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MGM RESORTS INTERNATIONAL (MGM) Stock Fundamental Analysis

NYSE:MGM - New York Stock Exchange, Inc. - US5529531015 - Common Stock - Currency: USD

36  -2.3 (-6.01%)

After market: 36.14 +0.14 (+0.39%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to MGM. 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 has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year MGM was profitable.
In the past year MGM had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: MGM reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: MGM reported negative operating cash flow in multiple years.
MGM Yearly Net Income VS EBIT VS OCF VS FCFMGM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B 2B -2B

1.2 Ratios

Looking at the Return On Assets, with a value of 2.11%, MGM is in line with its industry, outperforming 49.62% 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 81.68% of the companies in the same industry.
With a Return On Invested Capital value of 3.52%, MGM is not doing good in the industry: 61.83% of the companies in the same industry are doing better.
Industry RankSector 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
MGM Yearly ROA, ROE, ROICMGM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 30

1.3 Margins

With a Profit Margin value of 5.23%, MGM perfoms like the industry average, outperforming 57.25% of the companies in the same industry.
MGM's Profit Margin has improved in the last couple of years.
MGM has a Operating Margin (10.02%) which is in line with its industry peers.
In the last couple of years the Operating Margin of MGM has declined.
Looking at the Gross Margin, with a value of 45.72%, MGM is in line with its industry, outperforming 42.75% of the companies in the same industry.
In the last couple of years the Gross Margin of MGM has grown nicely.
Industry RankSector 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%
MGM Yearly Profit, Operating, Gross MarginsMGM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40

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4

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.
MGM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
MGM Yearly Shares OutstandingMGM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M
MGM Yearly Total Debt VS Total AssetsMGM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B

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 70.99% 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 74.05% of its industry peers.
A Debt/Equity ratio of 2.01 is on the high side and indicates that MGM has dependencies on debt financing.
With a Debt to Equity ratio value of 2.01, MGM perfoms like the industry average, outperforming 54.20% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.01
Debt/FCF 5.44
Altman-Z 0.84
ROIC/WACC0.39
WACC9.11%
MGM Yearly LT Debt VS Equity VS FCFMGM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B

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.
The Current ratio of MGM (1.24) is better than 64.12% of its industry peers.
MGM has a Quick Ratio of 1.21. 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 Quick ratio value of 1.21, MGM is doing good in the industry, outperforming 64.89% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.24
Quick Ratio 1.21
MGM Yearly Current Assets VS Current LiabilitesMGM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B

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3

3. Growth

3.1 Past

The earnings per share for MGM have decreased by -5.13% in the last year.
MGM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 65.28% yearly.
EPS 1Y (TTM)-5.13%
EPS 3YN/A
EPS 5Y65.28%
EPS Q2Q%-57.55%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.66%

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 13.41% on average per year.
MGM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.83% yearly.
EPS Next Y-10.32%
EPS Next 2Y5.85%
EPS Next 3Y12.44%
EPS Next 5Y13.41%
Revenue Next Year0.54%
Revenue Next 2Y1.41%
Revenue Next 3Y-1.16%
Revenue Next 5Y2.83%

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.
MGM Yearly Revenue VS EstimatesMGM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B
MGM Yearly EPS VS EstimatesMGM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 2 -2 4 -4 6 8

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6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 13.90, the valuation of MGM can be described as correct.
84.73% of the companies in the same industry are more expensive than MGM, based on the Price/Earnings ratio.
MGM is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.50, the valuation of MGM can be described as correct.
76.34% of the companies in the same industry are more expensive than MGM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, MGM is valued a bit cheaper.
Industry RankSector Rank
PE 13.9
Fwd PE 15.5
MGM Price Earnings VS Forward Price EarningsMGM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

MGM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MGM is cheaper than 91.60% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MGM is valued cheaper than 96.18% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.05
EV/EBITDA 6.14
MGM Per share dataMGM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40

4.3 Compensation for Growth

MGM's earnings are expected to grow with 12.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.21
EPS Next 2Y5.85%
EPS Next 3Y12.44%

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2

5. Dividend

5.1 Amount

MGM has a yearly dividend return of 0.02%, which is pretty low.
Compared to an average industry Dividend Yield of 3.06, MGM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, MGM's dividend is way lower than the S&P500 average.
Industry RankSector 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
MGM Yearly Dividends per shareMGM Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

