Melco Resorts and EntertainmentMEX:MLCON 57 Interest Coverage is 1.60 as of Mar. 2026, which is 14% above its 10-year median of 1.40. GuruFocus rates MEX:MLCON with a GF Score™ of 57/100 and a GF Value™ of MXN216.26 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 609 Travel & Leisure companies, Melco Resorts and Entertainment ranks worse than 83.58% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Melco Resorts and Entertainment's
Operating Income
for the
three
months ended in Mar. 2026 was MXN3,233 Mil. Melco Resorts and Entertainment's Interest Expense for the
three
months ended in Mar. 2026 was MXN-2,016 Mil.
Melco Resorts and Entertainment's interest coverage for the quarter that ended in Mar. 2026 was 1.60.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Melco Resorts and Entertainment Ltd interest coverage is 1.47, which is low.
The historical rank and industry rank for Melco Resorts and Entertainment's Interest Coverage or its related term are showing as below:
MEX:MLCON'
s Interest Coverage Range Over the Past 10 Years
Min: 0.22 Med: 1.4 Max: 2.41
Current: 1.47
MEX:MLCON's Interest Coverage is ranked worse than 83.58% of 609
companies
in the Travel & Leisure industry
Industry Median: 5.35
vs MEX:MLCON: 1.47
Melco Resorts and Entertainment (MEX:MLCON) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Melco Resorts and Entertainment Interest Coverage Related Terms
Melco Resorts and Entertainment Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
Melco Resorts and Entertainment Interest Coverage Chart
MEX:MLCON vs MCRI, PENN, VAC: Interest Coverage Comparison
For the Resorts & Casinos subindustry, Melco Resorts and Entertainment's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Resorts and Entertainment Interest Coverage vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Melco Resorts and Entertainment's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Melco Resorts and Entertainment's Interest Coverage falls into.
Melco Resorts and Entertainment Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 Resorts and Entertainment (MEX:MLCON) has a Interest Coverage of 1.60 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Melco Resorts and Entertainment and its competitors. This is 14% above median its historical median of 1.40. Over the past decade, Melco Resorts and Entertainment's Interest Coverage has ranged from 0.22 to 2.41. According to the industry distribution chart, Melco Resorts and Entertainment ranks #509 out of 609 companies in the Travel & Leisure industry, placing it in the top 83.6%.
Is Melco Resorts and Entertainment's Interest Coverage too high?
Melco Resorts and Entertainment's current Interest Coverage of 1.60 is 14% above median its 10-year median of 1.40. Over the past 10 years, this metric has ranged from a low of 0.22 to a high of 2.41. The Travel & Leisure industry median Interest Coverage is 5.35. Melco Resorts and Entertainment's value of 1.60 is 70.1% below this industry median. Based on the distribution chart, Melco Resorts and Entertainment ranks #509 out of 609 companies in the Travel & Leisure industry, which is in the bottom quartile relative to peers. Overall, Melco Resorts and Entertainment has a GF Score™ of 57/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Melco Resorts and Entertainment's Interest Coverage compare to MCRI and PENN?
According to the Travel & Leisure industry distribution chart, Melco Resorts and Entertainment ranks #509 out of 609 companies for Interest Coverage. This places Melco Resorts and Entertainment in the lower half of its industry. The industry median Interest Coverage is 5.35. Melco Resorts and Entertainment's value of 1.60 is 70.1% below this benchmark. Historically, Melco Resorts and Entertainment's own Interest Coverage has ranged from 0.22 to 2.41 over the past decade. While the company's 10-year median is 1.40 vs. the industry median of 5.35, Melco Resorts and Entertainment 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 Interest Coverage for a Travel & Leisure company?
The median Interest Coverage among Travel & Leisure companies is 5.35, based on 609 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Melco Resorts and Entertainment's current Interest Coverage of 1.60 is 70.1% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Melco Resorts and Entertainment and its competitors. For the Travel & Leisure industry, the median Interest Coverage is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melco Resorts and Entertainment's current Interest Coverage is 1.60, which is 14% above median its own 10-year median of 1.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Melco Resorts and Entertainment stock overvalued right now?
Based on GuruFocus' analysis, Melco Resorts and Entertainment (MEX:MLCON) is currently considered Possible Value Trap. The stock's GF Value™ is MXN216.26, compared to a current price of MXN94.00 — trading 56.5% below its estimated fair value. The current Interest Coverage is 1.60, which is 14% above median its 10-year median of 1.40 and 70.1% below the Travel & Leisure industry median of 5.35. Melco Resorts and Entertainment's overall GF Score™ is 57/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Melco Resorts and Entertainment (MEX:MLCON), the current Interest Coverage is 1.60 as of Mar. 2026. 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 Resorts and Entertainment (MEX:MLCON) Overvalued in 2026?
Based on GuruFocus' analysis, Melco Resorts and Entertainment stock appears to be undervalued.
The current stock price of MXN94.00 is trading 56.5% below its estimated GF Value™ of MXN216.26.
GuruFocus considers Melco Resorts and Entertainment to be Possible Value Trap.
Key valuation signals for MEX:MLCON:
Interest Coverage: 1.60 (14% above median its 10-year median of 1.40)
GF Value™: MXN216.26 vs. price of MXN94.00 (56.5% below fair value)
Industry Position: 70.1% below the Travel & Leisure median (#509 of 609)
No single metric tells the full story. See the MEX:MLCON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Melco Resorts and Entertainment Business Description
Melco Resorts & Entertainment is one of only six licensed casino operators in Macao. It operates Altira, a complex focused on premium customers; City of Dreams, an integrated resort in Cotai serving both mass-market and premium patrons; and Mocha Clubs' electronic gaming machines. The company also has a majority interest in Studio City, which opened in 2015. Outside Macao, Melco owns City of Dreams Manila in the Philippines and City of Dreams Mediterranean in Cyprus. The business mix in terms of adjusted EBITDA was about 84% from Macao, with the rest from overseas as of 2025.
57GF Score
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