Melco International (0200) AI Stock Analysis

• Market Cap: HK$9.29B
• Dividend Yield: N/A
• Average Volume (3M): 9.91M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: 13.18%
• EPS Growth: 86.18%
• Country: HK
• Employees: 21,795
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.18
• Shares Outstanding: 2,275,025,600
• 10 Day Avg. Volume: 11,669,877
• 30 Day Avg. Volume: 9,908,542
• PEG Ratio: 0.16
• Price to Book (P/B): 146.42
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 1.06
• 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: HK$5.60
• Price Target Upside: 16.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.17
• Revenue Forecast (FY): HK$42.41B

• Rating: 45 Neutral
• Price Target: HK$4.50 ▼(-6.05% Downside)
• Action: Upgraded Date: 12/03/25
• Date: Action: Upgraded 12/03/25

Melco International's overall stock score is primarily impacted by its weak financial performance, characterized by high leverage and persistent losses. While technical indicators show some short-term bullish momentum, the negative P/E ratio and lack of dividend yield highlight valuation concerns. The absence of earnings call insights and corporate events further limits the assessment.

Positive Factors

Operating margin improvement

A sharp rise in gross margin to 78.33% in 2024 indicates meaningful improvements in core operating efficiency across its resort, hospitality and property activities. If sustained, higher gross margins can structurally boost cash generation and provide room to invest, service debt and support longer-term profitability recovery.

Revenue growth trend

Revenue growth of about 13.2% signals underlying demand recovery in gaming, hospitality and property segments. Durable top-line expansion improves operating leverage and the company’s ability to generate incremental cash flow, supporting structural capacity to restore profitability and finance strategic initiatives if trends persist.

Diversified earnings streams

Melco’s model combines profit contributions from investments, casino gaming, non-gaming hospitality and property development, offering multiple cash‑flow channels. This structural diversification reduces single-market dependence, smoothing revenue cyclicality and enhancing resilience across tourism and property cycles.

Negative Factors

Very high leverage

An extremely high debt-to-equity ratio (1373.44) sharply raises refinancing, interest and covenant risk. Structurally elevated leverage constrains strategic flexibility, increases vulnerability to rate or demand shocks, and can force asset sales or equity issuance, undermining long-term financial stability.

Persistent losses and weak profitability

A negative net margin and ongoing losses erode shareholder equity and limit retained earnings available for reinvestment. Persistent unprofitability reduces the firm’s ability to self-fund growth, increases reliance on external capital, and risks dilution or asset disposals if profitability does not structurally improve.

Opaque cash flow reporting / liquidity risk

The absence of 2024 cash flow reporting creates persistent uncertainty around free cash flow and liquidity. Limited visibility on cash generation and debt servicing capacity increases funding risk, complicates creditor and investor assessment, and weakens confidence in the company’s medium‑term financial resilience.

Melco International Business Overview & Revenue Model

Company Description

Melco International Development Limited, an investment holding company, engages in the leisure and entertainment business in Macau, the Philippines, Cyprus, Japan, and Hong Kong. It operates in two segments, Casino and Hospitality, and Others. The company develops, owns, and operates a network of casino gaming and entertainment casino resorts. It is also involved in the development and operation of integrated casino and entertainment resort, and related activities; and operation of satellite casinos. In addition, the company provides financing, management, and property investment services. Further, it operates electronic gaming machines. The company was formerly known as The Macao Electric Lighting Company, Limited and changed its name to Melco International Development Limited in 1988. Melco International Development Limited was founded in 1910 and is headquartered in Central, Hong Kong.

How the Company Makes Money

Melco International generates revenue primarily through its gaming operations, which include casino gaming tables and slot machines located in its integrated resorts. The company earns significant income from the gaming segment, attracting high-end players and mass-market customers. Additionally, Melco benefits from its non-gaming revenue streams, which include hotel accommodations, food and beverage services, retail shopping, and entertainment offerings. The company's revenue model is bolstered by its focus on premium experiences that cater to affluent customers. Strategic partnerships with various entertainment providers and brands enhance its offerings, driving customer engagement and spend. Furthermore, Melco's investments in marketing and promotional activities help to attract a diverse clientele, contributing to its overall earnings.

Melco International Financial Statement Overview

Summary

Melco International faces considerable financial challenges, including high leverage, persistent losses, and unclear cash flow positions. While there have been improvements in gross margins and revenue growth, the overall financial health remains weak, with significant risks due to high debt levels and negative net income.

Income Statement

Melco International has experienced significant volatility in its revenue and profitability over the years. Despite a revenue increase in 2024, the company has faced persistent losses, with a negative net profit margin of -2.17% in 2024. The gross profit margin improved to 78.33% in 2024 from 35% in 2023, indicating better operational efficiency. However, the net income remains negative, reflecting challenges in achieving profitability.

