Monarch Casino & Resort (NasdaqGS:MCRI) - Share price, News & Analysis

MCRI fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	2/6
Past Performance	5/6
Financial Health	3/6
Dividends	0/6

MCRI Overview

Monarch Casino & Resort, Inc., through its subsidiaries, owns and operates the Atlantis Casino Resort Spa, a hotel/casino facility in Reno, Nevada.

Rewards

Trading at 38.8% below our estimate of its fair value

Earnings are forecast to grow 15.48% per year

Earnings grew by 337.1% over the past year

Risk Analysis

Shareholders have been diluted in the past year

Monarch Casino & Resort Competitors

Las Vegas Sands

NYSE:LVS

US$29.8b

Caesars Entertainment

NasdaqGS:CZR

US$24.1b

Wynn Resorts

NasdaqGS:WYNN

US$10.6b

Red Rock Resorts

NasdaqGS:RRR

US$6.6b

Price History & Performance

Summary of all time highs, changes and price drops for Monarch Casino & Resort
Historical stock prices
Current Share Price	US$73.74
52 Week High	US$40.19
52 Week Low	US$76.00
Beta	1.7
1 Month Change	9.12%
3 Month Change	18.69%
1 Year Change	75.57%
3 Year Change	90.99%
5 Year Change	219.50%
Change since IPO	1,834.16%

Recent News & Updates

Oct 27

Is Now The Time To Look At Buying Monarch Casino & Resort, Inc. (NASDAQ:MCRI)?

Monarch Casino & Resort, Inc. ( NASDAQ:MCRI ), might not be a large cap stock, but it received a lot of attention from...

Oct 14

Monarch Casino: Moving Closer To An Acquisition Strategy As It Absorbs Its Profitable Colorado Expansion

MCRI stock is up 168% since our first bullish call in 2016. Shareholder returns have hit 40% in last year alone. Even at $67 a share, it still trades at 44.2% below the fair value estimate from Simply Wall Street.

Sep 19

An Intrinsic Calculation For Monarch Casino & Resort, Inc. (NASDAQ:MCRI) Suggests It's 40% Undervalued

How far off is Monarch Casino & Resort, Inc. ( NASDAQ:MCRI ) from its intrinsic value? Using the most recent financial...

Shareholder Returns

	MCRI	US Hospitality	US Market
7D	9.1%	-1.7%	0.9%
1Y	75.6%	36.9%	33.4%

Return vs Industry: MCRI exceeded the US Hospitality industry which returned 33.7% over the past year.

Return vs Market: MCRI exceeded the US Market which returned 33.4% over the past year.

Price Volatility

Is MCRI's price volatile compared to industry and market?
MCRI volatility
MCRI Beta	1.7
Industry Beta	1.68
Market Beta	1

Stable Share Price: MCRI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MCRI's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1972	2,300	John Farahi	https://www.monarchcasino.com

Monarch Casino & Resort, Inc., through its subsidiaries, owns and operates the Atlantis Casino Resort Spa, a hotel/casino facility in Reno, Nevada. It also owns and operates the Monarch Casino Resort Spa Black Hawk in Black Hawk, Colorado. As of February 24, 2021, the company’s Atlantis Casino Resort Spa featured approximately 61,000 square feet of casino space; 818 guest rooms and suites; 8 food outlets; 2 gourmet coffee and pastry bars; a 30,000 square-foot health spa and salon with an enclosed pool; 2 retail outlets offering clothing and gift shop merchandise; an 8,000 square-foot family entertainment center; and approximately 52,000 square feet of banquet, convention, and meeting room space.

Monarch Casino & Resort Fundamentals Summary

How do Monarch Casino & Resort's earnings and revenue compare to its market cap?
MCRI fundamental statistics
Market Cap	US$1.37b
Earnings (TTM)	US$63.88m
Revenue (TTM)	US$342.69m

21.5x

P/E Ratio

4.0x

P/S Ratio

Is MCRI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MCRI income statement (TTM)
Revenue	US$342.69m
Cost of Revenue	US$136.82m
Gross Profit	US$205.87m
Expenses	US$141.99m
Earnings	US$63.88m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	3.43
Gross Margin	60.08%
Net Profit Margin	18.64%
Debt/Equity Ratio	24.9%

How did MCRI perform over the long term?

