MGM RESORTS INTERNATIONAL (MGM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MGM - US5529531015 - Common Stock
34.82 USD
+0.37 (+1.07%)
34.82 USD
0 (0%)
Overall MGM gets a fundamental rating of 4 out of 10. We evaluated MGM against 133 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 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.
Of the past 5 years MGM 4 years were profitable.
MGM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
MGM has a Return On Assets of 0.16%. This is in the lower half of the industry: MGM underperforms 62.41% of its industry peers.
With a Return On Equity value of 2.48%, MGM perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
MGM's Return On Invested Capital of 2.82% is on the low side compared to the rest of the industry. MGM is outperformed by 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
MGM's Profit Margin of 0.38% is on the low side compared to the rest of the industry. MGM is outperformed by 61.65% of its industry peers.
MGM's Profit Margin has declined in the last couple of years.
MGM has a Operating Margin (7.90%) which is in line with its industry peers.
In the last couple of years the Operating Margin of MGM has declined.
With a Gross Margin value of 44.65%, MGM perfoms like the industry average, outperforming 43.61% of the companies in the same 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
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 a worse debt to assets ratio.
2.2 Solvency
MGM has an Altman-Z score of 0.77. This is a bad value and indicates that MGM is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.77, MGM is doing worse than 69.17% 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.
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 47.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | 4.7 | ||
| Altman-Z | 0.77 |
ROIC/WACC0.35
WACC8.05%
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.
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.
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.
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
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
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.
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
A Price/Earnings ratio of 16.05 indicates a correct valuation of MGM.
79.70% 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 27.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.05, 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 77.44% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MGM to the average of the S&P500 Index (23.98), we can say MGM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.05 | ||
| Fwd PE | 15.05 |
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.
96.24% of the companies in the same industry are more expensive than MGM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.95 | ||
| EV/EBITDA | 5.98 |
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
With a yearly dividend of 0.02%, MGM is not a good candidate for dividend investing.
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 1.92.
| 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%
34.82
+0.37 (+1.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners69.26%
Inst Owner Change0.42%
Ins Owners1.05%
Ins Owner Change1.1%
Market Cap9.52B
Revenue(TTM)17.28B
Net Income(TTM)66.38M
Analysts75.17
Price Target43.95 (26.22%)
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 | 16.05 | ||
| Fwd PE | 15.05 | ||
| P/S | 0.55 | ||
| P/FCF | 6.95 | ||
| P/OCF | 3.74 | ||
| P/B | 3.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.98 |
EPS(TTM)2.17
EY6.23%
EPS(NY)2.31
Fwd EY6.64%
FCF(TTM)5.01
FCFY14.38%
OCF(TTM)9.31
OCFY26.73%
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
WACC8.05%
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 16.05 and the Price/Book (PB) ratio is 3.56.
What is the financial health of MGM RESORTS INTERNATIONAL (MGM) stock?
The financial health rating of MGM RESORTS INTERNATIONAL (MGM) is 4 / 10.