# Melco Resorts & Entertainment (MLCO.US)

Canonical: https://gigainvestors.com/s/MLCO

Analysis as of: 2026-10-16T07:30:15.272Z. Financial observations: FY2003–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $4.32 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 4

- Operating margin variation: 3.82×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.08×

- FY2017: 0.11×

- FY2018: 0.12×

- FY2019: 0.13×

- FY2020: -0.54×

- FY2021: -0.29×

- FY2022: -0.55×

- FY2023: 0.02×

- FY2024: 0.10×

- FY2025: 0.12×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 6.9%

- ROIC, second-lowest year: -9.8%

- Typical minus recent gross margin: -3.8 pp

- Typical gross margin (annual median): 32.1%

- Recent gross margin (lower of latest and 3-year median): 35.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 10.5%

- ROIC including acquisitions, ten-year median: 4.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 6.0%

- FY2017: 11.8%

- FY2018: 12.4%

- FY2019: 12.8%

- FY2020: -13.9%

- FY2021: -8.2%

- FY2022: -9.8%

- FY2023: 1.0%

- FY2024: 7.8%

- FY2025: 12.4%

### economics: fail

- owner earnings cash conversion below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$1.2B

- Net income, five-year total: -$1.8B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.3 pp

- Working capital / revenue, change between three-year averages: -2.3 pp

- Working capital / revenue, final three-year average: 3.0%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: -$812M

- FY2022: -$1.0B

- FY2023: -$47M

- FY2024: $284M

- FY2025: $387M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 11.8% vs 7.8%

- Per-share earnings: 0.12 to 0.03 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -3.0%

- Ordinary dilution, 5-year annual growth: -3.4%

- Market cap gain: -$15B

- Cumulative retained earnings: -$4.4B

- Diluted shares, 10-year annual growth: -3.0%

- Diluted shares, 5-year annual growth: -3.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -14.3%

- Per-share value change: -$0.08

- Per-share value, starting three-year median: $0.12

- Per-share value, ending three-year median: $0.03

- Buybacks concentrated in cheaper years (correlation): 0.81

- Average buyback yield: 1.6%

- Buyback history: 8 years

- Debt-funded buybacks: Yes

- Acquisition spending: $275M

- Cumulative net income, 10 years: -$1.9B

- ROIC, first three-year median: 11.8%

- ROIC, last three-year median: 7.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.12

- FY2017: $0.23

- FY2018: $0.23

- FY2019: $0.26

- FY2020: -$0.88

- FY2021: -$0.57

- FY2022: -$0.67

- FY2023: -$0.25

- FY2024: $0.03

- FY2025: $0.15

### accounting: pass

- Sloan accruals: -8.3%

- Receivables to sales index (DSRI): 0.77×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 4.42×

- Accounting red flags: 0

Chart: Sloan accruals; fiscal year observations.

- FY2016: -10.5%

- FY2017: -9.2%

- FY2018: -7.9%

- FY2019: -4.9%

- FY2020: -4.5%

- FY2021: -6.1%

- FY2022: -3.3%

- FY2023: -11.4%

- FY2024: -7.3%

- FY2025: -8.3%

## Holders

- [Mason Hawkins](https://gigainvestors.com/SE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 68% since Jan 2023 · "Melco Resorts And Entertainment (MLCO) Stock Sees Fair Value Cut On Lower Margin Outlook" (finance.yahoo.com, Aug 2026) · sales +11.3%

Story as of 2026-10-16T09:59:10.337Z; price observation 2026-10-15.

- 2026-08-18: Melco Resorts And Entertainment (MLCO) Stock Sees Fair Value Cut On Lower Margin Outlook ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/melco-resorts-entertainment-mlco-stock-160952784.html))

### Sales · FY2024–2025

sales +11.3%; source https://www.sec.gov/Archives/edgar/data/1381640/000119312526105023/d55680d20f.htm; observed 2026-03-13.

