Melco Resorts & Entertainment (MLCO) AI Stock Analysis

• Market Cap: $2.69B
• Dividend Yield: N/A
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): 26.2
• Beta (1Y): 0.98
• 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: 1,178,901
• 30 Day Avg. Volume: 1,254,428
• PEG Ratio: -0.41
• Price to Book (P/B): -1.89
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 7.69
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $11.21
• Price Target Upside: 62.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.76
• Revenue Forecast (FY): $5.30B

• Rating: 56 Neutral
• Price Target: $7.00 ▲(1.74% Upside)

Melco Resorts & Entertainment's overall stock score reflects a mix of strong operational momentum and significant financial challenges. The most significant factor is the company's financial performance, which shows improvement but is overshadowed by high leverage and liquidity concerns. Technical indicators are positive, suggesting strong market momentum, while the earnings call provided a positive outlook with robust growth in key regions. However, the high P/E ratio indicates potential valuation risks.

Positive Factors

Revenue Growth

The 11% increase in operating revenues indicates strong demand and effective business operations, supporting long-term growth prospects.

Market Position in Macau

Strong EBITDA growth in Macau underscores Melco's competitive edge and resilience in a key market, enhancing its market position.

Debt Reduction

Debt reduction efforts improve financial stability and reduce leverage risks, supporting long-term financial health.

Negative Factors

High Leverage

High leverage can strain financial resources and limit strategic flexibility, posing long-term risks to financial stability.

Negative Equity

Negative equity indicates insolvency risk, which can undermine investor confidence and restrict future financing options.

Cash Flow Issues

Lack of positive cash flow suggests liquidity constraints, affecting the ability to fund operations and invest in growth.

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

Melco Resorts & Entertainment is experiencing a slow recovery in revenue and operational profitability. However, the balance sheet and cash flow statements reflect substantial financial challenges, including high leverage, negative equity, and liquidity issues. While there are signs of operational improvement, significant risks related to financial stability and cash flow management need to be addressed.

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: 6.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 6.88 is below the 20-day moving average (MA) of 7.61, below the 50-day MA of 8.29, and below the 200-day MA of 7.75, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 21.82 is Positive, neither overbought nor oversold. The STOCH value of 7.98 is Positive, 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
LVS	74 Outperform	$41.85B	26.60	62.28%	1.51%	8.37%	10.20%
RRR	71 Outperform	$6.63B	22.19	96.16%	3.22%	4.69%	15.18%
MGM	63 Neutral	$9.42B	218.58	2.25%	―	0.05%	-94.07%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLCO	56 Neutral	$2.69B	26.18	―	―	11.32%	―
WYNN	53 Neutral	$12.25B	25.99	―	0.80%	-0.26%	-44.45%
CZR	51 Neutral	$5.03B	-21.39	-6.06%	―	0.87%	31.28%

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.