.93% | ||
| ROE | 16.9% | ||
| ROCE | 21.37% | ||
| ROIC | 16.49% | ||
| ROICexc | 17.76% | ||
| ROICexgc | 18.69% | ||
| OM | 22.83% | ||
| PM (TTM) | 16.82% | ||
| GM | 53.71% | ||
| FCFM | 17.23% |
ROA(3y)12.78%
ROA(5y)10.36%
ROE(3y)16.58%
ROE(5y)14.3%
ROIC(3y)16.1%
ROIC(5y)12.85%
ROICexc(3y)17.55%
ROICexc(5y)13.92%
ROICexgc(3y)18.45%
ROICexgc(5y)14.64%
ROCE(3y)20.86%
ROCE(5y)16.65%
ROICexcg growth 3Y8.61%
ROICexcg growth 5Y22.35%
ROICexc growth 3Y8.61%
ROICexc growth 5Y22.53%
OM growth 3Y-1.12%
OM growth 5Y7.54%
PM growth 3Y1.31%
PM growth 5Y7.14%
GM growth 3Y-0.78%
GM growth 5Y1.1%
F-Score8
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.08 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 105.17% | ||
| Cap/Sales | 10.21% | ||
| Interest Coverage | 156.84 | ||
| Cash Conversion | 84.32% | ||
| Profit Quality | 102.44% | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 8.61 |
F-Score8
WACC9.53%
ROIC/WACC1.73
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.86%
EPS 3Y12.04%
EPS 5Y23.69%
EPS Q2Q%46.24%
EPS Next Y2.57%
EPS Next 2Y2.94%
EPS Next 3Y1.12%
EPS Next 5YN/A
Revenue 1Y (TTM)4.13%
Revenue growth 3Y9.71%
Revenue growth 5Y15.95%
Sales Q2Q%4.94%
Revenue Next Year2.94%
Revenue Next 2Y2.85%
Revenue Next 3Y2.24%
Revenue Next 5YN/A
EBIT growth 1Y1.1%
EBIT growth 3Y8.49%
EBIT growth 5Y24.69%
EBIT Next Year54.12%
EBIT Next 3Y15.68%
EBIT Next 5YN/A
FCF growth 1Y-30.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-15.74%
OCF growth 3YN/A
OCF growth 5YN/A