Melco Holdings Inc. (6676) AI Stock Analysis

• Market Cap: ¥46.64B
• Dividend Yield: 3.19%
• Average Volume (3M): 42.30K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.99
• Revenue Growth: -5.61%
• EPS Growth: 158.73%
• Country: JP
• Employees: 1,020
• Sector: Technology
• Sector Strength: 86
• Industry: Computer Hardware
• EPS (TTM): 165.17
• Shares Outstanding: 12,800,000
• 10 Day Avg. Volume: 28,720
• 30 Day Avg. Volume: 42,296
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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

• Rating: 68 Neutral
• Price Target: ―

Melco Holdings Inc. scores a 68, reflecting a strong financial position with no debt and consistent revenue growth. The low P/E ratio and high dividend yield highlight its attractive valuation. However, technical analysis indicates bearish momentum, with the stock trading below major moving averages and negative MACD. The absence of recent earnings call insights or notable corporate events leaves the financials and technicals as primary determinants of the stock's score.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet enhances financial stability and flexibility, allowing the company to invest in growth opportunities without the burden of interest payments.

Strong Market Position

The strong brand recognition of Buffalo in the networking and storage market provides a competitive edge, supporting sustained demand and customer loyalty.

Consistent Revenue Growth

Consistent revenue growth indicates a solid demand for products and effective market strategies, positioning the company well for future expansion.

Negative Factors

Profitability Challenges

While operational efficiency is strong, the relatively low net profit margin suggests room for improvement in cost management and pricing strategies to enhance profitability.

Cash Flow Variability

Inconsistent cash flow generation can impact the company's ability to fund operations and growth initiatives, potentially affecting long-term financial health.

Revenue Decline

A decline in revenue growth rate could indicate market saturation or increased competition, which may challenge the company's ability to maintain its market position.

Melco Holdings Inc. Business Overview & Revenue Model

Company Description

Melco Holdings Inc. (6676) is a Japanese company primarily engaged in the production and sale of computer peripherals and networking equipment. The company, through its various subsidiaries, manufactures and distributes a wide range of products including routers, switches, and storage solutions, catering to both individual consumers and businesses. Melco Holdings is known for its brand Buffalo, which is synonymous with high-quality networking and storage devices.

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

Melco Holdings Inc. presents a solid financial foundation with strong revenue growth and no debt burden, enhancing its stability. While margins and cash flow generation are sound, there is room for improvement in profitability and cash flow consistency. The overall financials indicate a competitive position within the computer hardware industry.

Income Statement

Melco Holdings Inc. has shown consistent revenue growth with a notable increase from 2020 to 2024. The TTM gross profit margin stands at 25.75%, and the net profit margin is a healthy 3.56%. The EBIT and EBITDA margins are 4.18% and 7.15%, respectively, indicating strong operational efficiency. However, the net profit margin could be improved for greater profitability.

Balance Sheet

The balance sheet is robust with no total debt as of the latest TTM period, showing excellent financial stability. The company enjoys a high equity ratio of 61.04%, reflecting strong shareholder equity. The return on equity is a moderate 11.77% TTM, which could be improved for better shareholder returns.

Cash Flow

Cash flow management appears stable with a significant free cash flow observed in previous years, though the recent TTM period shows no operating or free cash flow. The operating cash flow to net income ratio has fluctuated, reflecting variability in cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	143.17B	143.17B	145.77B	142.58B	144.14B	129.91B
Gross Profit	39.37B	39.37B	36.07B	35.99B	43.92B	35.38B
EBITDA	12.09B	11.54B	7.68B	6.34B	15.43B	11.35B
Net Income	6.01B	6.01B	3.01B	3.06B	9.35B	6.63B
Balance Sheet
Total Assets	76.79B	76.79B	95.94B	93.41B	95.80B	85.80B
Cash, Cash Equivalents and Short-Term Investments	31.61B	31.61B	29.96B	20.51B	28.52B	36.35B
Total Debt	0.00	0.00	0.00	99.00M	960.00M	1.86B
Total Liabilities	31.75B	31.75B	32.01B	30.95B	32.67B	33.61B
Stockholders Equity	45.04B	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: Positive
• Last Price: 3665.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6676, the sentiment is Positive. The current price of 3665 is above the 20-day moving average (MA) of 3582.75, above the 50-day MA of 2889.92, and above the 200-day MA of 2344.85, indicating a bullish trend. The MACD of 207.94 indicates Positive momentum. The RSI at 68.65 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	80 Outperform	¥40.01B	6.30		4.43%	-4.16%	-29.41%
6670	80 Outperform	¥139.68B	9.98		3.00%	8.53%	6.81%
4832	79 Outperform	¥69.23B	11.97		2.82%	4.18%	22.05%
7739	75 Outperform	¥110.41B	15.19		2.61%	7.82%	3.26%
6737	71 Outperform	¥96.55B	25.04		6.94%	-0.61%	-16.31%
6676	68 Neutral	¥46.64B	7.26		3.19%	-5.61%	158.73%
Sector *	61 Neutral	$36.70B	12.21	-10.39%	1.84%	8.50%	-7.32%