Want to see MLCO full AI Analyst Report?
Top Page
Melco Resorts & Entertainment
(NASDAQ:MLCO)
Select Model
Select Model
Rating:54Neutral
Price Target:
$5.50
▼(-2.14% Downside)
Action:Reiterated
Date:05/30/26
The score is primarily held back by balance-sheet risk (high debt and negative equity) despite improving operating results and stronger free cash flow. Technicals are mixed-to-weak with the stock below key longer-term moving averages, while the relatively low P/E provides valuation support.
Positive Factors
Strengthening cash generation
Sustained recovery in operating and free cash flow through 2025 improves the company's ability to service debt, fund capital expenditure and support operations without relying exclusively on new financing. Stronger cash conversion enhances long-term resilience versus cyclical downturns.
Negative Factors
Heavy leverage and negative equity
Very high absolute debt and persistently negative equity materially limit financial flexibility and increase insolvency and refinancing risk. Capital structure constraints amplify sensitivity to earnings volatility and raise the cost of external funding over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strengthening cash generation
Sustained recovery in operating and free cash flow through 2025 improves the company's ability to service debt, fund capital expenditure and support operations without relying exclusively on new financing. Stronger cash conversion enhances long-term resilience versus cyclical downturns.
Read all positive factors
Melco Resorts & Entertainment (MLCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.14B
Dividend YieldN/A
Average Volume (3M)2.88M
Price to Earnings (P/E)9.5
Beta (1Y)0.83
Revenue Growth11.55%
EPS Growth313.70%
CountryUS
Employees22,961
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.58
Shares Outstanding406,792,000
10 Day Avg. Volume2,501,752
30 Day Avg. Volume2,877,108
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)-2.43
Price to Sales (P/S)0.59
P/FCF Ratio6.37
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$6.92Price Target Upside23.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.5
Revenue Forecast (FY)$5.30B
Melco Resorts & Entertainment Business Overview & Revenue Model
Company Description
Melco Resorts & Entertainment Limited is a company focused on the development, ownership, and operation of casino gaming and luxury resort complexes throughout Asia and Europe. In Macau, its portfolio includes several major properties: City of Dre...
How the Company Makes Money
Melco makes money primarily by operating integrated resort properties that generate revenue from both gaming and non-gaming activities. Its core revenue streams generally include: (1) Casino gaming: revenue from table games and slot machines, incl...
Melco Resorts & Entertainment Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call balanced positive operational and financial strengths—notably strong liquidity ($2.8B available), meaningful regional EBITDA growth (Manila +9% YoY, Cyprus +60% YoY), property enhancements (REM soft open, new gaming areas) and disciplined capital actions ( ~$134M share buybacks and RCF upsize)—against pronounced near-term challenges, including a significant VIP win-rate decline (3.9% to 2.7%, ~$9M EBITDA headwind), lower visitation/hold pressure, World Cup-related substitution to sports betting, and construction disruption at City of Dreams. Management emphasized cost discipline and flexibility, a roadmap for ramping new assets, and intent to recommence dividends in 2027. Overall, the positives across liquidity, regional growth and strategic investments outweigh the near-term operational headwinds.Positive Updates
Group Adjusted Property EBITDA
Group-wide adjusted property EBITDA for Q2 2026 was approximately $304 million (approximately $312 million adjusted for VIP hold), indicating solid operating earnings despite near-term headwinds.
Negative Updates
VIP Win Rate Decline and EBITDA Impact
VIP win rate at City of Dreams Macau declined from 3.9% in Q2 2025 to 2.7% in Q2 2026 (a ~1.2 percentage-point decline, ~30.8% relative decrease), which negatively impacted property EBITDA by approximately $9 million in the quarter.
Read all updates
Q2-2026 Updates
Positive
Negative
Group Adjusted Property EBITDA
Group-wide adjusted property EBITDA for Q2 2026 was approximately $304 million (approximately $312 million adjusted for VIP hold), indicating solid operating earnings despite near-term headwinds.
