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Melco Resorts & Entertainment

DB:MAS
Snowflake Description

Undervalued with high growth potential and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MAS
DB
$5B
Market Cap
  1. Home
  2. DE
  3. Consumer Services
Company description

Melco Resorts & Entertainment Limited, through its subsidiaries, develops, owns, and operates casino gaming and entertainment casino resort facilities in Asia. The last earnings update was 6 days ago. More info.


Add to Portfolio Compare Print
  • Melco Resorts & Entertainment has significant price volatility in the past 3 months.
MAS Share Price and Events
7 Day Returns
-5.4%
DB:MAS
-6.8%
DE Hospitality
-0.6%
DE Market
1 Year Returns
-52.8%
DB:MAS
-48.1%
DE Hospitality
-20.9%
DE Market
MAS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Melco Resorts & Entertainment (MAS) -5.4% -29.1% -50.9% -52.8% -40% -52.8%
DE Hospitality -6.8% -31.3% -57.6% -48.1% -63.2% -70.6%
DE Market -0.6% -18.6% -26.2% -20.9% -25.8% -31.8%
1 Year Return vs Industry and Market
  • MAS underperformed the Hospitality industry which returned -48.1% over the past year.
  • MAS underperformed the Market in Germany which returned -20.9% over the past year.
Price Volatility
MAS
Industry
5yr Volatility vs Market

MAS Value

 Is Melco Resorts & Entertainment undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Melco Resorts & Entertainment to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Melco Resorts & Entertainment.

DB:MAS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:MAS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.1%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.78
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.782 (1 + (1- 25%) (92.01%))
1.216
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.22
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.216 * 6.07%)
6.99%

Discounted Cash Flow Calculation for DB:MAS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Melco Resorts & Entertainment is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:MAS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.99%)
2020 -63.00 Analyst x3 -58.88
2021 977.75 Analyst x4 854.19
2022 1,133.10 Est @ 15.89% 925.25
2023 1,257.81 Est @ 11.01% 959.99
2024 1,353.23 Est @ 7.59% 965.36
2025 1,423.52 Est @ 5.19% 949.17
2026 1,473.60 Est @ 3.52% 918.39
2027 1,508.17 Est @ 2.35% 878.54
2028 1,531.18 Est @ 1.53% 833.68
2029 1,545.73 Est @ 0.95% 786.63
Present value of next 10 years cash flows $8,012.00
DB:MAS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,545.73 × (1 + -0.39%) ÷ (6.99% – -0.39%)
$20,867.91
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $20,867.91 ÷ (1 + 6.99%)10
$10,619.76
DB:MAS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $8,012.00 + $10,619.76
$18,631.76
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $18,631.76 / 475.96
$39.15
DB:MAS Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:MAS represents 0.95454x of NasdaqGS:MLCO
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.95454x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 39.15 x 0.95454
€37.37
Value per share (EUR) From above. €37.37
Current discount Discount to share price of €10.50
= -1 x (€10.50 - €37.37) / €37.37
71.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Melco Resorts & Entertainment is available for.
Intrinsic value
>50%
Share price is €10.5 vs Future cash flow value of €37.37
Current Discount Checks
For Melco Resorts & Entertainment to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Melco Resorts & Entertainment's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Melco Resorts & Entertainment's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Melco Resorts & Entertainment's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Melco Resorts & Entertainment's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:MAS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $0.78
NasdaqGS:MLCO Share Price ** NasdaqGS (2020-04-03) in USD $11
Germany Hospitality Industry PE Ratio Median Figure of 9 Publicly-Listed Hospitality Companies 21.1x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.57x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Melco Resorts & Entertainment.

DB:MAS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:MLCO Share Price ÷ EPS (both in USD)

= 11 ÷ 0.78

14.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Melco Resorts & Entertainment is good value based on earnings compared to the DE Hospitality industry average.
  • Melco Resorts & Entertainment is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Melco Resorts & Entertainment's expected growth come at a high price?
Raw Data
DB:MAS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.12x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
24.5%per year
Europe Hospitality Industry PEG Ratio Median Figure of 63 Publicly-Listed Hospitality Companies 0.96x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.17x

*Line of best fit is calculated by linear regression .

