Melco Resorts & Entertainment Limited
Melco Resorts & Entertainment Limited Fundamental Analysis
Melco Resorts & Entertainment Limited (MLCO) shows moderate financial fundamentals with a PE ratio of 9.29, profit margin of 4.33%, and ROE of -17.64%. The company generates $5.3B in annual revenue with strong year-over-year growth of 11.32%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 78.0/100 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 MLCO's fundamental strength across five key dimensions:
Efficiency Score
WeakMLCO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMLCO trades at attractive valuation levels.
Growth Score
ModerateMLCO shows steady but slowing expansion.
Financial Health Score
ModerateMLCO shows balanced financial health with some risks.
Profitability Score
WeakMLCO struggles to sustain strong margins.
Key Financial Metrics
Is MLCO Expensive or Cheap?
P/E Ratio
MLCO trades at 9.29 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MLCO's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values Melco Resorts & Entertainment Limited at -1.75 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -3.26 times EBITDA. This is generally considered low.
How Well Does MLCO Make Money?
Net Profit Margin
For every $100 in sales, Melco Resorts & Entertainment Limited keeps $4.33 as profit after all expenses.
Operating Margin
Core operations generate 12.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-17.64 in profit for every $100 of shareholder equity.
ROA
Melco Resorts & Entertainment Limited generates $3.10 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Melco Resorts & Entertainment Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Melco Resorts & Entertainment Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
MLCO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
-1.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-5.69
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.84
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.18
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How MLCO Stacks Against Its Sector Peers
| Metric | MLCO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.29 | 23.66 | Better (Cheaper) |
| ROE | -17.64% | 1186.00% | Weak |
| Net Margin | 4.33% | 2504.00% | Weak |
| Debt/Equity | -5.69 | 0.76 | Strong (Low Leverage) |
| Current Ratio | 0.84 | 2.86 | Weak Liquidity |
| ROA | 3.10% | -8141.00% (disorted) | Weak |
MLCO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Melco Resorts & Entertainment Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
256.13%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
117.45%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
213.25%
Industry Style: Cyclical, Growth, Discretionary
High Growth