NasdaqGS:MCRI

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

High growth potential and fair value.


Similar Companies

Share Price & News

How has Monarch Casino & Resort's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MCRI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.3%

MCRI

0.2%

US Hospitality

0.08%

US Market


1 Year Return

4.0%

MCRI

-18.5%

US Hospitality

12.8%

US Market

Return vs Industry: MCRI exceeded the US Hospitality industry which returned -18.5% over the past year.

Return vs Market: MCRI underperformed the US Market which returned 12.8% over the past year.


Shareholder returns

MCRIIndustryMarket
7 Day-2.3%0.2%0.08%
30 Day4.5%5.2%-1.8%
90 Day21.9%13.9%7.2%
1 Year4.0%4.0%-17.1%-18.5%15.3%12.8%
3 Year21.2%21.2%-9.5%-15.2%39.2%29.9%
5 Year158.8%158.8%19.7%7.5%88.3%67.1%

Price Volatility Vs. Market

How volatile is Monarch Casino & Resort's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

39.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MCRI ($45.36) is trading below our estimate of fair value ($74.8)

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


Price To Earnings Ratio

PE vs Industry: MCRI is poor value based on its PE Ratio (62.3x) compared to the US Hospitality industry average (27.6x).

PE vs Market: MCRI is poor value based on its PE Ratio (62.3x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: MCRI is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: MCRI is overvalued based on its PB Ratio (2.4x) compared to the US Hospitality industry average (2.2x).


Next Steps

Future Growth

How is Monarch Casino & Resort forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

85.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCRI's forecast earnings growth (85.5% per year) is above the savings rate (2.2%).

Earnings vs Market: MCRI's earnings (85.5% per year) are forecast to grow faster than the US market (23.1% per year).

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

Revenue vs Market: MCRI's revenue (32.5% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: MCRI's revenue (32.5% per year) is forecast to grow faster 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 (12.8%).


Next Steps

Past Performance

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

7.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCRI has high quality earnings.

Growing Profit Margin: MCRI's current net profit margins (6.8%) are lower than last year (14%).


Past Earnings Growth Analysis

Earnings Trend: MCRI's earnings have grown by 7.9% per year over the past 5 years.

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

Earnings vs Industry: MCRI had negative earnings growth (-61.6%) over the past year, making it difficult to compare to the Hospitality industry average (-46.9%).


Return on Equity

High ROE: MCRI's Return on Equity (3.9%) is considered low.


Next Steps

Financial Health

How is Monarch Casino & Resort's financial position?


Financial Position Analysis

Short Term Liabilities: MCRI's short term assets ($56.6M) do not cover its short term liabilities ($61.0M).

Long Term Liabilities: MCRI's short term assets ($56.6M) do not cover its long term liabilities ($196.1M).


Debt to Equity History and Analysis

Debt Level: MCRI's debt to equity ratio (60.7%) is considered high.

Reducing Debt: MCRI's debt to equity ratio has increased from 22.3% to 60.7% over the past 5 years.

Debt Coverage: MCRI's debt is not well covered by operating cash flow (10.4%).

Interest Coverage: MCRI earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

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

Management

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

4.9yrs

Average management tenure


CEO

John Farahi (72 yo)

27.25yrs

Tenure

US$1,697,065

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. He ha ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.70M) is below average for companies of similar size in the US market ($USD2.96M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Farahi
Co- Chairman27.25yrsUS$1.70m15.75%
$ 129.9m
Bob Farahi
Co-Chairman & President27.67yrsUS$722.83k6.18%
$ 51.0m
David-Jacques Farahi
Chief Operating Officer8.42yrsUS$912.55k0.095%
$ 786.8k
Edwin Koenig
Chief Accounting Officer4.5yrsUS$229.12k0%
$ 0
Richard Cooley
Vice President of Finance and Treasurer4.5yrsUS$354.52kno data
Lou Dorn
Chief Legal Officer & General Counsel2.5yrsno datano data
Darlyne Sullivan
Chief Product & Service Officer4.92yrsUS$413.48kno data

4.9yrs

Average Tenure

67yo

Average Age

Experienced Management: MCRI's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Farahi
Co- Chairman27.25yrsUS$1.70m15.75%
$ 129.9m
Bob Farahi
Co-Chairman & President27.67yrsUS$722.83k6.18%
$ 51.0m
Yvette Landau
Independent Director10.25yrsUS$111.35k0.034%
$ 276.7k
Craig Sullivan
Independent Director22yrsUS$111.35k0%
$ 0
Paul Andrews
Independent Director6.33yrsUS$111.35k0%
$ 0

22.0yrs

Average Tenure

69yo

Average Age

Experienced Board: MCRI's board of directors are seasoned and experienced ( 22 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Monarch Casino & Resort, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Monarch Casino & Resort, Inc.
  • Ticker: MCRI
  • Exchange: NasdaqGS
  • Founded: 1972
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: US$825.079m
  • Shares outstanding: 18.19m
  • Website: https://www.monarchcasino.com

Number of Employees


Location

  • Monarch Casino & Resort, Inc.
  • 3800 South Virginia Street
  • Reno
  • Nevada
  • 89502
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCRINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1993
MOIDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1993

Biography

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 Black Hawk i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/21 06:07
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.