Melco Resorts & Entertainment Limited (MLCO) is a Gambling, Resorts & Casinos company in the Consumer Cyclical sector, currently trading at $5.68. It has a SharesGrow Score of 66/100, indicating a above average investment profile with 3 out of 7 criteria passed.
SharesGrow calculates the intrinsic value of MLCO = $35.31 (+521.7% from the current price, the stock appears undervalued). Analyst consensus target is MLCO = $10 (+67.3% upside).
Valuation: MLCO trades at a trailing Price-to-Earnings (P/E) of 11.9 (S&P 500 average ~25) with a forward Price/Earnings-to-Growth (PEG) of 0.44.
Financials: revenue is $5.2B, +71.3%/yr average growth. Net income is $185M, growing at +169.5%/yr. Net profit margin is 3.6% (thin). Gross margin is 36.7% (+15.5 pp trend).
Balance sheet: total debt is $7.0B with negative equity of -$1.2B — this means total liabilities exceed total assets. This is a warning sign that may indicate accumulated losses, aggressive share buybacks, heavy debt financing, or aggressive dividend payouts. Companies like McDonald's and Starbucks also carry negative equity due to buybacks and dividends, but investors should assess whether the business generates sufficient cash flow to service its debt and sustain payouts. Current ratio is 1.07 (adequate). Debt-to-assets is 92.5%. Total assets: $7.6B.
Analyst outlook: 16 / 18 analysts rate MLCO as buy (89%) — strong consensus.
SharesGrow 7-Criteria breakdown: Value 100/100 (Pass), Growth 100/100 (Pass), Past 50/100 (Partial), Health 25/100 (Fail), Moat 60/100 (Partial), Future 94/100 (Pass), Income 30/100 (Fail).
