Melco Resorts & Entertainment
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Melco Resorts & Entertainment Limited, through its subsidiaries, develops, owns, and operates casino gaming and entertainment casino resort facilities in Asia. The last earnings update was 3 days ago. More info.
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- Melco Resorts & Entertainment has significant price volatility in the past 3 months.
MLCO Share Price and Events
7 Day Returns
1 Year Returns
MLCO Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Melco Resorts & Entertainment (MLCO) | 8.5% | 13.9% | 39% | -16.6% | 48% | -45% |
| US Hospitality | 2.3% | 8.7% | 9% | -7.4% | 46.3% | 13.4% |
| US Market | 1.4% | 5.6% | 5.7% | 2.3% | 44.2% | 40.9% |
1 Year Return vs Industry and Market
- MLCO underperformed the Hospitality industry which returned -7.4% over the past year.
- MLCO underperformed the Market in United States of America which returned 2.3% over the past year.
MLCO Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Melco Resorts & Entertainment
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Melco Resorts & Entertainment.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 17 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 11.8% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 7.3% |
| Hospitality Unlevered Beta | Simply Wall St/ S&P Global | 0.97 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.974 (1 + (1- 25%) (37.94%)) |
1.251 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.25 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.251 * 7.27%) |
11.83% |
Discounted Cash Flow Calculation for NasdaqGS:MLCO using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Melco Resorts & Entertainment is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Levered FCF (USD, Millions) | 704.25 | 955.80 | 969.66 | 983.72 | 997.99 |
| Source | Analyst x4 | Analyst x5 | Est @ 1.45% | Est @ 1.45% | Est @ 1.45% |
|
Present Value Discounted (@ 11.83%) |
629.78 | 764.34 | 693.42 | 629.08 | 570.72 |
| Present value of next 5 years cash flows | $3,287.33 |
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2023
× (1 + g) ÷ (Discount Rate – g)
= $997.99 × (1 + 2.73%) ÷ (11.83% – 2.73%) |
$11,271.77 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)5
= $11,271.77 ÷ (1 + 11.83%)5 |
$6,445.93 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 5 years cash flows +
Terminal Value
= $3,287.33 + $6,445.93 |
$9,733.26 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $9,733.26 / 489.80 |
$19.87 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $19.87 |
| Current discount | Discount to share price of
$23.59
= -1 x ($23.59 - $19.87) / $19.87 |
-18.7% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Melco Resorts & Entertainment is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Melco Resorts & Entertainment's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Melco Resorts & Entertainment's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $0.73 |
| NasdaqGS:MLCO Share Price ** | NasdaqGS (2019-02-21) in USD | $23.59 |
| United States of America Hospitality Industry PE Ratio | Median Figure of 73 Publicly-Listed Hospitality Companies | 19.38x |
| United States of America Market PE Ratio | Median Figure of 3,045 Publicly-Listed Companies | 17.39x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Melco Resorts & Entertainment.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:MLCO Share Price ÷ EPS (both in USD) = 23.59 ÷ 0.73 |
32.46x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Melco Resorts & Entertainment is overvalued based on earnings compared to the US Hospitality industry average.
- Melco Resorts & Entertainment is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Melco Resorts & Entertainment's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 32.46x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts |
20%per year |
| United States of America Hospitality Industry PEG Ratio | Median Figure of 53 Publicly-Listed Hospitality Companies | 1.34x |
| United States of America Market PEG Ratio | Median Figure of 2,118 Publicly-Listed Companies | 1.44x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 32.46x ÷ 20% |
1.62x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Melco Resorts & Entertainment is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Melco Resorts & Entertainment's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $4.56 |
| NasdaqGS:MLCO Share Price * | NasdaqGS (2019-02-21) in USD | $23.59 |
| United States of America Hospitality Industry PB Ratio | Median Figure of 106 Publicly-Listed Hospitality Companies | 2.11x |
| United States of America Market PB Ratio | Median Figure of 5,129 Publicly-Listed Companies | 1.87x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:MLCO Share Price ÷ Book Value per Share (both in USD) = 23.59 ÷ 4.56 |
5.17x |
* Primary Listing of Melco Resorts & Entertainment.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Melco Resorts & Entertainment is overvalued based on assets compared to the US Hospitality industry average.
