| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 95 | 8.3x | 17.8x | Top tier | |
Growth | 80 | 6.1% | 7.1% | Top tier | |
Quality | 61 | 10.8% | 4.5% | Around median | |
Safety | 20 | 5.5x | 2.6x | Bottom tier | |
Capital Return | 45 | 0.00% | 2.12% | Around median | |
Momentum | 11 | -44.2% | 2.9% | Bottom tier | |
Sentiment | 74 | 6 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Melco Resorts & Entertainment Limited operates integrated resorts combining casino gaming, hospitality, entertainment, and retail in Macau, Manila, Cyprus, and Sri Lanka. Its core business relies on attracting gaming visitors, particularly premium customers, while supporting spending through hotels, restaurants, shows, and stores; at City of Dreams Macau, the company added REM, opened a new gaming area with 18 tables at the end of July 2026, and began redesigning the retail areas. Outside Macau, City of Dreams Manila generated property-level adjusted earnings before interest, taxes, depreciation, and amortization of $31 million, Sri Lanka operations recorded a positive $3.5 million, while the same metric in Cyprus increased by 60% year over year during Q2 FY2026.
In Q2 FY2026, revenue reached $1.252 billion and earnings per share were $0.06, with earnings falling short of analysts’ expectations amid weak gaming demand. The group’s property-level adjusted earnings before interest, taxes, depreciation, and amortization were approximately $304 million, or approximately $312 million after adjusting for the effect of premium-player hold; the unfavorable win rate at City of Dreams Macau reduced this metric by approximately $9 million, after the premium-player gaming win rate declined from 3.9% in Q2 FY2025 to 2.7% in Q2 FY2026. Lower visitation and a win rate below previous quarters also pressured margins, despite daily operating expenses in Macau remaining stable at approximately $3.4 million.
On an annual basis, revenue increased from $3.8 billion in FY2023 to $4.6 billion in FY2024 and then to $5.2 billion in FY2025. Net income shifted from a loss of $326.9 million in FY2023 to a profit of $43.5 million in FY2024, then increased to $185.0 million in FY2025, with earnings per share rising from $0.034 to $0.154 between FY2024 and FY2025. These figures reflect a clear financial recovery, but Q2 FY2026 results showed that earnings remain sensitive to fluctuations in visitation, gaming volume, and the win rate in Macau.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $6.88, within a wide range of $6 to $8.5, and the stock carries a consensus “Buy” rating; the average is below the 52-week range high of $10.15, while the low end of that range is $5.035. No meaningful price-to-earnings ratio is available in the data, so the valuation rests on the recovery in net income to $185.0 million in FY2025 against the risks of weak demand, margin pressure, and the postponement of dividends to 2027.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Revenue reached $1.252 billion and earnings per share were $0.06 in Q2 FY2026, with earnings falling short of analysts’ expectations. The data attributed the weakness to lower gaming demand, while management said the World Cup captured part of some customers’ spending in June and July 2026. The premium-player gaming win rate at City of Dreams Macau also declined from 3.9% to 2.7% year over year, reducing property-level adjusted earnings by approximately $9 million.
REM began its soft opening at City of Dreams Macau, and the company scheduled its official opening for after Golden Week in October 2026. Management describes it as a luxury product that differs from traditional hotel offerings and believes it complements the integrated resort experience. Melco also opened a new gaming area with 18 tables near the southwestern entrance at the end of July 2026, following a 15-table area near Grand Hyatt that opened in October 2025.
City of Dreams Manila generated property-level adjusted earnings before interest, taxes, depreciation, and amortization of $31 million in Q2 FY2026, an increase of 9% year over year. In Cyprus, the same metric increased by 60% despite disruptions related to tensions in the Middle East. Casino operations in Sri Lanka recorded a positive $3.5 million, with the strategy of gradually ramping up activity continuing through the remainder of 2026.
Available liquidity was approximately $2.8 billion, and consolidated cash was approximately $1 billion at the end of Q2 FY2026. The company extended the maturity of its revolving credit facility from April 2027 to June 2031 and increased its size by approximately $821 million to $2.8 billion. However, it expected net interest expense of between $115 million and $120 million in Q3 FY2026, and as of August 13, 2026, it had not made a final decision on addressing the MLCO notes due in 2027.
Management said on August 13, 2026, that it expects to resume dividends sometime in 2027, after the previous expectation had indicated the end of 2026. The company did not specify a target amount and explained that it wants the dividends to be meaningful rather than symbolic. During 2026 through August 12, Melco repurchased approximately 25 million American depositary shares for nearly $134 million, prioritizing repurchases over dividends in its capital allocation decisions.
Melco began redesigning the retail areas to create a connected pathway and a more selective mix of luxury brands within City of Dreams Macau. Management said the work would cause significant construction disruption in various parts of the property through June 2027 and that some impact on guests could not be avoided. In return, the company expects the completed project to produce a more innovative retail experience, but the implementation period could pressure visitation and spending before the benefits emerge.
