Monarch Casino & Resort, Inc.
Monarch Casino & Resort, Inc. Fundamental Analysis
Monarch Casino & Resort, Inc. (MCRI) shows moderate financial fundamentals with a PE ratio of 19.01, profit margin of 19.62%, and ROE of 19.97%. The company generates $0.6B in annual revenue with moderate year-over-year growth of 4.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 74.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze MCRI's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMCRI demonstrates superior asset utilization.
Valuation Score
ExcellentMCRI trades at attractive valuation levels.
Growth Score
ModerateMCRI shows steady but slowing expansion.
Financial Health Score
ModerateMCRI shows balanced financial health with some risks.
Profitability Score
ExcellentMCRI achieves industry-leading margins.
Key Financial Metrics
Is MCRI Expensive or Cheap?
P/E Ratio
MCRI trades at 19.01 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MCRI's PEG of 1.17 indicates fair valuation.
Price to Book
The market values Monarch Casino & Resort, Inc. at 3.77 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.38 times EBITDA. This signals the market has high growth expectations.
How Well Does MCRI Make Money?
Net Profit Margin
For every $100 in sales, Monarch Casino & Resort, Inc. keeps $19.62 as profit after all expenses.
Operating Margin
Core operations generate 24.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.97 in profit for every $100 of shareholder equity.
ROA
Monarch Casino & Resort, Inc. generates $15.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Monarch Casino & Resort, Inc. generates strong operating cash flow of $165.15M, reflecting robust business health.
Free Cash Flow
Monarch Casino & Resort, Inc. generates strong free cash flow of $128.74M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.20 in free cash annually.
FCF Yield
MCRI converts 6.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.01
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.77
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How MCRI Stacks Against Its Sector Peers
| Metric | MCRI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.01 | 24.29 | Better (Cheaper) |
| ROE | 19.97% | 1177.00% | Weak |
| Net Margin | 19.62% | 928.00% | Weak |
| Debt/Equity | 0.02 | 0.76 | Strong (Low Leverage) |
| Current Ratio | 0.98 | 2.56 | Weak Liquidity |
| ROA | 15.05% | -8364.00% (disorted) | Strong |
MCRI outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Monarch Casino & Resort, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
194.32%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
326.36%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
421.68%
Industry Style: Cyclical, Growth, Discretionary
High Growth