DB:MEL

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Meliá Hotels International

Executive Summary

Meliá Hotels International, S.A. owns, manages, operates, leases, and franchises hotels worldwide.


Snowflake Analysis

Good value with reasonable growth potential.


Similar Companies

Share Price & News

How has Meliá Hotels International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MEL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.8%

MEL

2.6%

DE Hospitality

2.7%

DE Market


1 Year Return

-52.0%

MEL

-35.7%

DE Hospitality

0.2%

DE Market

Return vs Industry: MEL underperformed the German Hospitality industry which returned -35.7% over the past year.

Return vs Market: MEL underperformed the German Market which returned 0.2% over the past year.


Shareholder returns

MELIndustryMarket
7 Day3.8%2.6%2.7%
30 Day-17.7%-8.2%3.7%
90 Day6.8%25.5%28.3%
1 Year-52.0%-52.0%-33.2%-35.7%2.3%0.2%
3 Year-67.3%-68.2%-48.0%-54.9%4.0%-4.5%
5 Year-65.8%-67.2%-45.4%-56.9%14.9%-0.3%

Price Volatility Vs. Market

How volatile is Meliá Hotels International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Meliá Hotels International undervalued compared to its fair value and its price relative to the market?

23.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MEL (€4.01) is trading below our estimate of fair value (€5.21)

Significantly Below Fair Value: MEL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MEL is poor value based on its PE Ratio (41.8x) compared to the Hospitality industry average (17.1x).

PE vs Market: MEL is poor value based on its PE Ratio (41.8x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: MEL is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: MEL is good value based on its PB Ratio (0.7x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

How is Meliá Hotels International forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

91.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MEL's forecast earnings growth (91.1% per year) is above the savings rate (0.2%).

Earnings vs Market: MEL's earnings (91.1% per year) are forecast to grow faster than the German market (22.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MEL's revenue (13.8% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: MEL's revenue (13.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MEL's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

How has Meliá Hotels International performed over the past 5 years?

17.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MEL has high quality earnings.

Growing Profit Margin: MEL's current net profit margins (1.3%) are lower than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: MEL's earnings have grown by 17.3% per year over the past 5 years.

Accelerating Growth: MEL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MEL had negative earnings growth (-84.1%) over the past year, making it difficult to compare to the Hospitality industry average (-12.3%).


Return on Equity

High ROE: MEL's Return on Equity (2.3%) is considered low.


Next Steps

Financial Health

How is Meliá Hotels International's financial position?


Financial Position Analysis

Short Term Liabilities: MEL's short term assets (€640.9M) do not cover its short term liabilities (€770.0M).

Long Term Liabilities: MEL's short term assets (€640.9M) do not cover its long term liabilities (€2.7B).


Debt to Equity History and Analysis

Debt Level: MEL's debt to equity ratio (71.9%) is considered high.

Reducing Debt: MEL's debt to equity ratio has reduced from 104.2% to 71.9% over the past 5 years.

Debt Coverage: MEL's debt is well covered by operating cash flow (41.4%).

Interest Coverage: MEL's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Meliá Hotels International current dividend yield, its reliability and sustainability?

3.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MEL's dividend (3.68%) is higher than the bottom 25% of dividend payers in the German market (1.27%).

High Dividend: MEL's dividend (3.68%) is low compared to the top 25% of dividend payers in the German market (3.83%).


Stability and Growth of Payments

Stable Dividend: MEL's dividend payments have been volatile in the past 10 years.

Growing Dividend: MEL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (153.8%), MEL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MEL's dividends in 3 years are forecast to be well covered by earnings (24.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.6yrs

Average management tenure


CEO

Gabriel Juan Escarrer Jaume (49yo)

11.5yrs

Tenure

€2,607,000

Compensation

Mr. Gabriel Juan Escarrer Jaume has been Chief executive Officer of Meliá Hotels International S.A. since 2009, Executive Vice Chairman since 2009 and as its Director since April 7, 1999. Mr. Jaume has con ...


