Brief Commentary On Monarch Casino & Resort, Inc.’s (NASDAQ:MCRI) Fundamentals
I’ve been keeping an eye on Monarch Casino & Resort, Inc. (NASDAQ:MCRI) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe MCRI has a lot to offer. Basically, it is a financially-sound company with an impressive track record and a buoyant growth outlook. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Monarch Casino & Resort here.
Proven track record with reasonable growth potential
Over the past year, MCRI has grown its earnings by 34%, with its most recent figure exceeding its annual average over the past five years. Not only did MCRI outperformed its past performance, its growth also surpassed the Hospitality industry expansion, which generated a 16% earnings growth. This paints a buoyant picture for the company.
MCRI’s debt-to-equity ratio stands at 31%, which means its debt level is reasonable. This implies that MCRI has a healthy balance between taking advantage of low cost debt funding as well as sufficient financial flexibility without succumbing to the strict terms of debt. MCRI seems to have put its debt to good use, generating operating cash levels of 0.63x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
Next Steps:
For Monarch Casino & Resort, I’ve compiled three essential aspects you should further examine:
Valuation: What is MCRI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether MCRI is currently mispriced by the market.
Dividend Income vs Capital Gains: Does MCRI return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from MCRI as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MCRI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
