MGM RESORTS INTERNATIONAL (MGM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MGM - US5529531015 - Common Stock
34.45 USD
-0.7 (-1.99%)
34.42 USD
-0.03 (-0.09%)
MGM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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
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
With a Return On Assets value of 0.16%, MGM is not doing good in the industry: 62.41% of the companies in the same industry are doing better.
MGM has a Return On Equity (2.48%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 2.82%, MGM is doing worse than 63.16% of the companies in the same industry.
| 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.
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
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
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.
MGM's Altman-Z score of 0.77 is on the low side compared to the rest of the industry. MGM is outperformed by 69.17% 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 75.94% 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.
MGM has a Debt to Equity ratio (2.38) which 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/WACC0.34
WACC8.27%
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 63.91% 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.
MGM has a better Quick ratio (1.19) than 65.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
MGM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.19%.
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%.
Measured over the past years, MGM shows a small growth in Revenue. The Revenue has been growing by 5.97% on average per year.
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 8.07% on average over the next years. This is quite good.
MGM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.76% yearly.
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
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.
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
With a Price/Earnings ratio of 15.88, MGM is valued correctly.
Based on the Price/Earnings ratio, MGM is valued a bit cheaper than the industry average as 79.70% of the companies are valued more expensively.
MGM is valuated rather cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.89, which indicates a correct valuation of MGM.
Based on the Price/Forward Earnings ratio, MGM is valued a bit cheaper than 78.20% 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 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.88 | ||
| Fwd PE | 14.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MGM indicates a rather cheap valuation: MGM is cheaper than 91.73% of the companies listed in the same industry.
96.99% 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 | 6.88 | ||
| EV/EBITDA | 5.93 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.24
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.
MGM's Dividend Yield is comparable with the industry average which is at 6.32.
Compared to an average S&P500 Dividend Yield of 1.92, 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-5.5%
EPS Next 3Y4.26%
34.45
-0.7 (-1.99%)
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 Cap9.42B
Revenue(TTM)17.28B
Net Income(TTM)66.38M
Analysts75.17
Price Target43.95 (27.58%)
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 | 15.88 | ||
| Fwd PE | 14.89 | ||
| P/S | 0.55 | ||
| P/FCF | 6.88 | ||
| P/OCF | 3.7 | ||
| P/B | 3.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.93 |
EPS(TTM)2.17
EY6.3%
EPS(NY)2.31
Fwd EY6.71%
FCF(TTM)5.01
FCFY14.53%
OCF(TTM)9.31
OCFY27.02%
SpS63.17
BVpS9.78
TBVpS-14.2
PEG (NY)N/A
PEG (5Y)0.24
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
WACC8.27%
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)-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 15.88 and the Price/Book (PB) ratio is 3.52.
What is the financial health of MGM RESORTS INTERNATIONAL (MGM) stock?
The financial health rating of MGM RESORTS INTERNATIONAL (MGM) is 4 / 10.