MGM RESORTS INTERNATIONAL (MGM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MGM - US5529531015 - Common Stock
34.88 USD
+0.47 (+1.37%)
We assign a fundamental rating of 4 out of 10 to MGM. MGM was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. MGM scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MGM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year MGM was profitable.
- MGM had a positive operating cash flow in the past year.
- MGM had positive earnings in 4 of the past 5 years.
- Of the past 5 years MGM 4 years had a positive operating cash flow.
1.2 Ratios
- MGM's Return On Assets of 0.16% is on the low side compared to the rest of the industry. MGM is outperformed by 62.41% of its industry peers.
- The Return On Equity of MGM (2.48%) is comparable to the rest of the industry.
- MGM has a Return On Invested Capital of 2.82%. This is in the lower half of the industry: MGM underperforms 63.16% 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
- Looking at the Profit Margin, with a value of 0.38%, MGM is doing worse than 61.65% of the companies in the same industry.
- In the last couple of years the Profit Margin of MGM has declined.
- MGM's Operating Margin of 7.90% is in line compared to the rest of the industry. MGM outperforms 50.38% of its industry peers.
- MGM's Operating Margin has declined in the last couple of years.
- MGM has a Gross Margin (44.65%) which is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of MGM has grown nicely.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MGM is destroying value.
- MGM has less shares outstanding than it did 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 a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.77, we must say that MGM is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.77, MGM is doing worse than 69.92% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of MGM (4.70) is better than 75.94% of its industry peers.
- MGM has a Debt/Equity ratio of 2.38. This is a high value indicating a heavy dependency on external financing.
- MGM has a Debt to Equity ratio (2.38) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | 4.7 | ||
| Altman-Z | 0.77 |
ROIC/WACC0.35
WACC8.04%
2.3 Liquidity
- A Current Ratio of 1.23 indicates that MGM should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.23, MGM is in the better half of the industry, outperforming 63.91% of the companies in the same industry.
- A Quick Ratio of 1.19 indicates that MGM should not have too much problems paying its short term obligations.
- MGM has a Quick ratio of 1.19. This is in the better half of the industry: MGM outperforms 65.41% 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.
- The Earnings Per Share has been growing by 65.28% on average over the past years. This is a very strong growth
- MGM shows a small growth in Revenue. In the last year, the Revenue has grown by 0.05%.
- 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
- Based on estimates for the next years, MGM will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.07% on average per year.
- The Revenue is expected to grow by 2.76% on average over the next years.
EPS Next Y-16.83%
EPS Next 2Y-5.5%
EPS Next 3Y4.26%
EPS Next 5Y8.07%
Revenue Next Year0.93%
Revenue Next 2Y1.15%
Revenue Next 3Y1.45%
Revenue Next 5Y2.76%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
- A Price/Earnings ratio of 16.07 indicates a correct valuation of MGM.
- Compared to the rest of the industry, the Price/Earnings ratio of MGM indicates a somewhat cheap valuation: MGM is cheaper than 79.70% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of MGM to the average of the S&P500 Index (27.33), we can say MGM is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 15.08, the valuation of MGM can be described as correct.
- Based on the Price/Forward Earnings ratio, MGM is valued a bit cheaper than 76.69% 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 24.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.07 | ||
| Fwd PE | 15.08 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MGM is valued cheaply inside the industry as 91.73% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, MGM is valued cheaper than 96.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.97 | ||
| EV/EBITDA | 5.93 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y-5.5%
EPS Next 3Y4.26%
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 6.32, MGM has a dividend in line with its industry peers.
- With a Dividend Yield of 0.02, MGM pays less dividend than the S&P500 average, which is at 1.91.
| 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-5.5%
EPS Next 3Y4.26%
NYSE:MGM (1/15/2026, 12:16:01 PM)
34.88
+0.47 (+1.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)02-10 2026-02-10/amc
Inst Owners69.26%
Inst Owner Change0.42%
Ins Owners1.05%
Ins Owner Change1.1%
Market Cap9.54B
Revenue(TTM)17.28B
Net Income(TTM)66.38M
Analysts75.17
Price Target43.95 (26%)
Short Float %10.93%
Short Ratio4.93
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)-0.33%
PT rev (3m)-10.67%
EPS NQ rev (1m)-5.24%
EPS NQ rev (3m)-13.69%
EPS NY rev (1m)-1.06%
EPS NY rev (3m)-15.19%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.07 | ||
| Fwd PE | 15.08 | ||
| P/S | 0.55 | ||
| P/FCF | 6.97 | ||
| P/OCF | 3.75 | ||
| P/B | 3.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.93 |
EPS(TTM)2.17
EY6.22%
EPS(NY)2.31
Fwd EY6.63%
FCF(TTM)5.01
FCFY14.35%
OCF(TTM)9.31
OCFY26.69%
SpS63.17
BVpS9.78
TBVpS-14.2
PEG (NY)N/A
PEG (5Y)0.25
Graham Number21.86
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 | 0.77 |
F-Score5
WACC8.04%
ROIC/WACC0.35
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-16.83%
EPS Next 2Y-5.5%
EPS Next 3Y4.26%
EPS Next 5Y8.07%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y21.22%
Revenue growth 5Y5.97%
Sales Q2Q%1.61%
Revenue Next Year0.93%
Revenue Next 2Y1.15%
Revenue Next 3Y1.45%
Revenue Next 5Y2.76%
EBIT growth 1Y-21.1%
EBIT growth 3Y43.38%
EBIT growth 5Y3.23%
EBIT Next Year183.08%
EBIT Next 3Y48.47%
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 fundamental rating for MGM stock?
ChartMill assigns a fundamental rating of 4 / 10 to MGM.
Can you provide the valuation status for MGM RESORTS INTERNATIONAL?
ChartMill assigns a valuation rating of 5 / 10 to MGM RESORTS INTERNATIONAL (MGM). This can be considered as Fairly Valued.
Can you provide the profitability details for MGM RESORTS INTERNATIONAL?
MGM RESORTS INTERNATIONAL (MGM) has a profitability rating of 3 / 10.
What are the PE and PB ratios of MGM RESORTS INTERNATIONAL (MGM) stock?
The Price/Earnings (PE) ratio for MGM RESORTS INTERNATIONAL (MGM) is 16.07 and the Price/Book (PB) ratio is 3.57.
What is the financial health of MGM RESORTS INTERNATIONAL (MGM) stock?
The financial health rating of MGM RESORTS INTERNATIONAL (MGM) is 4 / 10.