DB:MAS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.12x ÷ 24.5%

0.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Melco Resorts & Entertainment is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Melco Resorts & Entertainment's assets?
Raw Data
DB:MAS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $5.09
NasdaqGS:MLCO Share Price * NasdaqGS (2020-04-03) in USD $11
Germany Hospitality Industry PB Ratio Median Figure of 12 Publicly-Listed Hospitality Companies 1.73x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.44x
DB:MAS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:MLCO Share Price ÷ Book Value per Share (both in USD)

= 11 ÷ 5.09

2.16x

* Primary Listing of Melco Resorts & Entertainment.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Melco Resorts & Entertainment is overvalued based on assets compared to the DE Hospitality industry average.
X
Value checks
We assess Melco Resorts & Entertainment's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Melco Resorts & Entertainment has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MAS Future Performance

 How is Melco Resorts & Entertainment expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
24.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Melco Resorts & Entertainment expected to grow at an attractive rate?
  • Melco Resorts & Entertainment's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Melco Resorts & Entertainment's earnings growth is expected to exceed the Germany market average.
  • Melco Resorts & Entertainment's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:MAS Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:MAS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 24.5%
DB:MAS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 4%
Germany Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 28.9%
Germany Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:MAS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:MAS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 7,005 1,651 900 1
2022-12-31 6,276 1,558 756 4
2021-12-31 5,992 1,547 510 17
2020-12-31 4,583 491 -155 13
2020-04-06
DB:MAS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 5,737 836 373
2019-09-30 5,668 443
2019-06-30 5,421 355
2019-03-31 5,207 312
2018-12-31 5,189 1,053 340
2018-09-30 5,095 305
2018-06-30 5,251 411
2018-03-31 5,321 390
2017-12-31 5,285 1,161 345
2017-09-30 5,145 309
2017-06-30 4,921 255
2017-03-31 4,693 250

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Melco Resorts & Entertainment's earnings are expected to grow significantly at over 20% yearly.
  • Melco Resorts & Entertainment's revenue is expected to grow by 4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:MAS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Melco Resorts & Entertainment Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:MAS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.92 1.92 1.92 1.00
2022-12-31 1.46 1.79 1.17 3.00
2021-12-31 1.08 1.61 0.39 15.00
2020-12-31 -0.42 0.46 -2.05 13.00
2020-04-06
DB:MAS Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 0.78
2019-09-30 0.96
2019-06-30 0.76
2019-03-31 0.66
2018-12-31 0.68
2018-09-30 0.62
2018-06-30 0.84
2018-03-31 0.80
2017-12-31 0.70
2017-09-30 0.63
2017-06-30 0.52
2017-03-31 0.51

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Melco Resorts & Entertainment is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Melco Resorts & Entertainment's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Melco Resorts & Entertainment has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MAS Past Performance

  How has Melco Resorts & Entertainment performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Melco Resorts & Entertainment's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Melco Resorts & Entertainment's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Melco Resorts & Entertainment's 1-year earnings growth exceeds its 5-year average (9.7% vs 6.7%)
  • Melco Resorts & Entertainment's earnings growth has exceeded the DE Hospitality industry average in the past year (9.7% vs -36.8%).
Earnings and Revenue History
Melco Resorts & Entertainment's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Melco Resorts & Entertainment Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:MAS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 5,736.80 373.17 718.86
2019-09-30 5,667.71 442.83 706.42
2019-06-30 5,421.43 355.28 696.33
2019-03-31 5,207.41 312.24 709.32
2018-12-31 5,188.94 340.30 707.52
2018-09-30 5,094.61 304.68 651.03
2018-06-30 5,251.16 410.99 626.46
2018-03-31 5,320.75 390.19 582.10
2017-12-31 5,284.82 344.83 585.98
2017-09-30 5,145.15 309.11 578.93
2017-06-30 4,920.87 255.24 557.68
2017-03-31 4,693.05 249.56 524.41
2016-12-31 4,519.40 175.91 509.74
2016-09-30 4,384.55 120.29 572.88
2016-06-30 4,177.73 91.45 604.24
2016-03-31 4,024.12 84.91 625.27
2015-12-31 3,974.80 105.75 655.33
2015-09-30 4,038.16 211.03 594.42
2015-06-30 4,216.50 309.98 653.51
2015-03-31 4,499.24 429.37 627.60
2014-12-31 4,802.31 608.28 483.74
2014-09-30 5,075.48 738.58 440.15
2014-06-30 5,204.08 785.82 397.59
2014-03-31 5,299.56 823.23 371.22
2013-12-31 5,087.18 637.46 368.65
2013-09-30 4,794.43 522.20 356.17
2013-06-30 4,552.60 447.67 340.05

