Monarch Casino & Resort (MCRI) AI Stock Analysis

• Market Cap: $1.47B
• Dividend Yield: 1.5%
• Average Volume (3M): 97.94K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.86
• Revenue Growth: 3.84%
• EPS Growth: 19.95%
• Country: US
• Employees: 2,900
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 5.07
• Shares Outstanding: 18,466,406
• 10 Day Avg. Volume: 75,261
• 30 Day Avg. Volume: 97,937
• PEG Ratio: 0.79
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.00
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $88.50
• Price Target Upside: 10.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

Monarch Casino & Resort demonstrates strong financial health with consistent revenue growth, effective cost management, and robust cash flows. The stock's technical indicators suggest mixed near-term momentum, and valuation appears reasonable. The absence of specific earnings call data and notable corporate events makes financial performance the primary driver of the score.

Positive Factors

Financial Flexibility

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

Financial Performance

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

Marketing and Renovation

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

Negative Factors

Competitive Pressures

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

Construction Disruption

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

Valuation Concerns

Valuation seems full, with MCRI trading at a slight premium to its historical and peers' averages, while growth prospects are more modest.

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 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 strong financial performance with consistent revenue growth and robust margins. The balance sheet showcases a low debt-to-equity ratio, indicating minimal financial leverage risk, and cash flows are strong, supporting liquidity and operational investments.

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
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
280.82M	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
-43.79M	-51.23M	-47.97M	-37.79M	-46.39M
	Financing Cash Flow
-81.53M	-117.24M	-86.54M	-85.10M	-17.28M

Monarch Casino & Resort Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 80.02
• 50DMA: Negative
• 100DMA: Negative
• 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 80.02 is above the 20-day moving average (MA) of 76.87, below the 50-day MA of 80.10, and above the 200-day MA of 79.69, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 56.84 is Neutral, neither overbought nor oversold. The STOCH value of 78.32 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
BYD	78 Outperform	$5.62B	11.45	35.62%	0.96%	6.06%	10.05%
MCRI	76 Outperform	$1.47B	15.73	18.31%	1.50%	3.84%	19.95%
RRR	68 Neutral	$4.59B	19.20	81.59%	2.27%	9.48%	-11.92%
CZR	62 Neutral	$5.58B	―	-5.56%	―	-1.25%	-130.83%
Sector *	61 Neutral	$6.66B	11.77	3.06%	3.96%	2.60%	-21.54%
PENN	49 Neutral	$2.34B	―	-10.27%	―	5.51%	92.46%
BALY	47 Neutral	$741.76M	―	-170.41%	―	0.06%	-248.51%