ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Melco Resorts and Entertainment's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN5,542 Mil.
Melco Resorts and Entertainment's average Total Assets over the quarter that ended in Mar. 2026 was MXN135,087 Mil. Therefore, Melco Resorts and Entertainment's annualized ROA % for the quarter that ended in Mar. 2026 was 4.10%.
MEX:MLCON'
s ROA % Range Over the Past 10 Years
Min: -13.65 Med: 1.16 Max: 4.01
Current: 2.95
During the past 13 years, Melco Resorts and Entertainment's highest ROA % was 4.01%. The lowest was -13.65%. And the median was 1.16%.
MEX:MLCON's ROA % is ranked better than 53.61% of 858
companies
in the Travel & Leisure industry
Industry Median: 2.345
vs MEX:MLCON: 2.95
Melco Resorts and Entertainment (MEX:MLCON) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Melco Resorts and Entertainment ROA % Related Terms
Melco Resorts and Entertainment ROA % 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.
For the Resorts & Casinos subindustry, Melco Resorts and Entertainment's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Melco Resorts and Entertainment's ROA % distribution charts can be found below:
* The bar in red indicates where Melco Resorts and Entertainment's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Melco Resorts and Entertainment (MEX:MLCON) has a ROA % of 4.10% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Melco Resorts and Entertainment and its competitors. This is 253% above median its historical median of 1.16. According to the industry distribution chart, Melco Resorts and Entertainment ranks #398 out of 858 companies in the Travel & Leisure industry, placing it in the top 46.4%.
Is Melco Resorts and Entertainment's ROA % too high?
Melco Resorts and Entertainment's current ROA % of 4.10% is 253% above median its 10-year median of 1.16. The Travel & Leisure industry median ROA % is 2.35. Melco Resorts and Entertainment's value of 4.10% is 74.8% above this industry median. Based on the distribution chart, Melco Resorts and Entertainment ranks #398 out of 858 companies in the Travel & Leisure industry, which is above the industry midpoint. 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 ROA % compare to MCRI and PENN?
According to the Travel & Leisure industry distribution chart, Melco Resorts and Entertainment ranks #398 out of 858 companies for ROA %. This puts Melco Resorts and Entertainment in the upper half of its industry. The industry median ROA % is 2.35. Melco Resorts and Entertainment's value of 4.10% is 74.8% above this benchmark. While the company's 10-year median is 1.16 vs. the industry median of 2.35, Melco Resorts and Entertainment has consistently been above 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 ROA % for a Travel & Leisure company?
The median ROA % among Travel & Leisure companies is 2.35, based on 858 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Melco Resorts and Entertainment's current ROA % of 4.10% is 74.8% above 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Melco Resorts and Entertainment and its competitors. For the Travel & Leisure industry, the median ROA % is 2.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melco Resorts and Entertainment's current ROA % is 4.10%, which is 253% above median its own 10-year median of 1.16. 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 ROA % is 4.10%, which is 253% above median its 10-year median of 1.16 and 74.8% above the Travel & Leisure industry median of 2.35. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Melco Resorts and Entertainment (MEX:MLCON), the current ROA % is 4.10% 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:
ROA %: 4.10% (253% above median its 10-year median of 1.16)
GF Value™: MXN216.26 vs. price of MXN94.00 (56.5% below fair value)
Industry Position: 74.8% above the Travel & Leisure median (#398 of 858)
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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