Melco Resorts & Entertainment Ltd.Find Ratings Reports
MELCO RESORTS & ENTERTAINMEN's gross profit margin for the second quarter of its fiscal year 2021 has significantly increased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the subsector when comparing revenue growth, but not when comparing net income growth. MELCO RESORTS & ENTERTAINMEN has strong liquidity. Currently, the Quick Ratio is 1.88 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 56.11% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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|Income Statement||Q2 FY21||Q2 FY20|
|Net Sales ($mil)||566.44||175.85|
|Net Income ($mil)||-185.69||-368.13|
|Balance Sheet||Q2 FY21||Q2 FY20|
|Cash & Equiv. ($mil)||1811.33||1193.76|
|Total Assets ($mil)||9032.71||8459.62|
|Total Debt ($mil)||6656.94||5176.17|
|Profitability||Q2 FY21||Q2 FY20|
|Gross Profit Margin||26.8||-44.9|
|Return on Assets||-10.51||-6.86|
|Return on Equity||-136.22||-36.56|
|Debt||Q2 FY21||Q2 FY20|
|Share Data||Q2 FY21||Q2 FY20|
|Shares outstanding (mil)||479.32||476.93|
|Div / share||0.0||0.0|
|Book value / share||1.45||3.33|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||4851534.0||2714114.0|
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 7.54 indicates a significant premium versus the S&P 500 average of 4.47 and a significant discount versus the subsector average of 17.70. The price-to-sales ratio is below the S&P 500 average and is well below the subsector average, indicating a discount. After reviewing these and other key valuation criteria, MELCO RESORTS & ENTERTAINMEN proves to trade at a discount to investment alternatives.
|MLCO NM||Peers 81.01||MLCO NA||Peers 45.88|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
MLCO's P/E is negative making this valuation measure meaningless.
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.
Ratio not available.
|MLCO NM||Peers 41.19||MLCO NA||Peers 0.51|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
MLCO's ratio is negative making this valuation measure meaningless.
Neutral. 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.
Ratio not available.
|MLCO 7.54||Peers 17.70||MLCO -63.93||Peers 1.22|
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.
MLCO 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, MLCO is expected to significantly trail its peers on the basis of its earnings growth rate.
|MLCO 2.88||Peers 18.48||MLCO -52.89||Peers 18.71|
Discount. 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.
MLCO is trading at a significant discount to its subsector on this measurement.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
MLCO significantly trails its peers on the basis of sales growth.