Melco Holdings Inc. (6676) AI Stock Analysis

• Market Cap: ¥54.22B
• Dividend Yield: 2.03%
• Average Volume (3M): 47.30K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 1.10
• Revenue Growth: -13.53%
• EPS Growth: 173.43%
• Country: JP
• Employees: 1,020
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 181.95
• Shares Outstanding: 12,150,000
• 10 Day Avg. Volume: 89,510
• 30 Day Avg. Volume: 47,300
• PEG Ratio: 0.05
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 2.55
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥5,516.00 ▲(12.46% Upside)

The score is driven primarily by a strong, low-debt balance sheet and an improved profitability profile, supported by an upward technical trend. Valuation is also favorable (low P/E and moderate yield). The main constraint on the score is historical inconsistency in revenue growth and cash-flow generation.

Positive Factors

Balance Sheet Strength

A strong balance sheet with low debt enhances financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Profitability Improvement

Improved profitability indicates better cost management and operational efficiency, which can support sustainable earnings growth and shareholder value.

Cash Generation

Enhanced cash generation strengthens the company's ability to fund operations, invest in growth, and return capital to shareholders, supporting long-term financial health.

Negative Factors

Revenue Growth Inconsistency

Inconsistent revenue growth can hinder strategic planning and investment, potentially impacting the company's ability to capitalize on market opportunities.

Cash Flow Volatility

Volatile cash flow raises concerns about the company's ability to consistently generate cash, which is crucial for funding operations and strategic initiatives.

Equity Decline

A decline in equity, despite improved profitability, may indicate underlying issues in asset management or capital allocation, affecting long-term financial strength.

Melco Holdings Inc. Business Overview & Revenue Model

Company Description

Melco Holdings Inc., through its subsidiaries, develops, manufactures, and sells digital home appliances and PC peripherals in Japan and internationally. The company offers various network products, such as Wi-Fi; external hard drives for PC/TV recording; storage products comprising NAS for corporate users and MagWiper, a magnetic data degaussing device; and digital music library devices. It also provides various services and solutions for personal customers and corporate users that includes apartment Wi-Fi Internet services for rental properties and data recovery services for storage products. In addition, the company offers a range of products that consists of udon, soba, Chinese, fried, Kenbi, and Ryusui noodles, as well as pasta. Further, it provides investment management and financial instrument intermediary services. Melco Holdings Inc. was founded in 1975 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Melco Holdings Inc. generates revenue through the sale of its computer peripherals and networking equipment, with a significant portion coming from its flagship brand, Buffalo. The company targets a diverse customer base, ranging from individual consumers to large enterprises, thereby ensuring a steady demand for its products. Additionally, Melco Holdings benefits from strategic partnerships with retailers and distributors, both domestically and internationally, which helps to expand its market reach and drive sales. The company also invests in research and development to innovate and improve its product offerings, which can lead to increased market share and profitability.

Melco Holdings Inc. Financial Statement Overview

Summary

Strong balance sheet strength (very low debt and solid equity base) supports a higher score, and profitability rebounded sharply in 2025. Offsetting this, revenue and cash-flow consistency has been uneven, including prior periods of weak/negative free cash flow.

Income Statement

Revenue has been broadly stable over the period, but growth has been inconsistent (including a decline in 2025 and 2023). Profitability is positive and improved sharply in 2025 versus 2024, with higher operating and net margins. However, margins remain below the stronger 2022 level, highlighting some cyclicality/volatility in earnings power.

Balance Sheet

The balance sheet is very conservatively positioned, with essentially no debt in the last two years and minimal leverage historically. Equity remains sizable relative to assets, and returns on equity rebounded strongly in 2025 after a weaker 2024. The main watch-out is the step-down in equity from 2024 to 2025, despite the improvement in profitability.

Cash Flow

Cash generation improved materially in 2025, with strong operating cash flow and free cash flow and solid conversion of earnings into free cash flow. That said, cash flow has been volatile: free cash flow was negative in 2022 and 2023, and operating cash flow was very weak in 2023, which raises confidence risk around consistency of cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	138.66B	143.17B	145.77B	142.58B	144.14B	129.91B
Gross Profit	39.15B	39.37B	36.07B	35.99B	43.92B	35.38B
EBITDA	13.36B	11.54B	7.68B	6.34B	15.43B	11.35B
Net Income	7.51B	6.01B	3.01B	3.06B	9.35B	6.63B
Balance Sheet
Total Assets	70.25B	76.79B	95.94B	93.41B	95.80B	85.80B
Cash, Cash Equivalents and Short-Term Investments	25.44B	31.61B	29.96B	20.51B	28.52B	36.35B
Total Debt	1.50B	0.00	0.00	99.00M	960.00M	1.86B
Total Liabilities	28.87B	31.75B	32.01B	30.95B	32.67B	33.61B
Stockholders Equity	41.38B	45.04B	63.92B	62.46B	63.12B	52.19B
Cash Flow
Free Cash Flow	0.00	13.57B	3.09B	-3.51B	-1.53B	9.69B
Operating Cash Flow	0.00	14.72B	6.63B	392.00M	1.00B	11.27B
Investing Cash Flow	0.00	-1.36B	5.37B	2.74B	-1.84B	12.23B
Financing Cash Flow	0.00	-7.16B	-2.61B	-4.51B	-6.96B	-4.44B

Melco Holdings Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4905.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6676, the sentiment is Neutral. The current price of 4905 is above the 20-day moving average (MA) of 4776.25, above the 50-day MA of 4811.80, and above the 200-day MA of 3336.73, indicating a neutral trend. The MACD of -83.52 indicates Positive momentum. The RSI at 35.89 is Neutral, neither overbought nor oversold. The STOCH value of 13.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6676.

Melco Holdings Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6430	81 Outperform	¥42.07B	6.60	―	3.79%	-9.87%	-30.64%
6670	79 Outperform	¥154.29B	10.74	―	2.70%	10.23%	8.78%
6676	77 Outperform	¥54.22B	7.31	―	2.03%	-13.53%	173.43%
4832	76 Outperform	¥71.21B	14.52	―	2.65%	3.62%	8.01%
7739	76 Outperform	¥148.12B	22.80	―	1.92%	7.46%	-8.01%
6737	69 Neutral	¥88.43B	17.73	―	4.76%	1.81%	9.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%