Melco Resorts and EntertainmentSTU:MAS 70 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates STU:MAS with a GF Score™ of 70/100 and a GF Value™ of €7.11 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 797 Travel & Leisure companies, Melco Resorts and Entertainment ranks better than 99.87% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Melco Resorts and Entertainment's annualized net income for the quarter that ended in Mar. 2026 was €266 Mil. Melco Resorts and Entertainment's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €-1,773 Mil. Therefore, Melco Resorts and Entertainment's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Melco Resorts and Entertainment's Return-on-Tangible-Equity or its related term are showing as below:
STU:MAS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -159.52 Med: 17.72 Max: 28.09
Current: Negative Tangible Equity
During the past 13 years, Melco Resorts and Entertainment's highest Return-on-Tangible-Equity was 28.09%. The lowest was -159.52%. And the median was 17.72%.
STU:MAS's Return-on-Tangible-Equity is ranked better than 99.87% of 797
companies
in the Travel & Leisure industry
Industry Median: 7.54
vs STU:MAS: Negative Tangible Equity
Melco Resorts and Entertainment (STU:MAS) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Melco Resorts and Entertainment Return-on-Tangible-Equity Related Terms
Melco Resorts and Entertainment Return-on-Tangible-Equity 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 Resorts and Entertainment Return-on-Tangible-Equity Chart
STU:MAS vs LVS, MGM, WYNN: Return-on-Tangible-Equity Comparison
For the Resorts & Casinos subindustry, Melco Resorts and Entertainment's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Melco Resorts and Entertainment's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Melco Resorts and Entertainment's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Melco Resorts and Entertainment (STU:MAS) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Melco Resorts and Entertainment and its competitors. According to the industry distribution chart, Melco Resorts and Entertainment ranks #1 out of 797 companies in the Travel & Leisure industry, placing it in the top 0.099999999999994%.
Is Melco Resorts and Entertainment's Return-on-Tangible-Equity too high?
Melco Resorts and Entertainment's current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Melco Resorts and Entertainment ranks #1 out of 797 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Melco Resorts and Entertainment has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Melco Resorts and Entertainment's Return-on-Tangible-Equity compare to LVS and MGM?
According to the Travel & Leisure industry distribution chart, Melco Resorts and Entertainment ranks #1 out of 797 companies for Return-on-Tangible-Equity. This places Melco Resorts and Entertainment in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.54. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Travel & Leisure company?
The median Return-on-Tangible-Equity among Travel & Leisure companies is 7.54, based on 797 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Melco Resorts and Entertainment and its competitors. For the Travel & Leisure industry, the median Return-on-Tangible-Equity is 7.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melco Resorts and Entertainment's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 (STU:MAS) is currently considered Possible Value Trap. The stock's GF Value™ is €7.11, compared to a current price of €4.70 — trading 33.9% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Melco Resorts and Entertainment's overall GF Score™ is 70/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Melco Resorts and Entertainment (STU:MAS), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 (STU:MAS) Overvalued in 2026?
Based on GuruFocus' analysis, Melco Resorts and Entertainment stock appears to be undervalued.
The current stock price of €4.70 is trading 33.9% below its estimated GF Value™ of €7.11.
GuruFocus considers Melco Resorts and Entertainment to be Possible Value Trap.
No single metric tells the full story. See the STU:MAS 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.
70GF Score
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