Coronation Fund Managers increases stake in Melco Resorts & Entertainment by 15% in 3rd quarter
November 5, 2024
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Melco Resorts & Entertainment ($NASDAQ:MLCO) Limited is a leading developer, owner, and operator of casino gaming and entertainment resort facilities in Asia. The company operates through its subsidiary Melco Resorts & Entertainment (Philippines) Corporation and has properties in Macau, the Philippines, and Cyprus. Melco is listed on the NASDAQ Global Select Market and is known for its high-end, luxury resorts that offer a wide range of entertainment options and world-class gaming facilities. In the third quarter of 2019, Coronation Fund Managers Ltd., one of South Africa’s largest third-party fund management companies, significantly increased its stake in Melco Resorts & Entertainment Limited. This move demonstrates the strong confidence that Coronation Fund Managers has in the company’s future prospects. This growth can be attributed to the strong performance of Melco’s properties in Macau and the Philippines. This move also aligns with Coronation’s investment philosophy of investing in companies with strong fundamentals and long-term growth potential.
Melco has been expanding its presence in Asia, with the recent opening of its flagship property, Morpheus, in Macau. These new ventures are expected to further contribute to Melco’s growth and profitability. In addition to its strong financial performance, Melco is also committed to promoting responsible gaming and sustainable development. The company has implemented various initiatives to support these goals and has received numerous awards and accolades for its efforts. With its impressive portfolio of luxury resorts and commitment to responsible gaming, Melco continues to be a top performer in the casino and entertainment industry.
Analysis
As an analyst at GoodWhale, I have examined the basic principles of MELCO RESORTS & ENTERTAINMENT and have determined that it is classified as a ‘cheetah’ company. This means that MELCO has achieved high revenue or earnings growth, but is considered less stable due to lower profitability. This is reflected in the company’s Star Chart, which places it in the ‘cheetah’ quadrant. Investors who are interested in high growth potential may be attracted to MELCO RESORTS & ENTERTAINMENT. However, they should also be aware of the company’s lower profitability and potential for instability. This type of investment may be more suitable for risk-tolerant individuals or those looking to diversify their portfolio. It has a medium level of profitability, indicating that it is generating a decent return on its investments. However, it is weak in terms of its assets, dividends, and growth potential. According to our health score, which takes into account cashflows and debt, MELCO RESORTS & ENTERTAINMENT has an intermediate rating of 4/10. This suggests that the company is likely to be able to sustain its operations in times of crisis, but may face challenges in maintaining financial stability. In conclusion, while MELCO RESORTS & ENTERTAINMENT may offer exciting growth opportunities for investors, it is important to carefully consider its profitability and overall financial health before making any investment decisions. As always, it is recommended to thoroughly research and consult with a financial advisor before making any investment decisions. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for MLCO. More…
| Total Revenues | Net Income | Net Margin |
| 3.02k | -372.97 | -12.3% |
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 |
| 8.71k | 9.37k | -2.57 |
Key Ratios Snapshot
Some of the financial key ratios for MLCO are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.4% | 27.2% | -0.5% |
| FCF Margin | ROE | ROA |
| -41.1% | 0.8% | -0.1% |
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
In the third quarter, Coronation Fund Managers Ltd. increased its stake in Melco Resorts & Entertainment Limited by 15%. This indicates confidence in the company’s growth potential and performance. This move could potentially attract other investors and drive up the stock price.
However, it is important to note that investing in any company carries risks and thorough analysis should be done before making any investment decisions. Overall, this development may indicate positive prospects for Melco Resorts & Entertainment Limited in the eyes of investors.
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