0.21 | 0.88%
MELCO CROWN ENTMT LTD's gross profit margin for the fourth quarter of its fiscal year 2012 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. MELCO CROWN ENTMT LTD has strong liquidity. Currently, the Quick Ratio is 1.57 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 14.53% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
| Income Statement | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Net Sales ($mil) | 1101.81 | 1008.35 |
| EBITDA ($mil) | 232.26 | 228.16 |
| EBIT ($mil) | 136.8 | 133.98 |
| Net Income ($mil) | 107.98 | 107.55 |
| Balance Sheet | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Cash & Equiv. ($mil) | 2382.19 | 1158.02 |
| Total Assets ($mil) | 7947.47 | 6269.98 |
| Total Debt ($mil) | 3194.86 | 2325.98 |
| Equity ($mil) | 3385.94 | 2956.16 |
| Profitability | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Gross Profit Margin | 27.94 | 28.57 |
| EBITDA Margin | 21.07 | 22.62 |
| Operating Margin | 12.42 | 13.29 |
| Sales Turnover | 0.51 | 0.61 |
| Return on Assets | 5.24 | 4.69 |
| Return on Equity | 12.32 | 9.96 |
| Debt | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Current Ratio | 1.6 | 2.5 |
| Debt/Capital | 0.49 | 0.44 |
| Interest Expense | 36.42 | 28.18 |
| Interest Coverage | 3.76 | 4.75 |
| Share Data | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Shares outstanding (mil) | 548.93 | 547.52 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.2 | 0.2 |
| Book value / share | 6.17 | 5.4 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 5094551.0 | 4595923.0 |
BUY. This stock's P/E ratio indicates a premium compared to an average of 29.89 for the Hotels, Restaurants & Leisure industry and a significant premium compared to the S&P 500 average of 18.47. To use another comparison, its price-to-book ratio of 3.94 indicates a significant premium versus the S&P 500 average of 2.36 and a significant discount versus the industry average of 7.12. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, MELCO CROWN ENTMT LTD seems to be trading at a premium to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MPEL 31.96 | Peers 29.89 | MPEL 14.03 | Peers 13.60 | |||||||||||||||||||||
|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation. MPEL is trading at a valuation on par with its peers. |
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. MPEL is trading at a valuation on par to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| MPEL 20.94 | Peers 21.51 | MPEL 1.21 | Peers 1.56 | |||||||||||||||||||||
|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. MPEL is trading at a premium to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. MPEL trades at a discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| MPEL 3.94 | Peers 7.12 | MPEL 40.74 | Peers 72.13 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. MPEL is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, MPEL is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| MPEL 3.27 | Peers 2.75 | MPEL 6.45 | Peers 7.75 | |||||||||||||||||||||
|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. MPEL is trading at a premium to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. MPEL trails its peers on the basis of sales growth |
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