CEO Compensation Analysis

Compensation vs Market: Gabriel Juan's total compensation ($USD2.93M) is above average for companies of similar size in the German market ($USD1.43M).

Compensation vs Earnings: Gabriel Juan's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gabriel Escarrer Juliá
Founder & Non Executive Chairman24.42yrs€49.00kno data
Gabriel Juan Escarrer Jaume
Executive Vice Chairman & CEO11.5yrs€2.61mno data
María Antonia Escarrer Jaume
External Director & VP of Community Involvement19.75yrs€78.00kno data
Luis María Díaz de Bustamante y Terminel
Secretary & Independent External Director9.67yrs€114.00k0.00010% 883.6
Pilar Company
Chief Financial Officerno datano datano data
André Philippe Gerondeau
Chief Operating Officerno datano datano data
Carlos Lopez
Vice President of Investor Relationsno datano datano data
Juan Ignacio Pardo Garcia
Chief Legal & Compliance Officerno datano datano data
Gabriel Cánaves Picornell
Chief Human Resources Officer & Regional VP – Cubano datano datano data
Mark Maurice Hoddinott
Chief Real Estate Officer4.5yrsno datano data

10.6yrs

Average Tenure

62.5yo

Average Age

Experienced Management: MEL's management team is seasoned and experienced (10.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gabriel Escarrer Juliá
Founder & Non Executive Chairman24.42yrs€49.00kno data
Gabriel Juan Escarrer Jaume
Executive Vice Chairman & CEO11.5yrs€2.61mno data
María Antonia Escarrer Jaume
External Director & VP of Community Involvement19.75yrs€78.00kno data
Luis María Díaz de Bustamante y Terminel
Secretary & Independent External Director9.67yrs€114.00k0.00010% 883.6
Juan Arena de la Mora
Independent Director11.33yrs€67.00k0.00042% 3.7k
Alfredo Pastor Bodmer
External Director24.17yrs€69.00k0.0027% 24.0k
Fernando D'Ornellas Silva
Independent Director8.08yrs€132.00kno data
Francisco Javier Campo García
Independent Director8.08yrs€112.00kno data
Carina Szpilka Lázaro
External Independent Director4.42yrs€84.00kno data
Cristina Henríquez De Luna Basagoiti
External Independent Director1.08yrs€27.00kno data

10.5yrs

Average Tenure

64yo

Average Age

Experienced Board: MEL's board of directors are seasoned and experienced ( 10.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Meliá Hotels International, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Meliá Hotels International, S.A.
  • Ticker: MEL
  • Exchange: DB
  • Founded: 1956
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: €883.595m
  • Shares outstanding: 220.35m
  • Website: https://www.meliahotelsinternational.com

Number of Employees


Location

  • Meliá Hotels International, S.A.
  • Calle Gremio de Toneleros, 24
  • Palma de Mallorca
  • Balearic Islands
  • 7009
  • Spain

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMIZ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1996
MELBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURJul 1996
0MKOLSE (London Stock Exchange)YesOrdinary SharesGBEURJul 1996
MELDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1996
MELEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 1996
MELWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJul 1996
MEL NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJul 1996

Biography

Meliá Hotels International, S.A. owns, manages, operates, leases, and franchises hotels worldwide. The company operates approximately 388 business units in 40 countries, as well as one hundred thousand rooms under the Gran Meliá, Paradisus Resorts, ME by Meliá, Meliá Hotels & Resorts, INNSIDE by Meliá, Sol by Meliá, TRYP by Wyndham, and circle by Melia brand names. It also operates Club Meliá vacation club; develops and operates real estate properties; and casinos and tour-agency. The company was formerly known as Sol Meliá, S.A. and changed its name to Meliá Hotels International, S.A. in June 2011. Meliá Hotels International, S.A. was founded in 1956 and is based in Palma de Mallorca, Spain. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/03 21:43
End of Day Share Price2020/07/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.