Monarch Casino & Resort (MCRI) AI Stock Analysis

• Market Cap: $1.81B
• Dividend Yield: 1.22%
• Average Volume (3M): 89.68K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.68
• Revenue Growth: 4.61%
• EPS Growth: 22.90%
• Country: US
• Employees: 2,900
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 1.69
• Shares Outstanding: 18,250,292
• 10 Day Avg. Volume: 105,440
• 30 Day Avg. Volume: 89,676
• 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: 1.04
• Enterprise Value/Revenue: 3.50
• Enterprise Value/Gross Profit: 6.64
• Enterprise Value/Ebitda: 11.95
• 1Y Price Target: $94.00
• Price Target Upside: -5.64% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 5.55
• Revenue Forecast (FY): $544.32M

• Rating: 78 Outperform
• Price Target: $109.00 ▲(9.42% Upside)

Monarch Casino & Resort's strong financial performance and robust corporate governance changes are significant strengths, contributing to a high overall score. The positive technical indicators and fair valuation further support the stock's attractiveness. However, concerns about declining cash flow growth and potential overbought conditions temper the score slightly.

Positive Factors

Strong Financial Performance

Record financial results demonstrate Monarch's robust operational efficiency and market position, supporting sustainable growth and profitability.

Low Leverage

Low leverage enhances financial stability, reducing risk and providing flexibility for future investments and growth opportunities.

Governance Enhancement

The addition of a financially sophisticated director strengthens governance, ensuring strategic oversight and stability in leadership.

Negative Factors

Decline in Free Cash Flow Growth

A significant decline in cash flow growth could impact liquidity, limiting the company's ability to fund operations and invest in growth.

Cost Pressures

Declining margins suggest rising costs, which may pressure profitability if not managed, affecting long-term financial health.

Lower Operating Cash Flow

Lower operating cash flow indicates less efficient cash conversion, potentially constraining the company's operational flexibility.

Monarch Casino & Resort Business Overview & Revenue Model

Company Description

Monarch Casino & Resort, Inc. (MCRI) is a leading gaming and hospitality company based in the United States, primarily focused on providing entertainment and leisure services. The company owns and operates the Monarch Casino Resort Spa in Black Hawk, Colorado, which features a full-scale casino, hotel accommodations, restaurants, and various entertainment options. MCRI aims to create a premier gaming experience through its commitment to exceptional service and quality offerings.

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 casino segment represents a significant portion of the company's earnings. Additionally, MCRI earns income from its hotel accommodations, dining establishments, and entertainment services offered within the resort. The company benefits from a loyal customer base and effective marketing strategies that attract both local and out-of-state visitors. Key partnerships with hospitality and entertainment providers also contribute to its revenue streams, enhancing the overall guest experience and encouraging repeat visits.

Monarch Casino & Resort Financial Statement Overview

Summary

Monarch Casino & Resort demonstrates strong financial health with impressive revenue growth and profitability metrics. The balance sheet is particularly robust, with low leverage and high equity, providing a solid foundation for future growth. However, the significant decline in free cash flow growth is a concern that could impact liquidity if not addressed.

Income Statement

Monarch Casino & Resort shows strong financial performance with a healthy revenue growth rate of 9.24% TTM, indicating robust business expansion. The company maintains solid profitability with a gross profit margin of 52.73% and a net profit margin of 15.32% TTM. EBIT and EBITDA margins are also strong at 19.14% and 29.19% TTM, respectively, reflecting efficient operations. However, a slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet is very strong, with a low debt-to-equity ratio of 0.024 TTM, indicating minimal leverage and financial risk. Return on equity is solid at 15.22% TTM, showcasing effective use of shareholder funds. The equity ratio stands at 76.97% TTM, highlighting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis reveals a mixed picture. While the free cash flow to net income ratio is robust at 1.22 TTM, indicating good cash generation relative to profits, the free cash flow growth rate has significantly declined by 71.22% TTM, suggesting potential challenges in sustaining cash flow levels. The operating cash flow to net income ratio is lower at 0.27 TTM, which may indicate less efficient cash conversion from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	539.63M	522.19M	501.48M	477.87M	395.38M	184.41M
Gross Profit	284.53M	280.82M	269.18M	259.59M	217.66M	99.70M
EBITDA	158.04M	143.86M	157.45M	154.88M	128.29M	32.59M
Net Income	82.66M	72.77M	82.45M	87.48M	68.49M	23.68M
Balance Sheet
Total Assets	725.38M	691.58M	680.87M	692.94M	690.46M	671.88M
Cash, Cash Equivalents and Short-Term Investments	107.64M	58.76M	43.36M	38.78M	33.53M	28.31M
Total Debt	13.56M	14.06M	20.42M	20.56M	102.39M	194.46M
Total Liabilities	167.01M	173.84M	167.73M	153.99M	242.44M	303.81M
Stockholders Equity	558.38M	517.75M	513.14M	538.95M	448.01M	368.07M
Cash Flow
Free Cash Flow	122.45M	93.28M	124.04M	100.29M	81.17M	-57.22M
Operating Cash Flow	164.41M	140.71M	173.05M	139.77M	128.10M	31.44M
Investing Cash Flow	-43.24M	-43.79M	-51.23M	-47.97M	-37.79M	-46.39M
Financing Cash Flow	-52.92M	-81.53M	-117.24M	-86.54M	-85.10M	-17.28M

Monarch Casino & Resort Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 99.62
• 50DMA: Positive
• 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 99.62 is above the 20-day moving average (MA) of 97.68, above the 50-day MA of 95.15, and above the 200-day MA of 91.10, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 53.78 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	78 Outperform	$1.81B	17.73	19.40%	1.22%	4.61%	22.90%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GDEN	57 Neutral	$707.06M	143.01	1.15%	3.71%	-12.25%	-84.89%
BALY	54 Neutral	$891.31M	-2.21	-114.88%	―	0.36%	47.55%
FLL	51 Neutral	$97.17M	-2.36	-121.54%	―	7.45%	5.03%
PENN	47 Neutral	$1.96B	-2.31	-35.97%	―	8.24%	-77.54%
CNTY	44 Neutral	$39.46M	-0.30	―	―	-1.57%	-80.41%

Monarch Casino & Resort Corporate Events

Monarch Casino appoints new independent director to board

On December 17, 2025, Monarch Casino & Resort, Inc. announced that director Yvette E. Landau will resign from the board and from its Compensation and Audit committees, effective January 1, 2026, with the company emphasizing that her departure does not stem from any disagreement over operations, governance, or strategy. Effective the same date and subject to regulatory approvals, the board appointed veteran banker and investment manager Hope Taitz, CEO of ELY Capital and an experienced public-company director, to fill Landau’s seat on the board and its key committees, outlining a standard non-employee director compensation package that underscores Monarch’s effort to reinforce its governance bench with a financially sophisticated, independent director while signaling continuity and stability to shareholders and other stakeholders.

Monarch Casino Reports Record Q3 2025 Financial Results

Monarch Casino & Resort announced record-breaking financial results for the third quarter of 2025, marking the highest-ever quarterly revenue, net income, and EBITDA in its history. The company reported a 3.6% increase in net revenue to $142.8 million, driven by growth across its casino, food and beverage, and hotel segments. Net income rose by 14.4%, and adjusted EBITDA reached an all-time high of $54.8 million, reflecting operational efficiencies and market share gains. The company also declared a cash dividend of $0.30 per share, payable in December 2025, highlighting its strong financial position and commitment to returning capital to shareholders.