Melco Resorts & Entertainment Limited develops, owns, and operates casino gaming and resort facilities in Macau, the Philippines, Cyprus, and internationally.
FAIL · Does not pass the screen
4.56 USD
Price as of 5 Nov 2026Daily close, not a live quote
Screened 2026-11-05 · the tape above runs as of 02:02 UTC · two dates, stated on purpose · verdict and workings shown in full · never trimmed
Key facts today
Price4.56 USD at the 5 Nov 2026 close
Our value readUndervalued vs our fair value, as of 5 Nov 2026
Positioning no disclosures inside 60 days, left as found
Options put/call open interest 0.65, read 2026-11-02
Ethical does not pass the values gate
Price4.56 USD
Fair value6.25
Ethical score30.0/100
Value readUndervaluedas of 5 Nov 2026
Our investment reviews on this name
2026-09-05Read Markdown5.48-16.8% to today ✓Accumulation gives way to Markdown
2026-07-02Read Accumulation5.50-17.1% to today First review on file: Accumulation
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Melco Resorts & Entertainment Limited holds its Markup at $4.56. Elevated stress, defensive posture warranted, held for 52 days.
As held on the ledger · 2026-11-05
Phase
Markup
Quantitative state
Elevated stress, defensive posture warranted, held for 52 days
Price at the screen
$4.56
Valuation
6.36 trailing · 6.19 forward price to earnings
Values screen
FAIL· score 30.0
Beta
0.48
The Workings
Five Screens, Shown in Full
Does not pass. Prohibited keyword in sector/industry: casino
Test
Figure
Limit
What it means
Status
Business activity
Excluded
Core business clean
Prohibited keyword in sector/industry: casino
Fail
Debt load
Excluded
Below 33%
Interest-bearing debt is of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
Excluded
Below 33%
Interest-bearing cash and securities are of assets, above the one-third limit.
Fail
Receivables
Excluded
Below 49%
Money owed to the company is of assets, above the 49% limit.
Fail
Revenue purity
Excluded
Below 5%
of revenue comes from non-compliant sources, over the 5% line.
Fail
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Melco Resorts & Entertainment does not clear the screen at the business-activity stage. It operates in gambling, so the financial ratios are not the deciding factor here.
Read as at 2026-11-05. It updates when the underlying figures move, and past reads are kept below.
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Get an email when MLCO's ethical verdict changes
Today MLCO does not pass the screen. If new figures move it to a pass, we send you one short email with the before and after. Verdicts change rarely, so you may not hear from us for a long time.
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What the Numbers Say It Is Worth
The Fair Value Range
Our analysis reads Undervalued vs our fair value, as of 5 Nov 2026: it trades at roughly a 27% discount to our $6.25 fair value.
Fair value range in USD, drawn from the 2026-11-05 screen. The gold marker is the market price at the same screen. A 27.0% discount to the base estimate.
Where our models see it going: fair-value estimate $6.25, with a range of $4.85 to $7.88, dated to the 2026-11-05 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Casinos Might Look Cheap But Ethics Say No
Picture a gambler chasing a hot streak in Macau. The tables are busy again and revenue is climbing 11 percent, yet the ethical screen flags the entire casino sector as off limits for us. That single rule overrides any spreadsheet appeal and keeps us on the sidelines regardless of the numbers.
The shares trade at a forward multiple of 6.7 times earnings with a 4 percent profit margin and an analyst target around 8 dollars. Our own fair value sits higher at 10 dollars, but the opportunity rating stays at none because the ethical fail is absolute and the business sits inside a heavily cyclical industry.
Low multiples in resorts and casinos often signal peak earnings rather than bargains, and currency swings plus regulatory risk in Asia add further volatility. Profitability remains thin even after the recovery. Analysis, not advice.
Another profit measure, before interest, tax and non-cash costs: EBITDA.
The risks · The things to watch: it's a small-cap, so the share price can swing harder than the market; its business and earnings are exposed to Hong Kong and to currency swings.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
MLCO trades on Nasdaq (the company is based in Hong Kong). As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-11-04Markdown$4.20+12.0%Entry 10
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved up 12.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 12%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (12 analysts) rates it buy, with a mean price target of $8.
2026-10-28Markdown$3.75-11.6%Entry 9
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 11.6% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 12%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (12 analysts) rates it buy, with a mean price target of $8.
2026-10-21Markdown$4.24+0.0%Entry 8
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading oversold. Over the past year the shares are down 12%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (12 analysts) rates it buy, with a mean price target of $8.
2026-10-14Markdown$4.24-9.2%Entry 7
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 9.2% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 12%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (12 analysts) rates it buy, with a mean price target of $8.
2026-10-02Markdown$4.67-14.8%Entry 6
Our analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 14.8% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 12%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (12 analysts) rates it buy, with a mean price target of $8.
2026-09-05Markdown · changed$5.48-1.8%Entry 5
The framework has shifted from accumulation to markdown since the last review. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 1.8% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 12%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (12 analysts) rates it buy, with a mean price target of $8.
2026-08-05Accumulation$5.58+1.5%Entry 4
Our analysis reads accumulation. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved up 1.5% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 12%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (12 analysts) rates it buy, with a mean price target of $8.
2026-07-18Accumulation$5.50+0.0%Entry 3
Our analysis reads accumulation. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading neutral. Over the past year the shares are down 12%. Our forward projection puts the odds of a 10% gain over the next month near 20%. The street (12 analysts) rates it buy, with a mean price target of $8.
2026-07-03Accumulation$5.50+0.0%Entry 2
Our analysis reads accumulation. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns.
2026-07-02Accumulation$5.50Entry 1
Our analysis reads accumulation. Smart money appears to be quietly building positions. This typically precedes a markup phase. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
