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

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

6.01  -0.12 (-1.96%)

After market: 6.03 +0.02 (+0.33%)

Fundamental Rating

3

MLCO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. The financial health of MLCO is average, but there are quite some concerns on its profitability. MLCO has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

MLCO had negative earnings in the past year.
MLCO had a positive operating cash flow in the past year.
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.
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

Looking at the Return On Assets, with a value of -3.31%, MLCO is doing worse than 74.05% of the companies in the same industry.
MLCO has a Return On Invested Capital of 3.03%. This is in the lower half of the industry: MLCO underperforms 66.41% 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 of 7.39%. This is comparable to the rest of the industry: MLCO outperforms 42.75% of its industry peers.
In the last couple of years the Operating Margin of MLCO has declined.
The Gross Margin of MLCO (37.41%) is worse than 69.47% of its industry peers.
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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4

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.
Compared to 5 years ago, MLCO has less shares outstanding
Compared to 1 year ago, MLCO has an improved debt to assets ratio.
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

Based on the Altman-Z score of 0.11, we must say that MLCO is in the distress zone and has some risk of bankruptcy.
MLCO has a Altman-Z score of 0.11. This is amonst the worse of the industry: MLCO underperforms 80.92% of its industry peers.
MLCO has a debt to FCF ratio of 21.45. This is a negative value and a sign of low solvency as MLCO would need 21.45 years to pay back of all of its debts.
The Debt to FCF ratio of MLCO (21.45) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 21.45
Altman-Z 0.11
ROIC/WACC0.41
WACC7.41%
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

A Current Ratio of 1.40 indicates that MLCO should not have too much problems paying its short term obligations.
MLCO has a better Current ratio (1.40) than 66.41% of its industry peers.
MLCO has a Quick Ratio of 1.37. This is a normal value and indicates that MLCO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.37, MLCO is in the better half of the industry, outperforming 69.47% of the companies in the same industry.
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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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 77.41% over the past year.
Looking at the last year, MLCO shows a very strong growth in Revenue. The Revenue has grown by 179.65%.
Measured over the past years, MLCO shows a decrease in Revenue. The Revenue has been decreasing by -6.16% on average per year.
EPS 1Y (TTM)77.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%327.03%
Revenue 1Y (TTM)179.65%
Revenue growth 3Y29.76%
Revenue growth 5Y-6.16%
Sales Q2Q%15.52%

3.2 Future

The Earnings Per Share is expected to grow by 34.98% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.22% on average over the next years. This is quite good.
EPS Next Y131.28%
EPS Next 2Y66.27%
EPS Next 3Y48.25%
EPS Next 5Y34.98%
Revenue Next Year20.98%
Revenue Next 2Y12.33%
Revenue Next 3Y9.69%
Revenue Next 5Y12.22%

3.3 Evolution

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.
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 8B
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 -2

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for MLCO. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 12.42, the valuation of MLCO can be described as correct.
MLCO's Price/Forward Earnings ratio is rather cheap when compared to the industry. MLCO is cheaper than 87.02% of the companies in the same industry.
MLCO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
Industry RankSector Rank
PE N/A
Fwd PE 12.42
MLCO Price Earnings VS Forward Price EarningsMLCO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40

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 62.60% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MLCO is valued cheaply inside the industry as 97.71% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 7.03
EV/EBITDA 10.83
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.
A more expensive valuation may be justified as MLCO's earnings are expected to grow with 48.25% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y66.27%
EPS Next 3Y48.25%

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0

5. Dividend

5.1 Amount

No dividends for MLCO!.
Industry RankSector Rank
Dividend Yield N/A

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MELCO RESORTS & ENTERT-ADR

NASDAQ:MLCO (2/21/2025, 8:00:01 PM)

After market: 6.03 +0.02 (+0.33%)

6.01

-0.12 (-1.96%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)11-05 2024-11-05/bmo
Earnings (Next)N/A N/A
Inst Owners39.16%
Inst Owner Change-90.5%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.52B
Analysts77.89
Price Target8.06 (34.11%)
Short Float %3.69%
Short Ratio1.35
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)-12.4%
PT rev (3m)-17.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-6.73%
EPS NY rev (3m)32.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.38%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 12.42
P/S 0.67
P/FCF 7.03
P/OCF 4.05
P/B N/A
P/tB N/A
EV/EBITDA 10.83
EPS(TTM)-0.19
EYN/A
EPS(NY)0.48
Fwd EY8.05%
FCF(TTM)0.85
FCFY14.22%
OCF(TTM)1.48
OCFY24.69%
SpS8.99
BVpS-2.95
TBVpS-5.26
PEG (NY)N/A
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 0.11
F-Score6
WACC7.41%
ROIC/WACC0.41
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)77.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%327.03%
EPS Next Y131.28%
EPS Next 2Y66.27%
EPS Next 3Y48.25%
EPS Next 5Y34.98%
Revenue 1Y (TTM)179.65%
Revenue growth 3Y29.76%
Revenue growth 5Y-6.16%
Sales Q2Q%15.52%
Revenue Next Year20.98%
Revenue Next 2Y12.33%
Revenue Next 3Y9.69%
Revenue Next 5Y12.22%
EBIT growth 1Y137.55%
EBIT growth 3YN/A
EBIT growth 5Y-13.72%
EBIT Next Year251.86%
EBIT Next 3Y58.67%
EBIT Next 5YN/A
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%