MGM RESORTS INTERNATIONAL (MGM)
US5529531015 - Common Stock
Taking everything into account, MGM scores 5 out of 10 in our fundamental rating. MGM was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of MGM get a neutral evaluation. Nothing too spectacular is happening here. MGM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
MGM had positive earnings in the past year.
In the past year MGM had a positive cash flow from operations.
MGM had positive earnings in 4 of the past 5 years.
MGM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.11%, MGM perfoms like the industry average, outperforming 52.99% of the companies in the same industry.
With an excellent Return On Equity value of 27.95%, MGM belongs to the best of the industry, outperforming 82.84% of the companies in the same industry.
MGM has a Return On Invested Capital of 3.52%. This is comparable to the rest of the industry: MGM outperforms 40.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.11% | ||
| ROE | 27.95% | ||
| ROIC | 3.52% |
ROA(3y)2.91%
ROA(5y)2.41%
ROE(3y)26.41%
ROE(5y)18.07%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of MGM (5.23%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of MGM has grown nicely.
With a Operating Margin value of 10.02%, MGM perfoms like the industry average, outperforming 53.73% of the companies in the same industry.
MGM's Operating Margin has declined in the last couple of years.
MGM has a Gross Margin (45.72%) which is in line with its industry peers.
MGM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.02% | ||
| PM (TTM) | 5.23% | ||
| GM | 45.72% |
OM growth 3YN/A
OM growth 5Y-2.83%
PM growth 3YN/A
PM growth 5Y13.35%
GM growth 3Y12.46%
GM growth 5Y2.72%
2. Health
2.1 Basic Checks
MGM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MGM has been reduced compared to 1 year ago.
The number of shares outstanding for MGM has been reduced compared to 5 years ago.
Compared to 1 year ago, MGM has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.84, we must say that MGM is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MGM (0.84) is worse than 70.90% of its industry peers.
MGM has a debt to FCF ratio of 5.44. This is a neutral value as MGM would need 5.44 years to pay back of all of its debts.
MGM has a better Debt to FCF ratio (5.44) than 73.88% of its industry peers.
MGM has a Debt/Equity ratio of 2.01. This is a high value indicating a heavy dependency on external financing.
MGM's Debt to Equity ratio of 2.01 is in line compared to the rest of the industry. MGM outperforms 54.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.01 | ||
| Debt/FCF | 5.44 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.44
WACC7.96%
2.3 Liquidity
MGM has a Current Ratio of 1.24. This is a normal value and indicates that MGM is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.24, MGM is doing good in the industry, outperforming 62.69% of the companies in the same industry.
A Quick Ratio of 1.21 indicates that MGM should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.21, MGM is doing good in the industry, outperforming 64.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 2185.71% over the past year.
Measured over the past years, MGM shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.47% on average per year.
Looking at the last year, MGM shows a quite strong growth in Revenue. The Revenue has grown by 12.28% in the last year.
The Revenue has been growing slightly by 6.56% on average over the past years.
EPS 1Y (TTM)2185.71%
EPS 3YN/A
EPS 5Y28.47%
EPS Q2Q%-15.62%
Revenue 1Y (TTM)12.28%
Revenue growth 3Y46.3%
Revenue growth 5Y6.56%
Sales Q2Q%5.28%
3.2 Future
Based on estimates for the next years, MGM will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.32% on average per year.
Based on estimates for the next years, MGM will show a small growth in Revenue. The Revenue will grow by 3.99% on average per year.
EPS Next Y-6.73%
EPS Next 2Y-7.78%
EPS Next 3Y1.87%
EPS Next 5Y13.32%
Revenue Next Year8.62%
Revenue Next 2Y4.4%
Revenue Next 3Y3.77%
Revenue Next 5Y3.99%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.88, the valuation of MGM can be described as very reasonable.
MGM's Price/Earnings ratio is rather cheap when compared to the industry. MGM is cheaper than 94.03% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, MGM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 16.37, the valuation of MGM can be described as correct.
Based on the Price/Forward Earnings ratio, MGM is valued a bit cheaper than 79.10% of the companies in the same industry.
MGM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.88 | ||
| Fwd PE | 16.37 |
4.2 Price Multiples
MGM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MGM is cheaper than 88.81% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MGM is valued cheaply inside the industry as 93.28% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.5 | ||
| EV/EBITDA | 6.1 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.42
EPS Next 2Y-7.78%
EPS Next 3Y1.87%
5. Dividend
5.1 Amount
With a yearly dividend of 0.02%, MGM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.83, MGM pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.02, MGM pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
5.2 History
MGM has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y-7.78%
EPS Next 3Y1.87%
MGM RESORTS INTERNATIONAL
NYSE:MGM (11/21/2024, 7:39:44 PM)
Premarket: 38.12 +0.11 (+0.29%)38.01
+0.5 (+1.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.32B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
Dividend Growth(5Y)
DP
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Surprises & Revisions
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EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.88 | ||
| Fwd PE | 16.37 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.11% | ||
| ROE | 27.95% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.02% | ||
| PM (TTM) | 5.23% | ||
| GM | 45.72% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)2185.71%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-6.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.28%
Revenue growth 3Y46.3%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y