Melco Resorts & Entertainment (MLCO) AI Stock Analysis

• Market Cap: $2.37B
• Dividend Yield: N/A
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): 23.7
• Beta (1Y): 1.02
• Revenue Growth: 11.32%
• EPS Growth: N/A
• Country: US
• Employees: 21,784
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.19
• Shares Outstanding: 390,407,200
• 10 Day Avg. Volume: 3,023,934
• 30 Day Avg. Volume: 1,853,470
• PEG Ratio: -0.14
• Price to Book (P/B): -0.63
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 2.56
• Enterprise Value/Market Cap: 2.94
• Enterprise Value/Revenue: 1.38
• Enterprise Value/Gross Profit: 3.79
• Enterprise Value/Ebitda: 6.41
• 1Y Price Target: $9.03
• Price Target Upside: 44.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.7
• Revenue Forecast (FY): $5.28B

• Rating: 44 Neutral
• Price Target: $6.00 ▼(-3.85% Downside)

The score is primarily constrained by financial stability risks—negative equity, high leverage, and weak/unclear cash generation—despite improving operating margins. Technicals also remain decisively bearish with the stock trading well below key moving averages. Offsetting factors include a constructive earnings update with rising EBITDA, solid liquidity, and ongoing debt reduction, while valuation appears only moderate with no dividend support.

Positive Factors

EBITDA Growth & Operational Recovery

Sustained, double-digit property EBITDA growth across the group indicates durable operational recovery and improving underlying unit economics. Higher EBITDA supports margin sustainability, funds reinvestment and deleveraging, and shows the business model is regaining scale across markets.

Macau Market Momentum

Strong, persistent recovery in Macau—the company's core market—boosts long-term revenue potential and market share. Higher mass-table and GGR trends reflect structural tourism rebound and pricing power, underpinning sustainable cash generation from the firm's largest operations.

Debt Reduction Actions

Proactive note redemptions materially reduce near-term refinancing risk and interest burden, improving capital structure durability. Demonstrates management focus on liability management, which supports long-term solvency and optionality for strategic investments or dividends.

Negative Factors

Negative Equity

Persistently negative equity is a structural solvency flag that limits financing options, increases covenant and liquidity risk, and can constrain strategic flexibility. It can impair access to capital markets and force asset sales or dilutive financing to shore up the balance sheet.

Weak Cash Generation

Absence of positive operating and free cash flow signals constrained cash conversion and raises doubts about sustainable self-funding for capex, dividends, or debt servicing. Long-term growth and deleveraging depend on restoring reliable cash generation.

High Absolute Debt Burden

A multi-billion dollar debt load creates persistent interest and refinancing pressures, especially given negative equity and weak cash flow. High leverage reduces resilience to demand shocks, raises refinancing risk, and constrains capital allocation for growth or returns.

Melco Resorts & Entertainment Business Overview & Revenue Model

Company Description

Melco Resorts & Entertainment Limited develops, owns, and operates casino gaming and resort facilities in Asia and Europe. It owns and operates City of Dreams, an integrated casino resort that has approximately 511 gaming tables and 572 gaming machines; approximately 770 rooms, and suites and villas; approximately 25 restaurants and bars, and 165 retail outlets; and health and fitness clubs, three swimming pools, spa and salons, and banquet and meeting facilities. The company also operates Altira Macau, a casino hotel, which has approximately 101 gaming tables and 121 gaming machines; 230 hotel rooms; various dining and casual restaurants, and recreation and leisure facilities; and various non-gaming amenities comprising a spa, gymnasium, outdoor garden podium, and sky terrace lounge. In addition, it operates Studio City, a cinematically themed integrated resort with gaming facilities, hotel, entertainment, retail, and food and beverage outlets that comprises 290 gaming tables and 645 gaming machines in Cotai, Macau. Further, the company owns and operates seven Mocha Clubs with 813 gaming machines, as well as Grand Dragon casino in Taipa Island, Macau. Additionally, it operates and manages City of Dreams Manila, an integrated resort in the Entertainment City complex in Manila; a casino in Limassol and three satellite casinos in Nicosia, Ayia Napa, and Paphos in Cyprus. The company was formerly known as Melco Crown Entertainment Limited and changed its name to Melco Resorts & Entertainment Limited in April 2017. The company was incorporated in 2004 and is headquartered in Central, Hong Kong. Melco Resorts & Entertainment Limited is a subsidiary of Melco Leisure and Entertainment Group Limited.

