MGM RESORTS INTERNATIONAL (MGM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MGM - US5529531015 - Common Stock
34.78 USD
+0.64 (+1.87%)
34.78 USD
0 (0%)
Taking everything into account, MGM scores 4 out of 10 in our fundamental rating. MGM was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. The financial health of MGM is average, but 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.
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 has a worse Return On Assets (0.16%) than 62.88% 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 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 worse Profit Margin (0.38%) than 62.88% of its industry peers.
In the last couple of years the Profit Margin of MGM has declined.
MGM has a Operating Margin of 7.90%. This is comparable to the rest of the industry: MGM outperforms 49.24% of 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 44.65%, MGM is in line with its industry, outperforming 43.94% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MGM is destroying value.
Compared to 1 year ago, MGM has less shares outstanding
Compared to 5 years ago, MGM has less shares outstanding
MGM has a worse debt/assets ratio than last year.
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.
MGM's Altman-Z score of 0.77 is on the low side compared to the rest of the industry. MGM is outperformed by 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.
The Debt to Equity ratio of MGM (2.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | 4.7 | ||
| Altman-Z | 0.77 |
ROIC/WACC0.35
WACC7.96%
2.3 Liquidity
A Current Ratio of 1.23 indicates that MGM should not have too much problems paying its short term obligations.
MGM has a better Current ratio (1.23) than 62.88% of its industry peers.
A Quick Ratio of 1.19 indicates that MGM should not have too much problems paying its short term obligations.
MGM has a better Quick ratio (1.19) than 65.91% 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.
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
MGM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.27% yearly.
Based on estimates for the next years, MGM will show a small growth in Revenue. The Revenue will grow by 2.57% on average per year.
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
With a Price/Earnings ratio of 16.03, MGM is valued correctly.
75.76% of the companies in the same industry are more expensive than MGM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MGM to the average of the S&P500 Index (26.15), we can say MGM is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.62, MGM is valued correctly.
Based on the Price/Forward Earnings ratio, MGM is valued a bit cheaper than the industry average as 78.03% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MGM to the average of the S&P500 Index (36.12), we can say MGM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.03 | ||
| Fwd PE | 13.62 |
4.2 Price Multiples
90.15% of the companies in the same industry are more expensive than MGM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MGM indicates a rather cheap valuation: MGM is cheaper than 95.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.91 | ||
| EV/EBITDA | 5.95 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y-0.71%
EPS Next 3Y4.63%
5. Dividend
5.1 Amount
MGM has a yearly dividend return of 0.02%, which is pretty low.
MGM's Dividend Yield is comparable with the industry average which is at 6.38.
With a Dividend Yield of 0.02, MGM pays less dividend than the S&P500 average, which is at 2.41.
| 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%
34.78
+0.64 (+1.87%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners71.7%
Inst Owner Change-5.36%
Ins Owners0.95%
Ins Owner Change0.23%
Market Cap9.47B
Revenue(TTM)17.28B
Net Income(TTM)66.38M
Analysts76.3
Price Target45.54 (30.94%)
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)-7.43%
PT rev (3m)-7.68%
EPS NQ rev (1m)-11.08%
EPS NQ rev (3m)-9.95%
EPS NY rev (1m)-5.33%
EPS NY rev (3m)-4.06%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.03 | ||
| Fwd PE | 13.62 | ||
| P/S | 0.55 | ||
| P/FCF | 6.91 | ||
| P/OCF | 3.72 | ||
| P/B | 3.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.95 |
EPS(TTM)2.17
EY6.24%
EPS(NY)2.55
Fwd EY7.34%
FCF(TTM)5.03
FCFY14.47%
OCF(TTM)9.35
OCFY26.89%
SpS63.48
BVpS9.83
TBVpS-14.27
PEG (NY)N/A
PEG (5Y)0.25
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 | 0.77 |
F-Score5
WACC7.96%
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-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%.