Value checks
We assess Melco Resorts & Entertainment's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check) Melco Resorts & Entertainment has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
MLCO Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Melco Resorts & Entertainment's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Melco Resorts & Entertainment's earnings growth is expected to exceed the United States of America market average.
- Melco Resorts & Entertainment's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:MLCO Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts | 20% |
| NasdaqGS:MLCO Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts | 6% |
| United States of America Hospitality Industry Earnings Growth Rate | Market Cap Weighted Average | 11.4% |
| United States of America Hospitality Industry Revenue Growth Rate | Market Cap Weighted Average | 7.3% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 12.7% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 17 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 7,305 | 2,075 | 1,177 | 1 |
| 2022-12-31 | 6,805 | 1,838 | 976 | 1 |
| 2021-12-31 | 6,160 | 1,590 | 773 | 3 |
| 2020-12-31 | 5,810 | 1,405 | 571 | 17 |
| 2019-12-31 | 5,476 | 1,222 | 438 | 15 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 5,159 | 352 | |
| 2018-09-30 | 5,095 | 305 | |
| 2018-06-30 | 5,251 | 411 | |
| 2018-03-31 | 5,321 | 390 | |
| 2017-12-31 | 5,285 | 1,163 | 347 |
| 2017-09-30 | 5,145 | 309 | |
| 2017-06-30 | 4,921 | 255 | |
| 2017-03-31 | 4,693 | 250 | |
| 2016-12-31 | 4,519 | 1,158 | 176 |
| 2016-09-30 | 4,385 | 1,053 | 120 |
| 2016-06-30 | 4,178 | 91 | |
| 2016-03-31 | 4,024 | 85 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 17 Analyst Estimates (S&P Global) | See Below |
All data from Melco Resorts & Entertainment Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 2.41 | 2.41 | 2.41 | 1.00 |
| 2022-12-31 | 2.00 | 2.00 | 2.00 | 1.00 |
| 2021-12-31 | 1.64 | 1.64 | 1.63 | 2.00 |
| 2020-12-31 | 1.19 | 1.54 | 0.78 | 13.00 |
| 2019-12-31 | 0.91 | 1.27 | 0.65 | 12.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 0.73 |
| 2018-09-30 | 0.62 |
| 2018-06-30 | 0.84 |
| 2018-03-31 | 0.80 |
| 2017-12-31 | 0.71 |
| 2017-09-30 | 0.63 |
| 2017-06-30 | 0.52 |
| 2017-03-31 | 0.51 |
| 2016-12-31 | 0.35 |
| 2016-09-30 | 0.23 |
| 2016-06-30 | 0.17 |
| 2016-03-31 | 0.16 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Melco Resorts & Entertainment is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Future performance checks
We assess Melco Resorts & Entertainment's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Melco Resorts & Entertainment has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
MLCO Past Performance
How has Melco Resorts & Entertainment performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Melco Resorts & Entertainment's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
- Melco Resorts & Entertainment's 1-year earnings growth exceeds its 5-year average (1.3% vs -21.2%)
- Melco Resorts & Entertainment's earnings growth has not exceeded the US Hospitality industry average in the past year (1.3% vs 21%).
