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MELCO RESORTS & ENTERT-ADR (MLCO) Stock Fundamental Analysis

NASDAQ:MLCO - Nasdaq - US5854641009 - ADR - Currency: USD

4.82  -0.01 (-0.21%)

After market: 4.91 +0.09 (+1.87%)

Fundamental Rating

3

Taking everything into account, MLCO scores 3 out of 10 in our fundamental rating. MLCO was compared to 136 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and financial health of MLCO have multiple concerns. MLCO is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

MLCO had positive earnings in the past year.
MLCO had a positive operating cash flow in the past year.
In the past 5 years MLCO always reported negative net income.
In the past 5 years MLCO reported 4 times negative operating cash flow.
MLCO Yearly Net Income VS EBIT VS OCF VS FCFMLCO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B -1B

1.2 Ratios

MLCO has a worse Return On Assets (-3.31%) than 72.79% of its industry peers.
MLCO has a Return On Invested Capital of 3.03%. This is in the lower half of the industry: MLCO underperforms 67.65% of its industry peers.
Industry RankSector Rank
ROA -3.31%
ROE N/A
ROIC 3.03%
ROA(3y)-7.48%
ROA(5y)-6.5%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
MLCO Yearly ROA, ROE, ROICMLCO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100 -100 -200 -300

1.3 Margins

MLCO has a Operating Margin (7.39%) which is in line with its industry peers.
In the last couple of years the Operating Margin of MLCO has declined.
Looking at the Gross Margin, with a value of 37.41%, MLCO is doing worse than 69.12% of the companies in the same industry.
MLCO's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 7.39%
PM (TTM) N/A
GM 37.42%
OM growth 3YN/A
OM growth 5Y-8.05%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y50.54%
GM growth 5Y0.91%
MLCO Yearly Profit, Operating, Gross MarginsMLCO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40 -60

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MLCO is destroying value.
There is no outstanding debt for MLCO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
MLCO Yearly Shares OutstandingMLCO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M
MLCO Yearly Total Debt VS Total AssetsMLCO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

MLCO has an Altman-Z score of 0.08. This is a bad value and indicates that MLCO is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.08, MLCO is not doing good in the industry: 82.35% of the companies in the same industry are doing better.
The Debt to FCF ratio of MLCO is 21.45, which is on the high side as it means it would take MLCO, 21.45 years of fcf income to pay off all of its debts.
MLCO's Debt to FCF ratio of 21.45 is in line compared to the rest of the industry. MLCO outperforms 45.59% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 21.45
Altman-Z 0.08
ROIC/WACC0.43
WACC7.01%
MLCO Yearly LT Debt VS Equity VS FCFMLCO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B 8B

2.3 Liquidity

MLCO has a Current Ratio of 1.40. 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 (1.40) is better than 68.38% of its industry peers.
A Quick Ratio of 1.37 indicates that MLCO should not have too much problems paying its short term obligations.
MLCO's Quick ratio of 1.37 is fine compared to the rest of the industry. MLCO outperforms 70.59% of its industry peers.
Industry RankSector Rank
Current Ratio 1.4
Quick Ratio 1.37
MLCO Yearly Current Assets VS Current LiabilitesMLCO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 118.96% over the past year.
MLCO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -31.23% yearly.
EPS 1Y (TTM)118.96%
EPS 3YN/A
EPS 5Y-31.23%
EPS Q2Q%86.59%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%8.91%

3.2 Future

MLCO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 62.91% yearly.
Based on estimates for the next years, MLCO will show a small growth in Revenue. The Revenue will grow by 6.07% on average per year.
EPS Next Y152.87%
EPS Next 2Y117.05%
EPS Next 3Y82.34%
EPS Next 5Y62.91%
Revenue Next Year5.85%
Revenue Next 2Y5.7%
Revenue Next 3Y5.76%
Revenue Next 5Y6.07%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
MLCO Yearly Revenue VS EstimatesMLCO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B
MLCO Yearly EPS VS EstimatesMLCO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 1 -1 -2

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5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 40.17, the valuation of MLCO can be described as expensive.
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 28.33, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.88, MLCO is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MLCO indicates a somewhat cheap valuation: MLCO is cheaper than 72.06% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MLCO to the average of the S&P500 Index (21.37), we can say MLCO is valued slightly cheaper.
Industry RankSector Rank
PE 40.17
Fwd PE 15.88
MLCO Price Earnings VS Forward Price EarningsMLCO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MLCO is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MLCO indicates a rather cheap valuation: MLCO is cheaper than 97.06% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 5.72
EV/EBITDA 10.26
MLCO Per share dataMLCO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5

