Monarch Casino: The Crown Is Earned, Now It Needs A Kingdom To Conquer (Rating Downgrade)
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Pedro Goulart892 FollowersFollow5ShareSavePlay(15min)CommentsFollow us on Google for the latest stock newsFollow Seeking Alpha on Google for the latest stock newsSummaryMonarch Casino has delivered a ~58% return in under two years, outperforming peers with robust organic growth and margin expansion.MCRI reported Q1 revenue up nearly 9% to $136.6M and an EBITDA margin of 36.5%, both exceeding historical averages and indicating pricing power.With strong FCF, no long-term debt, and M&A optionality, MCRI trades at a premium FCF yield (~6.7%) versus peers, justifying prior bullishness.I downgrade to 'Hold' as MCRI now trades near fair value; further upside likely requires a new M&A catalyst rather than continued organic outperformance. lonestark9/iStock via Getty Images My thesis on Monarch Casino (MCRI) has aged like fine wine, don't you think? This top casino pick of mine has delivered an incredible ~58% in less than two years and is still sitting on a pileThis article was written byPedro Goulart892 FollowersFollowI’m an equity analyst and founder of Goulart’s Restaurant Stocks, a research firm focused on the U.S. restaurant industry — from quick-service and fast casual to fine dining and niche concepts. I lead all thematic research and valuation efforts, applying advanced financial modeling, sector-specific KPIs, and strategic insights to uncover hidden value across public equities. In addition to restaurants, I cover consumer discretionary, food & beverage, casinos & gaming, and IPOs, with a particular focus on micro and small caps that are often overlooked by mainstream analysts. My research has been featured on Seeking Alpha, Yahoo Finance, Mises Institute, Investing.com and other plataforms. My background combines hands-on experience in finance and business management with academic foundations. I hold an MBA in Controllership and Accounting Forensics, a Bachelor’s in Business Administration. I’ve also pursued specialized training in valuation, financial modeling, and restaurant operations (I had a brief experience as an undergraduate as a franchise partner for a regional ice cream shop).Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.