Melco Resorts Profit Margin vs. Price To Sales

MLCO Stock  USD 6.92  0.14  1.98%   
Based on Melco Resorts' profitability indicators, Melco Resorts' profitability may be sliding down. It has an above-average chance of reporting lower numbers next quarter. Profitability indicators assess Melco Resorts' ability to earn profits and add value for shareholders.

Melco Resorts Net Profit Margin

(0.0909)

At this time, Melco Resorts' Sales General And Administrative To Revenue is very stable compared to the past year. As of the 11th of December 2024, Operating Cash Flow Sales Ratio is likely to grow to 0.17, while Price To Sales Ratio is likely to drop 0.98. At this time, Melco Resorts' Operating Income is very stable compared to the past year. As of the 11th of December 2024, Income Tax Expense is likely to grow to about 14.1 M, while Accumulated Other Comprehensive Income is likely to drop (103.5 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.360.3137
Fairly Up
Slightly volatile
For Melco Resorts profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Melco Resorts to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Melco Resorts Entertainment utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Melco Resorts's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Melco Resorts Entertainment over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Melco Resorts. If investors know Melco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Melco Resorts listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
7.797
Earnings Share
(0.32)
Revenue Per Share
10.403
Quarterly Revenue Growth
0.155
Return On Assets
0.0375
The market value of Melco Resorts Entert is measured differently than its book value, which is the value of Melco that is recorded on the company's balance sheet. Investors also form their own opinion of Melco Resorts' value that differs from its market value or its book value, called intrinsic value, which is Melco Resorts' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Melco Resorts' market value can be influenced by many factors that don't directly affect Melco Resorts' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Melco Resorts' value and its price as these two are different measures arrived at by different means. Investors typically determine if Melco Resorts is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Melco Resorts' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Melco Resorts Entert Price To Sales vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Melco Resorts's current stock value. Our valuation model uses many indicators to compare Melco Resorts value to that of its competitors to determine the firm's financial worth.
Melco Resorts Entertainment is rated below average in profit margin category among its peers. It also is rated below average in price to sales category among its peers . At this time, Melco Resorts' Net Loss is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Melco Resorts' earnings, one of the primary drivers of an investment's value.

Melco Price To Sales vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Melco Resorts

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
(0.03) %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Melco Resorts

P/S

 = 

MV Per Share

Revenue Per Share

 = 
0.65 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Melco Price To Sales Comparison

Melco Resorts is currently under evaluation in price to sales category among its peers.

Melco Resorts Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Melco Resorts, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Melco Resorts will eventually generate negative long term returns. The profitability progress is the general direction of Melco Resorts' change in net profit over the period of time. It can combine multiple indicators of Melco Resorts, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-98.6 M-103.5 M
Operating Income65 M89.5 M
Net Loss-326.9 M-310.6 M
Income Tax Expense13.4 M14.1 M
Income Before Tax-401.9 M-381.8 M
Total Other Income Expense Net-466.9 M-443.5 M
Net Loss-837.5 M-795.6 M
Net Loss-482.6 M-458.5 M
Interest Income27.3 M20.9 M
Net Interest Income-445 M-467.2 M
Change To Netincome-19.3 M-18.4 M
Net Loss(0.75)(0.71)
Income Quality(1.90)(1.81)
Net Income Per E B T 0.81  0.73 

Melco Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Melco Resorts. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Melco Resorts position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Melco Resorts' important profitability drivers and their relationship over time.

Use Melco Resorts in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Melco Resorts position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Melco Resorts will appreciate offsetting losses from the drop in the long position's value.

Melco Resorts Pair Trading

Melco Resorts Entertainment Pair Trading Analysis

The ability to find closely correlated positions to Melco Resorts could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Melco Resorts when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Melco Resorts - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Melco Resorts Entertainment to buy it.
The correlation of Melco Resorts is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Melco Resorts moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Melco Resorts Entert moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Melco Resorts can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Melco Resorts position

In addition to having Melco Resorts in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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When determining whether Melco Resorts Entert offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Melco Resorts' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Melco Resorts Entertainment Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Melco Resorts Entertainment Stock:
Check out Correlation Analysis.
You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
To fully project Melco Resorts' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Melco Resorts Entert at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Melco Resorts' income statement, its balance sheet, and the statement of cash flows.
Potential Melco Resorts investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Melco Resorts investors may work on each financial statement separately, they are all related. The changes in Melco Resorts's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Melco Resorts's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.