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MLCO

Melco Resorts & Entertainment NasdaqGS:MLCO Stock Report

Last Price

US$5.24

Market Cap

US$2.5b

7D

4.2%

1Y

-59.0%

Updated

11 Aug, 2022

Data

Company Financials +
MLCO fundamental analysis
Snowflake Score
Valuation5/6
Future Growth6/6
Past Performance0/6
Financial Health2/6
Dividends0/6

MLCO Stock Overview

Melco Resorts & Entertainment Limited develops, owns, and operates casino gaming and resort facilities in Asia and Europe.

Rewards

Trading at 55.8% below our estimate of its fair value

Earnings are forecast to grow 86.15% per year

Risk Analysis

No risks detected for MLCO from our risk checks.

Melco Resorts & Entertainment Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Melco Resorts & Entertainment
Historical stock prices
Current Share PriceUS$5.24
52 Week HighUS$14.65
52 Week LowUS$4.06
Beta1.53
1 Month Change3.76%
3 Month Change-2.42%
1 Year Change-58.97%
3 Year Change-72.75%
5 Year Change-75.08%
Change since IPO-75.68%

Recent News & Updates

Jun 30
Are Investors Undervaluing Melco Resorts & Entertainment Limited (NASDAQ:MLCO) By 33%?

Are Investors Undervaluing Melco Resorts & Entertainment Limited (NASDAQ:MLCO) By 33%?

In this article we are going to estimate the intrinsic value of Melco Resorts & Entertainment Limited ( NASDAQ:MLCO...

Jun 23

Melco's Cyprus Foray Interests Us, But Still Too Risky

Melco is majorly exposed to Macau which is the most problematic region right now in relation to COVID-19. The Cyprus foray interests us and is a major opportunity into the somewhat untapped middle eastern market. On a valuation basis, it appears economically priced compared to peers, but the resort and convention exposure puts it in the firing line of interest rate hikes. A pass.

Jun 03
At US$5.70, Is Melco Resorts & Entertainment Limited (NASDAQ:MLCO) Worth Looking At Closely?

At US$5.70, Is Melco Resorts & Entertainment Limited (NASDAQ:MLCO) Worth Looking At Closely?

Melco Resorts & Entertainment Limited ( NASDAQ:MLCO ), is not the largest company out there, but it received a lot of...

May 07
Need To Know: Analysts Just Made A Substantial Cut To Their Melco Resorts & Entertainment Limited (NASDAQ:MLCO) Estimates

Need To Know: Analysts Just Made A Substantial Cut To Their Melco Resorts & Entertainment Limited (NASDAQ:MLCO) Estimates

Today is shaping up negative for Melco Resorts & Entertainment Limited ( NASDAQ:MLCO ) shareholders, with the analysts...

Shareholder Returns

MLCOUS HospitalityUS Market
7D4.2%2.8%1.3%
1Y-59.0%-17.2%-11.7%

Return vs Industry: MLCO underperformed the US Hospitality industry which returned -17.9% over the past year.

Return vs Market: MLCO underperformed the US Market which returned -11.6% over the past year.

Price Volatility

Is MLCO's price volatile compared to industry and market?
MLCO volatility
MLCO Average Weekly Movement11.1%
Hospitality Industry Average Movement8.7%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: MLCO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: MLCO's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200417,878Lawrence Hohttps://www.melco-resorts.com

Melco Resorts & Entertainment Limited develops, owns, and operates casino gaming and resort facilities in Asia and Europe. It owns and operates City of Dreams, an integrated casino resort that has approximately 511 gaming tables and 572 gaming machines; approximately 770 rooms, and suites and villas; approximately 25 restaurants and bars, and 165 retail outlets; and health and fitness clubs, three swimming pools, spa and salons, and banquet and meeting facilities. The company also operates Altira Macau, a casino hotel, which has approximately 101 gaming tables and 121 gaming machines; 230 hotel rooms; various dining and casual restaurants, and recreation and leisure facilities; and various non-gaming amenities comprising a spa, gymnasium, outdoor garden podium, and sky terrace lounge.