See historical performance and comparison

Valuation

Is Monarch Casino & Resort undervalued compared to its fair value and its price relative to the market?

38.8%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MCRI ($73.74) is trading below our estimate of fair value ($120.46)

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

Price To Earnings Ratio

PE vs Industry: MCRI is good value based on its PE Ratio (21.5x) compared to the US Hospitality industry average (26.8x).

PE vs Market: MCRI is poor value based on its PE Ratio (21.5x) compared to the US market (18.3x).

Price to Earnings Growth Ratio

PEG Ratio: MCRI is poor value based on its PEG Ratio (1.4x)

Price to Book Ratio

PB vs Industry: MCRI is good value based on its PB Ratio (3.2x) compared to the US Hospitality industry average (3.7x).

Future Growth

How is Monarch Casino & Resort forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

15.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCRI's forecast earnings growth (15.5% per year) is above the savings rate (2%).

Earnings vs Market: MCRI's earnings (15.5% per year) are forecast to grow faster than the US market (14.7% per year).

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

Revenue vs Market: MCRI's revenue (8.8% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: MCRI's revenue (8.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: MCRI's Return on Equity is forecast to be low in 3 years time (14.7%).

Past Performance

How has Monarch Casino & Resort performed over the past 5 years?

9.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MCRI has high quality earnings.

Growing Profit Margin: MCRI's current net profit margins (18.6%) are higher than last year (7.8%).

Past Earnings Growth Analysis

Earnings Trend: MCRI's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: MCRI's earnings growth over the past year (337.1%) exceeds its 5-year average (9.4% per year).

Earnings vs Industry: MCRI earnings growth over the past year (337.1%) exceeded the Hospitality industry 81.9%.

Return on Equity

High ROE: MCRI's Return on Equity (15.1%) is considered low.

Financial Health

How is Monarch Casino & Resort's financial position?

Financial Position Analysis

Short Term Liabilities: MCRI's short term assets ($75.8M) do not cover its short term liabilities ($135.4M).

Long Term Liabilities: MCRI's short term assets ($75.8M) do not cover its long term liabilities ($112.6M).

Debt to Equity History and Analysis

Debt Level: MCRI's debt to equity ratio (24.9%) is considered satisfactory.

Reducing Debt: MCRI's debt to equity ratio has increased from 13.3% to 24.9% over the past 5 years.

Debt Coverage: MCRI's debt is well covered by operating cash flow (91.4%).

Interest Coverage: MCRI's interest payments on its debt are well covered by EBIT (16.8x coverage).

Balance Sheet

Dividend

What is Monarch Casino & Resort current dividend yield, its reliability and sustainability?

Dividend Yield vs Market

Notable Dividend: Unable to evaluate MCRI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MCRI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MCRI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MCRI's dividend payments have been increasing.

Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Future Payout to Shareholders

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

Next Steps

Explore strong dividend paying companies in the Consumer Services industry.

Management

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

9.0yrs

Average management tenure

CEO

John Farahi (73 yo)

28.33yrs

Tenure

US$2,253,287

Compensation

Mr. John Farahi has been Co-Chairman of the Board and Chief Executive Officer of Monarch Casino & Resort, Inc. since its inception, and of Golden Road Motor Inn, Inc. (“Golden Road”) since June 1993. Mr. F...

CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD2.25M) is below average for companies of similar size in the US market ($USD3.48M).

Compensation vs Earnings: John's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: MCRI's management team is seasoned and experienced (9 years average tenure).

Board Members

Experienced Board: MCRI's board of directors are seasoned and experienced ( 23.1 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.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.

Data	Last Updated (UTC time)
Company Analysis	2021/10/26 22:33
End of Day Share Price	2021/10/26 00:00
Earnings	2021/09/30
Annual Earnings	2020/12/31

Market Cap

7D

1Y

Updated

Data