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MLCO

๐Ÿ›๏ธ Consumer Cyclical

Melco Resorts & Entertainment Limited

Conservative #841Aggressive #576Moderate RiskFโ†‘ 22pt
$5.89-0.14%
Day High$6.00
Day Low$5.80
Volume2.3M
Mkt Cap$2.3B
52W Low $552W High $10
Market Cap
$789M
P/E Ratio
4.3
Sector avg: 36.9
Rev Growth
11.3%
Sector avg: 6.3%
Earnings Growth
325.0%
Profit Margin
3.6%
Sector avg: -6.5%
Debt/Equity
N/A

Why This Score

MLCO scores 41.9 on the Conservative profile, blending a fundamental score (80% weight, emphasizing quality and stability (84% of fundamental weight)) with a machine-learning signal (20% weight) trained on 82 features across 30 years of data.

Strengths
  • Attractively valued at 4.3x earnings, below the market average.
  • Minimal leverage (D/E -5.64) provides financial flexibility and downside protection.
Risk Factors
  • Above-average volatility (14.1%) may not suit conservative risk tolerance.

Moderate penalties (-7.8 points) reflect identified risk factors. The overall score balances these against the stock's fundamental strengths.

Score Breakdown

Overall Score41.9
Fundamental Score46.5
ML Score38.0

Score by Horizon

3 Month
51.5
6 Month
57.6
Primary
1 Year
60.6

Quality Assessment

F
Earnings Grade
Quality flags triggered โ€” see details below

Position Sizing

Suggested Allocation
5%
Confidence
medium

Score Composition Waterfall

How each component affects the final score
Backtested Scoring Levers (IC-calibrated from 30y ElasticNet)
Weinstein (12.1%)
0
Declining
Sentiment (2.5%)
70
Positive
Analyst (6.4%)
72
Favorable
Tradability (post-hoc)
82
Grade A
Base
44.8
SHAP
-1.6
Factors
+1.0
Conviction
-2.3
Final
41.9
Positive adjustment
Negative adjustment
Base blend
Final score

Signal SegmentsComputed from ML features

Fundamental (Valuation, Quality, Growth)66.0
Technical (Momentum, Weinstein, Volatility)38.0
External (Sentiment, Analyst, Macro)86.0
Scores below 50 indicate weakness in that segment relative to the universe.

Data Quality

Score
Features
Confidence
Feature Coverage89%

Growth Estimates

Short-term
-2.5% to +1.6%
Medium-term
-3.1% to +2.9%
Long-term
-3.9% to +4.1%

ML Model Core Features100 trained inputs โ†’ ML Score: 38

These features are direct inputs to the machine learning model. The model was trained on these signals alongside 100 features (including 12 momentum/technical indicators) to produce the ML percentile score.

Analyst Intelligence
Consensus Score72.2/100
Target Upside+62.3%
Coverage18 analysts
Market Sentiment
Sentiment Score69.9/100
News Volume1 articles
Technical Stage
Weinstein Stage4 โ€” Declining
12M Momentum-0.0%
6M Momentum-0.4%
Volatility+0.1%
Momentum & Technical
Momentum Acceleration+43.8%
Momentum ConsistencyWeak (0.01)
Relative Strength vs Sector-1.6%
Trend Strength (ADX Proxy)Weak (0.0)
Momentum Quality-0.003
Momentum BreadthNarrow
Macro Regime
Bull RegimeYes
High Vol RegimeNo
S&P 500 Return+25.0%
Yield Curve-0.1bp

Sector-Relative AnalysisIn-model features

Value Trap Signal
3%
Low risk
Sector RevGr Rank
P78
Revenue growth vs Consumer Cyclical peers
Sector PE Rank
P99
Valuation vs Consumer Cyclical peers
Sector FCF Rank
P15
Free cash flow vs Consumer Cyclical peers
Growth Deviation
+0.4ฯƒ
Z-score vs sector median
Stagnation Flag
NO
Not flagged

Analysis Signals

Scoring Factors
Fundamental score of 47 relative to sector peers47/100
Machine learning ensemble ranks this stock at the 38th percentileP38
Blended score: 80% fundamental (47) + 20% ML (38) = 44.844.8
Risk assessment: low. Low vol 0.1%; Drawdown 44% โ†’ 0.0ptLow
Earnings quality grade F: quality flags triggered โ€” see details below. Score adjusted by 0 pointsGrade F
Conviction adj: -2.3pt (conviction=N/A)Conviction
Risk Factors

No risk factors identified.