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Melco Resorts & Entertainment has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Melco Resorts & Entertainment used its assets more efficiently than the DE Hospitality industry average last year based on Return on Assets.
  • Melco Resorts & Entertainment has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Melco Resorts & Entertainment's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Melco Resorts & Entertainment has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MAS Health

 How is Melco Resorts & Entertainment's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Melco Resorts & Entertainment's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Melco Resorts & Entertainment is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Melco Resorts & Entertainment's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Melco Resorts & Entertainment's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Melco Resorts & Entertainment Company Filings, last reported 3 months ago.

DB:MAS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 3,143.23 4,394.13 1,444.35
2019-09-30 3,056.62 4,737.85 1,743.42
2019-06-30 2,858.14 4,700.06 1,583.07
2019-03-31 2,787.27 4,216.66 1,610.30
2018-12-31 2,972.29 4,060.92 1,564.02
2018-09-30 2,913.27 3,807.57 1,339.33
2018-06-30 3,413.19 3,529.09 1,504.84
2018-03-31 3,420.12 3,541.62 1,427.37
2017-12-31 3,335.62 3,557.56 1,507.97
2017-09-30 3,301.65 3,709.31 1,612.49
2017-06-30 3,230.72 3,729.58 1,422.41
2017-03-31 3,240.41 3,710.80 1,376.14
2016-12-31 3,823.41 3,720.28 1,913.15
2016-09-30 3,822.01 3,785.17 1,724.27
2016-06-30 3,785.94 3,834.54 1,340.76
2016-03-31 4,596.59 3,968.48 2,035.74
2015-12-31 4,931.86 3,815.23 2,335.76
2015-09-30 5,015.19 3,965.86 1,849.39
2015-06-30 5,023.53 3,979.57 1,797.88
2015-03-31 5,042.13 3,835.76 1,622.38
2014-12-31 5,041.67 3,902.78 1,708.27
2014-09-30 5,208.55 3,965.83 1,992.15
2014-06-30 5,155.35 2,744.82 2,346.76
2014-03-31 4,963.77 2,801.96 2,448.94
2013-12-31 4,924.98 2,533.46 2,008.70
2013-09-30 4,554.73 2,599.08 2,068.66
2013-06-30 4,327.53 2,664.68 1,959.06
  • Melco Resorts & Entertainment's level of debt (139.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (77.4% vs 139.8% today).
  • Debt is not well covered by operating cash flow (19%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Melco Resorts & Entertainment's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Melco Resorts & Entertainment has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MAS Dividends

 What is Melco Resorts & Entertainment's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6%
Current annual income from Melco Resorts & Entertainment dividends. Estimated to be 6.65% next year.
If you bought €2,000 of Melco Resorts & Entertainment shares you are expected to receive €120 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Melco Resorts & Entertainment's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.7%).
  • Melco Resorts & Entertainment's dividend is above the markets top 25% of dividend payers in Germany (4.86%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:MAS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
Germany Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 11.3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 316 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:MAS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 1.35 1.00
2022-12-31 0.80 5.00
2021-12-31 0.73 14.00
2020-12-31 0.66 14.00
2020-04-06
DB:MAS Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-03-31 0.660 5.653
2020-02-20 0.660 4.323
2019-10-30 0.660 2.980
2019-07-24 0.660 3.180
2019-05-07 0.620 2.861
2019-03-29 0.620 2.452
2019-02-19 0.620 2.742
2018-11-08 0.580 3.079
2018-07-24 0.580 2.797
2018-02-08 0.405 1.409
2017-01-12 0.169 0.774
2016-08-04 0.076 0.471
2016-05-04 0.088 0.645
2016-04-12 0.000 0.000
2016-02-18 0.000 0.000
2015-11-05 0.073 0.475
2015-08-06 0.054 0.302
2015-05-07 0.134 0.672
2015-02-12 0.205 0.897
2014-11-06 0.287 1.170
2014-08-07 0.311 1.161
2014-05-08 0.517 1.555