Read all positive updates
Company Guidance
Management provided detailed near-term operating and balance-sheet guidance: group Q2 adjusted property EBITDA was ~$304M (~$312M adjusted for VIP hold) with an adverse COD VIP win‑rate decline from 3.9% in Q2‑2025 to 2.7% in Q2‑2026 that lowered EBITDA by ~ $9M; Macau total daily OpEx remains about $3.3–3.4M/day (inclusive of House of Dancing Water). For Q3‑2026 they expect depreciation & amortization of $140–145M, corporate expense of $20–25M and consolidated net interest expense of $115–120M (including ~ $6M finance‑liability interest and ~ $5M finance‑lease interest). Liquidity and capital items: available liquidity of ~ $2.8B, consolidated cash on hand of ~ $1.0B (≈ $492M excluding Studio City/Philippines/Cyprus/Sri Lanka), an upsized RCF increased by ~ $821M to $2.8B with maturity extended to June 2031, Studio City bond/redemption activity leaving $335M of 2028 notes outstanding, YTD ADS repurchases of ~25M shares for ~$134M (22.4M for ~$121M Apr 1–Aug 12), and management expects to recommence dividends in 2027; CapEx is ~$225M for the remainder of 2026 and ~$275–300M for 2027.Melco Resorts & Entertainment Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
28
Negative
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.30B | 5.16B | 4.64B | 3.78B | 1.35B | 2.01B |
| Gross Profit | 1.81B | 1.90B | 1.66B | 1.18B | 286.52M | 490.01M |
| EBITDA | 1.20B | 1.16B | 1.02B | 815.96M | -217.57M | -23.19M |
| Net Income | 229.57M | 185.04M | 43.54M | -326.92M | -930.53M | -811.75M |
Balance Sheet | ||||||
| Total Assets | 7.40B | 7.60B | 7.99B | 8.34B | 9.30B | 8.88B |
| Cash, Cash Equivalents and Short-Term Investments | 942.40M | 1.02B | 1.15B | 1.31B | 1.81B | 1.65B |
| Total Debt | 6.94B | 7.02B | 7.46B | 7.77B | 8.71B | 7.04B |
| Total Liabilities | 8.29B | 8.50B | 8.93B | 9.18B | 9.62B | 8.06B |
| Stockholders Equity | -1.22B | -1.25B | -1.33B | -1.29B | -850.33M | 244.75M |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 476.13M | 325.48M | 358.80M | -1.24B | -948.17M |
| Operating Cash Flow | 0.00 | 818.12M | 626.66M | 622.69M | -619.43M | -268.77M |
| Investing Cash Flow | 0.00 | -341.77M | -300.81M | -48.51M | -806.11M | -674.55M |
| Financing Cash Flow | 0.00 | -603.12M | -478.35M | -1.13B | 1.78B | 821.75M |
Melco Resorts & Entertainment Technical Analysis
Negative
5.62
Price Trends
5.49
Positive
5.55
Negative
6.37
Negative
Market Momentum
0.02
Positive
49.00
Neutral
37.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MLCO, the sentiment is Negative. The current price of 5.62 is above the 20-day moving average (MA) of 5.56, above the 50-day MA of 5.49, and below the 200-day MA of 6.37, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.00 is Neutral, neither overbought nor oversold. The STOCH value of 37.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MLCO.
Melco Resorts & Entertainment Risk Analysis
Melco Resorts & Entertainment disclosed 91 risk factors in its most recent earnings report. Melco Resorts & Entertainment reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Melco Resorts & Entertainment Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $29.59B | 17.74 | 141.97% | 2.39% | 18.11% | 29.86% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $10.60B | 23.43 | -174.87% | 1.03% | 6.36% | 21.32% | |
61 Neutral | $6.63B | 15.91 | 91.10% | 3.18% | 0.86% | -3.37% | |
58 Neutral | $11.07B | 26.39 | 16.96% | ― | 3.19% | -8.14% | |
55 Neutral | $6.04B | -13.01 | -12.62% | ― | 2.41% | -146.70% | |
54 Neutral | $2.14B | 9.46 | -17.64% | ― | 11.55% | 313.70% |
* Consumer Cyclical Sector Average
MLCO
Melco Resorts & Entertainment
5.60
-2.97
-34.66%
LVS
Las Vegas Sands
46.23
-6.29
-11.98%
MGM
MGM Resorts
44.10
8.18
22.77%
WYNN
Wynn Resorts
102.53
-5.66
-5.23%
CZR
Caesars Entertainment
29.75
4.42
17.45%
RRR
Red Rock Resorts
62.05
4.88
8.53%
Melco Resorts & Entertainment Corporate Events
Melco Resorts Extends HK$21.7 Billion Credit Facilities to 2031 and Upsizes Liquidity
Jun 9, 2026
On June 9, 2026, Melco Resorts Entertainment announced it had extended the maturity of its HK$15.24 billion revolving credit facility, originally set to expire on April 29, 2027, to June 9, 2031, under its existing 2020 Credit Facilities. The com...
Melco Resorts Files Q1 2026 Melco Resorts Finance Report Detailing Debt Structure
May 29, 2026
On May 29, 2026, Melco Resorts Entertainment filed a Form 6-K furnishing the first-quarter 2026 unaudited condensed consolidated financial statements of its financing arm, Melco Resorts Finance Limited. The filing centers on Melco’s capital...
Melco Resorts Posts Double-Digit Revenue and Profit Growth in Q1 2026
May 4, 2026
Melco Resorts Entertainment reported unaudited first-quarter 2026 results on April 30, 2026, with total operating revenue rising 11% year-on-year to US$1.37 billion, driven mainly by stronger mass market performance. Operating income increased to...
Melco Resorts to Acquire Group IP Holding Company in US$375 Million Intra-Group Deal
Apr 30, 2026
Melco Resorts Entertainment disclosed that its parent, Melco International Development, signed a sale and purchase agreement on April 30, 2026 for an intra-group transfer of a British Virgin Islands intellectual property holding company that owns...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.