Sector Peer Comparison(Consumer Cyclical โ€” Rank #78 of 114 stocks)

StockScoreP/ERev GrowthMarginMkt Cap
MLCO41.94.311.3%3.6%$789M
MAR76.937.24.3%9.9%$93.0B
ULTA75.526.20.8%10.6%$31.0B
ABNB75.530.110.3%20.5%$81.8B
ORLY73.132.55.7%14.3%$77.0B
HAS73.016.7-17.3%9.3%$14.1B
GTX71.611.83.1%8.6%$4.0B
ROST71.530.73.7%9.9%$66.4B
DPZ71.121.95.1%12.4%$13.7B
CART69.719.911.0%13.5%$9.9B
EBAY69.618.31.7%19.3%$39.7B
GNTX68.314.30.6%17.5%$5.2B
MCRI66.217.24.4%18.6%$1.8B
CASY65.541.07.3%3.4%$25.2B
AMZN65.527.712.4%10.8%$2.2T
TXRH65.227.616.0%8.1%$12.2B
Sector Average47.336.96.3%-6.5%โ€”

Market Sentimentvia FMP

Analyst Consensus
Buy18 analysts
Buy: 16Hold: 2
Price Target
$10consensus
Low $10Median $10High $10
+61.2% to consensus target

Company Overviewvia FMP

Melco Resorts & Entertainment Limited develops, owns, and operates casino gaming and resort facilities in Asia and Europe. It owns and operates City of Dreams, an integrated casino resort that has approximately 511 gaming tables and 572 gaming machines; approximately 770 rooms, and suites and villas; approximately 25 restaurants and bars, and 165 retail outlets; and health and fitness clubs, three swimming pools, spa and salons, and banquet and meeting facilities. The company also operates Altira Macau, a casino hotel, which has approximately 101 gaming tables and 121 gaming machines; 230 hotel rooms; various dining and casual restaurants, and recreation and leisure facilities; and various non-gaming amenities comprising a spa, gymnasium, outdoor garden podium, and sky terrace lounge. In addition, it operates Studio City, a cinematically themed integrated resort with gaming facilities, hotel, entertainment, retail, and food and beverage outlets that comprises 290 gaming tables and 645 gaming machines in Cotai, Macau. Further, the company owns and operates seven Mocha Clubs with 813 gaming machines, as well as Grand Dragon casino in Taipa Island, Macau. Additionally, it operates and manages City of Dreams Manila, an integrated resort in the Entertainment City complex in Manila; a casino in Limassol and three satellite casinos in Nicosia, Ayia Napa, and Paphos in Cyprus. 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 headquartered in Central, Hong Kong. Melco Resorts & Entertainment Limited is a subsidiary of Melco Leisure and Entertainment Group Limited.

CEO
Yau Lung
Employees
21,784
Beta
0.58
Industry
Gambling, Resorts & Casinos
FMP-Identified Peers

Technical Picturecomputed from daily prices

RSI (14)
46.3
Neutral
Trend
Bearish
10-day vs 50-day MA
From 52W High
-41.9%
High: $10.15
From 52W Low
+29.6%
Low: $4.55
Moving Averages
10-Day
$5.80
Above
20-Day
$6.00
Below
50-Day
$6.70
Below
200-Day
$7.90
Below
60-Day Support
$5.22
60-Day Resistance
$9.53
Weinstein Stage Analysisbased on 200-day SMA framework
Stage 4 โ€” DecliningScore: 20/100

Stock is in a downtrend below the 200-day moving average. Price is below both the 50-day and 200-day SMAs, indicating sustained selling pressure.

Unfavorable technical position; wait for Stage 1 basing
Price vs 200 SMA
-25.4%
200 SMA Slope (60d)
+6.51%
Rising
Volume Ratio
1.38x
10d avg vs 50d avg
Days in Stage
40
Confidence: 40%

Financial Statementslast 4 quarters via FMP

MetricQ4 2025Q3 2025Q2 2025Q1 2025
Revenue$1.3B$1.3B$1.3B$1.2B
Gross Profit$474M$508M$457M$459M
Operating Income$146M$185M$125M$145M
Net Income$61M$75M$17M$33M
EPS (Diluted)$0.15$0.19$0.04$0.08
Gross Margin36.7%38.8%34.4%37.3%
Operating Margin11.3%14.1%9.4%11.8%
Net Margin4.7%5.7%1.3%2.6%

Why This Stock

Consumer CyclicalP/E ratio of 4.3Revenue growth 11.3%Valuation below sector median (P/E 4.3)

Tradability FilterGrade A โ€” 82/100Score impact: -14.5pt

Volume
100
2.1M avg/day
Dollar Vol
65
$12M/day
Float
100
121M shares
Mkt Cap
35
$789M
Range
100
123% spread
Composite Liquidity Score82/100
FDCBA

Growth Projection Adjustment

0.7x dampening
weinstein basing

Growth estimates have been dampened based on technical and fundamental signals. This is a post-hoc adjustment to prevent overly optimistic projections for stocks showing declining momentum or deteriorating fundamentals.

Free Float
92.9%
Outstanding Shares
130M
Bid-Ask Spread
123.0%
Institutional Tradable
Yes

Scores are generated by a multi-stage ML pipeline combining fundamental analysis, ensemble predictions, and structural risk signals. All data is for research purposes only and does not constitute financial advice. Past performance does not guarantee future results.