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Melco Resorts & Entertainment has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Melco Resorts & Entertainment only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of Melco Resorts & Entertainment's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Melco Resorts & Entertainment's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Melco Resorts & Entertainment afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Melco Resorts & Entertainment has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MAS Management

 What is the CEO of Melco Resorts & Entertainment's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Lawrence Ho
COMPENSATION $0
AGE 42
TENURE AS CEO 15.3 years
CEO Bio

Mr. Yau Lung Ho, also known as Lawrence, has been Executive Director of Melco Resorts & Entertainment Limited (formerly known as, Melco Crown Entertainment Limited) since December 20, 2004 and served as the its Co-Chairman and Chief Executive Officer since December 2004, and re-designated as Chairman and Chief Executive Officer since May 2016. Mr. Ho is Founder of Melco Resorts & Entertainment Limited. From November 2001, Mr. Ho has also served as the Managing Director and, since March 2006, the Chairman and Chief Executive Officer of Melco International Development Limited. Mr. Ho served as the Chairman and Non-Executive Director of Summit Ascent Holdings Limited since July 2013 until December 28, 2017. He has been Director of Studio City International Holdings Limited since July 2011. He serves as a Managing Director of Melco Resorts (Macau) Limited. He is a Member of the Board of Directors and a Vice Patron of The Community Chest of Hong Kong; Member of All China Youth Federation; Member of Macau Basic Law Promotion Association; Chairman of Macau International Volunteers Association; Member of the Board of Governors of The Canadian Chamber of Commerce in Hong Kong; Honorary Lifetime Director of The Chinese General Chamber of Commerce of Hong Kong; Honorary Patron of The Canadian Chamber of Commerce in Macao; Honorary President of Association of Property Agents and Real Estate Developers of Macau and Director Executive of Macao Chamber of Commerce. In recognition of Mr. Ho’s excellent directorship and entrepreneurial spirit, Institutional Investor honored him as the “Best CEO” in 2005. He was also granted the “5th China Enterprise Award for Creative Businessmen” by the China Marketing Association and China Enterprise News, “Leader of Tomorrow” by Hong Kong Tatler and the “Directors of the Year Award” by the Hong Kong Institute of Directors in 2005. As a socially–responsible young entrepreneur in Hong Kong, Mr. Ho was selected as one of the “Ten Outstanding Young Persons Selection 2006,” organized by Junior Chamber International Hong Kong. In 2007, he was elected as a finalist in the “Best Chairman” category in the “Stevie International Business Awards” and one of the “100 Most Influential People across Asia Pacific” by Asiamoney magazine. In 2008, he was granted the “China Charity Award” by the Ministry of Civil Affairs of the People’s Republic of China. And in 2009, Mr. Ho was selected as one of the “China Top Ten Financial and Intelligent Persons” judged by a panel led by the Beijing Cultural Development Study Institute and Fortune Times, and was named “Young Entrepreneur of the Year” at Hong Kong’s first Asia Pacific Entrepreneurship Awards. Mr. Ho was selected by Finance Asia magazine as one of the “Best CEOs in Hong Kong” for the fifth time in 2014 and was granted the “Leadership Gold Award” in the Business Awards of Macau in 2015. In 2017, Mr. Ho was awarded the Medal of Merit-Tourism by the Macau SAR government for his significant contributions to tourism in the territory. Mr. Ho was honored as one of the recipients of the “Asian Corporate Director Recognition Awards” by Corporate Governance Asia magazine for five consecutive years since 2012, and was awarded “Asia’s Best CEO” at the Asian Excellence Awards for the sixth time in 2017. Mr. Ho has been the Chairman of Maple Peak Investment Inc. since July 2016. He is a Vice Chairman of the All-China Federation of Industry and Commerce. Mr. Ho graduated with a Bachelor of Arts degree in commerce from the University of Toronto, Canada in June 1999 and was awarded the Honorary Doctor of Business Administration degree by Edinburgh Napier University, Scotland in July 2009 for his contribution to business, education and the community in Hong Kong, Macau and China. Mr. Yau Lung Ho serves as Director at Studio City International Holdings Limited.