Balance Sheet

The company's balance sheet reflects high leverage with a debt-to-equity ratio of 1373.44 in 2024, up from 99.04 in 2023, indicating significant risk. The equity ratio is low at 0.05% in 2024, showing minimal equity cushion. Return on equity is negative, driven by continuous net losses, undermining shareholder value.

Cash Flow

Melco International's cash flow statements show no reported data for 2024, indicating potential issues in cash management or reporting. Previously, the company had a positive free cash flow in 2023, but the lack of clarity in 2024 raises concerns about sustainability and liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.37B	36.17B	17.87B	6.73B	9.08B	7.57B
Gross Profit	29.95B	28.34B	6.26B	-3.24B	-2.28B	-4.24B
EBITDA	8.80B	7.12B	5.19B	-2.07B	556.11M	-3.71B
Net Income	-180.57M	-784.60M	-1.74B	-5.11B	-3.81B	-6.34B
Balance Sheet
Total Assets	84.72B	84.75B	89.41B	97.09B	94.19B	95.53B
Cash, Cash Equivalents and Short-Term Investments	9.06B	9.03B	10.77B	14.34B	13.46B	13.86B
Total Debt	63.42B	63.11B	65.87B	74.57B	61.59B	54.15B
Total Liabilities	76.63B	76.54B	79.04B	83.71B	71.73B	64.76B
Stockholders Equity	974.67M	45.93M	665.00M	1.79B	6.86B	10.76B
Cash Flow
Free Cash Flow	3.19B	6.37B	6.69B	-9.51B	-7.15B	-10.74B
Operating Cash Flow	5.88B	8.73B	8.51B	-5.19B	-2.08B	-7.19B
Investing Cash Flow	-5.04B	-2.22B	-1.52B	-4.11B	-4.20B	-366.19M
Financing Cash Flow	-1.11B	-8.10B	-10.56B	7.22B	3.22B	8.11B

Melco International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0200, the sentiment is Negative. The current price of 4.79 is above the 20-day moving average (MA) of 4.52, above the 50-day MA of 4.39, and above the 200-day MA of 4.66, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 36.93 is Neutral, neither overbought nor oversold. The STOCH value of 5.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0200.

Melco International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2282	74 Outperform	HK$46.32B	10.76	452.88%	5.73%	5.59%	-4.38%
0027	72 Outperform	$172.38B	16.14	12.59%	3.06%	4.94%	15.38%
1928	72 Outperform	$141.63B	20.28	111.35%	2.39%	-3.13%	-13.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1128	61 Neutral	HK$29.55B	15.98	―	5.92%	-4.41%	-31.45%
0200	45 Neutral	HK$9.29B	-47.28	-28.54%	―	13.18%	86.18%
0880	40 Neutral	HK$16.90B	-1,034.78	-0.13%	―	12.29%	98.20%

Melco International Corporate Events

Melco Resorts Reports Strong Q3 2025 Financial Performance

Melco Resorts & Entertainment Limited, a subsidiary of Melco International, reported a significant increase in its financial performance for the third quarter of 2025. The company achieved total operating revenues of $1.31 billion, marking an 11% rise from the previous year, driven by improvements in both gaming and non-gaming operations. Operating income also rose to $184.5 million, and net income attributable to Melco Resorts increased to $74.7 million. The company managed its financial position by repaying significant amounts of debt and issuing new senior notes, indicating a strategic approach to capital management.

The most recent analyst rating on (HK:0200) stock is a Sell with a HK$4.50 price target. To see the full list of analyst forecasts on Melco International stock, see the HK:0200 Stock Forecast page.

Melco Resorts Reports Strong Q3 2025 Financial Performance

Melco Resorts & Entertainment Limited reported a significant increase in its third-quarter 2025 financial results, with total operating revenues rising by 11% to US$1.31 billion, driven by improved gaming and non-gaming operations. The company’s net income also saw a substantial rise, reaching US$74.7 million compared to US$27.3 million in the previous year. The growth was attributed to solid performance in Macau, where Property EBITDA improved by 21%, and notable increases in the Philippines and Cyprus, where Property EBITDA grew by 45% and 53% respectively. These results underscore Melco’s strategic focus on enhancing customer experiences and maintaining cost discipline, positioning the company strongly within the competitive resort industry.

The most recent analyst rating on (HK:0200) stock is a Sell with a HK$4.50 price target. To see the full list of analyst forecasts on Melco International stock, see the HK:0200 Stock Forecast page.