Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Monarch Casino & Resort, Inc. (NASDAQ:MCRI) due to its excellent fundamentals in more than one area. MCRI is a financially-robust company with an impressive history and a excellent growth outlook. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Monarch Casino & Resort here.
Proven track record with reasonable growth potential
MCRI delivered a bottom-line expansion of 34% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, MCRI also outperformed its industry, which delivered a growth of 0.2%. This is an notable feat for the company.
MCRI’s debt-to-equity ratio stands at 31%, which means its debt level is reasonable. This means that MCRI’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. MCRI appears to have made good use of debt, producing operating cash levels of 0.62x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Monarch Casino & Resort, I’ve compiled three fundamental aspects you should look at:
- Valuation: What is MCRI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether MCRI is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does MCRI return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from MCRI as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MCRI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.