NasdaqGS:MCRI

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Good value with reasonable growth potential.


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


Market Performance


7 Day Return

1.1%

MCRI

2.0%

US Hospitality

1.3%

US Market


1 Year Return

-6.1%

MCRI

2.1%

US Hospitality

5.9%

US Market

Return vs Industry: MCRI underperformed the US Hospitality industry which returned 2.1% over the past year.

Return vs Market: MCRI underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

MCRIIndustryMarket
7 Day1.1%2.0%1.3%
30 Day-8.2%-6.0%-1.9%
90 Day-4.9%-6.3%-1.8%
1 Year-6.1%-6.1%4.5%2.1%8.3%5.9%
3 Year78.6%78.6%43.0%33.7%45.6%36.2%
5 Year247.9%247.9%41.1%25.5%66.1%47.9%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MCRI ($42.38) is trading below our estimate of fair value ($94.54)

Significantly Undervalued: 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 (22.1x) compared to the Hospitality industry average (22.5x).

PE vs Market: MCRI is poor value based on its PE Ratio (22.1x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: MCRI is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: MCRI is overvalued based on its PB Ratio (2.4x) compared to the US Hospitality industry average (2.1x).


Next Steps

Future Growth

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

26.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCRI's forecast earnings growth (26.5% per year) is above the savings rate (2.7%).

Earnings vs Market: MCRI's earnings (26.5% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: MCRI's revenue (16.5% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: MCRI's revenue (16.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MCRI's Return on Equity is forecast to be low in 3 years time (13.7%).


Next Steps

Past Performance

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

18.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MCRI's earnings have grown by 18.4% per year over the past 5 years.

Accelerating Growth: MCRI's earnings growth over the past year (17%) is below its 5-year average (18.4% per year).

Earnings vs Industry: MCRI earnings growth over the past year (17%) exceeded the Hospitality industry -13.9%.


Return on Equity

High ROE: MCRI's Return on Equity (10.7%) is considered low.


Return on Assets

ROA vs Industry: MCRI has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: MCRI's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Monarch Casino & Resort's financial position?


Financial Position Analysis

Short Term Liabilities: MCRI's short term assets ($41.1M) do not cover its short term liabilities ($64.4M)

Long Term Liabilities: MCRI's short term assets (41.1M) do not cover its long term liabilities (147.7M)


Debt to Equity History and Analysis

Debt Level: MCRI's debt to equity ratio (41.3%) is considered high

Reducing Debt: MCRI's debt to equity ratio has increased from 29% to 41.3% over the past 5 years.

Debt Coverage: MCRI's debt is well covered by operating cash flow (46.7%).

Interest Coverage: MCRI's interest payments on its debt are well covered by EBIT (787.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: MCRI's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage3.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of Monarch Casino & Resort's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

John Farahi (71yo)

26.3yrs

Tenure

US$1,743,153

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 ($USD1.74M) is below average for companies of similar size in the US market ($USD2.76M).

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


Management Age and Tenure

4.0yrs

Average Tenure

66yo

Average Age

Experienced Management: MCRI's management team is considered experienced (4 years average tenure).


Board Age and Tenure

21.1yrs

Average Tenure

68yo

Average Age

Experienced Board: MCRI's board of directors are seasoned and experienced ( 21.1 years average tenure).


Insider Trading

Insider Buying: MCRI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,097,24713 Sep 19
Bob Farahi
EntityIndividual
Role
Co-Chairman of the Board
Co-Chairman & President
Shares24,340
Max PriceUS$45.08

Ownership Breakdown


Management Team

  • John Farahi (71yo)

    Co- Chairman

    • Tenure: 26.3yrs
    • Compensation: US$1.74m
  • Bob Farahi (68yo)

    Co-Chairman & President

    • Tenure: 26.8yrs
    • Compensation: US$742.02k
  • Darlyne Sullivan (64yo)

    Chief Product & Service Officer

    • Tenure: 4yrs
    • Compensation: US$413.48k
  • Rich Cooley (72yo)

    Vice President of Finance and Treasurer

    • Tenure: 3.6yrs
    • Compensation: US$354.52k
  • Lou Dorn

    Chief Legal Officer & General Counsel

    • Tenure: 1.6yrs
  • David-Jacques Farahi (37yo)

    Chief Operating Officer

    • Tenure: 7.5yrs
    • Compensation: US$1.76m
  • Edwin Koenig (51yo)

    Chief Accounting Officer

    • Tenure: 3.8yrs
    • Compensation: US$244.99k

Board Members

  • Yvette Landau (62yo)

    Director

    • Tenure: 9.3yrs
    • Compensation: US$123.89k
  • John Farahi (71yo)

    Co- Chairman

    • Tenure: 26.3yrs
    • Compensation: US$1.74m
  • Bob Farahi (68yo)

    Co-Chairman & President

    • Tenure: 26.8yrs
    • Compensation: US$742.02k
  • Craig Sullivan (72yo)

    Director

    • Tenure: 21.1yrs
    • Compensation: US$123.89k
  • Paul Andrews (54yo)

    Director

    • Tenure: 5.4yrs
    • Compensation: US$123.89k

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$764.979m
  • Shares outstanding: 18.05m
  • 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 Analysis2019/10/14 23:37
End of Day Share Price2019/10/14 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.