DP0%
EPS Next 2Y5.85%
EPS Next 3Y12.44%
MGM Yearly Income VS Free CF VS DividendMGM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B 2B

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MGM RESORTS INTERNATIONAL

NYSE:MGM (2/21/2025, 7:35:25 PM)

After market: 36.14 +0.14 (+0.39%)

36

-2.3 (-6.01%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-12 2025-02-12/amc
Earnings (Next)04-29 2025-04-29/amc
Inst Owners67.47%
Inst Owner Change-1.22%
Ins Owners0.97%
Ins Owner Change0.14%
Market Cap10.72B
Analysts80
Price Target49.97 (38.81%)
Short Float %6.67%
Short Ratio3.21
Dividend
Industry RankSector Rank
Dividend Yield 0.02%
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.14%
Min EPS beat(2)-12.16%
Max EPS beat(2)38.43%
EPS beat(4)3
Avg EPS beat(4)24.9%
Min EPS beat(4)-12.16%
Max EPS beat(4)46.92%
EPS beat(8)6
Avg EPS beat(8)55.83%
EPS beat(12)8
Avg EPS beat(12)21.99%
EPS beat(16)12
Avg EPS beat(16)41.15%
Revenue beat(2)1
Avg Revenue beat(2)0%
Min Revenue beat(2)-1.55%
Max Revenue beat(2)1.56%
Revenue beat(4)3
Avg Revenue beat(4)1.78%
Min Revenue beat(4)-1.55%
Max Revenue beat(4)4.65%
Revenue beat(8)7
Avg Revenue beat(8)3.01%
Revenue beat(12)11
Avg Revenue beat(12)3.74%
Revenue beat(16)13
Avg Revenue beat(16)3.31%
PT rev (1m)-2.88%
PT rev (3m)-7.88%
EPS NQ rev (1m)-20.06%
EPS NQ rev (3m)-19.1%
EPS NY rev (1m)-2.6%
EPS NY rev (3m)-3.69%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-0.74%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.12%
Valuation
Industry RankSector Rank
PE 13.9
Fwd PE 15.5
P/S 0.62
P/FCF 8.05
P/OCF 4.45
P/B 3.32
P/tB N/A
EV/EBITDA 6.14
EPS(TTM)2.59
EY7.19%
EPS(NY)2.32
Fwd EY6.45%
FCF(TTM)4.47
FCFY12.42%
OCF(TTM)8.08
OCFY22.45%
SpS58
BVpS10.85
TBVpS-12.5
PEG (NY)N/A
PEG (5Y)0.21
Profitability
Industry RankSector Rank
ROA 2.11%
ROE 27.95%
ROCE 4.45%
ROIC 3.52%
ROICexc 3.81%
ROICexgc 4.72%
OM 10.02%
PM (TTM) 5.23%
GM 45.72%
FCFM 7.71%
ROA(3y)2.91%
ROA(5y)2.41%
ROE(3y)26.41%
ROE(5y)18.07%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-4.18%
ROICexc growth 3YN/A
ROICexc growth 5Y-3.35%
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%
F-Score6
Asset Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 2.01
Debt/FCF 5.44
Debt/EBITDA 2.54
Cap/Depr 129.99%
Cap/Sales 6.23%
Interest Coverage 4.19
Cash Conversion 94.13%
Profit Quality 147.4%
Current Ratio 1.24
Quick Ratio 1.21
Altman-Z 0.84
F-Score6
WACC9.11%
ROIC/WACC0.39
Cap/Depr(3y)59.69%
Cap/Depr(5y)51.61%
Cap/Sales(3y)5.55%
Cap/Sales(5y)5.53%
Profit Quality(3y)99.35%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.13%
EPS 3YN/A
EPS 5Y65.28%
EPS Q2Q%-57.55%
EPS Next Y-10.32%
EPS Next 2Y5.85%
EPS Next 3Y12.44%
EPS Next 5Y13.41%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.66%
Revenue Next Year0.54%
Revenue Next 2Y1.41%
Revenue Next 3Y-1.16%
Revenue Next 5Y2.83%
EBIT growth 1Y1133.83%
EBIT growth 3YN/A
EBIT growth 5Y3.55%
EBIT Next Year151.2%
EBIT Next 3Y35.97%
EBIT Next 5Y24.55%
FCF growth 1Y15.28%
FCF growth 3YN/A
FCF growth 5Y49.92%
OCF growth 1Y35.19%
OCF growth 3YN/A
OCF growth 5Y9.54%