MELIA HOTELS INTERNATIONAL (MEL) AI Stock Analysis

• Market Cap: €1.62B
• Dividend Yield: 1.94%
• Average Volume (3M): 256.45K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.92
• Revenue Growth: 3.31%
• EPS Growth: 44.82%
• Country: ES
• Employees: 18,362
• Sector: Services
• Sector Strength: N/A
• Industry: Travel Lodging
• EPS (TTM): 0.31
• Shares Outstanding: 220,400,000
• 10 Day Avg. Volume: 311,195
• 30 Day Avg. Volume: 256,451
• PEG Ratio: 0.56
• Price to Book (P/B): 2.14
• Price to Sales (P/S): 0.81
• P/FCF Ratio: 4.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €6.90
• Price Target Upside: -6.50% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: €8.50 ▲(15.18% Upside)

MELIA HOTELS' strong financial performance, characterized by revenue growth and improved profitability, is the primary driver of its stock score. The technical analysis suggests neutral momentum, while the valuation indicates potential undervaluation. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's successful recovery and expansion efforts, enhancing its market position and long-term viability.

Margin Improvement

Improved margins reflect enhanced operational efficiency and cost management, which contribute to sustained profitability and competitive advantage.

Cash Flow Generation

Robust cash flow generation supports financial flexibility, enabling strategic investments and debt reduction, thus strengthening the company's financial health.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially limiting the company's ability to invest in growth opportunities and weather economic downturns.

Equity Ratio

While improving, a relatively low equity ratio suggests reliance on debt financing, which could impact long-term financial stability if not managed carefully.

Pandemic Recovery

Despite recovery, reliance on travel and tourism makes the company vulnerable to future disruptions, potentially affecting long-term growth and stability.

MELIA HOTELS INTERNATIONAL Business Overview & Revenue Model

Company Description

Meliá Hotels International, S.A. owns, manages, operates, leases, and franchises hotels worldwide. The company operates approximately 380 hotels under the Gran Meliá Hotels & Resorts, Paradisus by Meliá, ME by Meliá, Meliá Hotels & Resorts, INNSIDE by Meliá, Sol by Meliá, TRYP by Wyndham, and Circle by Melia brand names, as well as Meliá PRO, a platform for B2B clients. It also operates Club Meliá vacation club; develops and operates real estate properties; and engages in the casinos and tour-operator activities. The company was formerly known as Sol Meliá, S.A. and changed its name to Meliá Hotels International, S.A. in June 2011. Meliá Hotels International, S.A. was founded in 1956 and is based in Palma de Mallorca, Spain.

How the Company Makes Money

MELIA HOTELS INTERNATIONAL generates revenue primarily through its hotel operations, which include room sales, food and beverage services, and event hosting. Key revenue streams include direct bookings through its website and mobile app, as well as partnerships with online travel agencies and corporate clients. Additionally, the company benefits from loyalty programs that encourage repeat business and increase customer retention. Significant partnerships with travel agencies and tour operators also contribute to its earnings, while the company's strategic focus on expanding its global presence through new hotel openings and acquisitions further enhances its revenue potential.

MELIA HOTELS INTERNATIONAL Financial Statement Overview

Summary

MELIA HOTELS has demonstrated strong financial recovery with significant revenue growth and improved profit margins. The balance sheet shows increased equity and financial stability despite high leverage, and cash flow statements indicate robust cash generation and liquidity.

Income Statement

MELIA HOTELS demonstrated strong revenue growth of 4% from 2023 to 2024, with a notable recovery from pandemic lows. Gross profit margin improved significantly, reaching 89.9%, and the net profit margin increased to 7% in 2024. The EBIT and EBITDA margins are healthy at 16.6% and 28.4% respectively, indicating strong operational efficiency. The company has recovered well from negative margins during the pandemic era.

Balance Sheet

The debt-to-equity ratio stands at 3.22, indicating a high leverage position, but there's been an increase in stockholders' equity by 47.8% from 2023 to 2024, showcasing improved financial stability. Return on Equity was 18.5% in 2024, reflecting efficient use of equity to generate profits. The equity ratio improved to 16.5%, indicating a strengthening capital structure.

Cash Flow

Free cash flow grew by 22.9% from 2023 to 2024, indicating strong cash generation. The operating cash flow to net income ratio was 2.97, highlighting robust cash earnings. The free cash flow to net income ratio stands at 2.4, reflecting a solid ability to convert profits into cash. Overall, cash flow improvements signal a strong liquidity position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.09B	2.01B	1.93B	1.68B	827.21M	528.40M
Gross Profit	1.89B	1.80B	1.03B	1.50B	735.62M	469.53M
EBITDA	604.39M	568.59M	515.37M	520.96M	144.47M	-279.92M
Net Income	172.31M	140.63M	117.73M	110.69M	-192.90M	-595.93M
Balance Sheet
Total Assets	4.69B	4.58B	4.44B	4.35B	4.21B	4.07B
Cash, Cash Equivalents and Short-Term Investments	303.06M	174.99M	186.82M	168.95M	100.56M	104.79M
Total Debt	2.51B	2.44B	2.81B	2.83B	2.95B	2.71B
Total Liabilities	3.57B	3.51B	3.87B	3.90B	3.89B	3.57B
Stockholders Equity	797.43M	758.17M	512.94M	413.19M	303.35M	475.33M
Cash Flow
Free Cash Flow	0.00	338.21M	275.00M	380.80M	48.38M	-302.19M
Operating Cash Flow	0.00	417.43M	397.22M	493.00M	126.85M	-250.40M
Investing Cash Flow	0.00	-66.90M	-118.82M	-133.09M	87.52M	-68.04M
Financing Cash Flow	0.00	-343.35M	-260.16M	-297.39M	-232.97M	98.42M

MELIA HOTELS INTERNATIONAL Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:MEL, the sentiment is Neutral. The current price of 7.38 is above the 20-day moving average (MA) of 7.35, below the 50-day MA of 7.62, and above the 200-day MA of 7.09, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 48.09 is Neutral, neither overbought nor oversold. The STOCH value of 82.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ES:MEL.

MELIA HOTELS INTERNATIONAL Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEL	―	€1.62B	9.40	23.93%	1.94%	3.31%	44.82%
NHH	―	―	―	―	―	8.95%	64.16%
Sector *	―	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%