MLCO Intrinsic Value – MELCO RESORTS & ENTERTAINMENT Reports 57.5% Decrease in Total Revenue for FY2022 Q4.
April 2, 2023
Earnings Overview
For the fiscal year ending December 31, 2022, MELCO RESORTS & ENTERTAINMENT ($NASDAQ:MLCO) reported total revenue of USD -251.9 million, a decrease of 57.5% from the prior year. Net income for the period was USD 337.1 million, a decrease of 29.9% from the previous year.
Price History
The company’s stock opened at $13.5 and closed at $13.9, giving investors a 0.9% increase from the previous closing price of $13.7. The decrease in overall revenue was primarily due to a decrease in net gaming revenues and a reduction in hotel and other services and income. This decrease was partially offset by an increase in other income. The company has also announced actions it is taking to reduce its debt, including selling off some of its assets and other non-cash activities.
In addition, MELCO RESORTS & ENTERTAINMENT will focus on efficiency initiatives including cost reductions, improvements in customer service, and restructuring of operations and assets. The company’s stock opened at $13.5 and closed at $13.9, giving investors a 0.9% increase from the previous closing price of $13.7. In light of this news, MELCO RESORTS & ENTERTAINMENT is taking steps to reduce its debt through asset sales and other non-cash activities in order to improve its long-term financial health. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for MLCO. More…
| Total Revenues | Net Income | Net Margin |
| 1.35k | -930.53 | -69.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for MLCO. More…
| Operations | Investing | Financing |
| -860.96 | -53.31 | 1.26k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for MLCO. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.3k | 9.62k | -1.91 |
Key Ratios Snapshot
Some of the financial key ratios for MLCO are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -38.3% | 27.2% | -53.0% |
| FCF Margin | ROE | ROA |
| -76.7% | 58.9% | -4.8% |
Analysis – MLCO Intrinsic Value
At GoodWhale, we believe in giving investors the best tools available so they can make informed decisions about their investments. That’s why we’ve been analyzing MELCO RESORTS & ENTERTAINMENT’s financials to help investors understand their true intrinsic value. After crunching the numbers, our Valuation Line determined that MELCO RESORTS & ENTERTAINMENT’s intrinsic value is about $9.8 per share. However, the current stock price for MELCO RESORTS & ENTERTAINMENT is trading at $13.9 – a 41.4% premium over the intrinsic value. This means that investors should be wary of potential risks before investing in MELCO RESORTS & ENTERTAINMENT. More…
Peers
Each of these companies has its own unique strengths and strategies to stay ahead of the game, creating a dynamic and intense competition between them.
– Las Vegas Sands Corp ($NYSE:LVS)
Las Vegas Sands Corp is an American casino and resort company based in the US state of Nevada. It is the parent company of the Venetian Casino Resort and the Sands Expo and Convention Center, among other properties. The company has a market cap of 36.73B as of 2022, which is a reflection of its market presence and business performance. Additionally, its Return on Equity (ROE) stands at -11.56%, indicating that it is not performing well in terms of generating shareholder value. Las Vegas Sands Corp is a leader in the gaming and hospitality industry, and it continues to be a major player in Las Vegas, Macau, and other international markets.
– Wynn Resorts Ltd ($NASDAQ:WYNN)
Wynn Resorts Ltd is a global hospitality and entertainment company, operating integrated resorts in Las Vegas, Macau, and other parts of the world. As of 2022, the company has a market capitalization of 9.34 billion dollars and a return on equity of 27.93%. This suggests that the company is performing relatively well and is able to generate a healthy return on the capital it has invested. The company has positioned itself as an international leader in the hospitality and entertainment industry, with a focus on providing high-quality experiences for its guests. The strong financial performance of the company indicates that its strategies are working and that it is well-positioned for future growth.
– MGM Resorts International ($NYSE:MGM)
MGM Resorts International is a leading global hospitality and entertainment company, based in Las Vegas, Nevada. The company operates a portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay, The Mirage, Park MGM, and New York-New York. With a market cap of 12.88 billion USD as of 2022, the company’s stock has been performing well in the market with a Return on Equity (ROE) of 20.62%. This indicates a strong financial performance and suggests that the company is utilizing its equity to generate profits and add value to its shareholders.
Summary
MELCO RESORTS & ENTERTAINMENT’s financial results for Q4 2023 show a significant year-on-year decline in revenue and net income. Total revenue was down 57.5% to USD -251.9 million, and net income decreased 29.9% to USD 337.1 million. This signals a challenging investment environment in the near future, and investors should be aware of the risks before committing their capital to the company. Furthermore, investors should carefully analyze the company’s financials to assess their risk tolerance and determine if investing in MELCO is right for them.