- FY2016: $4.5B 

- FY2017: $5.3B 

- FY2018: $5.2B 

- FY2019: $5.7B 

- FY2020: $1.7B 

- FY2021: $2.0B 

- FY2022: $1.3B 

- FY2023: $3.8B 

- FY2024: $4.6B 

- FY2025: $5.2B 

### Gross margin · FY2025

gross margin 36.7%; source https://www.sec.gov/Archives/edgar/data/1381640/000119312526105023/d55680d20f.htm; observed 2026-03-13.

- FY2016: 31.1% 

- FY2017: 32.8% 

- FY2018: 35.7% 

- FY2019: 36.6% 

- FY2020: 11.0% 

- FY2021: 24.3% 

- FY2022: 21.2% 

- FY2023: 31.4% 

- FY2024: 35.9% 

- FY2025: 36.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in resorts & casinos; annual sales are USD 5.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1381640/000119312526105023/d55680d20f.htm (filed 2026-03-13); FY2025: revenue 5163299000; grossProfit 1896708000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); MLCO.US: 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.

### Why customers stay

Margins ranged from 31.4% to 36.7% during 2023–25; it earns 6.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-13); FY2023: grossProfit / revenue = 31.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-13); FY2024: grossProfit / revenue = 35.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1381640/000119312526105023/d55680d20f.htm (filed 2026-03-13); FY2025: grossProfit / revenue = 36.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-13); 10-year return on capital observations [[2016,0.06034359748730357],[2017,0.11787963632638744],[2018,0.12445383331728445],[2019,0.1280880401051947],[2020,-0.13854627662490365],[2021,-0.0822556485742677],[2022,-0.09833891737445037],[2023,0.01008329916077972],[2024,0.07812262827103982],[2025,0.1244747597074454]]; median 0.0692331128791717. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 166 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-13); FY2016: growth capex 0; upkeep 508241000; owner earnings 219937000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-13); FY2017: growth capex 0; upkeep 514989000; owner earnings 372588000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-13); FY2018: growth capex 0; upkeep 667533000; owner earnings 251883000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-13); FY2019: growth capex 0; upkeep 449916000; owner earnings 574462000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-13); FY2024: growth capex 0; upkeep 301181000; owner earnings 283900000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1381640/000119312526105023/d55680d20f.htm (filed 2026-03-13); FY2025: growth capex 0; upkeep 341980000; owner earnings 386627000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-13); Dividend observations: [[2016,385569000],[2017,821328000],[2018,271531000],[2019,300995000],[2020,79116000],[2021,6656000],[2022,196000],[2023,314000],[2024,344000],[2025,78000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1381640/000119312526105023/d55680d20f.htm (filed 2026-03-13); FY2025: cash repurchases 166010000 USD.

### Are managers owners

Insiders own 2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); MLCO.US SharesStats.PercentInsiders = 1.958 percentage points; cache date 2026-10-15.

### What the price says

The price is 1 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-13); Closing price 4.32 USD; reporting-to-trading FX 1; FY2025 annual sales per share 4.2960000682194925; price multiple 1.0055865762102874. FY2025 cash earnings/share 0.32168379525870916. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $16.74 per share