Earnings and Revenue History
All data from Melco Resorts & Entertainment Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 5,158.51 | 351.52 | 650.95 | |
| 2018-09-30 | 5,094.61 | 304.68 | 651.03 | |
| 2018-06-30 | 5,251.16 | 410.99 | 626.46 | |
| 2018-03-31 | 5,320.75 | 390.19 | 582.10 | |
| 2017-12-31 | 5,284.82 | 347.00 | 582.90 | |
| 2017-09-30 | 5,145.15 | 309.11 | 578.93 | |
| 2017-06-30 | 4,920.87 | 255.24 | 557.68 | |
| 2017-03-31 | 4,693.05 | 249.56 | 524.41 | |
| 2016-12-31 | 4,519.40 | 175.91 | 509.74 | |
| 2016-09-30 | 4,384.55 | 120.29 | 572.88 | |
| 2016-06-30 | 4,177.73 | 91.45 | 604.24 | |
| 2016-03-31 | 4,024.12 | 84.91 | 625.27 | |
| 2015-12-31 | 3,974.80 | 105.75 | 655.33 | |
| 2015-09-30 | 4,038.16 | 211.03 | 594.42 | |
| 2015-06-30 | 4,216.50 | 309.98 | 653.51 | |
| 2015-03-31 | 4,499.24 | 429.37 | 627.60 | |
| 2014-12-31 | 4,802.31 | 608.28 | 483.74 | |
| 2014-09-30 | 5,075.48 | 738.58 | 440.15 | |
| 2014-06-30 | 5,204.08 | 785.82 | 397.59 | |
| 2014-03-31 | 5,299.56 | 823.23 | 371.22 | |
| 2013-12-31 | 5,087.18 | 637.46 | 368.65 | |
| 2013-09-30 | 4,794.43 | 522.20 | 356.17 | |
| 2013-06-30 | 4,552.60 | 447.67 | 340.05 | |
| 2013-03-31 | 4,196.10 | 348.89 | 321.39 | |
| 2012-12-31 | 4,078.01 | 417.20 | 367.35 | |
| 2012-09-30 | 3,984.55 | 416.77 | 259.34 | |
| 2012-06-30 | 4,029.68 | 425.20 | 286.39 | |
| 2012-03-31 | 4,051.12 | 409.60 | 244.32 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Melco Resorts & Entertainment has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Melco Resorts & Entertainment used its assets less efficiently than the US Hospitality industry average last year based on Return on Assets.
- Melco Resorts & Entertainment has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Melco Resorts & Entertainment's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Melco Resorts & Entertainment has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
MLCO Health
How is Melco Resorts & Entertainment's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Melco Resorts & Entertainment's finances.
The net worth of a company is the difference between its assets and liabilities.
- Melco Resorts & Entertainment's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
- Melco Resorts & Entertainment's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Melco Resorts & Entertainment Company Filings, last reported 1 month ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 2,745.70 | 4,348.95 | 1,528.16 |
| 2018-09-30 | 2,913.27 | 4,086.32 | 1,339.33 |
| 2018-06-30 | 3,413.19 | 3,810.49 | 1,504.84 |
| 2018-03-31 | 3,420.12 | 3,828.98 | 1,427.37 |
| 2017-12-31 | 3,335.62 | 3,856.85 | 1,507.97 |
| 2017-09-30 | 3,301.65 | 4,000.03 | 1,612.49 |
| 2017-06-30 | 3,230.72 | 4,022.05 | 1,422.41 |
| 2017-03-31 | 3,240.41 | 4,003.20 | 1,376.14 |
| 2016-12-31 | 3,823.41 | 4,013.36 | 1,913.15 |
| 2016-09-30 | 3,822.01 | 4,085.32 | 1,724.27 |
| 2016-06-30 | 3,785.94 | 4,140.56 | 1,340.76 |
| 2016-03-31 | 4,596.59 | 4,277.76 | 2,035.74 |
| 2015-12-31 | 4,931.86 | 4,115.50 | 2,335.76 |
| 2015-09-30 | 5,015.19 | 4,264.27 | 1,849.39 |
| 2015-06-30 | 5,023.53 | 4,285.17 | 1,797.88 |
| 2015-03-31 | 5,042.13 | 4,140.04 | 1,622.38 |
| 2014-12-31 | 5,041.67 | 4,204.32 | 1,708.27 |
| 2014-09-30 | 5,208.55 | 4,256.55 | 1,992.15 |
| 2014-06-30 | 5,155.35 | 3,039.11 | 2,346.76 |
| 2014-03-31 | 4,963.77 | 3,084.56 | 2,448.94 |
| 2013-12-31 | 4,924.98 | 2,813.75 | 2,008.70 |
| 2013-09-30 | 4,554.73 | 2,881.24 | 2,068.66 |
| 2013-06-30 | 4,327.53 | 2,942.87 | 1,959.06 |
| 2013-03-31 | 3,787.01 | 2,955.07 | 1,413.91 |
| 2012-12-31 | 3,740.76 | 3,194.86 | 1,709.21 |
| 2012-09-30 | 3,554.38 | 2,368.29 | 1,737.13 |
| 2012-06-30 | 3,451.18 | 2,365.65 | 1,472.73 |
| 2012-03-31 | 3,369.82 | 2,326.03 | 1,451.32 |
- Melco Resorts & Entertainment's level of debt (158.4%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (57.2% vs 158.4% today).
