Melco Resorts & Entertainment Limited, through its subsidiaries, develops, owns, and operates casino gaming and entertainment casino resort facilities in Asia.
Reasonable growth potential and fair value.
Share Price & News
How has Melco Resorts & Entertainment's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MLCO has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: MLCO underperformed the US Hospitality industry which returned 4.1% over the past year.
Return vs Market: MLCO underperformed the US Market which returned 17.9% over the past year.
Price Volatility Vs. Market
How volatile is Melco Resorts & Entertainment's share price compared to the market and industry in the last 5 years?
Simply Wall St News
9 hours ago | Simply Wall StDon't Race Out To Buy Melco Resorts & Entertainment Limited (NASDAQ:MLCO) Just Because It's Going Ex-Dividend
6 days ago | Simply Wall StA Note On Melco Resorts & Entertainment Limited's (NASDAQ:MLCO) ROE and Debt To Equity
2 weeks ago | Simply Wall StThese 4 Measures Indicate That Melco Resorts & Entertainment (NASDAQ:MLCO) Is Using Debt Reasonably Well
Is Melco Resorts & Entertainment undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MLCO ($20.36) is trading below our estimate of fair value ($36.11)
Significantly Below Fair Value: MLCO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MLCO is poor value based on its PE Ratio (26.1x) compared to the Hospitality industry average (24.2x).
PE vs Market: MLCO is poor value based on its PE Ratio (26.1x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: MLCO is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: MLCO is overvalued based on its PB Ratio (4x) compared to the US Hospitality industry average (2.2x).
How is Melco Resorts & Entertainment forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MLCO's forecast earnings growth (27.8% per year) is above the savings rate (1.7%).
Earnings vs Market: MLCO's earnings (27.8% per year) are forecast to grow faster than the US market (14.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MLCO's revenue (4.5% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: MLCO's revenue (4.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MLCO's Return on Equity is forecast to be high in 3 years time (23%)
How has Melco Resorts & Entertainment performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MLCO has high quality earnings.
Growing Profit Margin: MLCO's current net profit margins (6.5%) are lower than last year (6.8%).
Past Earnings Growth Analysis
Earnings Trend: MLCO's earnings have grown by 6.8% per year over the past 5 years.
Accelerating Growth: MLCO's earnings growth over the past year (6.2%) is below its 5-year average (6.8% per year).
Earnings vs Industry: MLCO earnings growth over the past year (6.2%) exceeded the Hospitality industry -8.2%.
Return on Equity
High ROE: MLCO's Return on Equity (12.5%) is considered low.
Return on Assets
Return on Capital Employed
How is Melco Resorts & Entertainment's financial position?
Financial Position Analysis
Short Term Liabilities: MLCO's short term assets ($1.9B) exceed its short term liabilities ($1.5B).
Long Term Liabilities: MLCO's short term assets ($1.9B) do not cover its long term liabilities ($4.8B).
Debt to Equity History and Analysis
Debt Level: MLCO's debt to equity ratio (139.8%) is considered high.
Reducing Debt: MLCO's debt to equity ratio has increased from 77.4% to 139.8% over the past 5 years.
Debt Coverage: MLCO's debt is well covered by operating cash flow (24%).
Interest Coverage: MLCO's interest payments on its debt are not well covered by EBIT (2.5x coverage).
Inventory Level: MLCO has a high level of physical assets or inventory.
Debt Coverage by Assets: MLCO's debt is not covered by short term assets (assets are 0.4x debt).
What is Melco Resorts & Entertainment's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Purchase Melco Resorts & Entertainment before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: MLCO's dividend (3.24%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: MLCO's dividend (3.24%) is low compared to the top 25% of dividend payers in the US market (3.73%).
Stability and Growth of Payments
Stable Dividend: MLCO has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: MLCO's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (83.5%), MLCO's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MLCO's dividends in 3 years are forecast to be covered by earnings (52.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Lawrence Ho (42yo)
Mr. Yau Lung Ho, also known as Lawrence, has been Executive Director of Melco Resorts & Entertainment Limited (formerly known as, Melco Crown Entertainment Limited) since December 20, 2004 and served as th ...
