MGM RESORTS INTERNATIONAL (MGM) Stock Fundamental Analysis
USA - NYSE:MGM - US5529531015 - Common Stock
31.07 USD
-0.03 (-0.1%)
MGM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 132 industry peers in the Hotels, Restaurants & Leisure industry. While MGM seems to be doing ok healthwise, there are quite some concerns on its profitability. MGM is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MGM was profitable.
MGM had a positive operating cash flow in the past year.
Of the past 5 years MGM 4 years were profitable.
Of the past 5 years MGM 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.16%, MGM is not doing good in the industry: 62.88% of the companies in the same industry are doing better.
MGM has a Return On Equity (2.48%) which is in line with its industry peers.
MGM has a Return On Invested Capital of 2.82%. This is in the lower half of the industry: MGM underperforms 65.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.16% | ||
| ROE | 2.48% | ||
| ROIC | 2.82% |
ROA(3y)2.54%
ROA(5y)1.55%
ROE(3y)28.15%
ROE(5y)17.7%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MGM has a Profit Margin of 0.38%. This is in the lower half of the industry: MGM underperforms 62.88% of its industry peers.
In the last couple of years the Profit Margin of MGM has declined.
MGM has a Operating Margin (7.90%) which is in line with its industry peers.
MGM's Operating Margin has declined in the last couple of years.
MGM has a Gross Margin of 44.65%. This is comparable to the rest of the industry: MGM outperforms 43.18% of its industry peers.
MGM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.9% | ||
| PM (TTM) | 0.38% | ||
| GM | 44.65% |
OM growth 3Y18.28%
OM growth 5Y-2.59%
PM growth 3Y-29.19%
PM growth 5Y-22.93%
GM growth 3Y-1.78%
GM growth 5Y2.08%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MGM 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.
The debt/assets ratio for MGM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.76, we must say that MGM is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MGM (0.76) is worse than 69.70% of its industry peers.
The Debt to FCF ratio of MGM is 4.70, which is a neutral value as it means it would take MGM, 4.70 years of fcf income to pay off all of its debts.
MGM has a better Debt to FCF ratio (4.70) than 75.00% of its industry peers.
A Debt/Equity ratio of 2.38 is on the high side and indicates that MGM has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.38, MGM is in line with its industry, outperforming 47.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | 4.7 | ||
| Altman-Z | 0.76 |
ROIC/WACC0.36
WACC7.89%
2.3 Liquidity
MGM has a Current Ratio of 1.23. This is a normal value and indicates that MGM is financially healthy and should not expect problems in meeting its short term obligations.
MGM has a Current ratio of 1.23. This is in the better half of the industry: MGM outperforms 62.12% of its industry peers.
MGM has a Quick Ratio of 1.19. This is a normal value and indicates that MGM is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of MGM (1.19) is better than 65.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The earnings per share for MGM have decreased strongly by -32.19% in the last year.
Measured over the past years, MGM shows a very strong growth in Earnings Per Share. The EPS has been growing by 65.28% on average per year.
Looking at the last year, MGM shows a small growth in Revenue. The Revenue has grown by 0.05% in the last year.
The Revenue has been growing slightly by 5.97% on average over the past years.
EPS 1Y (TTM)-32.19%
EPS 3Y-0.18%
EPS 5Y65.28%
EPS Q2Q%-55.56%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y21.22%
Revenue growth 5Y5.97%
Sales Q2Q%1.61%
3.2 Future
The Earnings Per Share is expected to grow by 4.27% on average over the next years.
MGM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.57% yearly.
EPS Next Y-7.7%
EPS Next 2Y-0.71%
EPS Next 3Y4.63%
EPS Next 5Y4.27%
Revenue Next Year0.93%
Revenue Next 2Y1.24%
Revenue Next 3Y1.55%
Revenue Next 5Y2.57%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MGM is valuated correctly with a Price/Earnings ratio of 14.32.
Compared to the rest of the industry, the Price/Earnings ratio of MGM indicates a somewhat cheap valuation: MGM is cheaper than 78.03% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.47. MGM is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 12.17, MGM is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MGM indicates a somewhat cheap valuation: MGM is cheaper than 78.79% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.42. MGM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 12.17 |
4.2 Price Multiples
MGM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MGM is cheaper than 90.15% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MGM is valued cheaply inside the industry as 94.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.18 | ||
| EV/EBITDA | 5.52 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y-0.71%
EPS Next 3Y4.63%
5. Dividend
5.1 Amount
With a yearly dividend of 0.02%, MGM is not a good candidate for dividend investing.
MGM's Dividend Yield is comparable with the industry average which is at 4.59.