- Debt is well covered by operating cash flow (26.7%, greater than 20% of total debt).
- Interest payments on debt are not well covered by earnings (EBIT is 2.4x annual interest expense, ideally 3x coverage).
Financial health checks
We assess Melco Resorts & Entertainment's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Melco Resorts & Entertainment has a total score of 1/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
MLCO Dividends
What is Melco Resorts & Entertainment's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Melco Resorts & Entertainment
shares you are expected to receive
$53
in your first year as a dividend.
Dividend Amount
- Melco Resorts & Entertainment's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
- Melco Resorts & Entertainment's dividend is below the markets top 25% of dividend payers in United States of America (3.54%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 17 Analyst Estimates (S&P Global) | See Below |
| United States of America Hospitality Industry Average Dividend Yield | Market Cap Weighted Average of 45 Stocks | 2.6% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2001 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.5% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | 1.26 | 1.00 |
| 2022-12-31 | 1.04 | 1.00 |
| 2021-12-31 | 0.70 | 4.00 |
| 2020-12-31 | 0.71 | 15.00 |
| 2019-12-31 | 0.64 | 14.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-19 | 0.620 | 2.724 |
| 2018-11-08 | 0.580 | 3.079 |
| 2018-07-24 | 0.580 | 2.797 |
| 2018-02-08 | 0.405 | 1.409 |
| 2017-01-12 | 0.169 | 0.774 |
| 2016-08-04 | 0.076 | 0.471 |
| 2016-05-04 | 0.088 | 0.645 |
| 2016-04-12 | 0.000 | 0.000 |
| 2016-02-18 | 0.000 | 0.000 |
| 2015-11-05 | 0.073 | 0.475 |
| 2015-08-06 | 0.054 | 0.302 |
| 2015-05-07 | 0.134 | 0.672 |
| 2015-02-12 | 0.205 | 0.897 |
| 2014-11-06 | 0.287 | 1.170 |
| 2014-08-07 | 0.311 | 1.161 |
| 2014-05-08 | 0.517 | 1.555 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Melco Resorts & Entertainment has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
- Dividend payments have increased, but Melco Resorts & Entertainment only paid a dividend in the past 5 years.
