MELIA HOTELS INTERNATIONAL (MEL) AI Stock Analysis

• Market Cap: €1.56B
• Dividend Yield: 2.01%
• Average Volume (3M): 256.45K
• Price to Earnings (P/E): 9.1
• 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): 0.33
• 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: €6.65
• Price Target Upside: -7.64% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: €8.00 ▲(11.11% Upside)

MELIA HOTELS shows strong financial performance with substantial recovery and growth, supported by robust cash flow and improved equity. The stock's valuation is attractive with a low P/E ratio and reasonable dividend yield. However, technical indicators suggest a bearish trend, which slightly offsets the positive financial outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates successful recovery from pandemic impacts and suggests continued expansion in market presence.

Cash Flow Generation

Strong cash flow generation enhances liquidity and provides flexibility for strategic investments and debt management.

Profit Margin Improvement

Improved profit margins reflect enhanced operational efficiency and cost management, contributing to long-term profitability.

Negative Factors

High Leverage

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

Equity Ratio

While improved, a low equity ratio suggests reliance on debt financing, which could pose risks if market conditions worsen.

Debt Levels

High debt levels can strain financial resources and may impact the company's ability to fund future growth initiatives sustainably.

MELIA HOTELS INTERNATIONAL Business Overview & Revenue Model

Company Description

MELIA HOTELS INTERNATIONAL (MEL) is a leading global hotel chain headquartered in Palma de Mallorca, Spain. The company operates a diverse portfolio of hotels and resorts across various sectors, including luxury, upscale, and midscale accommodations, catering to both leisure and business travelers. MELIA's core products and services include room accommodations, dining experiences, event hosting, and wellness services, all aimed at providing exceptional hospitality experiences to its guests.

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, improved profit margins, and robust cash flow generation. Despite high leverage, the balance sheet shows improved equity and financial stability.

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	2.98B	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: Positive
• Last Price: 7.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 7.2 is above the 20-day moving average (MA) of 7.11, below the 50-day MA of 7.27, and above the 200-day MA of 7.10, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 51.87 is Neutral, neither overbought nor oversold. The STOCH value of 70.39 is Neutral, 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	―	―	―	―	8.95%	64.16%
MEL	72 Outperform	€1.56B	9.06	23.93%	2.01%	3.31%	44.82%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%