How the Company Makes Money

Melco Resorts & Entertainment generates revenue primarily through its gaming operations, which include table games and electronic gaming machines in its casinos. The company also earns significant income from non-gaming sectors such as hotel accommodations, dining, entertainment, and retail, all of which attract both gaming and non-gaming customers. Key revenue streams include room bookings, food and beverage sales, and ticket sales for entertainment events. Additionally, Melco has established strategic partnerships with various local and international brands, enhancing its offerings and driving traffic to its resorts. Factors contributing to its earnings include the overall growth of the tourism sector in Macau, the expansion of its resort facilities, and its ability to attract high-value customers through premium services and amenities.

Melco Resorts & Entertainment Financial Statement Overview

Summary

Income statement is improving (higher revenue and better gross/EBITDA margins), but overall financial health is weighed down by a critically weak balance sheet (negative equity and high debt) and problematic cash flow visibility/sustainability (operating cash flow and free cash flow reported as zero). These factors materially increase solvency and liquidity risk.

Income Statement

Melco Resorts & Entertainment shows marginal improvement in its financial performance with a significant increase in total revenue from the previous year. The gross profit margin improved to 35.85% in 2024 from 31.36% in 2023. However, the net profit margin remains low at 0.94% in 2024, despite recovering from negative figures in previous years. The EBIT and EBITDA margins show positive trends, reaching 10.45% and 22.16% respectively in 2024, highlighting operational improvements. Overall, the company is on a path to recovery but still faces challenges in achieving sustainable profitability.

Balance Sheet

The balance sheet reveals a concerning scenario with a negative stockholders' equity of -$1.33 billion in 2024, indicating insolvency. This results in a negative equity ratio, which is a critical red flag. Moreover, the debt-to-equity ratio cannot be calculated due to negative equity, but the high total debt of $7.46 billion suggests potential leverage risks. Return on equity cannot be assessed due to negative equity. The company's financial stability is a major concern, overshadowing the improvements in operational metrics.

Cash Flow

Cash flow analysis indicates significant issues with operational sustainability. In 2024, operating cash flow, capital expenditure, and free cash flow are reported as zero, making it challenging to assess cash flow efficiency. The absence of positive free cash flow and operating cash flow growth in recent years suggests liquidity constraints and inadequate cash generation to cover operational and capital expenses. This highlights the need for better cash flow management to support ongoing business operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.06B	4.64B	3.78B	1.35B	2.01B	1.73B
Gross Profit	1.84B	1.66B	1.18B	286.52M	490.01M	189.52M
EBITDA	1.09B	1.02B	815.96M	-217.57M	-23.19M	-300.03M
Net Income	104.14M	43.54M	-326.92M	-930.53M	-811.75M	-1.26B
Balance Sheet
Total Assets	8.10B	7.99B	8.34B	9.30B	8.88B	9.02B
Cash, Cash Equivalents and Short-Term Investments	1.48B	1.15B	1.31B	1.81B	1.65B	1.76B
Total Debt	7.63B	7.46B	7.77B	8.71B	7.04B	6.10B
Total Liabilities	9.06B	8.93B	9.18B	9.62B	8.06B	7.18B
Stockholders Equity	-1.31B	-1.33B	-1.29B	-850.33M	244.75M	1.10B
Cash Flow
Free Cash Flow	0.00	325.48M	358.80M	-1.24B	-948.17M	-1.32B
Operating Cash Flow	0.00	626.66M	622.69M	-619.43M	-268.77M	-860.96M
Investing Cash Flow	0.00	-300.81M	-48.51M	-806.11M	-674.55M	-53.31M
Financing Cash Flow	0.00	-478.35M	-1.13B	1.78B	821.75M	1.26B

Melco Resorts & Entertainment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MLCO, the sentiment is Negative. The current price of 6.24 is below the 20-day moving average (MA) of 6.53, below the 50-day MA of 7.64, and below the 200-day MA of 7.84, indicating a bearish trend. The MACD of -0.42 indicates Negative momentum. The RSI at 34.89 is Neutral, neither overbought nor oversold. The STOCH value of 33.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MLCO.