Income/ dividend checks
We assess Melco Resorts & Entertainment's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Melco Resorts & Entertainment afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Melco Resorts & Entertainment has a total score of 2/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
MLCO Management
CEO
| COMPENSATION | $0 |
| AGE | 41 |
| TENURE AS CEO | 14.2 years |
CEO Bio
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 the its Co-Chairman and Chief Executive Officer since December 2004, and re-designated as Chairman and Chief Executive Officer since May 2016. Since November 2001, Mr. Ho has also served as the Managing Director and, since March 2006, the Chairman and Chief Executive Officer of Melco International Development Limited. Mr. Ho served as the Chairman and Non-Executive Director of Summit Ascent Holdings Limited since July 2013 until December 28, 2017. He has been Director of Studio City International Holdings Limited since July 2011. He serves as a Managing Director of Melco Resorts (Macau) Limited. He is a Member of the Board of Directors and a Vice Patron of The Community Chest of Hong Kong; Member of All China Youth Federation; Member of Macau Basic Law Promotion Association; Chairman of Macau International Volunteers Association; Member of the Board of Governors of The Canadian Chamber of Commerce in Hong Kong; Honorary Lifetime Director of The Chinese General Chamber of Commerce of Hong Kong; Honorary Patron of The Canadian Chamber of Commerce in Macao; Honorary President of Association of Property Agents and Real Estate Developers of Macau and Director Executive of Macao Chamber of Commerce. In recognition of Mr. Ho’s excellent directorship and entrepreneurial spirit, Institutional Investor honored him as the “Best CEO” in 2005. He was also granted the “5th China Enterprise Award for Creative Businessmen” by the China Marketing Association and China Enterprise News, “Leader of Tomorrow” by Hong Kong Tatler and the “Directors of the Year Award” by the Hong Kong Institute of Directors in 2005. As a socially–responsible young entrepreneur in Hong Kong, Mr. Ho was selected as one of the “Ten Outstanding Young Persons Selection 2006,” organized by Junior Chamber International Hong Kong. In 2007, he was elected as a finalist in the “Best Chairman” category in the “Stevie International Business Awards” and one of the “100 Most Influential People across Asia Pacific” by Asiamoney magazine. In 2008, he was granted the “China Charity Award” by the Ministry of Civil Affairs of the People’s Republic of China. And in 2009, Mr. Ho was selected as one of the “China Top Ten Financial and Intelligent Persons” judged by a panel led by the Beijing Cultural Development Study Institute and Fortune Times, and was named “Young Entrepreneur of the Year” at Hong Kong’s first Asia Pacific Entrepreneurship Awards. Mr. Ho was selected by Finance Asia magazine as one of the “Best CEOs in Hong Kong” for the fifth time in 2014 and was granted the “Leadership Gold Award” in the Business Awards of Macau in 2015. In 2017, Mr. Ho was awarded the Medal of Merit-Tourism by the Macau SAR government for his significant contributions to tourism in the territory. Mr. Ho was honored as one of the recipients of the “Asian Corporate Director Recognition Awards” by Corporate Governance Asia magazine for five consecutive years since 2012, and was awarded “Asia’s Best CEO” at the Asian Excellence Awards for the sixth time in 2017. Mr. Ho has been the Chairman of Maple Peak Investment Inc. since July 2016. He is a Vice Chairman of the All-China Federation of Industry and Commerce. Mr. Ho graduated with a Bachelor of Arts degree in commerce from the University of Toronto, Canada in June 1999 and was awarded the Honorary Doctor of Business Administration degree by Edinburgh Napier University, Scotland in July 2009 for his contribution to business, education and the community in Hong Kong, Macau and China. Mr. Yau Lung Ho serves as Director at Studio City International Holdings Limited.
CEO Compensation
- Insufficient data for Lawrence to compare compensation growth.
- Lawrence's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Melco Resorts & Entertainment management team in years:
- The average tenure for the Melco Resorts & Entertainment management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Lawrence Ho
Chairman & CEO
41
14.2 yrs
Geoffrey Stuart Davis
Executive VP & CFO
49
7.8 yrs
Ross Dunwoody
Senior Vice President of Development & Investor Relations
Stephanie Cheung
Executive VP
56
10.2 yrs
Frederic Winckler
Chief Marketing & Brand Officer and Executive VP
51
2.1 yrs
Akiko Takahashi
Executive VP & Chief Human Resources/Corporate Social Responsibility Officer
65
12.2 yrs
Maggie Ma
Chief Government Affairs Officer
Jaya Jesudason
Executive Vice President of Construction & Design
76
Jarlath Lynch
Executive Vice President of Hotels and Food & Beverage
2.1 yrs
Kevin Benning
Senior VP & COO at City of Dreams Manila
35
1.1 yrs
Board of Directors Tenure
Average tenure and age of the Melco Resorts & Entertainment board of directors in years:
- The tenure for the Melco Resorts & Entertainment board of directors is about average.
