NasdaqGS:MLCO

Stock Analysis Report

Executive Summary

Melco Resorts & Entertainment Limited, through its subsidiaries, develops, owns, and operates casino gaming and entertainment casino resort facilities in Asia.

Snowflake

Fundamentals

Moderate growth potential second-rate dividend payer.


Similar Companies

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


Market Performance


7 Day Return

3.5%

MLCO

2.0%

US Hospitality

1.0%

US Market


1 Year Return

10.3%

MLCO

3.5%

US Hospitality

6.7%

US Market

Return vs Industry: MLCO exceeded the US Hospitality industry which returned 3.5% over the past year.

Return vs Market: MLCO exceeded the US Market which returned 6.7% over the past year.


Share holder returns

MLCOIndustryMarket
7 Day3.5%2.0%1.0%
30 Day-6.4%-5.5%-1.8%
90 Day-17.5%-6.1%-1.8%
1 Year13.7%10.3%6.0%3.5%9.1%6.7%
3 Year47.8%28.3%44.0%34.6%46.1%36.6%
5 Year-3.6%-20.5%42.7%26.9%66.9%48.6%

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

Valuation

Is Melco Resorts & Entertainment undervalued based on future cash flows and its price relative to the stock market?

26.77x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: MLCO ($20.3) is trading above our estimate of fair value ($16.04)

Significantly Undervalued: MLCO is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: MLCO is poor value based on its PE Ratio (26.8x) compared to the Hospitality industry average (23x).

PE vs Market: MLCO is poor value based on its PE Ratio (26.8x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: MLCO is poor value based on its PEG Ratio (1.5x)


Price Based on Value of Assets

PB vs Industry: MLCO is overvalued based on its PB Ratio (4.2x) compared to the US Hospitality industry average (2.1x).


Next Steps

Future Growth

How is Melco Resorts & Entertainment expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

17.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: MLCO's forecast earnings growth (17.9% per year) is above the savings rate (2.7%).

Earnings vs Market: MLCO's earnings (17.9% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: MLCO's earnings are forecast to grow, but not significantly.

Revenue vs Market: MLCO's revenue (4.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: MLCO's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: MLCO's Return on Equity is forecast to be high in 3 years time (24.4%)


Next Steps

Past Performance

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

-11.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MLCO's earnings have declined by -11.7% per year over the past 5 years.

Accelerating Growth: MLCO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MLCO had negative earnings growth (-13.6%) over the past year, making it difficult to compare to the Hospitality industry average (-13.9%).


Return on Equity

High ROE: MLCO's Return on Equity (12.4%) is considered low.


Return on Assets

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


Return on Capital Employed

ROCE Improving: MLCO has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Melco Resorts & Entertainment's financial position?


Financial Position Analysis

Short Term Liabilities: MLCO's short term assets ($2.1B) do not cover its short term liabilities ($2.5B)

Long Term Liabilities: MLCO's short term assets (2.1B) do not cover its long term liabilities (4.3B)


Debt to Equity History and Analysis

Debt Level: MLCO's debt to equity ratio (164.4%) is considered high

Reducing Debt: MLCO's debt to equity ratio has increased from 53.5% to 164.4% over the past 5 years.

Debt Coverage: MLCO's debt is well covered by operating cash flow (22.5%).

Interest Coverage: MLCO's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet

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).


Next Steps

Dividend

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

3.65%

Expected Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.5%markettop25%3.8%industryaverage2.3%forecastin3Years3.7%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: MLCO's dividend (3.25%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: MLCO's dividend (3.25%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 5 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (81.8%), 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 (66% payout ratio).


Next Steps

Management

What is the CEO of Melco Resorts & Entertainment's salary, the management and board of directors tenure and is there insider trading?

9.7yrs

Average management tenure


CEO

Lawrence Ho (42yo)

14.8yrs

Tenure

0

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 ($USD0.00) is too low to compare against companies of similar size in the US market ($USD6.81M).

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


Management Age and Tenure

9.7yrs

Average Tenure

52yo

Average Age

Experienced Management: MLCO's management team is seasoned and experienced (9.7 years average tenure).


Board Age and Tenure

12.8yrs

Average Tenure

47yo

Average Age

Experienced Board: MLCO's board of directors are seasoned and experienced ( 12.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Lawrence Ho (42yo)

    Founder

    • Tenure: 14.8yrs
  • Frederic Winckler (52yo)

    Chief Marketing & Brand Officer and Executive VP

    • Tenure: 2.8yrs
  • Stephanie Cheung (57yo)

    Executive VP

    • Tenure: 10.8yrs
  • Maggie Ma

    Chief Government Affairs Officer

    • Tenure: 0yrs
  • Akiko Takahashi (66yo)

    Executive VP & Chief Human Resources/Corporate Social Responsibility Officer

    • Tenure: 12.8yrs
  • Evan Winkler (44yo)

    President & Director

    • Tenure: 3.2yrs
  • Geoffrey Stuart Davis (50yo)

    Executive VP & CFO

    • Tenure: 8.5yrs
  • Ross Dunwoody

    Senior Vice President of Development & Investor Relations

    • Tenure: 0yrs
  • Jaya Jesudason (77yo)

    Executive Vice President of Construction & Design

    • Tenure: 0yrs
  • Chimmy Leung

    Executive Director of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Francesca Galante (43yo)

    Independent Non-Executive Director

    • Tenure: 1.1yrs
  • Alec Tsui (69yo)

    Independent Non-Executive Director

    • Tenure: 12.8yrs
    • Compensation: US$559.00k
  • Lawrence Ho (42yo)

    Founder

    • Tenure: 14.8yrs
  • Thomas Wu (47yo)

    Independent Non-Executive Director

    • Tenure: 12.8yrs
    • Compensation: US$232.00k
  • John William Crawford (77yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
  • Clarence Chung (56yo)

    Non-Executive Director

    • Tenure: 12.9yrs
    • Compensation: US$1.26m
  • Evan Winkler (44yo)

    President & Director

    • Tenure: 3.2yrs

Company Information

Melco Resorts & Entertainment Limited's company bio, 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
  • Market Cap: US$9.336b
  • Shares outstanding: 459.92m
  • Website: https://www.melco-resorts.com

Number of Employees


Location

  • Melco Resorts & Entertainment Limited
  • The Centrium
  • 36th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MLCONasdaqGS (Nasdaq Global Select)YesSPON ADR EACH REP 3 ORD SHSUSUSDDec 2006
MASDB (Deutsche Boerse AG)YesSPON ADR EACH REP 3 ORD SHSDEEURDec 2006
MLCO NBMV (Bolsa Mexicana de Valores)YesSPON ADR EACH REP 3 ORD SHSMXMXNDec 2006

Biography

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 integ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 02:13
End of Day Share Price2019/10/11 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.

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