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

Reasonable 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


Market Performance


7 Day Return

7.1%

NasdaqGS:MCRI

3.0%

US Hospitality

1.2%

US Market


1 Year Return

0.3%

NasdaqGS:MCRI

0.1%

US Hospitality

1.7%

US Market

MCRI matched the Hospitality industry (0.1%) over the past year.

MCRI underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

MCRIIndustryMarket
7 Day7.1%3.0%1.2%
30 Day1.9%7.2%4.9%
90 Day10.0%3.3%3.7%
1 Year0.3%0.3%2.5%0.1%3.9%1.7%
3 Year101.5%101.5%49.0%39.1%47.2%37.7%
5 Year251.2%251.2%41.2%26.1%60.0%42.4%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Monarch Casino & Resort's share price is below the future cash flow value, and at a moderate discount (> 20%).

Monarch Casino & Resort's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Monarch Casino & Resort is overvalued based on earnings compared to the US Hospitality industry average.

Monarch Casino & Resort is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Monarch Casino & Resort is good value based on expected growth next year.


Price Based on Value of Assets

Monarch Casino & Resort is overvalued based on assets compared to the US Hospitality industry average.


Next Steps

Future Growth

How is Monarch Casino & Resort expected 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 Estimates


Future Annual Growth Analysis

Monarch Casino & Resort's revenue is expected to grow by 16.9% yearly, however this is not considered high growth (20% yearly).

Monarch Casino & Resort's earnings are expected to grow significantly at over 20% yearly.

Monarch Casino & Resort's revenue growth is expected to exceed the United States of America market average.

Monarch Casino & Resort's earnings growth is expected to exceed the United States of America market average.

Monarch Casino & Resort's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Monarch Casino & Resort is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Monarch Casino & Resort's year on year earnings growth rate has been positive over the past 5 years.

Monarch Casino & Resort's 1-year earnings growth is less than its 5-year average (17% vs 18.4%)

Monarch Casino & Resort's earnings growth has exceeded the US Hospitality industry average in the past year (17% vs -8.7%).


Return on Equity

Monarch Casino & Resort has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Monarch Casino & Resort used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Monarch Casino & Resort's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Monarch Casino & Resort's financial position?


Financial Position Analysis

Monarch Casino & Resort's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Monarch Casino & Resort's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Monarch Casino & Resort's level of debt (41.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (29% vs 41.3% today).

Debt is well covered by operating cash flow (46.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 787.1x coverage).


Balance Sheet

High level of physical assets or inventory.

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 and Payments Analysis

Unable to evaluate Monarch Casino & Resort's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Monarch Casino & Resort's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Monarch Casino & Resort has not reported any payouts.

Unable to verify if Monarch Casino & Resort's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Monarch Casino & Resort has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Monarch Casino & Resort's dividends in 3 years as they are not expected to pay a notable one for United States of America.


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?

3.9yrs

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

John's remuneration is lower than average for companies of similar size in United States of America.

John's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.9yrs

Average Tenure

66yo

Average Age

The tenure for the Monarch Casino & Resort management team is about average.


Board Age and Tenure

21.0yrs

Average Tenure

68yo

Average Age

The average tenure for the Monarch Casino & Resort board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • John Farahi (71yo)

    Co- Chairman

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

    Co-Chairman & President

    • Tenure: 26.7yrs
    • Compensation: US$742.02k
  • Darlyne Sullivan (64yo)

    Chief Product & Service Officer

    • Tenure: 3.9yrs
    • Compensation: US$413.48k
  • Rich Cooley (72yo)

    Vice President of Finance and Treasurer

    • Tenure: 3.5yrs
    • Compensation: US$354.52k
  • Lou Dorn

    Chief Legal Officer & General Counsel

    • Tenure: 1.5yrs
  • David-Jacques Farahi (37yo)

    Chief Operating Officer

    • Tenure: 7.4yrs
    • Compensation: US$1.76m
  • Edwin Koenig (51yo)

    Chief Accounting Officer

    • Tenure: 3.7yrs
    • 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: 26.7yrs
    • Compensation: US$742.02k
  • Craig Sullivan (72yo)

    Director

    • Tenure: 21yrs
    • Compensation: US$123.89k
  • Paul Andrews (54yo)

    Director

    • Tenure: 5.3yrs
    • 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$833.030m
  • 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 Analysis2019/09/15 23:43
End of Day Share Price2019/09/13 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.