Monarch Casino & Resort (MCRI) AI Stock Analysis

• Market Cap: $1.91B
• Dividend Yield: 1.14%
• Average Volume (3M): 94.04K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.77
• Revenue Growth: 4.65%
• EPS Growth: 24.60%
• Country: US
• Employees: 2,900
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 1.44
• Shares Outstanding: 18,267,450
• 10 Day Avg. Volume: 103,051
• 30 Day Avg. Volume: 94,039
• PEG Ratio: -2.33
• Price to Book (P/B): 2.84
• Price to Sales (P/S): 2.81
• P/FCF Ratio: 15.74
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 2.92
• Enterprise Value/Gross Profit: 5.31
• Enterprise Value/Ebitda: 10.20
• 1Y Price Target: $100.33
• Price Target Upside: -4.55% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 79 Outperform
• Price Target: $117.00 ▲(11.31% Upside)

Monarch Casino & Resort's strong financial performance and positive corporate events are the most significant factors driving the stock score. The technical analysis supports a stable outlook, while the valuation is reasonable but not exceptional. The absence of earnings call data does not impact the overall assessment.

Positive Factors

Revenue Growth

The 6.8% increase in net revenue and 12.1% rise in casino revenues indicate strong market demand and effective business strategies, supporting long-term growth.

Balance Sheet Health

A low debt-to-equity ratio suggests minimal leverage, providing financial stability and flexibility for future investments and growth.

Operational Efficiency

Improved operational efficiencies enhance profitability and competitiveness, ensuring sustainable margins and long-term success.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow growth could limit the company's ability to reinvest in business expansion or return capital to shareholders if it persists.

Cash Flow Sustainability

While current cash generation is strong, declining free cash flow growth may challenge long-term sustainability if not addressed.

Free Cash Flow to Net Income

Although the ratio indicates adequate cash flow, the decline in growth could impact future financial flexibility and investment capacity.

Monarch Casino & Resort Business Overview & Revenue Model

Company Description

Monarch Casino & Resort, Inc., through its subsidiaries, owns and operates the Atlantis Casino Resort Spa, a hotel and casino in Reno, Nevada. The company also owns and operates the Monarch Casino Resort Spa Black Hawk in Black Hawk, Colorado. As of December 31, 2021, its Atlantis Casino Resort Spa featured approximately 61,000 square feet of casino space; 818 guest rooms and suites; 8 food outlets; 2 gourmet coffee and pastry bars; a 30,000 square-foot health spa and salon with an enclosed pool; 2 retail outlets offering clothing and gift shop merchandise; an 8,000 square-foot family entertainment center; and approximately 52,000 square feet of banquet, convention, and meeting room space. The company's Atlantis Casino Resort Spa also featured approximately 1,400 slot and video poker machines; approximately 37 table games, including blackjack, craps, roulette, and others; a race and sports book; a 24-hour live keno lounge; and a poker room. In addition, its Monarch Casino Resort Spa Black Hawk featured approximately 60,000 square feet of casino space; approximately 1,100 slot machines; approximately 40 table games; 10 bars and lounges; 4 dining options; 516 guest rooms and suites; banquet and meeting room space; a retail store; a concierge lounge; an upscale spa and pool facility; and a nine-story parking structure with approximately 1,350 spaces, as well as valet parking with a total parking capacity to approximately 1,500 spaces. The company was founded in 1972 and is based in Reno, Nevada.

How the Company Makes Money

Monarch Casino & Resort generates revenue primarily through its gaming operations, which include slot machines, table games, and sports betting. The company also earns income from its hotel services, which encompass room bookings, event hosting, and other hospitality services. Dining options within the resort, including restaurants and bars, contribute to its revenue stream as well. Additionally, Monarch may engage in partnerships with local businesses and tourism agencies to enhance its offerings and attract more visitors, further bolstering its earnings potential. The combination of gaming, hospitality, and dining creates a diversified revenue model that allows the company to capitalize on multiple income sources.

Monarch Casino & Resort Financial Statement Overview

Summary

Monarch Casino & Resort shows strong financial performance with consistent revenue growth and high profitability margins. The balance sheet is solid with minimal leverage, and cash flows are robust, indicating good liquidity and operational capacity.

