MELIA HOTELS INTERNATIONAL (MEL) AI Stock Analysis

• Market Cap: €1.59B
• Dividend Yield: 1.04%
• Average Volume (3M): 346.53K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.94
• Revenue Growth: 4.35%
• EPS Growth: 19.45%
• Country: ES
• Employees: 18,362
• Sector: Real Estate
• Sector Strength: 63
• Industry: Travel Lodging
• EPS (TTM): 0.03
• Shares Outstanding: 220,400,000
• 10 Day Avg. Volume: 348,386
• 30 Day Avg. Volume: 346,529
• PEG Ratio: -0.06
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.65
• 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: €7.14
• Price Target Upside: 0.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: €7.50 ▲(5.34%Upside)

MELIA HOTELS demonstrates robust financial recovery with strong revenue growth and cash flow generation, despite high leverage. Technical indicators show a generally positive trend, though there is caution due to approaching overbought conditions. Valuation metrics suggest the stock is undervalued, offering potential upside. Overall, the company appears well-positioned for future growth, meriting a relatively strong score.

Positive Factors

Expansion Plans

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%.

Sales Growth

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

Negative Factors

Project Pipeline

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

RevPAR Performance

Q1 RevPAR was depressed by Cuba, but there was strength elsewhere.

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 primarily generates revenue through the management, operation, and ownership of hotel properties. The company earns money by offering room bookings, food and beverage services, and event hosting, which include conferences, weddings, and other functions. Additionally, MELIA benefits from franchise and management agreements, where it provides brand recognition and operational expertise to independently owned hotels. The company also engages in strategic partnerships and loyalty programs that enhance guest engagement and encourage repeat business, contributing significantly to its earnings.

MELIA HOTELS INTERNATIONAL Financial Statement Overview

Summary

Overall, MELIA HOTELS has shown substantial recovery and growth across its financial statements. The income statement reflects strong revenue and profitability growth, while the balance sheet shows improved equity and financial stability despite high leverage. Cash flow statements confirm strong cash generation and liquidity, positioning 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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.54B	2.01B	1.93B	1.68B	827.21M	528.40M
	Gross Profit
1.29B	1.80B	1.03B	1.50B	735.62M	469.53M
	EBIT
355.18M	333.46M	231.00M	201.48M	-224.44M	-470.77M
	EBITDA
513.64M	568.59M	515.37M	520.96M	144.47M	-279.92M
	Net Income Common Stockholders
172.38M	140.63M	117.73M	110.69M	-197.86M	-612.72M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
243.76M	174.99M	184.60M	154.18M	100.56M	107.22M
	Total Assets
4.68B	4.58B	4.44B	4.35B	4.21B	4.07B
	Total Debt
2.60B	2.44B	2.81B	2.86B	2.98B	2.73B
	Net Debt
2.38B	2.27B	2.65B	2.71B	2.88B	2.63B
	Total Liabilities
3.77B	3.51B	3.87B	3.90B	3.89B	3.57B
	Stockholders Equity
642.84M	758.17M	512.94M	413.19M	303.35M	475.33M
Cash Flow		Free Cash Flow
119.94M	338.21M	275.00M	380.80M	48.38M	-302.19M
	Operating Cash Flow
198.63M	417.43M	397.22M	493.00M	126.85M	-250.40M
	Investing Cash Flow
-62.08M	-66.90M	-118.82M	-133.09M	87.52M	-68.04M
	Financing Cash Flow
-119.48M	-343.35M	-260.16M	-297.39M	-232.97M	98.42M

MELIA HOTELS INTERNATIONAL Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.12
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 7.12 is above the 20-day moving average (MA) of 6.80, above the 50-day MA of 6.50, and above the 200-day MA of 6.82, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 66.98 is Neutral, neither overbought nor oversold. The STOCH value of 81.28 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
MEL	74 Outperform	€1.59B	11.33	22.13%	1.04%	4.35%	19.45%
Sector *	61 Neutral	$2.86B	10.96	0.41%	6.08%	5.73%	-21.25%
0OHG		€2.73B	12.88	20.24%	―	―	―

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.

MELIÁ HOTELS INTERNATIONAL Announces Shareholders’ Meeting and Leadership Appointments

MELIÁ HOTELS INTERNATIONAL has announced its upcoming Ordinary General Shareholders’ Meeting scheduled for May 2025, where shareholders can participate both in-person and telematically. The company also appointed two new Vice Presidents and assessed its long-term variable remuneration plan, noting a 68.2% valuation for its share evolution objective.