Board of Directors
Lawrence Ho
Chairman & CEO
41
14.2 yrs
Alec Tsui
Independent Non-Executive Director
$559K
68
12.2 yrs
John William Crawford
Independent Non-Executive Director
76
2.1 yrs
Clarence Chung
Non-Executive Director
$1M
55
12.3 yrs
Evan Winkler
Non-Executive Director
43
2.5 yrs
Francesca Galante
Independent Non-Executive Director
0.4 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
Management checks
We assess Melco Resorts & Entertainment's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Melco Resorts & Entertainment has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
MLCO News
Simply Wall St News
Calculating The Fair Value Of Melco Resorts & Entertainment Limited (NASDAQ:MLCO)
I am going to run you through how I calculated the intrinsic value of Melco Resorts & Entertainment Limited (NASDAQ:MLCO). … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.
Simply Wall St - – Full articleShareholders Should Look Hard At Melco Resorts & Entertainment Limited’s (NASDAQ:MLCO) 8.3% Return On Capital
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.
Simply Wall St - – Full articleWhere Melco Resorts & Entertainment Limited's (NASDAQ:MLCO) Earnings Growth Stands Against Its Industry
Today I will examine Melco Resorts & Entertainment Limited's (NASDAQ:MLCO) latest earnings update (30 September 2018) and compare these figures against its performance over the past couple of years, in addition to how the rest of MLCO's industry performed. … MLCO's trailing twelve-month earnings (from 30 September 2018) of US$305m has. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of -23%, indicating the rate at which MLCO is growing has slowed down
Simply Wall St - – Full articleWhy Melco Resorts & Entertainment Limited (NASDAQ:MLCO) May Not Be As Efficient As Its Industry
With an ROE of 11.73%, Melco Resorts & Entertainment Limited (NASDAQ:MLCO) returned in-line to its own industry which delivered 13.38% over the past year. … I will take you through how metrics such as financial leverage impact ROE which may affect the overall sustainability of MLCO's returns … Check out our latest analysis for Melco Resorts & Entertainment
Simply Wall St - – Full articleDoes Melco Resorts & Entertainment Limited's (NASDAQ:MLCO) PE Ratio Warrant A Sell?
and want to better understand how you can grow your money by investing in Melco Resorts & Entertainment Limited (NASDAQ:MLCO). … Melco Resorts & Entertainment Limited (NASDAQ:MLCO) trades with a trailing P/E of 34.7x, which is higher than the industry average of 22.9x. … Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind
Simply Wall St - – Full articleIs June The Month To Buy Melco Resorts & Entertainment Limited (NASDAQ:MLCO)?
Growth expectations for Melco Resorts & Entertainment Limited (NASDAQ:MLCO) are high, but many investors are starting to ask whether its last close at $29.75 can still be rationalized by the future potential. … What can we expect from Melco Resorts & Entertainment in the future. … Melco Resorts & Entertainment's extremely high growth potential in the near future is attracting investors
Simply Wall St - – Full articleDoes Melco Resorts & Entertainment Limited's (NASDAQ:MLCO) Recent Track Record Look Strong?
Check out our latest analysis for Melco Resorts & Entertainment How MLCO fared against its long-term earnings performance and its industry For the purpose of this commentary, I like to use the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. … For Melco Resorts & Entertainment, its latest trailing-twelve-month earnings is US$390.19M, which, against the previous year's figure, has moved up by an impressive 56.35%. … Let's see whether it is only a result of industry tailwinds, or if Melco Resorts & Entertainment has experienced some company-specific growth.
