Melco Resorts and EntertainmentSTU:MAS -2.13%68 ROC (Joel Greenblatt) % is 14.73% as of Mar. 2026, which is 99% above its 10-year median of 7.40. GuruFocus rates STU:MAS with a GF Score™ of 68/100 and a GF Value™ of €6.96 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 846 Travel & Leisure companies, Melco Resorts and Entertainment ranks better than 55.08% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Melco Resorts and Entertainment's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 14.73%.
The historical rank and industry rank for Melco Resorts and Entertainment's ROC (Joel Greenblatt) % or its related term are showing as below:
STU:MAS'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -19.05 Med: 7.4 Max: 12.36
Current: 12.36
During the past 13 years, Melco Resorts and Entertainment's highest ROC (Joel Greenblatt) % was 12.36%. The lowest was -19.05%. And the median was 7.40%.
STU:MAS's ROC (Joel Greenblatt) % is ranked better than 55.08% of 846
companies
in the Travel & Leisure industry
Industry Median: 10.02
vs STU:MAS: 12.36
Melco Resorts and Entertainment (STU:MAS) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
* 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 ROC (Joel Greenblatt) % Chart
STU:MAS vs LVS, MGM, WYNN: ROC (Joel Greenblatt) % Comparison
For the Resorts & Casinos subindustry, Melco Resorts and Entertainment's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Melco Resorts and Entertainment's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Melco Resorts and Entertainment's ROC (Joel Greenblatt) % falls into.
Melco Resorts and Entertainment ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 14.73% mean?
Melco Resorts and Entertainment (STU:MAS) has a ROC (Joel Greenblatt) % of 14.73% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Melco Resorts and Entertainment and its competitors. This is 99% above median its historical median of 7.40. According to the industry distribution chart, Melco Resorts and Entertainment ranks #380 out of 846 companies in the Travel & Leisure industry, placing it in the top 44.9%.
Is Melco Resorts and Entertainment's ROC (Joel Greenblatt) % too high?
Melco Resorts and Entertainment's current ROC (Joel Greenblatt) % of 14.73% is 99% above median its 10-year median of 7.40. The Travel & Leisure industry median ROC (Joel Greenblatt) % is 10.02. Melco Resorts and Entertainment's value of 14.73% is 47% above this industry median. Based on the distribution chart, Melco Resorts and Entertainment ranks #380 out of 846 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Melco Resorts and Entertainment has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Melco Resorts and Entertainment's ROC (Joel Greenblatt) % compare to LVS and MGM?
According to the Travel & Leisure industry distribution chart, Melco Resorts and Entertainment ranks #380 out of 846 companies for ROC (Joel Greenblatt) %. This puts Melco Resorts and Entertainment in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 10.02. Melco Resorts and Entertainment's value of 14.73% is 47% above this benchmark. While the company's 10-year median is 7.40 vs. the industry median of 10.02, 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 ROC (Joel Greenblatt) % for a Travel & Leisure company?
The median ROC (Joel Greenblatt) % among Travel & Leisure companies is 10.02, based on 846 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Melco Resorts and Entertainment's current ROC (Joel Greenblatt) % of 14.73% is 47% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Melco Resorts and Entertainment and its competitors. For the Travel & Leisure industry, the median ROC (Joel Greenblatt) % is 10.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melco Resorts and Entertainment's current ROC (Joel Greenblatt) % is 14.73%, which is 99% above median its own 10-year median of 7.40. 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 (STU:MAS) is currently considered Modestly Undervalued. The stock's GF Value™ is €6.96, compared to a current price of €4.60 — trading 33.9% below its estimated fair value. The current ROC (Joel Greenblatt) % is 14.73%, which is 99% above median its 10-year median of 7.40 and 47% above the Travel & Leisure industry median of 10.02. Melco Resorts and Entertainment's overall GF Score™ is 68/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Melco Resorts and Entertainment (STU:MAS), the current ROC (Joel Greenblatt) % is 14.73% 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 €4.60 is trading 33.9% below its estimated GF Value™ of €6.96.
GuruFocus considers Melco Resorts and Entertainment to be Modestly Undervalued.
Key valuation signals for STU:MAS:
ROC (Joel Greenblatt) %: 14.73% (99% above median its 10-year median of 7.40)
GF Value™: €6.96 vs. price of €4.60 (33.9% below fair value)
Industry Position: 47% above the Travel & Leisure median (#380 of 846)
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.
68GF Score
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