BME:MEL

Stock Analysis Report

Meliá Hotels International

Executive Summary

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

Snowflake

Fundamentals

Good value average dividend payer.


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


Market Performance


7 Day Return

0.6%

BME:MEL

0.5%

ES Hospitality

-0.2%

ES Market


1 Year Return

-22.5%

BME:MEL

-22.7%

ES Hospitality

-3.2%

ES Market

MEL matched the Hospitality industry (-22.5%) over the past year.

MEL underperformed the Market in Spain which returned -2% over the past year.


Share holder returns

MELIndustryMarket
7 Day0.6%0.5%-0.2%
30 Day4.7%3.3%3.4%
90 Day-10.2%-5.3%-2.2%
1 Year-21.1%-22.5%-20.1%-22.7%0.07%-3.2%
3 Year-30.3%-32.9%-15.7%-19.8%15.6%4.9%
5 Year-5.4%-9.3%46.8%23.7%0.4%-18.6%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Meliá Hotels International's share price is below the future cash flow value, and at a moderate discount (> 20%).

Meliá Hotels International's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Meliá Hotels International is good value based on earnings compared to the Europe Hospitality industry average.

Meliá Hotels International is good value based on earnings compared to the Spain market.


Price Based on Expected Growth

Meliá Hotels International is poor value based on expected growth next year.


Price Based on Value of Assets

Meliá Hotels International is overvalued based on assets compared to the ES Hospitality industry average.


Next Steps

Future Growth

How is Meliá Hotels International expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Meliá Hotels International's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).

Meliá Hotels International's earnings are expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).

Meliá Hotels International's revenue growth is positive but not above the Spain market average.

Meliá Hotels International's earnings growth is expected to exceed the Spain market average.

Meliá Hotels International's earnings growth is expected to exceed the low risk savings rate of 1.5%.


Earnings per Share Growth Estimates


Future Return on Equity

Meliá Hotels International is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

39.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Meliá Hotels International has delivered over 20% year on year earnings growth in the past 5 years.

Meliá Hotels International's 1-year earnings growth is less than its 5-year average (0.4% vs 39%)

Meliá Hotels International's earnings growth has not exceeded the Europe Hospitality industry average in the past year (0.4% vs 2.3%).


Return on Equity

Meliá Hotels International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Meliá Hotels International used its assets less efficiently than the Europe Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Meliá Hotels International's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Meliá Hotels International's financial position?


Financial Position Analysis

Meliá Hotels International's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Meliá Hotels International's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Meliá Hotels International's level of debt (82.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (145.2% vs 82.3% today).

Debt is well covered by operating cash flow (37.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9.9x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

2.43%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Meliá Hotels International's pays a higher dividend yield than the bottom 25% of dividend payers in Spain (2.03%).

Meliá Hotels International's dividend is below the markets top 25% of dividend payers in Spain (5.35%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.8x coverage).


Next Steps

Management

What is the CEO of Meliá Hotels International's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

Gabriel Juan Escarrer Jaume (48yo)

10.7yrs

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

Gabriel Juan's remuneration is higher than average for companies of similar size in Spain.

Gabriel Juan's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.3yrs

Average Tenure

56yo

Average Age

The average tenure for the Meliá Hotels International management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

10.6yrs

Average Tenure

63yo

Average Age

The average tenure for the Meliá Hotels International board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Gabriel Juan Escarrer Jaume (48yo)

    Executive Vice Chairman

    • Tenure: 10.7yrs
    • Compensation: €1.41m
  • María Antonia Escarrer Jaume (56yo)

    External Director & VP of Community Involvement

    • Tenure: 18.9yrs
    • Compensation: €72.00k
  • Gabriel Cánaves Picornell

    Chief Human Resources Officer & Regional VP – Cuba

    • Tenure: 0yrs
  • Juan Ignacio Pardo Garcia

    Chief Legal & Compliance Officer

    • Tenure: 0yrs
  • Mark Maurice Hoddinott

    Chief Real Estate Officer

    • Tenure: 3.7yrs
  • Luis María Díaz de Bustamante (67yo)

    Secretary & Independent External Director

    • Tenure: 8.8yrs
    • Compensation: €108.00k
  • Francois Kassab

    Managing Director for Middle East and Africa

    • Tenure: 1.5yrs
  • Pilar Dols

    Chief Financial Officer

    • Tenure: 0yrs
  • André Philippe Gerondeau

    Chief Operating Officer

    • Tenure: 0yrs
  • Carlos Lopez

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Juan Arena de la Mora (76yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: €79.00k
  • Gabriel Escarrer Juliá (84yo)

    Chairman of the Board

    • Tenure: 23.6yrs
    • Compensation: €49.00k
  • Sebastián Escarrer Jaume (53yo)

    External Director Dominical

    • Tenure: 23.6yrs
    • Compensation: €54.00k
  • Gabriel Juan Escarrer Jaume (48yo)

    Executive Vice Chairman

    • Tenure: 10.7yrs
    • Compensation: €1.41m
  • María Antonia Escarrer Jaume (56yo)

    External Director & VP of Community Involvement

    • Tenure: 18.9yrs
    • Compensation: €72.00k
  • Alfredo Pastor Bodmer (75yo)

    External Director

    • Tenure: 23.3yrs
    • Compensation: €81.00k
  • Fernando D’Ornellas Silva (62yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: €115.00k
  • Luis María Díaz de Bustamante (67yo)

    Secretary & Independent External Director

    • Tenure: 8.8yrs
    • Compensation: €108.00k
  • Francisco Javier Campo García (64yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: €90.00k
  • Carina Szpilka Lázaro (51yo)

    External Independent Director

    • Tenure: 3.6yrs
    • Compensation: €84.00k

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: €1.705b
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 20:53
End of Day Share Price2019/09/16 00:00
Earnings2019/06/30
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.