BME:MEL

Stock Analysis Report

Meliá Hotels International

Executive Summary

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


Snowflake Analysis

Average dividend payer and fair value.


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

-13.5%

MEL

-7.0%

ES Hospitality

-7.2%

ES Market


1 Year Return

-25.6%

MEL

8.5%

ES Hospitality

1.4%

ES Market

Return vs Industry: MEL underperformed the Spanish Hospitality industry which returned 8.5% over the past year.

Return vs Market: MEL underperformed the Spanish Market which returned 1.4% over the past year.


Shareholder returns

MELIndustryMarket
7 Day-13.5%-7.0%-7.2%
30 Day-13.5%-2.4%-1.1%
90 Day-15.9%-3.1%-0.7%
1 Year-24.3%-25.6%11.7%8.5%4.6%1.4%
3 Year-46.1%-48.1%15.3%4.6%6.1%-2.3%
5 Year-38.1%-40.7%26.9%7.1%0.6%-13.1%

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

Valuation

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

13.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MEL (€6.4) is trading above our estimate of fair value (€4.52)

Significantly Below Fair Value: MEL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MEL is good value based on its PE Ratio (13.2x) compared to the Hospitality industry average (19.9x).

PE vs Market: MEL is good value based on its PE Ratio (13.2x) compared to the Spanish market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: MEL is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: MEL is good value based on its PB Ratio (1.3x) compared to the XE Hospitality industry average (1.5x).


Next Steps

Future Growth

How is Meliá Hotels International forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MEL's forecast earnings growth (3.4% per year) is above the savings rate (0.4%).

Earnings vs Market: MEL's earnings (3.4% per year) are forecast to grow slower than the Spanish market (11.9% per year).

High Growth Earnings: MEL's earnings are forecast to grow, but not significantly.

Revenue vs Market: MEL's revenue (2.5% per year) is forecast to grow slower than the Spanish market (4.8% per year).

High Growth Revenue: MEL's revenue (2.5% 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 (8.1%).


Next Steps

Past Performance

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

31.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MEL has high quality earnings.

Growing Profit Margin: MEL's current net profit margins (6.1%) are lower than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: MEL has become profitable over the past 5 years, growing earnings by 31.7% per year.

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 (-21.3%) over the past year, making it difficult to compare to the Hospitality industry average (-1.8%).


Return on Equity

High ROE: MEL's Return on Equity (9.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Meliá Hotels International's financial position?


Financial Position Analysis

Short Term Liabilities: MEL's short term assets (€727.3M) do not cover its short term liabilities (€882.5M).

Long Term Liabilities: MEL's short term assets (€727.3M) do not cover its long term liabilities (€2.5B).


Debt to Equity History and Analysis

Debt Level: MEL's debt to equity ratio (82.3%) is considered high.

Reducing Debt: MEL's debt to equity ratio has reduced from 144.6% to 82.3% over the past 5 years.

Debt Coverage: MEL's debt is well covered by operating cash flow (37.1%).

Interest Coverage: MEL's interest payments on its debt are well covered by EBIT (9.2x coverage).


Balance Sheet

Inventory Level: MEL has a high level of physical assets or inventory.

Debt Coverage by Assets: MEL's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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

2.86%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%2.5%markettop25%5.7%industryaverage2.8%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: MEL's dividend (2.86%) is higher than the bottom 25% of dividend payers in the Spanish market (2.47%).

High Dividend: MEL's dividend (2.86%) is low compared to the top 25% of dividend payers in the Spanish market (5.75%).


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 reasonably low payout ratio (37.9%), MEL's dividend payments are 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 (30.9% payout ratio).


Next Steps

Management

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

10.2yrs

Average management tenure


CEO

Gabriel Juan Escarrer Jaume (48yo)

11.1yrs

Tenure

€1,410,000

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 also has been its Director since April 7, 1999. Mr. Ja ...


CEO Compensation Analysis

Compensation vs Market: Gabriel Juan's total compensation ($USD1.53M) is about average for companies of similar size in the Spanish market ($USD1.41M).

Compensation vs Earnings: Gabriel Juan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gabriel Escarrer Juliá
Founder & Non Executive Chairman24yrs€49.00kno data
Gabriel Juan Escarrer Jaume
Executive Vice Chairman11.1yrs€1.41mno data
María Antonia Escarrer Jaume
External Director & VP of Community Involvement19.3yrs€72.00kno data
Luís María Díaz de Bustamante
Secretary & Independent External Director9.3yrs€108.00k0.00010% 1.5k
Pilar Dols
Chief Financial Officer0yrsno datano data
André Philippe Gerondeau
Chief Operating Officer0yrsno datano data
Carlos Lopez
Vice President of Investor Relations0yrsno datano data
Juan Ignacio Pardo Garcia
Chief Legal & Compliance Officer0yrsno datano data
Gabriel Cánaves Picornell
Chief Human Resources Officer & Regional VP – Cuba0yrsno datano data
Mark Maurice Hoddinott
Chief Real Estate Officer4.1yrsno datano data

10.2yrs

Average Tenure

61.5yo

Average Age

Experienced Management: MEL's management team is seasoned and experienced (10.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gabriel Escarrer Juliá
Founder & Non Executive Chairman24yrs€49.00kno data
Gabriel Juan Escarrer Jaume
Executive Vice Chairman11.1yrs€1.41mno data
María Antonia Escarrer Jaume
External Director & VP of Community Involvement19.3yrs€72.00kno data
Luís María Díaz de Bustamante
Secretary & Independent External Director9.3yrs€108.00k0.00010% 1.5k
Juan Arena de la Mora
Independent Director10.9yrs€79.00k0.00040% 5.8k
Sebastián Escarrer Jaume
External Proprietary Director & Director24yrs€54.00kno data
Alfredo Pastor Bodmer
External Director23.8yrs€81.00k0.0026% 38.3k
Fernando D'Ornellas Silva
Independent Director7.7yrs€115.00kno data
Francisco Javier Campo García
Independent Director7.7yrs€90.00kno data
Carina Szpilka Lázaro
External Independent Director4yrs€84.00kno data

11.0yrs

Average Tenure

63yo

Average Age

Experienced Board: MEL's board of directors are seasoned and experienced ( 11 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: BME
  • Founded: 1956
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: €1.457b
  • Shares outstanding: 227.89m
  • Website: https://www.meliahotelsinternational.com

Number of Employees


Location

  • Meliá Hotels International, S.A.
  • Gremio Toneleros
  • 24. Polígono Son Castelló
  • 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 390 hotels in 44 countries under the Gran Meliá, Paradisus Resorts, ME by Meliá, Meliá Hotels & Resorts, INNSIDE by Meliá, and Sol by Meliá brand names. It also operates Club Meliá vacation club; develops and operates real estate properties; and engages in casinos or tour-operator activities. The company has a strategic partnership with Ctrip.com International, Ltd. to provide access to membership offers and benefits on 400 managed hotels on Ctrip’s Website and mobile app. 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 headquartered 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 Analysis2020/02/26 20:56
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.