Monarch Casino & Resort Inc. Common Stock (MCRI)

FairStock Score: 73/100 — STEADY

Key Financials

Strengths

• High return on equity of 20.1% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.02, providing financial flexibility
• Altman Z-Score of 8.5 confirms minimal bankruptcy risk and strong solvency
• FairStock composite score of 73/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Trades significantly above Graham Number ($63) with negative 82% margin of safety—limited downside protection

AI Analysis

Monarch Casino & Resort Inc. Common Stock is a small-cap consumer cyclical company valued at $2.0 billion. The business generates $556 million in annual revenue with a 5.0% net margin. From a quality standpoint, Monarch shows Altman Z-Score of 8.5 confirms fortress-level solvency and strong 20% ROE. On valuation, the stock is reasonably priced at 19.8x earnings, with trades above its Graham Number with a negative 82% margin. Growth dynamics show revenue growing at 4.1% and profit growth of 444.9%. The 1.0% dividend yield adds an income component for patient holders. Our composite FairStock Score of 73/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer