MELIA HOTELS INTERNATIONAL (MEL) AI Stock Analysis

• Market Cap: €1.69B
• Dividend Yield: 1.87%
• Average Volume (3M): 330.50K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.95
• Revenue Growth: 4.35%
• EPS Growth: 19.45%
• Country: ES
• Employees: 18,362
• Sector: Real Estate
• Sector Strength: 66
• Industry: Travel Lodging
• EPS (TTM): 0.03
• Shares Outstanding: 220,400,000
• 10 Day Avg. Volume: 307,525
• 30 Day Avg. Volume: 330,497
• PEG Ratio: N/A
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €6.78
• Price Target Upside: -11.83% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• Price Target: €8.50 ▲(10.53%Upside)

MELIA HOTELS' strong financial recovery and growth provide a solid foundation, making financial performance the most significant factor. While the technical analysis suggests potential caution due to overbought signals, the stock's valuation remains attractive.

Positive Factors

Consumer Demand

Black Friday sales showed a 26% growth, indicating strong consumer demand.

Expansion Efforts

The company plans to open more than 20 new hotels, indicating expansion efforts.

Financial Performance

The company's net income exceeded consensus expectations by 22%.

Negative Factors

Pipeline Decline

The pipeline continues to decline, and analysts stay on the sidelines.

Project Pipeline

The pipeline of new projects continues to decline, creating caution among analysts.

MELIA HOTELS INTERNATIONAL Business Overview & Revenue Model

Company Description

MELIA HOTELS INTERNATIONAL (MEL) is a leading global hotel company based in Spain, specializing in the operation of hotels and resorts across various segments, including luxury, family, and leisure travel. With a diverse portfolio of over 300 properties in more than 40 countries, the company caters to a wide range of customer preferences and needs through its renowned brands such as Gran Meliá, ME by Meliá, Paradisus, and Sol by Meliá, among others.

How the Company Makes Money

MELIA HOTELS INTERNATIONAL generates revenue primarily through the operation and management of its hotel properties. Key revenue streams include room bookings, food and beverage sales, and other hospitality services such as event hosting and leisure activities. The company also benefits from management fees and franchise agreements, allowing it to expand its brand presence without owning the physical properties. Additionally, strategic partnerships with travel companies and loyalty programs contribute to its earnings by driving customer engagement and repeat business. MELIA's global presence and diversified brand portfolio enable it to capture a broad customer base, from luxury travelers to family vacationers, thus enhancing its overall financial performance.

MELIA HOTELS INTERNATIONAL Financial Statement Overview

Summary

MELIA HOTELS has shown substantial recovery and growth across its financial statements. Strong revenue and profitability growth, coupled with improved equity and financial stability despite high leverage, and robust cash generation and liquidity, position the company well for future growth.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.01B	1.93B	1.68B	827.21M	528.40M
Gross Profit	1.80B	1.03B	1.50B	735.62M	469.53M
EBITDA	568.59M	515.37M	520.96M	144.47M	-279.92M
Net Income	140.63M	117.73M	110.69M	-197.86M	-612.72M
Balance Sheet
Total Assets	4.58B	4.44B	4.35B	4.21B	4.07B
Cash, Cash Equivalents and Short-Term Investments	174.99M	184.60M	154.18M	100.56M	107.22M
Total Debt	2.44B	2.81B	2.86B	2.98B	2.73B
Total Liabilities	3.51B	3.87B	3.90B	3.89B	3.57B
Stockholders Equity	758.17M	512.94M	413.19M	303.35M	475.33M
Cash Flow
Free Cash Flow	338.21M	275.00M	380.80M	48.38M	-302.19M
Operating Cash Flow	417.43M	397.22M	493.00M	126.85M	-250.40M
Investing Cash Flow	-66.90M	-118.82M	-133.09M	87.52M	-68.04M
Financing Cash Flow	-343.35M	-260.16M	-297.39M	-232.97M	98.42M

MELIA HOTELS INTERNATIONAL Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 7.69 is above the 20-day moving average (MA) of 7.46, above the 50-day MA of 7.02, and above the 200-day MA of 6.84, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 65.28 is Neutral, neither overbought nor oversold. The STOCH value of 80.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:MEL.

MELIA HOTELS INTERNATIONAL Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NHH	73 Outperform	€2.81B	13.29	22.67%	―	8.95%	64.16%
Sector *	70 Outperform	¥236.19B	14.56	10.69%	3.75%	18.70%	21.20%
MEL	70 Outperform	€1.69B	11.99	22.13%	1.87%	4.35%	19.45%

MELIA HOTELS INTERNATIONAL Corporate Events

Meliá Hotels International Releases Q1 2025 Results

Meliá Hotels International has released its first quarter results for 2025, approved by the Board of Directors. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction for the year.

Meliá Hotels International Approves 2024 Financials and Strategic Initiatives

Meliá Hotels International held its Ordinary General Meeting of Shareholders, where all board proposals were approved, including the financial results for 2024, a dividend distribution, and director re-elections. The meeting also covered the approval of a long-term remuneration system and authorization for share acquisitions, indicating strategic financial planning and governance enhancements.

Meliá Hotels International Unveils Long-Term Compensation Plan

Meliá Hotels International has announced a long-term variable compensation plan for 2025-2027, linked to strategic objectives such as share value evolution, financial solvency, business growth, sustainability, and quality service. This plan aims to align executive compensation with the company’s strategic goals, potentially impacting its operational efficiency and market positioning.