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 82.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y117.05%
EPS Next 3Y82.34%

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0

5. Dividend

5.1 Amount

MLCO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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MELCO RESORTS & ENTERT-ADR

NASDAQ:MLCO (4/22/2025, 7:23:22 PM)

After market: 4.91 +0.09 (+1.87%)

4.82

-0.01 (-0.21%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-27 2025-02-27/bmo
Earnings (Next)04-28 2025-04-28/bmo
Inst Owners39.16%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.05B
Analysts76.84
Price Target7.86 (63.07%)
Short Float %6.72%
Short Ratio2.29
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)-74.54%
DP-0.11%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-600.14%
Min EPS beat(2)-996.04%
Max EPS beat(2)-204.24%
EPS beat(4)2
Avg EPS beat(4)-284.75%
Min EPS beat(4)-996.04%
Max EPS beat(4)42.73%
EPS beat(8)5
Avg EPS beat(8)-129.37%
EPS beat(12)6
Avg EPS beat(12)-87.97%
EPS beat(16)9
Avg EPS beat(16)-66.51%
Revenue beat(2)0
Avg Revenue beat(2)-3.92%
Min Revenue beat(2)-4.99%
Max Revenue beat(2)-2.84%
Revenue beat(4)1
Avg Revenue beat(4)-6.63%
Min Revenue beat(4)-21.25%
Max Revenue beat(4)2.55%
Revenue beat(8)1
Avg Revenue beat(8)-11.06%
Revenue beat(12)1
Avg Revenue beat(12)-11.75%
Revenue beat(16)3
Avg Revenue beat(16)-8.11%
PT rev (1m)-0.25%
PT rev (3m)-14.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.15%
Valuation
Industry RankSector Rank
PE 40.17
Fwd PE 15.88
P/S 0.54
P/FCF 5.72
P/OCF 3.29
P/B N/A
P/tB N/A
EV/EBITDA 10.26
EPS(TTM)0.12
EY2.49%
EPS(NY)0.3
Fwd EY6.3%
FCF(TTM)0.84
FCFY17.49%
OCF(TTM)1.46
OCFY30.36%
SpS8.87
BVpS-2.91
TBVpS-5.19
PEG (NY)0.26
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -3.31%
ROE N/A
ROCE 3.83%
ROIC 3.03%
ROICexc 3.69%
ROICexgc 4.41%
OM 7.39%
PM (TTM) N/A
GM 37.42%
FCFM 9.5%
ROA(3y)-7.48%
ROA(5y)-6.5%
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-16.12%
ROICexc growth 3YN/A
ROICexc growth 5Y-15.4%
OM growth 3YN/A
OM growth 5Y-8.05%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y50.54%
GM growth 5Y0.91%
F-Score6
Asset Turnover0.45
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 21.45
Debt/EBITDA 9.31
Cap/Depr 48.56%
Cap/Sales 6.99%
Interest Coverage 0.57
Cash Conversion 75.72%
Profit Quality N/A
Current Ratio 1.4
Quick Ratio 1.37
Altman-Z 0.08
F-Score6
WACC7.01%
ROIC/WACC0.43
Cap/Depr(3y)94.98%
Cap/Depr(5y)85.81%
Cap/Sales(3y)28.94%
Cap/Sales(5y)24.3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)118.96%
EPS 3YN/A
EPS 5Y-31.23%
EPS Q2Q%86.59%
EPS Next Y152.87%
EPS Next 2Y117.05%
EPS Next 3Y82.34%
EPS Next 5Y62.91%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%8.91%
Revenue Next Year5.85%
Revenue Next 2Y5.7%
Revenue Next 3Y5.76%
Revenue Next 5Y6.07%
EBIT growth 1Y137.55%
EBIT growth 3YN/A
EBIT growth 5Y-13.72%
EBIT Next Year249.78%
EBIT Next 3Y58.31%
EBIT Next 5Y43.56%
FCF growth 1Y128.9%
FCF growth 3YN/A
FCF growth 5Y-1.45%
OCF growth 1Y200.53%
OCF growth 3YN/A
OCF growth 5Y-9.98%