- 2016-11: $19.66 per share

- 2016-12: $15.90 per share

- 2017-01: $16.84 per share

- 2017-02: $16.37 per share

- 2017-03: $18.54 per share

- 2017-04: $21.95 per share

- 2017-05: $22.58 per share

- 2017-06: $22.45 per share

- 2017-07: $20.20 per share

- 2017-08: $21.95 per share

- 2017-09: $24.12 per share

- 2017-10: $25.28 per share

- 2017-11: $26.11 per share

- 2017-12: $29.04 per share

- 2018-01: $29.78 per share

- 2018-02: $27.45 per share

- 2018-03: $28.98 per share

- 2018-04: $31.21 per share

- 2018-05: $32.66 per share

- 2018-06: $28.00 per share

- 2018-07: $25.86 per share

- 2018-08: $23.88 per share

- 2018-09: $21.15 per share

- 2018-10: $16.63 per share

- 2018-11: $18.07 per share

- 2018-12: $17.62 per share

- 2019-01: $21.58 per share

- 2019-02: $23.04 per share

- 2019-03: $22.59 per share

- 2019-04: $25.10 per share

- 2019-05: $19.30 per share

- 2019-06: $21.72 per share

- 2019-07: $22.47 per share

- 2019-08: $20.80 per share

- 2019-09: $19.41 per share

- 2019-10: $21.54 per share

- 2019-11: $21.28 per share

- 2019-12: $24.17 per share

- 2020-01: $20.17 per share

- 2020-02: $17.34 per share

- 2020-03: $12.40 per share

- 2020-04: $15.82 per share

- 2020-05: $16.03 per share

- 2020-06: $15.52 per share

- 2020-07: $16.46 per share

- 2020-08: $19.52 per share

- 2020-09: $16.65 per share

- 2020-10: $16.12 per share

- 2020-11: $18.13 per share

- 2020-12: $18.55 per share

- 2021-01: $15.99 per share

- 2021-02: $21.66 per share

- 2021-03: $19.91 per share

- 2021-04: $19.29 per share

- 2021-05: $17.19 per share

- 2021-06: $16.57 per share

- 2021-07: $13.92 per share

- 2021-08: $13.76 per share

- 2021-09: $10.24 per share

- 2021-10: $10.83 per share

- 2021-11: $9.76 per share

- 2021-12: $10.18 per share

- 2022-01: $10.56 per share

- 2022-02: $10.02 per share

- 2022-03: $7.64 per share

- 2022-04: $5.72 per share

- 2022-05: $5.64 per share

- 2022-06: $5.75 per share

- 2022-07: $5.15 per share

- 2022-08: $5.76 per share

- 2022-09: $6.63 per share

- 2022-10: $5.47 per share

- 2022-11: $8.53 per share

- 2022-12: $11.50 per share

- 2023-01: $13.66 per share

- 2023-02: $12.78 per share

- 2023-03: $12.73 per share

- 2023-04: $13.64 per share

- 2023-05: $11.05 per share

- 2023-06: $12.21 per share

- 2023-07: $13.62 per share

- 2023-08: $11.22 per share

- 2023-09: $9.89 per share

- 2023-10: $8.44 per share

- 2023-11: $6.98 per share

- 2023-12: $8.87 per share

- 2024-01: $7.81 per share

- 2024-02: $7.73 per share

- 2024-03: $7.21 per share

- 2024-04: $6.54 per share

- 2024-05: $7.84 per share

- 2024-06: $7.46 per share

- 2024-07: $5.71 per share

- 2024-08: $5.07 per share

- 2024-09: $7.79 per share

- 2024-10: $6.72 per share

- 2024-11: $6.42 per share

- 2024-12: $5.79 per share

- 2025-01: $5.91 per share

- 2025-02: $5.56 per share

- 2025-03: $5.27 per share

- 2025-04: $5.15 per share

- 2025-05: $6.28 per share

- 2025-06: $7.23 per share

- 2025-07: $8.65 per share

- 2025-08: $9.94 per share

- 2025-09: $9.17 per share

- 2025-10: $8.20 per share

- 2025-11: $9.11 per share

- 2025-12: $7.57 per share

- 2026-01: $6.06 per share

- 2026-02: $5.94 per share

- 2026-03: $5.68 per share

- 2026-04: $5.77 per share

- 2026-05: $5.56 per share

- 2026-06: $5.27 per share

- 2026-07: $5.73 per share

- 2026-08: $5.08 per share

- 2026-09: $4.48 per share

- 2026-10: $4.32 per share

## Annual estimated value (USD per share)

- FY2016: low $2.77 per share, central $2.99 per share, high $3.28 per share

- FY2017: low $3.27 per share, central $4.28 per share, high $4.86 per share

- FY2018: low $3.19 per share, central $4.15 per share, high $4.72 per share

- FY2019: low $3.56 per share, central $4.69 per share, high $5.35 per share

- FY2020: low $1.85 per share, central $1.93 per share, high $2.05 per share

- FY2021: low $1.87 per share, central $1.98 per share, high $2.11 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 20-F filing](https://www.sec.gov/Archives/edgar/data/1381640/000119312526105023/d55680d20f.htm); period 2025-12-31, filed 2026-03-13.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.