Melco Crown Entertainment Ltd

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MPEL : NASDAQ : Services
$16.87 -2.68 | -13.71%
Today's Range: 16.2601 - 19.49
Avg. Daily Volume: 3339400.0
12/08/16 - 4:00 PM ET

Financial Analysis


MELCO CROWN ENTMT LTD's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. MELCO CROWN ENTMT LTD has average liquidity. Currently, the Quick Ratio is 1.36 which shows that technically this company has 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 decreased by 24.01% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)1152.55945.73
EBITDA ($mil)246.01148.33
EBIT ($mil)108.9434.07
Net Income ($mil)62.0433.2


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)1926.872460.57
Total Assets ($mil)9334.8610548.1
Total Debt ($mil)4085.324264.27
Equity ($mil)3314.084361.38


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin32.0230.91
EBITDA Margin21.3415.68
Operating Margin9.453.6
Sales Turnover0.470.38
Return on Assets1.282.0
Return on Equity3.624.83
Debt Q3 FY16 Q3 FY15
Current Ratio1.422.44
Debt/Capital0.550.49
Interest Expense77.5373.09
Interest Coverage1.410.47


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)539.33538.67
Div / share0.020.01
EPS0.130.06
Book value / share6.148.1
Institutional Own % n/a n/a
Avg Daily Volume3353282.02854273.0

Valuation


HOLD. MELCO CROWN ENTMT LTD's P/E ratio indicates a significant premium compared to an average of 31.22 for the Hotels, Restaurants & Leisure industry and a significant premium compared to the S&P 500 average of 25.79. Conducting a second comparison, its price-to-book ratio of 3.18 indicates a premium versus the S&P 500 average of 2.86 and a significant discount versus the industry average of 7.60. The price-to-sales ratio is above the S&P 500 average, but well below the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MPEL 81.46 Peers 31.22   MPEL NA Peers 15.76

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

MPEL is trading at a significant premium to its peers.

 

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
MPEL 44.74 Peers 29.69   MPEL 0.91 Peers 1.80

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 significant 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 significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MPEL 3.18 Peers 7.60   MPEL -38.47 Peers 70.99

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MPEL 2.40 Peers 2.98   MPEL 8.57 Peers 4.76

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.

MPEL is trading at a discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

MPEL has a sales growth rate that significantly exceeds its peers.

 

 

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