CEO Compensation Analysis
Compensation vs Market: Lawrence's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD6.39M).
Compensation vs Earnings: Lawrence's compensation has been consistent with company performance over the past year.
|Founder||15.2yrs||no data||0.63% $58.7m|
|President & Director||3.5yrs||no data||no data|
|Executive VP & CFO||8.8yrs||no data||no data|
|Director of Investor Relations||0yrs||no data||no data|
|Executive VP||11.2yrs||no data||no data|
|Executive Director of Corporate Communications||0yrs||no data||no data|
|Executive VP & Chief Human Resources/Corporate Social Responsibility Officer||13.2yrs||no data||no data|
|Chief Government Affairs Officer||0yrs||no data||no data|
|Executive Vice President of Construction & Design||0yrs||no data||no data|
|Executive VP and Chief Creative & Brand Officer||1.1yrs||no data||no data|
Experienced Management: MLCO's management team is seasoned and experienced (10 years average tenure).
|Founder||15.2yrs||no data||0.63% $58.7m|
|President & Director||3.5yrs||no data||no data|
|Independent Non-Executive Director||1.4yrs||no data||no data|
|Independent Non-Executive Director||13.2yrs||US$559.00k||no data|
|Independent Non-Executive Director||13.2yrs||US$232.00k||no data|
|Independent Non-Executive Director||3.1yrs||no data||no data|
|Non-Executive Director||13.3yrs||US$1.26m||no data|
Experienced Board: MLCO's board of directors are seasoned and experienced ( 13.2 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Melco Resorts & Entertainment Limited's company bio, employee growth, exchange listings and data sources
- Name: Melco Resorts & Entertainment Limited
- Ticker: MLCO
- Exchange: NasdaqGS
- Founded: 2004
- Industry: Casinos and Gaming
- Sector: Consumer Services
- Market Cap: US$9.364b
- Shares outstanding: 459.92m
- Website: https://www.melco-resorts.com
Number of Employees
- Melco Resorts & Entertainment Limited
- The Centrium
- 36th Floor
- Hong Kong
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|MLCO||NasdaqGS (Nasdaq Global Select)||Yes||ADR||US||USD||Dec 2006|
|MAS||DB (Deutsche Boerse AG)||Yes||ADR||DE||EUR||Dec 2006|
|MLCO N||BMV (Bolsa Mexicana de Valores)||Yes||ADR||MX||MXN||Dec 2006|
Melco Resorts & Entertainment Limited, through its subsidiaries, develops, owns, and operates casino gaming and entertainment casino resort facilities in Asia. It owns and operates City of Dreams, an integrated casino resort that has approximately 476 gaming tables and approximately 724 gaming machines; approximately 2,170 hotel rooms and suites; a wet stage performance theater with approximately 2,000 seats; approximately 25 restaurants and bars, approximately 165 retail outlets; and health and fitness clubs, 3 swimming pools, spa and salons, and banquet and meeting facilities. The company also operates Altira Macau, a casino hotel, which has approximately 104 gaming tables and 129 gaming machines; 230 hotel rooms; various dining and casual restaurants, and recreation and leisure facilities; and various non-gaming amenities comprising spa, gymnasium, outdoor garden podium, and sky terrace lounge. In addition, it operates Studio City, a cinematically-themed integrated entertainment, retail, and gaming resort that comprises 292 gaming tables and 957 gaming machines in Cotai, Macau. Further, the company owns and operates 8 Mocha Clubs with 1,336 gaming machines, as well as Grand Dragon casino in Taipa Island, Macau. Additionally, it operates and manages City of Dreams Manila, a casino, hotel, retail, and entertainment integrated resort in the Entertainment City complex in Manila. The company was formerly known as Melco Crown Entertainment Limited and changed its name to Melco Resorts & Entertainment Limited in April 2017. The company was incorporated in 2004 and is based in Central, Hong Kong. Melco Resorts & Entertainment Limited is a subsidiary of Melco Leisure and Entertainment Group Limited.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/23 00:41|
|End of Day Share Price||2020/02/21 00:00|
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.