Melco Resorts & Entertainment Limited (MLCO) AI Stock Analysis

Melco Resorts & Entertainment Limited develops, owns, and operates casino gaming and resort destinations in Asia and Europe. In Macau, its flagship integrated resort is City of Dreams, which features over 500 gaming tables, 570 gaming machines, and 770 rooms and suites. The company also operates Altira Macau, Studio City in Cotai, Mocha Clubs, and the Grand Dragon casino on Taipa Island. Internationally, Melco operates City of Dreams Manila in the Philippines and an integrated resort in Limassol, Cyprus, alongside three satellite casinos in Nicosia, Ayia Napa, and Paphos.

Annual revenue grew from $2.01B in FY2021 to $5.16B in FY2025, reflecting a 5-year revenue CAGR of 24.5% from FY2020 to FY2025. After reporting net losses of -$811.8M in FY2021, -$930.5M in FY2022, and -$326.9M in FY2023, the company returned to positive profitability in FY2024 with net income of $43.5M and expanded it to $185.0M in FY2025. In FY2025, gross margin reached 36.7% and operating margin was 11.6%. Over the trailing twelve months ended June 30, 2026, revenue stood at $5.22B with an operating margin of 10.2% and EPS of $0.59. For the latest quarter ended June 30, 2026, quarterly revenue fell 5.7% year-over-year, while quarterly earnings grew 35.7%.

As of June 30, 2026, Melco held $912.9M in cash and short-term investments against total debt of $7.31B, resulting in net debt of $6.40B. Shareholders' equity was negative at -$1.64B, and the current ratio stood at 1.01. Free cash flow for FY2025 was $476.1M, supported by $818.1M in operating cash flow. In FY2025, capital expenditures were $342.0M, share buybacks totaled $166.0M, and dividends paid were $78,000. The share count was reduced by 18.4% over five years.

At a last close of $4.15 on October 16, 2026, Melco had a market cap of $1.58B and an enterprise value of $6.44B. The stock traded at a trailing P/E of 7.0x and an EV/EBITDA of 5.3x, both lower than the median of its US-listed Consumer Cyclical peers, which stood at 18.0x and 11.1x, respectively. Its price-to-sales was 0.3x compared to the peer median of 0.7x. Over the prior year, MLCO returned -49.4%, while the S&P 500 (SPY) returned 16.8%.

Wall Street analysts hold 7 Strong Buy, 2 Buy, and 4 Hold ratings, with 0 Sell or Strong Sell ratings. The mean price target is $6.50, representing a 56.6% premium over the last close of $4.15. For the current fiscal year ending December 31, 2026, analysts estimate revenue of $5.20B and EPS of $0.45, reflecting an estimated EPS decline of 35.4%. The company beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 5, 2026.

This page is an AI-written research summary of Melco Resorts & Entertainment Limited (MLCO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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