MGM RESORTS INTERNATIONAL (MGM) Stock Fundamental Analysis
USA - NYSE:MGM - US5529531015 - Common Stock
35.94 USD
+0.65 (+1.84%)
36.09 USD
+0.15 (+0.42%)
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 valuation in line with the averages, but on the other hand it scores bad on growth.
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.
MGM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
MGM has a worse Return On Assets (1.29%) than 60.15% of its industry peers.
With a decent Return On Equity value of 18.04%, MGM is doing good in the industry, outperforming 75.94% of the companies in the same industry.
With a Return On Invested Capital value of 3.03%, MGM is not doing good in the industry: 64.66% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.29% | ||
| ROE | 18.04% | ||
| ROIC | 3.03% |
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 (3.12%) which is in line with its industry peers.
In the last couple of years the Profit Margin of MGM has declined.
MGM has a Operating Margin of 8.59%. This is comparable to the rest of the industry: MGM outperforms 51.88% of its industry peers.
In the last couple of years the Operating Margin of MGM has declined.
MGM has a Gross Margin of 44.95%. This is comparable to the rest of the industry: MGM outperforms 43.61% of its industry peers.
In the last couple of years the Gross Margin of MGM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.59% | ||
| PM (TTM) | 3.12% | ||
| GM | 44.95% |
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
MGM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MGM has less shares outstanding than it did 1 year ago.
MGM has less shares outstanding than it did 5 years ago.
MGM has a worse debt/assets ratio than last year.
2.2 Solvency
MGM has an Altman-Z score of 0.79. This is a bad value and indicates that MGM is not financially healthy and even has some risk of bankruptcy.
MGM has a Altman-Z score of 0.79. This is in the lower half of the industry: MGM underperforms 72.18% of its industry peers.
MGM has a debt to FCF ratio of 5.01. This is a neutral value as MGM would need 5.01 years to pay back of all of its debts.
MGM's Debt to FCF ratio of 5.01 is fine compared to the rest of the industry. MGM outperforms 75.94% of its industry peers.
MGM has a Debt/Equity ratio of 2.16. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of MGM (2.16) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.16 | ||
| Debt/FCF | 5.01 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.34
WACC8.8%
2.3 Liquidity
A Current Ratio of 1.22 indicates that MGM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.22, MGM is in the better half of the industry, outperforming 61.65% of the companies in the same industry.
MGM has a Quick Ratio of 1.18. This is a normal value and indicates that MGM is financially healthy and should not expect problems in meeting its short term obligations.
MGM's Quick ratio of 1.18 is fine compared to the rest of the industry. MGM outperforms 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
MGM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.15%.
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.
MGM shows a small growth in Revenue. In the last year, the Revenue has grown by 0.89%.
MGM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.97% yearly.
EPS 1Y (TTM)-25.15%
EPS 3Y-0.18%
EPS 5Y65.28%
EPS Q2Q%-8.14%
Revenue 1Y (TTM)0.89%
Revenue growth 3Y21.22%
Revenue growth 5Y5.97%
Sales Q2Q%1.79%
3.2 Future
Based on estimates for the next years, MGM will show a small growth in Earnings Per Share. The EPS will grow by 4.27% on average per year.
The Revenue is expected to grow by 2.57% on average over the next years.
EPS Next Y-3.8%
EPS Next 2Y2.76%
EPS Next 3Y9.63%
EPS Next 5Y4.27%
Revenue Next Year1.01%
Revenue Next 2Y1.49%
Revenue Next 3Y1.84%
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
Based on the Price/Earnings ratio of 14.55, the valuation of MGM can be described as correct.
81.95% of the companies in the same industry are more expensive than MGM, based on the Price/Earnings ratio.
MGM is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.14, the valuation of MGM can be described as correct.