Income Statement

The income statement shows a strong performance with consistent revenue growth. The TTM revenue increased by 0.72% compared to the previous year. Gross profit margin stands at 48.97% for TTM, indicating effective cost management. The net profit margin for TTM is 14.14%, showcasing profitability. EBIT and EBITDA margins are robust at 18.01% and 27.89% respectively, reflecting operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.03 in TTM, highlighting minimal leverage risk. The equity ratio is strong at 75.23%, indicating financial stability. Return on Equity (ROE) is healthy at 13.88% in TTM, suggesting good returns for shareholders. The company's low debt levels enhance its ability to withstand financial fluctuations.

Cash Flow

Cash flow analysis reveals a significant increase in free cash flow by 76.34% in TTM, driven by strong operating cash flows. The operating cash flow to net income ratio is 2.13, demonstrating efficient cash generation relative to earnings. Free cash flow to net income ratio is 2.21, indicating substantial cash generation after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	534.69M	522.19M	501.48M	477.87M	395.38M	184.41M
Gross Profit	294.09M	280.82M	269.18M	259.59M	217.66M	99.70M
EBITDA	153.04M	143.86M	157.45M	154.88M	128.29M	32.59M
Net Income	78.68M	72.77M	82.45M	87.48M	68.49M	23.68M
Balance Sheet
Total Assets	705.79M	691.58M	680.87M	692.94M	690.46M	671.88M
Cash, Cash Equivalents and Short-Term Investments	71.59M	58.76M	43.36M	38.78M	33.53M	28.31M
Total Debt	13.80M	14.06M	20.42M	20.56M	102.39M	194.46M
Total Liabilities	166.54M	173.84M	167.73M	153.99M	242.44M	303.81M
Stockholders Equity	539.25M	517.75M	513.14M	538.95M	448.01M	368.07M
Cash Flow
Free Cash Flow	160.02M	93.28M	124.04M	100.29M	81.17M	-57.22M
Operating Cash Flow	148.71M	140.71M	173.05M	139.77M	128.10M	31.44M
Investing Cash Flow	-41.51M	-43.79M	-51.23M	-47.97M	-37.79M	-46.39M
Financing Cash Flow	-69.12M	-81.53M	-117.24M	-86.54M	-85.10M	-17.28M

Monarch Casino & Resort Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 105.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCRI, the sentiment is Positive. The current price of 105.11 is above the 20-day moving average (MA) of 102.90, above the 50-day MA of 102.47, and above the 200-day MA of 87.73, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 59.85 is Neutral, neither overbought nor oversold. The STOCH value of 77.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$1.91B	19.62	19.27%	1.14%	4.65%	24.60%
BYD	76 Outperform	$6.89B	13.24	40.43%	0.83%	6.40%	26.09%
RRR	72 Outperform	$6.51B	23.51	71.63%	3.24%	7.47%	2.58%
PENN	61 Neutral	$2.89B	-35.09	-10.88%	―	7.34%	93.83%
CZR	58 Neutral	$5.62B	-29.23	-5.01%	―	-0.15%	28.05%
BALY	49 Neutral	$530.04M	-0.95	-1837.27%	―	-1.10%	-1.69%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Monarch Casino & Resort Corporate Events

Monarch Casino Reports Record Q2 2025 Financial Results

On July 16, 2025, Monarch Casino & Resort announced record financial results for the second quarter of 2025, with net revenue increasing by 6.8% to $136.9 million, driven by a 12.1% rise in casino revenues. The company completed a $100 million redesign of hotel rooms at Atlantis, enhancing guest experiences and gaining market share. Monarch’s strategic focus on operational efficiencies led to a 16.8% increase in Adjusted EBITDA, and the company declared a cash dividend of $0.30 per share, payable in September 2025.

Monarch Casino & Resort Holds Annual Stockholders Meeting

On June 6, 2025, Monarch Casino & Resort, Inc. held its Annual Meeting of Stockholders, where 88.1% of outstanding shares were represented. Stockholders elected two directors, Bob Farahi and Yvette E. Landau, to serve until the 2027 annual meeting and approved the executive compensation on a non-binding advisory basis.