Monarch Casino & Resort Achieves 23% ROCE, Outperforming Industry Average
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 11 2026
0mins
Source: Yahoo Finance
- Significant ROCE Improvement: Monarch Casino & Resort has achieved a Return on Capital Employed (ROCE) of 23%, significantly exceeding the hospitality industry average of 11%, indicating enhanced efficiency in capital utilization that may attract more investor interest.
- Growing Return Trend: Over the past five years, while capital employed has remained relatively flat, ROCE has surged by 516%, demonstrating that the company is beginning to reap the benefits of its past investments, thereby enhancing its potential for future growth.
- Substantial Shareholder Returns: The company has delivered a remarkable 71% return to shareholders over the last five years, reflecting not only improved profitability but also increased market confidence in its future performance.
- Future Investment Potential: Despite the impressive current ROCE, the lack of significant growth in capital employed may suggest limited internal investment opportunities ahead, necessitating close attention to how the company balances efficiency with growth prospects.
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Analyst Views on MCRI
Wall Street analysts forecast MCRI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MCRI is 100.00 USD with a low forecast of 91.00 USD and a high forecast of 112.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 90.200
Low
91.00
Averages
100.00
High
112.00
Current: 90.200
Low
91.00
Averages
100.00
High
112.00
About MCRI
Monarch Casino & Resort, Inc. owns and operates the Monarch Casino Resort Spa Black Hawk (Monarch Black Hawk) in Black Hawk, Colorado, and the Atlantis Casino Resort Spa (Atlantis), a hotel/casino facility in Reno, Nevada. The Monarch Black Hawk features approximately 60,000 square feet of casino space; approximately 1,000 slot machines; approximately 43 table games; a live poker room; a keno counter and a sports book. The resort also includes 10 bars and lounges. The Atlantis is located approximately three miles south of downtown, which features approximately 61,000 square feet of casino space; 817 guest rooms and suites; eight food outlets; two gourmet coffee and pastry bars and one snack bar; a 30,000 square-foot health spa and salon with an enclosed year-round pool. In addition, it owns separate parcels of land located next to the Atlantis and a parcel of land with an industrial warehouse located between Denver, Colorado, and Monarch Black Hawk.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Monarch Casino & Resort (MCRI) Stock Oversold with RSI at 28.2
- Oversold Signal: Monarch Casino & Resort, Inc. has an RSI of 28.2, indicating it is in oversold territory below the 30 threshold, suggesting that the recent heavy selling may be nearing exhaustion and providing potential buying opportunities for investors.
- Dividend Yield: With a recent share price of $90.33, MCRI's annualized dividend of $1.2 translates to an annual yield of 1.33%, making it attractive for income-seeking investors, especially in light of the declining stock price.
- Market Comparison: MCRI's RSI is significantly lower than the average RSI of 55.8 for dividend stocks covered by Dividend Channel, indicating that its stock price may be undervalued and could attract more value investors.
- Investor Strategy: Given the current oversold condition, investors should examine MCRI's dividend history to assess the sustainability of future dividends, enabling more informed investment decisions.
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Monarch Casino & Resort, Inc. Growth Thesis Highlights Operational Excellence and Market Positioning
- Operational Model Advantage: Monarch Casino enhances customer experience through its 'play, stay, and service' model, integrating full-service casinos, upscale hotels, and diverse dining options to attract new visitors and foster loyalty.
- Strong Financial Performance: As of January 13, MCRI's share price stood at $91.99, with trailing and forward P/E ratios of 21.05 and 15.41 respectively, indicating solid profitability and growth potential.
- Continuous Investment Strategy: The company’s ongoing reinvestment in slot products, hotel upgrades, and dining enhancements drives organic growth and reinforces its competitive edge, ensuring optimized pricing during varying demand periods.
- Market Diversification: MCRI's two complementary properties in Nevada and Colorado balance destination resort appeal with high-frequency customer traffic, enhancing the diversity of its customer base.
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