MONARCH CASINO & RESORT INC (MCRI) Stock Fundamental Analysis
NASDAQ:MCRI - Nasdaq - US6090271072 - Common Stock - Currency: USD
Overall MCRI gets a fundamental rating of 6 out of 10. We evaluated MCRI against 136 industry peers in the Hotels, Restaurants & Leisure industry. MCRI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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
MCRI had positive earnings in the past year.
MCRI had a positive operating cash flow in the past year.
MCRI had positive earnings in each of the past 5 years.
Each year in the past 5 years MCRI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.52%, MCRI belongs to the top of the industry, outperforming 86.03% of the companies in the same industry.
MCRI's Return On Equity of 14.05% is fine compared to the rest of the industry. MCRI outperforms 72.79% of its industry peers.
MCRI has a better Return On Invested Capital (17.20%) than 87.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MCRI is in line with the industry average of 15.69%.
The 3 year average ROIC (16.41%) for MCRI is below the current ROIC(17.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.52% | ||
| ROE | 14.05% | ||
| ROIC | 17.2% |
ROA(3y)11.75%
ROA(5y)9.74%
ROE(3y)15.45%
ROE(5y)13.62%
ROIC(3y)16.41%
ROIC(5y)13.04%
1.3 Margins
The Profit Margin of MCRI (13.94%) is better than 86.03% of its industry peers.
MCRI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 23.21%, MCRI belongs to the best of the industry, outperforming 86.03% of the companies in the same industry.
In the last couple of years the Operating Margin of MCRI has grown nicely.
The Gross Margin of MCRI (53.78%) is better than 64.71% 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 | 23.21% | ||
| PM (TTM) | 13.94% | ||
| GM | 53.78% |
OM growth 3Y-1.11%
OM growth 5Y7.55%
PM growth 3Y-7%
PM growth 5Y1.78%
GM growth 3Y-0.78%
GM growth 5Y1.1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MCRI is creating value.
The number of shares outstanding for MCRI has been reduced compared to 1 year ago.
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 6.98 indicates that MCRI is not in any danger for bankruptcy at the moment.
MCRI has a better Altman-Z score (6.98) than 94.12% of its industry peers.
MCRI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.98 |
ROIC/WACC1.91
WACC9.02%
2.3 Liquidity
MCRI has a Current Ratio of 0.62. This is a bad value and indicates that MCRI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.62, MCRI is not doing good in the industry: 66.18% of the companies in the same industry are doing better.
MCRI has a Quick Ratio of 0.62. This is a bad value and indicates that MCRI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.55, MCRI is doing worse than 66.18% of the companies in the same industry.
The current and quick ratio evaluation for MCRI is rather negative, while it does have 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 | 0.62 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.86% over the past year.
The Earnings Per Share has been growing by 23.69% on average over the past years. This is a very strong growth
MCRI shows a small growth in Revenue. In the last year, the Revenue has grown by 4.13%.
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.
Based on estimates for the next years, MCRI will show a small growth in Revenue. The Revenue will grow by 2.24% on average per year.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.36, MCRI is valued correctly.
Based on the Price/Earnings ratio, MCRI is valued a bit cheaper than the industry average as 75.74% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.63. MCRI is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.97, MCRI is valued correctly.
MCRI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MCRI is cheaper than 75.74% of the companies in the same industry.
MCRI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.36 | ||
| Fwd PE | 14.97 |
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 78.68% of the companies listed in the same industry.
MCRI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MCRI is cheaper than 80.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.05 | ||
| EV/EBITDA | 7.55 |
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.
The excellent profitability rating of MCRI may justify a higher PE ratio.
PEG (NY)5.98
PEG (5Y)0.65
EPS Next 2Y2.94%
EPS Next 3Y1.12%
5. Dividend
5.1 Amount
MCRI has a Yearly Dividend Yield of 1.59%.
Compared to an average industry Dividend Yield of 3.92, MCRI pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.51, MCRI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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
30.60% of the earnings are spent on dividend by MCRI. This is a low number and sustainable payout ratio.
