Stock analysis · Bull Rankings model

MLCO analysis

Melco Resorts & Entertainment LimitedResorts & Casinos. Scored on the same transparent model behind the daily rankings.

MLCO
Melco Resorts & Entertainment Limited · Resorts & Casinos
FCF$809mC+
Rev+11.3%B
D/E
P/E9.9xA
PEG0.37A
66.9Score
$5.73$2.2B
1Y Target$7.57Analyst consensus · 12 analysts
5Y Target$9.55Compound horizon
10Y Target$12.25Long-dated conviction
FCF$809mTTM
C+
FCF $809m — respectable but not differentiating
Rev+11.3%TTM YoY
B
Revenue +11.3% — at or above S&P median
D/E
D/E data unavailable — neutral default
P/E9.9x
A
P/E 9.9 — cheapest decile in Consumer Cyclical (≈10th pctile)
PEG0.37
A
PEG 0.37 — exceptional; paying well under fair value for growth

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 66.9
Quality0.64
Growth0.50
Value0.94
Why this score
  • Buying back stock
  • Cyclical growth
  • Short track record
Entry · Margin of safety
52-week rangeNear 52-week low
44% off the 12-month high
vs DCF fair value92% belowest. fair value ~$74
What the price assumes: outright free-cash-flow decline for the next decade — vs the ~25% a year our model projects from current growth and analyst estimates.
Why now
Resorts & Casinos · market cap $2.2b. Down 44% from 52-week high of $10.15 — deep drawdown territory. Revenue growing +11%, comfortably above the S&P median. PEG 0.37 — paying under fair value for the growth rate. 12 sell-side analysts rate this a Buy with a mean 1-yr target of $7.57 (implying +32% upside).
Moat
Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong.
Risk
Down 44% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Net margin 3.6% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first. ROE -15% is below the long-run sustainable threshold of ~10% — capital efficiency would need to improve for the equity base to compound at the market rate.
Horizon
1-3 yr $7.57 (12-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $9.55 at ~11% CAGR — dividend + buyback compounding. 10 yr $12.25 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

MLCO vs the Top Picks average

PillarMLCOBook avgDiff
Quality0.640.82-0.18
Growth0.500.90-0.40
Value0.940.75+0.18

Averaged across the 30 names in today's Top Picks (mean score 81.8). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
+0.1 over 32 daily scores
From 66.6 (Jun 22) → 66.7 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
349
Position size
$2,000
4.0% of portfolio
Stop price
$4.30
25% below $5.73
$ at risk if stopped
$499.94
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Melco Resorts & Entertainment Limited (MLCO): score, valuation & FAQ

Melco Resorts & Entertainment Limited (MLCO) is a Resorts & Casinos company that scores 66.9 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are P/E (A) and PEG (A). On valuation, MLCO sits about 92% below our discounted-cash-flow fair value (a margin of safety) — the current price implies outright free-cash-flow decline over the next decade.

Is MLCO a good stock to buy?

Bull Rankings scores MLCO 66.9 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by P/E (A) and PEG (A). A score is a quantitative screen of Melco Resorts & Entertainment Limited's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does MLCO score 66.9 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). MLCO earns its highest marks on P/E (A) and PEG (A). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is MLCO overvalued or undervalued?

Based on $5.73, MLCO sits about 92% below our discounted-cash-flow fair value (a margin of safety) — the current price implies outright free-cash-flow decline over the next decade. It trades at a 9.9x× P/E (graded A). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in MLCO?

Down 44% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Net margin 3.6% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first. ROE -15% is below the long-run sustainable threshold of ~10% — capital efficiency would need to improve for the equity base to compound at the market rate.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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