Is Melco Resorts & Entertainment LTD (MLCO) Halal?

NASDAQ Consumer Cyclical Hong Kong $2.3B
✗ NOT HALAL
Confidence: 83/100
Melco Resorts & Entertainment LTD (MLCO) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 342.0% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Melco Resorts & Entertainment LTD operates in the Consumer Cyclical sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 342.0%
/ 30%
52.6%
/ 30%
6.7%
/ 30%
N/A ✗ NOT HALAL
DJIM 342.0%
/ 33%
52.6%
/ 33%
6.7%
/ 33%
N/A ✗ NOT HALAL
MSCI 93.4%
/ 33%
14.4%
/ 33%
1.8%
/ 33%
N/A ✗ NOT HALAL
S&P 342.0%
/ 33%
52.6%
/ 33%
6.7%
/ 33%
N/A ✗ NOT HALAL
FTSE 93.4%
/ 33%
14.4%
/ 33%
1.8%
/ 50%
N/A ✗ NOT HALAL

Financial Highlights

P/E Ratio
12.2
Forward: 7.1
EPS
$0.46
P/B Ratio
-1.8
EV/EBITDA
10.7
EV: $12.9B
Revenue
$5.2B
Growth: 8.6%
Beta
0.6
Low volatility
Current Ratio
1.1

Profitability

Gross Margin 37.9%
Operating Margin 16.1%
Net Margin 3.6%
Return on Assets (ROA) 5.3%

Cash Flow & Balance Sheet

Operating Cash Flow$818M
Free Cash Flow$476M
Total Debt$7.0B
Current Ratio1.1
Total Assets$7.6B

Price & Trading

Last Close$5.53
50-Day MA$5.90
200-Day MA$7.84
Avg Volume2.3M
Beta0.6
52-Week Range
$4.55
$10.15

About Melco Resorts & Entertainment LTD (MLCO)

CEO
Mr. Yau Lung Ho
Employees
22,961
Sector
Consumer Cyclical
Industry
Resorts & Casinos
Country
Hong Kong
Exchange
NASDAQ
Market Cap
$2.3B
Currency
USD

Melco Resorts & Entertainment Limited develops, owns, and operates casino gaming and resort facilities in Macau, the Philippines, Cyprus, and internationally. It operates through City of Dreams, Studio City, Altira Macau, Mocha, City of Dreams Manila, City of Dreams Mediterranean and Other, Other Operations, and Corporate and Other segments. The company owns and operates City of Dreams, an integrated resort that has gaming tables and gaming machines; suites and villas; food and beverage outlets; retail outlets; a wet stage performance theater; and recreation and leisure facilities, including health and fitness clubs, swimming pools, spas and salons, and banquet and meeting facilities in Cotai, Macau. It also operates Studio City, a cinematically themed integrated resort with gaming facilities, hotel, entertainment, retail, and food and beverage outlets in Cotai, Macau; and Altira Macau, an integrated resort, which offers gaming tables and gaming machines, hotel rooms, dining and casual restaurants, and recreation and leisure facilities in Taipa, Macau. In addition, the company owns and operates Mocha Clubs, which are clubs with gaming machines in Macau; City of Dreams Manila, an integrated resort in the Entertainment City complex in Manila; City of Dreams Mediterranean, an integrated resort in Limassol, Cyprus; and three satellite casinos in Nicosia, Ayia Napa, and Paphos in Cyprus. Further, it is involved in the operation of the Sri Lanka Casino and management of Nüwa Sri Lanka located in City of Dreams Sri Lanka, as well as development projects in other countries. The company was formerly known as Melco Crown Entertainment Limited and changed its name to Melco Resorts & Entertainment Limited in April 2017. The company was founded in 2003 and is based in Central, Hong Kong. Melco Resorts & Entertainment Limited is a subsidiary of Melco Leisure and Entertainment Group Limited.

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Frequently Asked Questions

Is Melco Resorts & Entertainment LTD (MLCO) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Melco Resorts & Entertainment LTD is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Melco Resorts & Entertainment LTD's debt ratio?

Melco Resorts & Entertainment LTD's debt ratio is 342.0% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 93.4%.

What are Melco Resorts & Entertainment LTD's key financial metrics?

Melco Resorts & Entertainment LTD has a market capitalization of $2.3B, trailing P/E ratio of 12.2, and revenue of $5.2B. The company maintains a gross margin of 37.9% and a net margin of 3.6%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.