SEHK:200

Stock Analysis Report

Melco International Development

Executive Summary

Melco International Development Limited, an investment holding company, engages in the leisure and entertainment business in Macau, the Philippines, Cyprus, and Hong Kong.

Snowflake

Fundamentals

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 200 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.9%

200

-5.0%

HK Hospitality

-4.2%

HK Market


1 Year Return

41.4%

200

16.3%

HK Hospitality

-2.7%

HK Market

Return vs Industry: 200 exceeded the Hong Kong Hospitality industry which returned 16.3% over the past year.

Return vs Market: 200 exceeded the Hong Kong Market which returned -2.7% over the past year.


Shareholder returns

200IndustryMarket
7 Day-3.9%-5.0%-4.2%
30 Day0.3%0.06%-0.9%
90 Day18.8%7.4%3.5%
1 Year42.1%41.4%20.0%16.3%0.9%-2.7%
3 Year77.0%75.0%17.4%6.4%19.5%7.5%
5 Year5.0%2.6%-8.2%-22.8%18.5%-1.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Melco International Development undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 200 (HK$19.6) is trading below our estimate of fair value (HK$61.78)

Significantly Below Fair Value: 200 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 200 is poor value based on its PE Ratio (46.6x) compared to the Hospitality industry average (12.6x).

PE vs Market: 200 is poor value based on its PE Ratio (46.6x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: 200 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 200 is overvalued based on its PB Ratio (1.8x) compared to the HK Hospitality industry average (1x).


Next Steps

Future Growth

How is Melco International Development forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

39.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 200's forecast earnings growth (39.3% per year) is above the savings rate (2%).

Earnings vs Market: 200's earnings (39.3% per year) are forecast to grow faster than the Hong Kong market (11.4% per year).

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

Revenue vs Market: 200's revenue (4.6% per year) is forecast to grow slower than the Hong Kong market (10.3% per year).

High Growth Revenue: 200's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 200's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

How has Melco International Development performed over the past 5 years?

-14.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 200 has high quality earnings.

Growing Profit Margin: 200's current net profit margins (1.5%) are lower than last year (1.6%).


Past Earnings Growth Analysis

Earnings Trend: 200's earnings have declined by -14.7% per year over the past 5 years.

Accelerating Growth: 200's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 200 had negative earnings growth (-2.1%) over the past year, making it difficult to compare to the Hospitality industry average (-4.3%).


Return on Equity

High ROE: 200's Return on Equity (3.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Melco International Development's financial position?


Financial Position Analysis

Short Term Liabilities: 200's short term assets (HK$17.1B) do not cover its short term liabilities (HK$24.9B)

Long Term Liabilities: 200's short term assets (17.1B) do not cover its long term liabilities (37.7B)


Debt to Equity History and Analysis

Debt Level: 200's debt to equity ratio (106.7%) is considered high

Reducing Debt: 200's debt to equity ratio has increased from 9.3% to 106.7% over the past 5 years.

Debt Coverage: 200's debt is well covered by operating cash flow (25.6%).

Interest Coverage: 200's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet

Inventory Level: 200 has a high level of physical assets or inventory.

Debt Coverage by Assets: 200's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Melco International Development's current dividend yield, its reliability and sustainability?

0.35%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%2.3%markettop25%6.4%industryaverage2.9%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: 200's dividend (0.35%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 200's dividend (0.35%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.37%).


Stability and Growth of Payments

Stable Dividend: 200 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 200 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 200 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 200's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

7.7yrs

Average management tenure


CEO

Lawrence Ho (42yo)

13.7yrs

Tenure

HK$206,818,000

Compensation

Mr. Yau Lung Ho, also known as Lawrence, has been Executive Director of Melco Resorts & Entertainment Limited (formerly known as, Melco Crown Entertainment Limited) since December 20, 2004 and served as th ...


CEO Compensation Analysis

Compensation vs Market: Lawrence's total compensation ($USD26.43M) is above average for companies of similar size in the Hong Kong market ($USD506.89K).

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


Management Age and Tenure

7.7yrs

Average Tenure

45yo

Average Age

Experienced Management: 200's management team is seasoned and experienced (7.7 years average tenure).


Board Age and Tenure

9.0yrs

Average Tenure

58.5yo

Average Age

Experienced Board: 200's board of directors are considered experienced (9 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellHK$18,757,49626 Apr 19
Southeastern Asset Management, Inc.
EntityCompany
Shares973,000
Max PriceHK$19.28
SellHK$35,785,94027 Feb 19
Southeastern Asset Management, Inc.
EntityCompany
Shares1,803,000
Max PriceHK$19.85
BuyHK$63,016,12420 Feb 19
Southeastern Asset Management, Inc.
EntityCompany
Shares3,683,000
Max PriceHK$17.11
BuyHK$1,687,75426 Nov 18
Great Respect Limited
EntityCompany
Shares116,000
Max PriceHK$14.55
BuyHK$29,188,59726 Nov 18
Great Respect Limited
EntityCompany
Shares2,000,000
Max PriceHK$14.59
BuyHK$15,553,70423 Nov 18
Yau Lung Ho
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares1,140,000
Max PriceHK$13.64
BuyHK$13,830,68423 Nov 18
Great Respect Limited
EntityCompany
Shares978,000
Max PriceHK$14.14
BuyHK$31,413,56520 Nov 18
Yau Lung Ho
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares2,184,000
Max PriceHK$14.38

Ownership Breakdown

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


Management Team

  • Lawrence Ho (42yo)

    Chairman & CEO

    • Tenure: 13.7yrs
    • Compensation: HK$206.82m
  • Clarence Chung (56yo)

    Executive Director

    • Tenure: 13.5yrs
    • Compensation: HK$17.55m
  • Evan Winkler (44yo)

    President

    • Tenure: 3.3yrs
    • Compensation: HK$81.69m
  • Geoffrey Stuart Davis (50yo)

    Chief Financial Officer

    • Tenure: 1.9yrs
  • Vincent Leung (45yo)

    Group General Counsel & Company Secretary

    • Tenure: 0yrs

Board Members

  • Ching Ng (69yo)

    Non-Executive Director

    • Tenure: 15.2yrs
    • Compensation: HK$975.00k
  • Lawrence Ho (42yo)

    Chairman & CEO

    • Tenure: 13.7yrs
    • Compensation: HK$206.82m
  • Frank Tsui (61yo)

    Non-Executive Director

    • Tenure: 18yrs
    • Compensation: HK$967.00k
  • John William Crawford (77yo)

    Independent Non-Executive Director

    • Tenure: 0.2yrs
  • Edward Chow (67yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: HK$638.00k
  • Clarence Chung (56yo)

    Executive Director

    • Tenure: 13.5yrs
    • Compensation: HK$17.55m
  • Evan Winkler (44yo)

    President

    • Tenure: 3.3yrs
    • Compensation: HK$81.69m
  • Karuna Shinsho (51yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: HK$83.00k

Company Information

Melco International Development Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Melco International Development Limited
  • Ticker: 200
  • Exchange: SEHK
  • Founded: 1910
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: HK$29.540b
  • Shares outstanding: 1.51b
  • Website: https://www.melco-group.com

Number of Employees


Location

  • Melco International Development Limited
  • The Centrium
  • 37th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
200SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
MX7ADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
MDEV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
200SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
200SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992

Biography

Melco International Development Limited, an investment holding company, engages in the leisure and entertainment business in Macau, the Philippines, Cyprus, and Hong Kong. It operates through two segments, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 12:40
End of Day Share Price2019/11/15 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.