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MLCO

NEUTRAL
$5.66 Live
Melco Resorts & Entertainment Limited · NASDAQ
Target $8.89 (+57.0%)
$4.68 52W Range $10.15

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Apr 14, 2026
Market cap
$2.3B
P/E
12.3
ROE
N/A
Profit margin
3.6%
Debt/Equity
N/A
Dividend yield
N/A

AI Analysis

AI-powered fundamental assessment

Confidence
70%
MLCO presents a complex profile with a stable Piotroski F-Score of 6/9, indicating a recovering financial foundation. While valuation metrics are highly attractive—highlighted by a PEG ratio of 0.42 and a Forward P/E of 7.05—the company suffers from a critical balance sheet issue evidenced by a negative Price/Book ratio (-1.77), implying negative shareholders' equity. The company has successfully transitioned from deep pandemic-era losses to positive earnings, but the current price of $5.66 trades at a premium to its growth-based intrinsic value of $3.22. Overall, it is a high-risk value play dependent on continued operational recovery in the resorts sector.

Key Strengths

Extremely low PEG ratio (0.42) suggesting significant undervaluation relative to growth
Strong Forward P/E (7.05) compared to the Consumer Cyclical average (35.90)
Successful pivot from multi-year losses to consistent positive earnings surprises
Healthy operating margin (16.12%) despite low net profit margins
Positive revenue growth (8.60% YoY) indicating recovering demand

Key Risks

Negative Price/Book ratio indicating negative shareholders' equity
Very thin net profit margin (3.58%) leaving little room for operational error
Tight liquidity with a current ratio of 1.07 and quick ratio of 0.97
Significant long-term price erosion (5Y change of -71%)
High volatility in quarterly earnings results
AI Fair Value Estimate
Based on comprehensive analysis
$5.8
+2.5% above current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall
44
Moderate
Value
85
Future
65
Past
30
Health
40
Dividend
0
AI Verdict
Speculative Recovery
Key drivers: Valuation compression, Earnings turnaround, Balance sheet distress
Confidence
80%
Value
85/100

Strongly undervalued on a multiple basis, though Graham Number is unavailable due to negative equity.

Positives
  • Low P/S (0.45)
  • Low Forward P/E (7.05)
  • Low PEG (0.42)
Watchpoints
  • Trades above intrinsic value formula ($3.22)
Future
65/100

Growth is returning, but consistency is not yet established.

Positives
  • Positive YoY revenue growth
  • Analyst target price of $8.89
Watchpoints
  • Recent Q/Q EPS decline (-33.3%)
Past
30/100

Long-term performance has been poor, though the trend is now inflectional.

Positives
  • Recent 1Y return of +15%
Watchpoints
  • 5Y return of -71%
  • History of deep losses from 2020-2023
Health
40/100

Operational health is improving, but the balance sheet remains structurally weak.

Positives
  • Piotroski F-Score of 6/9 (Stable)
Watchpoints
  • Negative Price/Book ratio
  • Low current ratio (1.07)
Dividend
0/100

Company is prioritizing recovery/debt over shareholder distributions.

Positives
No standout positives identified.
Watchpoints
  • No dividend payments
  • 0/100 dividend strength

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$5.66
Analyst Target
$8.89
Upside/Downside
+57.0%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for MLCO and closest competitors.

Updated 2026-04-13
MLC
Melco Resorts & Entertainment Limited
Primary
5Y
-71.0%
3Y
-55.9%
1Y
+15.0%
6M
-25.0%
1M
+1.2%
1W
-0.2%
MCW
Mister Car Wash, Inc.
Peer
5Y
-65.6%
3Y
-19.0%
1Y
-3.6%
6M
+49.4%
1M
+0.4%
1W
+0.1%
AND
Andersen Group Inc.
Peer
5Y
-1.8%
3Y
-1.8%
1Y
-1.8%
6M
-1.8%
1M
-9.4%
1W
-1.2%
EYE
National Vision Holdings, Inc.
Peer
5Y
-45.7%
3Y
+29.0%
1Y
+136.4%
6M
-6.6%
1M
-4.0%
1W
+7.5%
GT
The Goodyear Tire & Rubber Company
Peer
5Y
-60.2%
3Y
-35.0%
1Y
-21.6%
6M
+4.0%
1M
-2.5%
1W
+6.8%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
12.3
Forward P/E
7.05
PEG Ratio
0.42
P/B Ratio
-1.77
P/S Ratio
0.45
EV/Revenue
2.52
EV/EBITDA
10.77
Market Cap
$2.3B

Profitability

Profit margins and return metrics

Profit Margin 3.58%
Operating Margin 16.12%
Gross Margin 37.94%
ROE N/A
ROA 5.31%

Growth

Revenue and earnings growth rates

Revenue Growth +8.6%
Earnings Growth N/A
Q/Q Revenue Growth +8.59%
Q/Q Earnings Growth N/A

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
N/A
Current Ratio
1.07
Good
Quick Ratio
0.97
Poor
Cash/Share
$0.87

Financial Statement Flow

Interactive flow visualization showing how money moves through the company Q4 2025

Revenue
$1.3B
Gross Margin
36.7%
Op. Margin
11.3%
Net Margin
4.7%
Total Assets
$7.6B
Liabilities
$8.5B
Equity
$-1.2B
Debt/Equity
-6.82x

Quarterly Earnings History

EPS performance vs analyst estimates

2026-04-30
$N/A
2026-02-12
$0.14
+98.6% surprise
2025-11-07
$0.21
+135.6% surprise
2025-07-31
$0.04
-56.7% surprise

Consumer Cyclical Sector Comparison

Comparing MLCO against 205 companies in the Consumer Cyclical sector (12 bullish, 78 neutral, 115 bearish)
P/E Ratio
12.3
This Stock
vs
36.28
Sector Avg
-66.1% (Discount)
Profit Margin
3.58%
This Stock
vs
-4.71%
Sector Avg
-176.1% (Weaker)
Revenue Growth
8.6%
This Stock
vs
4.71%
Sector Avg
+82.6% (Fast Growth)
Current Ratio
1.07
This Stock
vs
2.41
Sector Avg
-55.5% (Weaker)

Similar Companies

Peer comparison within the same industry

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
BUY
13 analysts
JP Morgan
2026-01-16
down
Overweight Neutral
JP Morgan
2025-11-10
Maintains
Overweight Overweight

Past News Coverage

Recent headlines mentioning MLCO from our newsroom.

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