U.S. markets close in 27 minutes
  • S&P 500

    3,370.95
    +7.95 (+0.24%)
     
  • Dow 30

    27,733.41
    -48.29 (-0.17%)
     
  • Nasdaq

    11,296.79
    +129.28 (+1.16%)
     
  • Russell 2000

    1,527.90
    +20.21 (+1.34%)
     
  • Crude Oil

    38.58
    -1.64 (-4.08%)
     
  • Gold

    1,912.50
    +17.00 (+0.90%)
     
  • Silver

    24.00
    +0.51 (+2.15%)
     
  • EUR/USD

    1.1748
    +0.0022 (+0.19%)
     
  • 10-Yr Bond

    0.6770
    0.0000 (0.00%)
     
  • GBP/USD

    1.2886
    -0.0035 (-0.27%)
     
  • USD/JPY

    105.5330
    +0.1030 (+0.10%)
     
  • BTC-USD

    10,611.00
    -185.03 (-1.71%)
     
  • CMC Crypto 200

    227.69
    +3.99 (+1.78%)
     
  • FTSE 100

    5,879.45
    +13.35 (+0.23%)
     
  • Nikkei 225

    23,185.12
    0.00 (0.00%)
     

Is Monarch Casino & Resort, Inc. (NASDAQ:MCRI) Potentially Underrated?

Simply Wall St

Monarch Casino & Resort, Inc. (NASDAQ:MCRI) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of MCRI, it is a company with a excellent future outlook, which has not yet been priced into the stock. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Monarch Casino & Resort here.

Good value with reasonable growth potential

MCRI is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Compared to the rest of the consumer services industry, MCRI is also trading below its peers, relative to earnings generated. This supports the theory that MCRI is potentially underpriced.

NasdaqGS:MCRI Past and Future Earnings, September 20th 2019
NasdaqGS:MCRI Past and Future Earnings, September 20th 2019

Next Steps:

For Monarch Casino & Resort, there are three pertinent aspects you should look at:

  1. Historical Performance: What has MCRI's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  2. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

  3. 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.