Monarch Casino & Resort (MCRI) AI Stock Analysis

• Market Cap: $1.35B
• Dividend Yield: 1.66%
• Average Volume (3M): 117.95K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.92
• Revenue Growth: 4.13%
• EPS Growth: 17.73%
• Country: US
• Employees: 2,900
• Sector: Consumer Cyclical
• Sector Strength: 55
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 4.95
• Shares Outstanding: 18,461,306
• 10 Day Avg. Volume: 104,221
• 30 Day Avg. Volume: 117,949
• PEG Ratio: 1.07
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.91
• Price to Cash Flow (P/CF): 9.30
• P/FCF Ratio: 10.60
• 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: $91.75
• Price Target Upside: 26.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

Monarch Casino & Resort shows strong financial performance with impressive revenue and profit growth, supported by reduced leverage and solid cash flow generation. The technical indicators are favorable, indicating strong momentum. The valuation is reasonable, though not undervalued, offering a balanced investment proposition. Overall, the stock presents a solid opportunity with stable growth potential.

Positive Factors

Financial performance

Black Hawk continues to benefit from high-end strength, driving stronger-than-expected EBITDA results.

Financial stability

MCRI's balance sheet is robust, with $59m in cash and no debt, allowing flexibility for future investments.

Marketing and development

MCRI plans to launch a marketing initiative to drive visitation to Atlantis and showcase upgraded rooms following renovations.

Negative Factors

Growth challenges

MCRI's growth prospects are considered more muted compared to recent years, with limited upside potential.

Market competition

Reno faces a highly competitive market with the challenge of new tribal casino supply in No. California, potentially pressuring GGR growth further.

Revenue impact

Room construction disruption at Atlantis is expected to impact room revenues and modest growth prospects.

Monarch Casino & Resort Business Overview & Revenue Model

Company Description

Monarch Casino & Resort, Inc. (MCRI) is a publicly traded company primarily involved in the gaming and hospitality industry. The company owns and operates high-quality, market-leading casino resorts, including the Atlantis Casino Resort Spa in Reno, Nevada, and Monarch Casino Resort Spa in Black Hawk, Colorado. These properties offer a range of gaming, hotel, dining, and entertainment experiences to their guests, focusing on providing exceptional service and luxurious amenities.

How the Company Makes Money

Monarch Casino & Resort primarily generates revenue through its casino and hospitality operations. The company's key revenue streams include gaming revenues from slot machines, table games, and sports betting, which constitute a significant portion of its earnings. Additionally, Monarch earns income from hotel accommodations, food and beverage sales, and other resort services offered at its properties. Significant factors contributing to its earnings include its strategic locations in Reno and Black Hawk, marketing initiatives aimed at attracting and retaining customers, and partnerships with local businesses to enhance guest experiences. The company's ability to offer a diverse array of amenities and maintain high customer satisfaction levels is crucial to its financial success.

Monarch Casino & Resort Financial Statement Overview

Summary

Monarch Casino & Resort exhibits robust financial health with consistent revenue and profit growth. The balance sheet reflects strong equity and reduced leverage, enhancing financial stability. Cash flow analysis shows strong cash generation capabilities, though past volatility should be considered. The company's financial outlook remains favorable, warranting a positive assessment.

Income Statement

The company has demonstrated strong revenue growth from $184.4 million in 2020 to $522.2 million in 2024, reflecting a healthy growth trajectory. Gross profit margin remains robust with a consistent increase in net profit margins from 12.8% in 2020 to 18.0% in 2024. EBIT and EBITDA margins are strong, indicating efficient operational management and cost control.

Balance Sheet

Monarch Casino & Resort has a solid balance sheet with a decreasing debt-to-equity ratio from 0.56 in 2020 to 0.03 in 2024, indicating improved financial leverage. The equity ratio remains healthy, showcasing strong equity backing. However, a slight decline in stockholders' equity from 2022 to 2024 suggests potential concerns to monitor.

Cash Flow

The company has shown strong free cash flow growth and a high operating cash flow to net income ratio, indicating efficient cash generation and management. Positive free cash flow in recent years supports operational stability and potential for reinvestment, although 2020's negative free cash flow highlights past volatility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
522.19M	501.48M	477.87M	395.38M	184.41M
	Gross Profit
522.19M	269.18M	259.59M	217.66M	99.70M
	EBIT
92.50M	110.15M	111.44M	89.88M	15.27M
	EBITDA
143.86M	157.45M	154.88M	128.29M	32.59M
	Net Income Common Stockholders
72.77M	82.45M	87.48M	68.49M	23.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
58.76M	43.36M	38.78M	33.53M	28.31M
	Total Assets
691.58M	680.87M	692.94M	690.46M	671.88M
	Total Debt
14.06M	20.42M	20.56M	102.39M	194.46M
	Net Debt
-44.70M	-22.94M	-18.22M	68.87M	166.15M
	Total Liabilities
173.84M	167.73M	153.99M	242.44M	303.81M
	Stockholders Equity
517.75M	513.14M	538.95M	448.01M	368.07M
Cash Flow		Free Cash Flow
93.28M	124.04M	100.29M	81.17M	-57.22M
	Operating Cash Flow
140.71M	173.05M	139.77M	128.10M	31.44M
	Investing Cash Flow
-51.23M	-51.23M	-47.97M	-37.79M	-46.39M
	Financing Cash Flow
-117.24M	-117.24M	-86.54M	-85.10M	-17.28M

Monarch Casino & Resort Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 72.42
• 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 MCRI, the sentiment is Negative. The current price of 72.42 is below the 20-day moving average (MA) of 80.32, below the 50-day MA of 85.19, and below the 200-day MA of 78.66, indicating a bearish trend. The MACD of -2.27 indicates Positive momentum. The RSI at 31.11 is Neutral, neither overbought nor oversold. The STOCH value of 13.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MCRI.

Monarch Casino & Resort Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCRI	79 Outperform	$1.35B	19.00	18.25%	1.66%	4.13%	17.73%
BYD	78 Outperform	$5.05B	9.89	34.76%	1.13%	5.13%	2.04%
RRR	60 Neutral	$4.50B	16.75	80.25%	2.66%	12.47%	-14.15%
Sector *	59 Neutral	$11.74B	10.16	-1.06%	4.15%	1.27%	-16.61%
BALY	47 Neutral	$741.76M	―	-170.41%	―	0.06%	-248.51%
CZR	46 Neutral	$5.04B	―	-6.38%	―	-2.45%	-135.17%
PENN	44 Neutral	$2.15B	―	-10.27%	―	3.38%	38.18%