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Melco International DevelopmentMDEVY 73 Gross Margin % is 41.28% as of Dec. 2025, which is 31% above its 10-year median of 31.44. GuruFocus rates MDEVY with a GF Score™ of 73/100 and a GF Value™ of $2.87 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 792 Travel & Leisure companies, Melco International Development ranks worse than 57.07% on this metric.
Melco International Development (OTCPK:MDEVY) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Melco International Development had a gross margin of 41.28% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Melco International Development Gross Margin % Related Terms
Melco International Development Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Melco International Development Gross Margin % Chart
MDEVY vs LVS, MGM, WYNN: Gross Margin % Comparison
For the Resorts & Casinos subindustry, Melco International Development's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Melco International Development Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Melco International Development's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Melco International Development's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Melco International Development (MDEVY) has a Gross Margin % of 41.28% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Melco International Development and its competitors. This is 31% above median its historical median of 31.44. Over the past decade, Melco International Development's Gross Margin % has ranged from 8.25 to 39.36. According to the industry distribution chart, Melco International Development ranks #452 out of 792 companies in the Travel & Leisure industry, placing it in the top 57.1%.
Is Melco International Development's Gross Margin % too high?
Melco International Development's current Gross Margin % of 41.28% is 31% above median its 10-year median of 31.44. Over the past 10 years, this metric has ranged from a low of 8.25 to a high of 39.36. The Travel & Leisure industry median Gross Margin % is 43.57. Melco International Development's value of 41.28% is 5.3% below this industry median. Based on the distribution chart, Melco International Development ranks #452 out of 792 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Melco International Development has a GF Score™ of 73/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Melco International Development's Gross Margin % compare to LVS and MGM?
According to the Travel & Leisure industry distribution chart, Melco International Development ranks #452 out of 792 companies for Gross Margin %. This places Melco International Development in the lower half of its industry. The industry median Gross Margin % is 43.57. Melco International Development's value of 41.28% is 5.3% below this benchmark. Historically, Melco International Development's own Gross Margin % has ranged from 8.25 to 39.36 over the past decade. While the company's 10-year median is 31.44 vs. the industry median of 43.57, Melco International Development has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 43.57, based on 792 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Melco International Development's current Gross Margin % of 41.28% is 5.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Melco International Development and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 43.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melco International Development's current Gross Margin % is 41.28%, which is 31% above median its own 10-year median of 31.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Melco International Development stock overvalued right now?
Based on GuruFocus' analysis, Melco International Development (MDEVY) is currently considered Possible Value Trap. The stock's GF Value™ is $2.87, compared to a current price of $2.14 — trading 25.4% below its estimated fair value. The current Gross Margin % is 41.28%, which is 31% above median its 10-year median of 31.44 and 5.3% below the Travel & Leisure industry median of 43.57. Melco International Development's overall GF Score™ is 73/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Melco International Development (MDEVY), the current Gross Margin % is 41.28% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Melco International Development (MDEVY) Overvalued in 2026?
Based on GuruFocus' analysis, Melco International Development stock appears to be undervalued.
The current stock price of $2.14 is trading 25.4% below its estimated GF Value™ of $2.87.
GuruFocus considers Melco International Development to be Possible Value Trap.
Key valuation signals for MDEVY:
Gross Margin %: 41.28% (31% above median its 10-year median of 31.44)
GF Value™: $2.87 vs. price of $2.14 (25.4% below fair value)
Industry Position: 5.3% below the Travel & Leisure median (#452 of 792)
No single metric tells the full story. See the MDEVY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Melco International Development Ltd is a developer, owner, and operator of an international network of casino gaming and entertainment resorts. Its segments are the Casino and Hospitality segment, which generates maximum revenue, comprises the operation of casinos and the provision of hospitality services and facilities through Melco Resorts. Its resorts and properties include City of Dreams Cotai, Altira Macau, and Mocha Clubs in Macau; City of Dreams Manila in the Philippines; and City of Dreams Mediterranean and Cyprus Casinos in Cyprus. The Other segment comprises investments in a joint venture and associates, and other activities. Its operations are mainly located in Macau, the Philippines, Cyprus, and other regions, with maximum revenue derived from Macau.
73GF Score
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