CEO Compensation
  • Lawrence's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Insufficient data for Lawrence to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Melco Resorts & Entertainment management team in years:

10.2
Average Tenure
52
Average Age
  • The average tenure for the Melco Resorts & Entertainment management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Lawrence Ho

TITLE
Founder
AGE
42
TENURE
15.3 yrs

Evan Winkler

TITLE
President & Director
AGE
44
TENURE
0.6 yrs

Geoffrey Stuart Davis

TITLE
Executive VP & CFO
AGE
50
TENURE
9 yrs

Richard Huang

TITLE
Director of Investor Relations

Stephanie Cheung

TITLE
Executive VP
AGE
57
TENURE
11.3 yrs

Chimmy Leung

TITLE
Executive Director of Corporate Communications

Maggie Ma

TITLE
Chief Government Affairs Officer

Akiko Takahashi

TITLE
Executive VP and Chief of Staff to Chairman & CEO
AGE
66
TENURE
11.3 yrs

Jaya Jesudason

TITLE
Executive Vice President of Construction & Design
AGE
77

Frederic Jean-Marie Winckler

TITLE
Executive VP and Chief Creative & Brand Officer
AGE
52
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Melco Resorts & Entertainment board of directors in years:

13.3
Average Tenure
47
Average Age
  • The average tenure for the Melco Resorts & Entertainment board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Lawrence Ho

TITLE
Founder
AGE
42
TENURE
15.3 yrs

Evan Winkler

TITLE
President & Director
AGE
44
TENURE
3.7 yrs

Thomas Wu

TITLE
Independent Non-Executive Director
COMPENSATION
$232K
AGE
47
TENURE
13.3 yrs

Alec Tsui

TITLE
Independent Non-Executive Director
COMPENSATION
$559K
AGE
69
TENURE
13.3 yrs

John William Crawford

TITLE
Independent Non-Executive Director
AGE
77
TENURE
3.3 yrs

Clarence Chung

TITLE
Non-Executive Director
COMPENSATION
$1M
AGE
56
TENURE
13.4 yrs

Francesca Galante

TITLE
Independent Non-Executive Director
AGE
43
TENURE
1.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Melco Resorts & Entertainment's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Melco Resorts & Entertainment has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MAS News

Simply Wall St News

MAS Company Info

Description

Melco Resorts & Entertainment Limited, through its subsidiaries, develops, owns, and operates casino gaming and entertainment casino resort facilities in Asia. It owns and operates City of Dreams, an integrated casino resort that has approximately 476 gaming tables and approximately 724 gaming machines; approximately 2,170 hotel rooms and suites; a wet stage performance theater with approximately 2,000 seats; approximately 25 restaurants and bars, approximately 165 retail outlets; and health and fitness clubs, 3 swimming pools, spa and salons, and banquet and meeting facilities. The company also operates Altira Macau, a casino hotel, which has approximately 104 gaming tables and 129 gaming machines; 230 hotel rooms; various dining and casual restaurants, and recreation and leisure facilities; and various non-gaming amenities comprising spa, gymnasium, outdoor garden podium, and sky terrace lounge. In addition, it operates Studio City, a cinematically-themed integrated entertainment, retail, and gaming resort that comprises 292 gaming tables and 957 gaming machines in Cotai, Macau. Further, the company owns and operates 8 Mocha Clubs with 1,336 gaming machines, as well as Grand Dragon casino in Taipa Island, Macau. Additionally, it operates and manages City of Dreams Manila, a casino, hotel, retail, and entertainment integrated resort in the Entertainment City complex in Manila. 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 incorporated in 2004 and is based in Central, Hong Kong. Melco Resorts & Entertainment Limited is a subsidiary of Melco Leisure and Entertainment Group Limited.

Details
Name: Melco Resorts & Entertainment Limited
MAS
Exchange: DB
Founded: 2004
$4,852,846,080
475,960,541
Website: http://www.melco-resorts.com
Address: Melco Resorts & Entertainment Limited
The Centrium,
36th Floor,
Central,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS MLCO SPON ADR EACH REP 3 ORD SHS Nasdaq Global Select US USD 18. Dec 2006
DB MAS SPON ADR EACH REP 3 ORD SHS Deutsche Boerse AG DE EUR 18. Dec 2006
BMV MLCO N SPON ADR EACH REP 3 ORD SHS Bolsa Mexicana de Valores MX MXN 18. Dec 2006
Number of employees
Current staff
Staff numbers
23,078
Melco Resorts & Entertainment employees.
Industry
Casinos and Gaming
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/06 02:40
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/02
Last earnings filing: 2020/03/31
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.