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

Reasonable 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

-0.5%

NasdaqGS:MLCO

-2.1%

US Hospitality

-1.0%

US Market


1 Year Return

-9.3%

NasdaqGS:MLCO

-6.5%

US Hospitality

-0.4%

US Market

MLCO underperformed the Hospitality industry which returned -6.5% over the past year.

MLCO underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

MLCOIndustryMarket
7 Day-0.5%-2.1%-1.0%
30 Day-17.9%-5.4%-3.3%
90 Day-0.5%-3.4%0.8%
1 Year-6.6%-9.3%-4.3%-6.5%1.9%-0.4%
3 Year72.3%49.6%40.2%31.3%39.4%30.4%
5 Year-16.4%-31.1%30.9%16.6%54.2%37.1%

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?

26.43x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Melco Resorts & Entertainment's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Melco Resorts & Entertainment's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Melco Resorts & Entertainment is poor value based on expected growth next year.


Price Based on Value of Assets

Melco Resorts & Entertainment is overvalued based on assets compared to the US Hospitality industry average.


Next Steps

Future Growth

How is Melco Resorts & Entertainment expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

21.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Melco Resorts & Entertainment's revenue is expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).

Melco Resorts & Entertainment's earnings are expected to grow significantly at over 20% yearly.

Melco Resorts & Entertainment's revenue growth is positive but not above the United States of America market average.

Melco Resorts & Entertainment's earnings growth is expected to exceed the United States of America market average.

Melco Resorts & Entertainment's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Melco Resorts & Entertainment is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

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 is negative, it can't be compared to the 5-year average.

Melco Resorts & Entertainment's 1-year earnings growth is negative, it can't be compared to the US Hospitality industry average.


Return on Equity

Melco Resorts & Entertainment has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Melco Resorts & Entertainment used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Melco Resorts & Entertainment has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Melco Resorts & Entertainment's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Melco Resorts & Entertainment's level of debt (164.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (53.5% vs 164.4% today).

Debt is well covered by operating cash flow (22.5%, 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).


Balance Sheet

High level of physical assets or inventory.

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?

3.83%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Melco Resorts & Entertainment's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Melco Resorts & Entertainment's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

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.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.4x coverage).


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?

9.5yrs

Average management tenure


CEO

Lawrence Ho (42yo)

14.7yrs

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 ...


CEO Compensation Analysis

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

Insufficient data for Lawrence to compare compensation growth.


Management Age and Tenure

9.5yrs

Average Tenure

54.5yo

Average Age

The average tenure for the Melco Resorts & Entertainment management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

12.7yrs

Average Tenure

47yo

Average Age

The average tenure for the Melco Resorts & Entertainment 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

  • Stephanie Cheung (57yo)

    Executive VP

    • Tenure: 10.7yrs
  • Frederic Winckler (52yo)

    Chief Marketing & Brand Officer and Executive VP

    • Tenure: 2.6yrs
  • Maggie Ma

    Chief Government Affairs Officer

  • Ross Dunwoody

    Senior Vice President of Development & Investor Relations

  • Jarlath Lynch

    Executive Vice President of Hotels and Food & Beverage

    • Tenure: 2.6yrs
  • Lawrence Ho (42yo)

    Chairman & CEO

    • Tenure: 14.7yrs
  • Chimmy Leung

    Executive Director of Corporate Communications

  • Jaya Jesudason (77yo)

    Executive Vice President of Construction & Design

  • Akiko Takahashi (66yo)

    Executive VP & Chief Human Resources/Corporate Social Responsibility Officer

    • Tenure: 12.7yrs
  • Geoffrey Stuart Davis (50yo)

    Executive VP & CFO

    • Tenure: 8.3yrs

Board Members

  • Francesca Galante (43yo)

    Independent Non-Executive Director

    • Tenure: 0.9yrs
  • Alec Tsui (69yo)

    Independent Non-Executive Director

    • Tenure: 12.7yrs
    • Compensation: $559.00k
  • Lawrence Ho (42yo)

    Chairman & CEO

    • Tenure: 14.7yrs
  • Thomas Wu (47yo)

    Independent Non-Executive Director

    • Tenure: 12.7yrs
    • Compensation: $232.00k
  • John William Crawford (77yo)

    Independent Non-Executive Director

    • Tenure: 2.6yrs
  • Clarence Chung (56yo)

    Non-Executive Director

    • Tenure: 12.8yrs
    • Compensation: $1.26m
  • Evan Winkler (44yo)

    Non-Executive Director

    • Tenure: 3.0yrs

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$9.217b
  • Shares outstanding: 459.92m
  • Website: Click here

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MLCONasdaqGS (Nasdaq Global Select)YesADRUSUSDDec 2006
MASDB (Deutsche Boerse AG)YesADRDEEURDec 2006
MLCO NBMV (Bolsa Mexicana de Valores)YesADRMXMXNDec 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 Analysis2019/08/18 00:13
End of Day Share Price2019/08/16 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.