Melco Resorts & Entertainment Limited

MLCO

Gambling, Resorts & Casinos · Consumer Cyclical

Price

$5.49

+0.14 (+2.62%)

Market Cap

$2.13B

Exchange

NASDAQ

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Strong

Cash Flow

Weak

Stability

Weak

Valuation

Strong

Track this stock — start free trial

Share count falling — buybacks

−16.2% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 478.0M (2021) → 400.6M (2025)

Winston Score History

The full picture

Melco Resorts & Entertainment Limited owns and operates casino resorts in Asia. Its main properties are in Macau, a special region of China that is one of the world's largest gambling markets, and it also operates in the Philippines. The company runs well-known integrated resorts like City of Dreams and Studio City, which combine casinos with hotels, restaurants, and entertainment venues targeting both high-rollers and mass-market visitors.

Melco makes money primarily from casino gaming revenue, where customers gamble and the house keeps a percentage of bets over time. It also earns from hotel stays, food and beverage, and entertainment. The company operates almost entirely in Asia, making it heavily dependent on visitor flows from mainland China into Macau. Its main competitive risk is regulatory — Macau's government controls gaming licenses, and any policy changes affecting Chinese tourism or gambling rules could significantly impact revenue. Recovering mass-market visitor volumes remain the key growth driver going forward.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-5.6% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+41.6% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

0.1%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$1.0B cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Melco Resorts & Entertainment Limited's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

24.4%

Thin — 24.4% gross margin

Profit after running costs

Operating Margin

10.3%

Modest — 10.3% operating margin

Return on the money invested

ROCE

2.4%

Weak — 2.4% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales growth

Sales YoY

+6.1%

Slow sales growth (+6.1% YoY)

Profit growth

EPS YoY

+346.6%

Earnings growing fast (+346.6% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

7/8 quarters

Every recent quarter grew earnings vs last year

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Profit that turns into cash

Cash Conversion

Weak — only 0% of profit becomes cash

Spare cash per sale

FCF Margin

0.0%

Thin free cash flow (0.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

What it owes vs what it owns

Debt / Equity

N/A

—

Data not available

Covers its interest

Interest Cover

1.41x

Dangerous — barely covers interest (1.4x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

Price vs profit

P/E Ratio (TTM)

9.2x

Attractive valuation — P/E 9.2

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

+1.0

GROWING

Earnings roughly flat

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Not applicable for this business.

🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.

Start free trial