MLCO Stock Fair Value – MELCO RESORTS & ENTERTAINMENT Reports 57.5% Decrease in Q4 FY2022 Revenue of USD -251.9 Million
March 20, 2023
Earnings Overview
MELCO RESORTS & ENTERTAINMENT ($NASDAQ:MLCO) released their fourth quarter fiscal year 2022 earnings results on March 2 2023, with total revenue of USD -251.9 million, a 57.5% drop compared to the same period in the prior year. Net income was USD 337.1 million, a 29.9% decrease year-over-year.
Share Price
On Thursday, MELCO RESORTS & ENTERTAINMENT stock opened at $13.5 and closed at $13.9, up by 0.9% from previous closing price of 13.7. Despite this small increase, the company reported a 57.5% decrease in its quarterly revenue for the fourth quarter of fiscal year 2022. The decrease in revenue affects not only MELCO RESORT & ENTERTAINMENT, but other companies in the same industry as well, as they are all experiencing similar declines in revenue due to global lockdown restrictions and reduced travel demand.
Additionally, the company has been forced to cut costs in order to remain competitive in the market and to offset losses incurred due to the pandemic. The company is looking to improve its financial performance in the coming quarters and has already taken steps to do so through cost-cutting and restructuring measures. MELCO RESORTS & ENTERTAINMENT has also been focusing on digital transformation initiatives and introducing new technologies, which will help them become more efficient and provide better services to their customers. These efforts are expected to help the company recover from its current losses and eventually return to profitability. 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 Stock Fair Value
At GoodWhale, we analyzed the financials of MELCO RESORTS & ENTERTAINMENT to help you understand its financial position. Our proprietary Valuation Line calculated the intrinsic value of MELCO RESORTS & ENTERTAINMENT’s share to be around $10.6. Currently, MELCO RESORTS & ENTERTAINMENT stock is traded at $13.9, which is overvalued by 31.6%. This suggests that if you are looking to invest in MELCO RESORTS & ENTERTAINMENT, it may be best to wait for its stock price to come down closer to its intrinsic value before investing. More…
Peers
Each of these companies has its own unique strengths and strategies to stay ahead of the game, creating a dynamic and intense competition between them.
– Las Vegas Sands Corp ($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 reported their FY2022 Q4 earnings results for the period ending December 31 2022, showing a 57.5% decrease in total revenue compared to the same period in the previous year. Net income was also down 29.9%. This is concerning news for investors, and presents a risk of further declines in share price. Investors should consider carefully the risks associated with investing in this company, including its performance in the competitive leisure and hospitality industry, macroeconomic factors, and other external variables impacting the company.