Melco Resorts & Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RRR	71 Outperform	$6.68B	22.36	96.16%	3.22%	4.69%	15.18%
LVS	62 Neutral	$35.65B	22.44	―	1.51%	8.37%	10.20%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MGM	57 Neutral	$9.17B	210.23	2.25%	―	0.05%	-94.07%
WYNN	53 Neutral	$11.17B	23.70	―	0.80%	-0.26%	-44.45%
CZR	51 Neutral	$4.23B	-17.92	-6.06%	―	0.87%	31.28%
MLCO	44 Neutral	$2.37B	23.74	―	―	11.32%	―

Melco Resorts & Entertainment Corporate Events

Melco Resorts Finance Releases Q3 2025 Financial Report

Melco Resorts Finance Limited released its quarterly report for the third quarter of 2025, detailing its financial performance through unaudited condensed consolidated financial statements. The report highlights the company’s strategic financial maneuvers, including the repayment and redemption of senior notes and adjustments to credit facilities, reflecting its ongoing efforts to manage debt and optimize financial operations. These actions are indicative of Melco’s strategic positioning in the competitive gaming and entertainment sector, aiming to enhance financial stability and investor confidence.

The most recent analyst rating on (MLCO) stock is a Hold with a $9.50 price target. To see the full list of analyst forecasts on Melco Resorts & Entertainment stock, see the MLCO Stock Forecast page.

Melco Resorts Reports Strong Q3 2025 Earnings Growth

Melco Resorts & Entertainment Limited reported its unaudited financial results for the third quarter of 2025, showing a significant increase in total operating revenues to US$1.31 billion, up 11% from the same period in 2024. This growth was driven by improved performance in both gaming and non-gaming operations. The company’s operating income rose to US$184.5 million, and net income attributable to Melco was US$74.7 million. Notably, properties in Macau and Cyprus showed strong growth, with Macau’s Property EBITDA improving by 21% year-over-year and Cyprus achieving its best quarter since opening. Strategic repositioning efforts, such as reallocating resources and closing certain operations, were also highlighted as part of Melco’s development strategy.

The most recent analyst rating on (MLCO) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Melco Resorts & Entertainment stock, see the MLCO Stock Forecast page.

Melco Resorts to Announce Q3 2025 Financial Results on November 6

Melco Resorts & Entertainment Limited announced that it will release its unaudited financial results for the third quarter of 2025 on November 6, 2025. The announcement includes a conference call scheduled for the same day, providing stakeholders with insights into the company’s financial performance. This release is significant as it provides an opportunity for investors and analysts to assess the company’s current financial health and strategic positioning within the competitive integrated resorts industry.

The most recent analyst rating on (MLCO) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Melco Resorts & Entertainment stock, see the MLCO Stock Forecast page.

Melco Resorts Finance Completes Major Note Redemption

On October 25, 2025, Melco Resorts Finance Limited, a subsidiary of Melco Resorts & Entertainment, redeemed US$357,940,000 of its 5.250% senior notes due 2026, which represented approximately 71.6% of the total principal amount initially listed. This strategic financial move resulted in the cancellation of all redeemed notes, leaving no outstanding notes, thereby potentially strengthening the company’s financial position and reducing its debt obligations.

The most recent analyst rating on (MLCO) stock is a Buy with a $11.80 price target. To see the full list of analyst forecasts on Melco Resorts & Entertainment stock, see the MLCO Stock Forecast page.