Compared to an average S&P500 Dividend Yield of 2.44, MGM's dividend is way lower than the S&P500 average.
| 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-0.71%
EPS Next 3Y4.63%
NYSE:MGM (11/20/2025, 1:40:07 PM)
31.07
-0.03 (-0.1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners71.7%
Inst Owner Change-5.5%
Ins Owners0.95%
Ins Owner Change0.42%
Market Cap8.46B
Revenue(TTM)17.28B
Net Income(TTM)66.38M
Analysts76.3
Price Target47.54 (53.01%)
Short Float %11.42%
Short Ratio4.65
Dividend
| Industry Rank | Sector 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)3.58%
Min EPS beat(2)-40.19%
Max EPS beat(2)47.35%
EPS beat(4)3
Avg EPS beat(4)25.26%
Min EPS beat(4)-40.19%
Max EPS beat(4)47.35%
EPS beat(8)6
Avg EPS beat(8)25.08%
EPS beat(12)9
Avg EPS beat(12)45.64%
EPS beat(16)11
Avg EPS beat(16)22.81%
Revenue beat(2)1
Avg Revenue beat(2)0.25%
Min Revenue beat(2)-0.53%
Max Revenue beat(2)1.03%
Revenue beat(4)2
Avg Revenue beat(4)-0.09%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)1.03%
Revenue beat(8)5
Avg Revenue beat(8)0.84%
Revenue beat(12)9
Avg Revenue beat(12)1.98%
Revenue beat(16)13
Avg Revenue beat(16)2.78%
PT rev (1m)-3.37%
PT rev (3m)-2.41%
EPS NQ rev (1m)-8.84%
EPS NQ rev (3m)-9.6%
EPS NY rev (1m)-5.88%
EPS NY rev (3m)5.23%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)0.02%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 12.17 | ||
| P/S | 0.49 | ||
| P/FCF | 6.18 | ||
| P/OCF | 3.32 | ||
| P/B | 3.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.52 |
EPS(TTM)2.17
EY6.98%
EPS(NY)2.55
Fwd EY8.22%
FCF(TTM)5.03
FCFY16.19%
OCF(TTM)9.35
OCFY30.1%
SpS63.48
BVpS9.83
TBVpS-14.27
PEG (NY)N/A
PEG (5Y)0.22
Graham Number21.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.16% | ||
| ROE | 2.48% | ||
| ROCE | 3.57% | ||
| ROIC | 2.82% | ||
| ROICexc | 2.99% | ||
| ROICexgc | 3.65% | ||
| OM | 7.9% | ||
| PM (TTM) | 0.38% | ||
| GM | 44.65% | ||
| FCFM | 7.93% |
ROA(3y)2.54%
ROA(5y)1.55%
ROE(3y)28.15%
ROE(5y)17.7%
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
ROICexgc growth 3Y36.7%
ROICexgc growth 5Y-2.33%
ROICexc growth 3Y38.34%
ROICexc growth 5Y-1.83%
OM growth 3Y18.28%
OM growth 5Y-2.59%
PM growth 3Y-29.19%
PM growth 5Y-22.93%
GM growth 3Y-1.78%
GM growth 5Y2.08%
F-Score5
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | 4.7 | ||
| Debt/EBITDA | 2.75 | ||
| Cap/Depr | 124.05% | ||
| Cap/Sales | 6.81% | ||
| Interest Coverage | 3.3 | ||
| Cash Conversion | 110.07% | ||
| Profit Quality | 2063.2% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 0.76 |
F-Score5
WACC7.89%
ROIC/WACC0.36
Cap/Depr(3y)91.62%
Cap/Depr(5y)67.97%
Cap/Sales(3y)6.09%
Cap/Sales(5y)5.72%
Profit Quality(3y)128.65%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-32.19%
EPS 3Y-0.18%
EPS 5Y65.28%
EPS Q2Q%-55.56%
EPS Next Y-7.7%
EPS Next 2Y-0.71%
EPS Next 3Y4.63%
EPS Next 5Y4.27%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y21.22%
Revenue growth 5Y5.97%
Sales Q2Q%1.61%
Revenue Next Year0.93%
Revenue Next 2Y1.24%
Revenue Next 3Y1.55%
Revenue Next 5Y2.57%
EBIT growth 1Y-21.1%
EBIT growth 3Y43.38%
EBIT growth 5Y3.23%
EBIT Next Year204.94%
EBIT Next 3Y48.87%
EBIT Next 5Y30.12%
FCF growth 1Y-10.26%
FCF growth 3Y11.14%
FCF growth 5Y2.5%
OCF growth 1Y4.44%
OCF growth 3Y19.82%
OCF growth 5Y5.47%
MGM RESORTS INTERNATIONAL / MGM FAQ
What is the ChartMill fundamental rating of MGM RESORTS INTERNATIONAL (MGM) stock?
ChartMill assigns a fundamental rating of 4 / 10 to MGM.
What is the valuation status for MGM stock?
ChartMill assigns a valuation rating of 5 / 10 to MGM RESORTS INTERNATIONAL (MGM). This can be considered as Fairly Valued.
What is the profitability of MGM stock?
MGM RESORTS INTERNATIONAL (MGM) has a profitability rating of 3 / 10.
How financially healthy is MGM RESORTS INTERNATIONAL?
The financial health rating of MGM RESORTS INTERNATIONAL (MGM) is 4 / 10.
Can you provide the dividend sustainability for MGM stock?
The dividend rating of MGM RESORTS INTERNATIONAL (MGM) is 2 / 10 and the dividend payout ratio is 0%.