Melco Resorts & Entertainment Fundamentals Summary

How do Melco Resorts & Entertainment's earnings and revenue compare to its market cap?
MLCO fundamental statistics
Market CapUS$2.48b
Earnings (TTM)-US$762.13m
Revenue (TTM)US$1.97b

1.3x

P/S Ratio

-3.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MLCO income statement (TTM)
RevenueUS$1.97b
Cost of RevenueUS$1.44b
Gross ProfitUS$530.54m
Other ExpensesUS$1.29b
Earnings-US$762.13m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-1.61
Gross Margin26.95%
Net Profit Margin-38.72%
Debt/Equity Ratio1,030.5%

How did MLCO perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is MLCO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MLCO?

Other financial metrics that can be useful for relative valuation.

MLCO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.5x
Enterprise Value/EBITDA192.7x
PEG Ration/a

Price to Sales Ratio vs Peers

How does MLCO's PS Ratio compare to its peers?

MLCO PS Ratio vs Peers
The above table shows the PS ratio for MLCO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average2.9x
SGHC Super Group (SGHC)
1.8x8.9%US$2.4b
SRAD Sportradar Group
5.5x15.5%US$3.4b
WYNN Wynn Resorts
2x21.4%US$7.8b
LNW Light & Wonder
2.3x6.4%US$5.4b
MLCO Melco Resorts & Entertainment
1.3x29.3%US$2.5b

Price-To-Sales vs Peers: MLCO is good value based on its Price-To-Sales Ratio (1.3x) compared to the peer average (2.9x).


Price to Earnings Ratio vs Industry

How does MLCO's PE Ratio compare vs other companies in the US Hospitality Industry?

Price-To-Sales vs Industry: MLCO is good value based on its Price-To-Sales Ratio (1.3x) compared to the US Hospitality industry average (1.7x)


Price to Sales Ratio vs Fair Ratio

What is MLCO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MLCO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.3x
Fair PS Ratio3.3x

Price-To-Sales vs Fair Ratio: MLCO is good value based on its Price-To-Sales Ratio (1.3x) compared to the estimated Fair Price-To-Sales Ratio (3.3x).


Share Price vs Fair Value

What is the Fair Price of MLCO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MLCO ($5.24) is trading below our estimate of fair value ($11.84)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is Melco Resorts & Entertainment forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


86.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MLCO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: MLCO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MLCO is expected to become profitable in the next 3 years.

Revenue vs Market: MLCO's revenue (29.3% per year) is forecast to grow faster than the US market (8% per year).

High Growth Revenue: MLCO's revenue (29.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MLCO's Return on Equity is forecast to be very high in 3 years time (67.5%).


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Past Performance

How has Melco Resorts & Entertainment performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-60.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MLCO is currently unprofitable.

Growing Profit Margin: MLCO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MLCO is unprofitable, and losses have increased over the past 5 years at a rate of 60.8% per year.

Accelerating Growth: Unable to compare MLCO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MLCO is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (52.4%).


Return on Equity

High ROE: MLCO has a negative Return on Equity (-131.23%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Melco Resorts & Entertainment's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: MLCO's short term assets ($2.1B) exceed its short term liabilities ($870.1M).

Long Term Liabilities: MLCO's short term assets ($2.1B) do not cover its long term liabilities ($7.5B).


Debt to Equity History and Analysis

Debt Level: MLCO's net debt to equity ratio (753.8%) is considered high.

Reducing Debt: MLCO's debt to equity ratio has increased from 114.5% to 1030.5% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MLCO has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if MLCO has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


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Dividend

What is Melco Resorts & Entertainment current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.73%

Forecast Dividend Yield

Dividend Yield vs Market

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

High Dividend: Unable to evaluate MLCO'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 MLCO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MLCO's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: MLCO is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MLCO has not reported any payouts.


Discover strong dividend paying companies

Management

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

12.5yrs

Average management tenure


CEO

Lawrence Ho (45 yo)

17.67yrs

Tenure

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...


Leadership Team

Experienced Management: MLCO's management team is seasoned and experienced (12.5 years average tenure).


Board Members

Experienced Board: MLCO's board of directors are seasoned and experienced ( 15.7 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Melco Resorts & Entertainment Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Melco Resorts & Entertainment Limited
  • Ticker: MLCO
  • Exchange: NasdaqGS
  • Founded: 2004
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Implied Market Cap: US$2.476b
  • Shares outstanding: 472.43m
  • Website: https://www.melco-resorts.com

Number of Employees


Location

  • Melco Resorts & Entertainment Limited
  • The Centrium
  • 38th Floor
  • Central
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/11 00:00
End of Day Share Price2022/08/11 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.