Melco Resorts Return On Equity vs. Current Valuation
| MLCO Stock | USD 7.74 0.24 3.01% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.25396184 | Current Value 0.27 | Quarterly Volatility 1.15307979 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.35 | 0.2362 |
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For Melco Resorts profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Melco Resorts to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Melco Resorts Entertainment utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Melco Resorts's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Melco Resorts Entertainment over time as well as its relative position and ranking within its peers.
Melco |
Is Melco Resorts' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Melco Resorts. If investors know Melco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Melco Resorts listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 7.797 | Earnings Share (0.53) | Revenue Per Share 9.545 | Quarterly Revenue Growth 0.553 | Return On Assets 0.0295 |
The market value of Melco Resorts Entert is measured differently than its book value, which is the value of Melco that is recorded on the company's balance sheet. Investors also form their own opinion of Melco Resorts' value that differs from its market value or its book value, called intrinsic value, which is Melco Resorts' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Melco Resorts' market value can be influenced by many factors that don't directly affect Melco Resorts' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Melco Resorts' value and its price as these two are different measures arrived at by different means. Investors typically determine if Melco Resorts is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Melco Resorts' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Melco Resorts Entert Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Melco Resorts's current stock value. Our valuation model uses many indicators to compare Melco Resorts value to that of its competitors to determine the firm's financial worth. Melco Resorts Entertainment is regarded fifth in return on equity category among related companies. It is rated top company in current valuation category among related companies . At this time, Melco Resorts' Return On Equity is very stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Melco Resorts by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Melco Resorts' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Melco Resorts' earnings, one of the primary drivers of an investment's value.Melco Current Valuation vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Melco Resorts |
| = | -21.57 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Melco Resorts |
| = | 17.34 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Melco Current Valuation vs Competition
Melco Resorts Entertainment is rated top company in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Consumer Discretionary industry is now estimated at about 37.82 Billion. Melco Resorts totals roughly 17.34 Billion in current valuation claiming about 46% of stocks in Consumer Discretionary industry.
Melco Resorts Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Melco Resorts, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Melco Resorts will eventually generate negative long term returns. The profitability progress is the general direction of Melco Resorts' change in net profit over the period of time. It can combine multiple indicators of Melco Resorts, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -98.6 M | -103.5 M | |
| Operating Income | 337.4 M | 354.3 M | |
| Net Loss | -326.9 M | -310.6 M | |
| Income Tax Expense | 13.4 M | 14.1 M | |
| Income Before Tax | -401.9 M | -381.8 M | |
| Total Other Income Expense Net | -739.3 M | -702.3 M | |
| Net Loss | -837.5 M | -795.6 M | |
| Net Loss | -482.6 M | -458.5 M | |
| Interest Income | 27.3 M | 20.9 M | |
| Net Interest Income | -445 M | -467.2 M | |
| Change To Netincome | -19.3 M | -18.4 M | |
| Net Loss | (0.75) | (0.71) | |
| Income Quality | (1.90) | (1.81) | |
| Net Income Per E B T | 0.81 | 0.73 |
Melco Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Melco Resorts. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Melco Resorts position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Melco Resorts' important profitability drivers and their relationship over time.
Use Melco Resorts in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Melco Resorts position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Melco Resorts will appreciate offsetting losses from the drop in the long position's value.Melco Resorts Pair Trading
Melco Resorts Entertainment Pair Trading Analysis
The ability to find closely correlated positions to Melco Resorts could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Melco Resorts when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Melco Resorts - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Melco Resorts Entertainment to buy it.
The correlation of Melco Resorts is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Melco Resorts moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Melco Resorts Entert moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Melco Resorts can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Melco Resorts position
In addition to having Melco Resorts in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Correlation Analysis. Note that the Melco Resorts Entert information on this page should be used as a complementary analysis to other Melco Resorts' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Complementary Tools for Melco Stock analysis
When running Melco Resorts' price analysis, check to measure Melco Resorts' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Melco Resorts is operating at the current time. Most of Melco Resorts' value examination focuses on studying past and present price action to predict the probability of Melco Resorts' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Melco Resorts' price. Additionally, you may evaluate how the addition of Melco Resorts to your portfolios can decrease your overall portfolio volatility.
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To fully project Melco Resorts' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Melco Resorts Entert at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Melco Resorts' income statement, its balance sheet, and the statement of cash flows.