Simply Wall St - – Full articleDoes Melco Resorts & Entertainment Limited's (NASDAQ:MLCO) Stock Price Account For Its Growth?
Looking at Melco Resorts & Entertainment Limited’s (NASDAQ:MLCO) fundamentals some investors are wondering if its last closing price of $31.23 represents a good value for money for this high growth stock. … Melco Resorts & Entertainment is trading at price-to-earnings (PE) ratio of 39.18x, this tells us the stock is overvalued compared to the US market average ratio of 18.29x , and overvalued based on current earnings compared to the hospitality industry average of 22.94x. … But, seeing as Melco Resorts & Entertainment is perceived as a high-growth stock, we must also account for its earnings growth, which is captured in the PEG ratio.
Simply Wall St - – Full articleIs Melco Resorts & Entertainment Limited's (NASDAQ:MLCO) Strong Prospects Worth The Price?
I will conduct a high level fundamental analysis on the company by looking at its past financials and growth prospects moving forward. … NasdaqGS:MLCO Future Profit Apr 20th 18 The company is growing incredibly fast, with a year-on-year revenue growth of 16.94% over the past financial year , and a bottom line growth of 97.27%. … A major red flag for MLCO is its high level of debt, which has been increasing over the past five years, exceeding its total level of equity.
Simply Wall St - – Full articleWhat Do Analysts Think About Melco Resorts & Entertainment Limited's (NASDAQ:MLCO) Earnings Trajectory?
The most recent earnings release Melco Resorts & Entertainment Limited's (NASDAQ:MLCO) announced in December 2017 indicated that the company benefited from a sizeable tailwind, leading to a high double-digit earnings growth of 97.27%. … Below, I've laid out key growth figures on how market analysts predict Melco Resorts & Entertainment's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. … View our latest analysis for Melco Resorts & Entertainment Analysts' expectations for the upcoming year seems positive, with earnings expanding by a significant 65.74%.
Simply Wall St - – Full articleMLCO Company Info
Map
Description
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 475 gaming tables and approximately 670 gaming machines; approximately 1,400 hotel rooms and suites; a wet stage performance theater with approximately 2,000 seats; approximately 25 restaurants and bars, and 95 retail outlets; and recreation and leisure facilities, including health and fitness clubs, swimming pools, spa and salons, and banquet and meeting facilities. The company also operates Altira Macau, a casino hotel, which has approximately 100 gaming tables and 119 gaming machines; 215 hotel rooms; various fine 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 290 gaming tables and 970 gaming machines in Cotai, Macau. Further, the company owns and operates 8 Mocha Clubs with 1,319 gaming machines, as well as Taipa Square 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. Melco Resorts & Entertainment Limited was incorporated in 2004 and is based in Central, Hong Kong. As of February 16, 2017, Melco Resorts & Entertainment Limited operates as a subsidiary of Melco Leisure and Entertainment Group Limited.
Details
| Name: | Melco Resorts & Entertainment Limited |
| MLCO | |
| Exchange: | NasdaqGS |
| Founded: | 2004 |
| $11,461,430,986 | |
| 489,804,743 | |
| Website: | http://www.melco-resorts.com |
| Address: |
Melco Resorts & Entertainment Limited The Centrium, 36th Floor, Central, Hong Kong |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | MLCO | ADR | Nasdaq Global Select | US | USD | 18. Dec 2006 | |
| DB | MAS | ADR | Deutsche Boerse AG | DE | EUR | 18. Dec 2006 | |
| BMV | MLCO N | ADR | Bolsa Mexicana de Valores | MX | MXN | 18. Dec 2006 |
Number of employees
Current staff
Industry
| Casinos and Gaming | |
| Consumer Services |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/02/22 00:11 |
| End of day share price update: | 2019/02/21 00:00 |
| Last estimates confirmation: | 2019/02/20 |
| Last earnings filing: | 2019/02/19 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
