MLCO Stock Intrinsic Value – MELCO RESORTS & ENTERTAINMENT Reports Second Quarter FY2023 Earnings Results
August 15, 2023
☀️Earnings Overview
MELCO RESORTS & ENTERTAINMENT ($NASDAQ:MLCO) released their financial results for the second quarter of FY2023, ending on June 30 2023. Total revenue increased significantly from 296.1 million to 947.9 million in comparison to the same period of the prior year, while net income decreased from -251.5 million to -23.4 million.
Share Price
The company reported a decrease in share price from the prior closing price of $13.2 to $12.9, representing a 2.4% decrease. Aside from the share price dip, MELCO RESORTS & ENTERTAINMENT reported positive earnings results. MELCO RESORTS & ENTERTAINMENT also reported that it had opened the first phase of Studio City Macau, a new resort and entertainment site.
The company expects this new venture to bring in additional revenues and further boost the company’s performance in the coming years. The company’s outlook for future performance is optimistic as it continues to expand its operations and open new resorts and entertainment sites. 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 |
| 2.24k | -600.51 | -26.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for MLCO. More…
| Operations | Investing | Financing |
| -619.43 | -806.11 | 1.78k |
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 |
| 8.88k | 9.5k | -2.76 |
Key Ratios Snapshot
Some of the financial key ratios for MLCO are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -16.7% | 27.2% | -13.5% |
| FCF Margin | ROE | ROA |
| -55.3% | 17.1% | -2.1% |
Analysis – MLCO Stock Intrinsic Value
At GoodWhale, we have conducted an analysis of MELCO RESORTS & ENTERTAINMENT’s financials and determined its fair value to be around $16.2. This was calculated by our proprietary Valuation Line. Currently, MELCO RESORTS & ENTERTAINMENT stock is traded at $12.9 – a 20.6% discount to its fair value. Therefore, we believe that MELCO RESORTS & ENTERTAINMENT is currently undervalued and recommend investors consider buying shares. More…
Peers
Each of these companies has its own unique strengths and strategies to stay ahead of the game, creating a dynamic and intense competition between them.
– Las Vegas Sands Corp ($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
However, net income decreased from -251.5 million to -23.4 million, indicating that costs associated with this growth have been substantial. Investors may want to further investigate to determine whether MELCO’s investments are yielding positive returns, as well as any potential risks involved in investing in this company.