Based on the Price/Forward Earnings ratio, MGM is valued a bit cheaper than the industry average as 79.70% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MGM to the average of the S&P500 Index (22.88), we can say MGM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.55 | ||
| Fwd PE | 13.14 |
4.2 Price Multiples
89.47% of the companies in the same industry are more expensive than MGM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MGM is valued cheaper than 94.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.55 | ||
| EV/EBITDA | 5.97 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y2.76%
EPS Next 3Y9.63%
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 3.93, 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 2.38.
| 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 2Y2.76%
EPS Next 3Y9.63%
35.94
+0.65 (+1.84%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners69.53%
Inst Owner Change5.14%
Ins Owners1.09%
Ins Owner Change0.02%
Market Cap9.78B
Analysts77.04
Price Target49.45 (37.59%)
Short Float %11.78%
Short Ratio5.37
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)2
Avg EPS beat(2)47.22%
Min EPS beat(2)47.09%
Max EPS beat(2)47.35%
EPS beat(4)3
Avg EPS beat(4)32.27%
Min EPS beat(4)-12.16%
Max EPS beat(4)47.35%
EPS beat(8)7
Avg EPS beat(8)33.83%
EPS beat(12)9
Avg EPS beat(12)-7.55%
EPS beat(16)12
Avg EPS beat(16)45.11%
Revenue beat(2)1
Avg Revenue beat(2)-0.28%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)1.03%
Revenue beat(4)2
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)1.03%
Revenue beat(8)6
Avg Revenue beat(8)1.12%
Revenue beat(12)10
Avg Revenue beat(12)2.37%
Revenue beat(16)14
Avg Revenue beat(16)3.32%
PT rev (1m)1.51%
PT rev (3m)5.95%
EPS NQ rev (1m)1.01%
EPS NQ rev (3m)-3.15%
EPS NY rev (1m)9.68%
EPS NY rev (3m)13.85%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)1.03%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.55 | ||
| Fwd PE | 13.14 | ||
| P/S | 0.57 | ||
| P/FCF | 7.55 | ||
| P/OCF | 3.86 | ||
| P/B | 3.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.97 |
EPS(TTM)2.47
EY6.87%
EPS(NY)2.73
Fwd EY7.61%
FCF(TTM)4.76
FCFY13.24%
OCF(TTM)9.3
OCFY25.88%
SpS63.23
BVpS10.93
TBVpS-14.39
PEG (NY)N/A
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.29% | ||
| ROE | 18.04% | ||
| ROCE | 3.83% | ||
| ROIC | 3.03% | ||
| ROICexc | 3.19% | ||
| ROICexgc | 3.93% | ||
| OM | 8.59% | ||
| PM (TTM) | 3.12% | ||
| GM | 44.95% | ||
| FCFM | 7.53% |
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
ROICexcg growth 3Y36.7%
ROICexcg 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-Score6
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.16 | ||
| Debt/FCF | 5.01 | ||
| Debt/EBITDA | 2.67 | ||
| Cap/Depr | 134.29% | ||
| Cap/Sales | 7.19% | ||
| Interest Coverage | 3.77 | ||
| Cash Conversion | 105.56% | ||
| Profit Quality | 241.47% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 0.79 |
F-Score6
WACC8.8%
ROIC/WACC0.34
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)-25.15%
EPS 3Y-0.18%
EPS 5Y65.28%
EPS Q2Q%-8.14%
EPS Next Y-3.8%
EPS Next 2Y2.76%
EPS Next 3Y9.63%
EPS Next 5Y4.27%
Revenue 1Y (TTM)0.89%
Revenue growth 3Y21.22%
Revenue growth 5Y5.97%
Sales Q2Q%1.79%
Revenue Next Year1.01%
Revenue Next 2Y1.49%
Revenue Next 3Y1.84%
Revenue Next 5Y2.57%
EBIT growth 1Y-15.9%
EBIT growth 3Y43.38%
EBIT growth 5Y3.23%
EBIT Next Year204.48%
EBIT Next 3Y47.08%
EBIT Next 5Y30.12%
FCF growth 1Y6.15%
FCF growth 3Y11.14%
FCF growth 5Y2.5%
OCF growth 1Y18.22%
OCF growth 3Y19.82%
OCF growth 5Y5.47%