Overall MGM gets a fundamental rating of 4 out of 10. We evaluated MGM against 132 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 has a correct valuation and a medium growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
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's Return On Assets of 0.16% is on the low side compared to the rest of the industry. MGM is outperformed by 62.12% of its industry peers.
MGM's Return On Equity of 2.48% is in line compared to the rest of the industry. MGM outperforms 57.58% of its industry peers.
With a Return On Invested Capital value of 2.82%, MGM is not doing good in the industry: 62.88% of the companies in the same industry are doing better.

		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 61.36% 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 50.76% of its industry peers.
MGM's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 44.65%, MGM perfoms like the industry average, outperforming 43.94% of the companies in the same 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
Looking at the Altman-Z score, with a value of 0.77, MGM is doing worse than 69.70% of the companies in the same industry.
MGM has a debt to FCF ratio of 4.70. This is a neutral value as MGM would need 4.70 years to pay back of all of its debts.
The Debt to FCF ratio of MGM (4.70) is better than 75.76% 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 of 2.38. This is comparable to the rest of the industry: MGM outperforms 46.97% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	2.38
Debt/FCF	4.7
Altman-Z	0.77

ROIC/WACC0.36

WACC7.93%

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 better Current ratio (1.23) than 63.64% of its industry peers.
A Quick Ratio of 1.19 indicates that MGM should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.19, MGM is doing good in the industry, outperforming 65.15% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.23
Quick Ratio	1.19

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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%.
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%.
MGM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.97% yearly.

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.
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-16.49%

EPS Next 2Y-6.04%

EPS Next 3Y4.2%

EPS Next 5Y8.07%

Revenue Next Year1.01%

Revenue Next 2Y1.12%

Revenue Next 3Y1.39%

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 15.68, which indicates a correct valuation of MGM.
Based on the Price/Earnings ratio, MGM is valued a bit cheaper than the industry average as 79.55% of the companies are valued more expensively.
MGM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
Based on the Price/Forward Earnings ratio of 14.88, the valuation of MGM can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MGM indicates a somewhat cheap valuation: MGM is cheaper than 75.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.98. MGM is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	15.68
Fwd PE	14.88

4.2 Price Multiples

91.67% of the companies in the same industry are more expensive than MGM, based on the Enterprise Value to EBITDA ratio.
96.21% 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	6.8
EV/EBITDA	5.88

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)0.24

EPS Next 2Y-6.04%

EPS Next 3Y4.2%

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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 1.21, MGM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.81, 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-6.04%

EPS Next 3Y4.2%

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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 15.68 and the Price/Book (PB) ratio is 3.48.

What is the financial health of MGM RESORTS INTERNATIONAL (MGM) stock?

The financial health rating of MGM RESORTS INTERNATIONAL (MGM) is 4 / 10.