DP30.6%
EPS Next 2Y2.94%
EPS Next 3Y1.12%
76.03
+2.3 (+3.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners65.96%
Inst Owner Change0.45%
Ins Owners22.76%
Ins Owner Change-0.05%
Market Cap1.40B
Analysts50
Price Target93.64 (23.16%)
Short Float %1.98%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Yearly Dividend1.19
Dividend Growth(5Y)N/A
DP30.6%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.14%
Min EPS beat(2)5.39%
Max EPS beat(2)20.88%
EPS beat(4)3
Avg EPS beat(4)6.54%
Min EPS beat(4)-5.3%
Max EPS beat(4)20.88%
EPS beat(8)3
Avg EPS beat(8)-2.05%
EPS beat(12)5
Avg EPS beat(12)-1.26%
EPS beat(16)8
Avg EPS beat(16)0.63%
Revenue beat(2)2
Avg Revenue beat(2)1.54%
Min Revenue beat(2)0.89%
Max Revenue beat(2)2.2%
Revenue beat(4)2
Avg Revenue beat(4)0.01%
Min Revenue beat(4)-2.49%
Max Revenue beat(4)2.2%
Revenue beat(8)4
Avg Revenue beat(8)0.12%
Revenue beat(12)5
Avg Revenue beat(12)0.28%
Revenue beat(16)9
Avg Revenue beat(16)3.07%
PT rev (1m)0%
PT rev (3m)17.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.02%
EPS NY rev (1m)0%
EPS NY rev (3m)2.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.36 | ||
| Fwd PE | 14.97 | ||
| P/S | 2.69 | ||
| P/FCF | 15.05 | ||
| P/OCF | 9.97 | ||
| P/B | 2.71 | ||
| P/tB | 2.85 | ||
| EV/EBITDA | 7.55 |
EPS(TTM)4.95
EY6.51%
EPS(NY)5.08
Fwd EY6.68%
FCF(TTM)5.05
FCFY6.65%
OCF(TTM)7.62
OCFY10.03%
SpS28.29
BVpS28.05
TBVpS26.67
PEG (NY)5.98
PEG (5Y)0.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.52% | ||
| ROE | 14.05% | ||
| ROCE | 22.23% | ||
| ROIC | 17.2% | ||
| ROICexc | 19.28% | ||
| ROICexgc | 20.34% | ||
| OM | 23.21% | ||
| PM (TTM) | 13.94% | ||
| GM | 53.78% | ||
| FCFM | 17.86% |
ROA(3y)11.75%
ROA(5y)9.74%
ROE(3y)15.45%
ROE(5y)13.62%
ROIC(3y)16.41%
ROIC(5y)13.04%
ROICexc(3y)17.94%
ROICexc(5y)14.16%
ROICexgc(3y)18.89%
ROICexgc(5y)14.91%
ROCE(3y)21.22%
ROCE(5y)16.86%
ROICexcg growth 3Y10.75%
ROICexcg growth 5Y23.79%
ROICexc growth 3Y10.64%
ROICexc growth 5Y23.89%
OM growth 3Y-1.11%
OM growth 5Y7.55%
PM growth 3Y-7%
PM growth 5Y1.78%
GM growth 3Y-0.78%
GM growth 5Y1.1%
F-Score8
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 92.35% | ||
| Cap/Sales | 9.08% | ||
| Interest Coverage | 122.92 | ||
| Cash Conversion | 81.54% | ||
| Profit Quality | 128.19% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 6.98 |
F-Score8
WACC9.02%
ROIC/WACC1.91
Cap/Depr(3y)95.66%
Cap/Depr(5y)184.37%
Cap/Sales(3y)9.04%
Cap/Sales(5y)17.42%
Profit Quality(3y)131.09%
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 1Y4.41%
EBIT growth 3Y8.5%
EBIT growth 5Y24.7%
EBIT Next Year58.33%
EBIT Next 3Y17.5%
EBIT Next 5YN/A
FCF growth 1Y-24.8%
FCF growth 3Y4.73%
FCF growth 5YN/A
OCF growth 1Y-18.69%
OCF growth 3Y3.18%
OCF growth 5Y17.36%