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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Melco International Development's annualized ROCE % for the quarter that ended in Dec. 2025 was 8.09%.
Melco International Development (FRA:MX7A) ROCE % Explanation
ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.
Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.
Melco International Development ROCE % Related Terms
Melco International Development ROCE % 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.
(1) Note:
The EBIT data used here is two times the semi-annual (Dec. 2025) 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.
Melco International Development (FRA:MX7A) has a ROCE % of 8.09% as of Dec. 2025.
Is Melco International Development's ROCE % too high?
Melco International Development's current ROCE % is 8.09%. The Travel & Leisure industry median ROCE % is 6.08. Melco International Development's value of 8.09% is 33.2% above this industry median. Overall, Melco International Development has a GF Score™ of 82/100, reflecting its overall financial health beyond just this single metric.
How does Melco International Development's ROCE % compare to LVS and MGM?
Melco International Development's ROCE % of 8.09% can be compared against companies in the Travel & Leisure industry. The industry median ROCE % is 6.08. Melco International Development's value of 8.09% is 33.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Travel & Leisure company?
The median ROCE % among Travel & Leisure companies is 6.08, based on 836 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Melco International Development's current ROCE % of 8.09% is 33.2% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Travel & Leisure industry, the median ROCE % is 6.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melco International Development's current ROCE % is 8.09%. 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?
Melco International Development (FRA:MX7A) has a current ROCE % of 8.09%. The stock's GF Value™ is €0.48, compared to a current price of €0.36 — trading 25.4% below its estimated fair value. The current ROCE % is 8.09% and 33.2% above the Travel & Leisure industry median of 6.08. Melco International Development's overall GF Score™ is 82/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Melco International Development (FRA:MX7A), the current ROCE % is 8.09% 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 (FRA:MX7A) Overvalued in 2026?
Based on GuruFocus' analysis, Melco International Development stock appears to be undervalued.
The current stock price of €0.36 is trading 25.4% below its estimated GF Value™ of €0.48.
Key valuation signals for FRA:MX7A:
ROCE %: 8.09%
GF Value™: €0.48 vs. price of €0.36 (25.4% below fair value)
Industry Position: 33.2% above the Travel & Leisure median
No single metric tells the full story. See the FRA:MX7A 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.
82GF Score
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