Melco Resorts & Entertainment Limited (MLCO)
UndervaluedFundamental
43
Price
$4.48
Market Cap
$1.70B
Part 1 · What the company is worth
Overview
Melco Resorts & Entertainment Limited develops, owns, and operates casino gaming and resort facilities in Macau, the Philippines, Cyprus, and internationally. It operates through City of Dreams, Studio City, Altira Macau, Mocha, City of Dreams Manila, City of Dreams Mediterranean and Other, Other Operations, and Corporate and Other segments. The company owns and operates City of Dreams, an integrated resort that has gaming tables and gaming machines; suites and villas; food and beverage outlets; retail outlets; a wet stage performance theater; and recreation and leisure facilities, including health and fitness clubs, swimming pools, spas and salons, and banquet and meeting facilities in Cotai, Macau. It also operates Studio City, a cinematically themed integrated resort with gaming facilities, hotel, entertainment, retail, and food and beverage outlets in Cotai, Macau; and Altira Macau, an integrated resort, which offers gaming tables and gaming machines, hotel rooms, dining and casual restaurants, and recreation and leisure facilities in Taipa, Macau. In addition, the company owns and operates Mocha Clubs, which are clubs with gaming machines in Macau; City of Dreams Manila, an integrated resort in the Entertainment City complex in Manila; City of Dreams Mediterranean, an integrated resort in Limassol, Cyprus; and three satellite casinos in Nicosia, Ayia Napa, and Paphos in Cyprus. Further, it is involved in the operation of the Sri Lanka Casino and management of Nüwa Sri Lanka located in City of Dreams Sri Lanka, as well as development projects in other countries. 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 founded in 2003 and is based in Central, Hong Kong. Melco Resorts & Entertainment Limited is a subsidiary of Melco Leisure and Entertainment Group Limited.
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Direct competitors
Who this company fights with for the same customers
Generated on September 19, 2026 with claude-haiku-4-5 — shared with all users
Through Sands China it runs The Venetian, The Londoner and The Parisian on the Cotai Strip, chasing the same mass-market and premium-mass Macau visitors as Melco's City of Dreams and Studio City.
Wynn Palace and Wynn Macau target the high-end premium-mass and VIP customer that is also the core of Melco's City of Dreams Macau.
The sixth Macau concessionaire, with Grand Lisboa Palace on Cotai and a long chain of peninsula casinos drawing from the same pool of Macau gamblers.
Its Galaxy Macau complex stands directly opposite City of Dreams on Cotai and competes for the same gaming tables, hotel nights and retail spending of mainland Chinese visitors.
Through MGM China it operates MGM Cotai and MGM Macau, competing table for table with Melco in the same concession market and, like Melco, on non-gaming entertainment.
Its Solaire Resort is the main rival of Melco's City of Dreams Manila for gamblers and hotel guests in Manila's Entertainment City.
Balance Sheet & Liquidity
Revenue
$5.04B
Trailing 12 months (through 6/30/2026)
Net Income
$242M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
-
Total Equity
$-1.64B
Total Liabilities
$7.31B
Current Ratio
1.01
Interest Coverage
-
Debt/EBITDA
5.87
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$8.15
Current Price
$4.48
Margin of Safety
+45.1%
Fair Value Range
$5.30 - $11.01
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
7.72
ROE
-217.7%
P/B Ratio
-
P/FCF
-
Gross Margin
38.2%
ROIC
7.4%
Profitability Radar
Value Creation (Economic Moat)
ROIC
7.4%
WACC
1.5%
ROIC − WACC
+5.9 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (8)
- ROIC 7.4%
- Gross Margin 38.2%
- Current Ratio
- Debt/EBITDA
- Revenue Growth 5Y 24.5%
- Analyst Consensus 74% Buy
- Earnings Surprise avg 46.0%
- Net Margin Trend 3.6% vs 0.9%
Failed (4)
- Price CAGR -11.44%
- DCF valuation (Unknown)
- ROE -217.7%
- Piotroski F-Score 0/9
Unavailable (15)
- EPS data insufficient
- P/FCF NaN
- P/B Ratio NaN
- Dividend Payout NaN%
- Debt/Equity ratio
- Operating Margin NaN%
- Positive Free Cash Flow
- CapEx intensity
- Interest Coverage
- Return on Tangible Assets
- Low reliance on intangibles
- Price below Graham Number
- PEG Ratio (need PE > 0 and growth > 0)
- Earnings Quality (OCF/Net Income)
- Share Dilution (missing shares data)
Piotroski F-Score
Serious financial concerns
Earnings Quality
Low quality: investigate accounting
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Yau Lung Ho | Founder, Chairman & CEO | 48 |
| Mr. Evan Andrew Winkler | President & Director | 50 |
| Mr. Geoffrey Stuart Davis C.F.A. | Executive VP & CFO | 56 |
| Mr. Graham Paul Winter | Executive VP, Company Secretary & Chief Legal Officer | 60 |
| Ms. Chimmy Leung | Executive Director of Corporate Communications | - |
| Ms. Akiko Takahashi | Executive VP and Chief of Staff to Chairman & CEO | 72 |
| Mr. David Ross Sisk | COO of Macau Resorts | 63 |
| Ms. Jeanny Kim | Senior VP & Group Treasurer | - |
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for MLCO, sourced from Markets Gazette.