Logo image of MGM

MGM RESORTS INTERNATIONAL (MGM) Stock Fundamental Analysis

NYSE:MGM - New York Stock Exchange, Inc. - US5529531015 - Common Stock

33.32  -0.03 (-0.09%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to MGM. MGM was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. MGM has an average financial health and profitability rating. MGM has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

4

1. Profitability

1.1 Basic Checks

MGM had positive earnings in the past year.
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.
MGM Yearly Net Income VS EBIT VS OCF VS FCFMGM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B 2B -2B

1.2 Ratios

MGM has a Return On Assets (2.11%) which is comparable to the rest of the industry.
MGM's Return On Equity of 27.95% is amongst the best of the industry. MGM outperforms 82.44% of its industry peers.
MGM has a worse Return On Invested Capital (3.52%) than 61.07% of its industry peers.
Industry RankSector Rank
ROA 2.11%
ROE 27.95%
ROIC 3.52%
ROA(3y)2.91%
ROA(5y)2.41%
ROE(3y)26.41%
ROE(5y)18.07%
ROIC(3y)N/A
ROIC(5y)N/A
MGM Yearly ROA, ROE, ROICMGM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 30

1.3 Margins

With a Profit Margin value of 5.23%, MGM perfoms like the industry average, outperforming 58.78% of the companies in the same industry.
MGM's Profit Margin has improved in the last couple of years.
MGM's Operating Margin of 10.02% is in line compared to the rest of the industry. MGM outperforms 52.67% of its industry peers.
In the last couple of years the Operating Margin of MGM has declined.
MGM has a Gross Margin (45.72%) which is in line with its industry peers.
In the last couple of years the Gross Margin of MGM has grown nicely.
Industry RankSector Rank
OM 10.02%
PM (TTM) 5.23%
GM 45.72%
OM growth 3YN/A
OM growth 5Y-2.83%
PM growth 3YN/A
PM growth 5Y13.35%
GM growth 3Y12.46%
GM growth 5Y2.72%
MGM Yearly Profit, Operating, Gross MarginsMGM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40

More info and screens

5

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
The debt/assets ratio for MGM has been reduced compared to a year ago.
MGM Yearly Shares OutstandingMGM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M
MGM Yearly Total Debt VS Total AssetsMGM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B

2.2 Solvency

MGM has an Altman-Z score of 0.81. 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 0.81, MGM is doing worse than 71.76% of the companies in the same industry.
MGM has a debt to FCF ratio of 5.44. This is a neutral value as MGM would need 5.44 years to pay back of all of its debts.
MGM's Debt to FCF ratio of 5.44 is fine compared to the rest of the industry. MGM outperforms 72.52% of its industry peers.
MGM has a Debt/Equity ratio of 2.01. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.01, MGM is in line with its industry, outperforming 54.20% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.01
Debt/FCF 5.44
Altman-Z 0.81
ROIC/WACC0.44
WACC7.92%
MGM Yearly LT Debt VS Equity VS FCFMGM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B

2.3 Liquidity

A Current Ratio of 1.24 indicates that MGM should not have too much problems paying its short term obligations.
MGM has a Current ratio of 1.24. This is in the better half of the industry: MGM outperforms 63.36% of its industry peers.
A Quick Ratio of 1.21 indicates that MGM should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.21, MGM is doing good in the industry, outperforming 64.89% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.24
Quick Ratio 1.21
MGM Yearly Current Assets VS Current LiabilitesMGM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B

More info and screens

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 2185.71% over the past year.
MGM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.47% yearly.
The Revenue has grown by 12.28% in the past year. This is quite good.
MGM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.56% yearly.
EPS 1Y (TTM)2185.71%
EPS 3YN/A
EPS 5Y28.47%
EPS Q2Q%-15.62%
Revenue 1Y (TTM)12.28%
Revenue growth 3Y46.3%
Revenue growth 5Y6.56%
Sales Q2Q%5.28%

3.2 Future

MGM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.78% yearly.
MGM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.30% yearly.
EPS Next Y-7.77%
EPS Next 2Y-7.86%
EPS Next 3Y1.12%
EPS Next 5Y9.78%
Revenue Next Year8.55%
Revenue Next 2Y4.26%
Revenue Next 3Y3.61%
Revenue Next 5Y3.3%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
MGM Yearly Revenue VS EstimatesMGM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B
MGM Yearly EPS VS EstimatesMGM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 2 -2 4 -4 6 8

More info and screens

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 10.41, the valuation of MGM can be described as very reasonable.
93.89% 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 (28.29), we can say MGM is valued rather cheaply.
MGM is valuated correctly with a Price/Forward Earnings ratio of 14.38.
81.68% of the companies in the same industry are more expensive than MGM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, MGM is valued a bit cheaper.
Industry RankSector Rank
PE 10.41
Fwd PE 14.38
MGM Price Earnings VS Forward Price EarningsMGM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

92.37% of the companies in the same industry are more expensive than MGM, based on the Enterprise Value to EBITDA ratio.
96.95% of the companies in the same industry are more expensive than MGM, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 7.45
EV/EBITDA 5.56
MGM Per share dataMGM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)0.37
EPS Next 2Y-7.86%
EPS Next 3Y1.12%

More info and screens

2

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 2.98, 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 2.28.
Industry RankSector 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
MGM Yearly Dividends per shareMGM Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

DP0%
EPS Next 2Y-7.86%
EPS Next 3Y1.12%
MGM Yearly Income VS Free CF VS DividendMGM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B 2B

More info and screens

MGM RESORTS INTERNATIONAL

NYSE:MGM (1/22/2025, 11:52:09 AM)

33.32

-0.03 (-0.09%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)10-30 2024-10-30/amc
Earnings (Next)02-12 2025-02-12/amc
Inst Owners67.47%
Inst Owner Change-0.07%
Ins Owners0.97%
Ins Owner Change0.31%
Market Cap9.92B
Analysts80
Price Target51 (53.06%)
Short Float %7.01%
Short Ratio3.81
Dividend
Industry RankSector 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)13.14%
Min EPS beat(2)-12.16%
Max EPS beat(2)38.43%
EPS beat(4)3
Avg EPS beat(4)24.9%
Min EPS beat(4)-12.16%
Max EPS beat(4)46.92%
EPS beat(8)6
Avg EPS beat(8)55.83%
EPS beat(12)8
Avg EPS beat(12)21.99%
EPS beat(16)12
Avg EPS beat(16)41.15%
Revenue beat(2)1
Avg Revenue beat(2)0%
Min Revenue beat(2)-1.55%
Max Revenue beat(2)1.56%
Revenue beat(4)3
Avg Revenue beat(4)1.78%
Min Revenue beat(4)-1.55%
Max Revenue beat(4)4.65%
Revenue beat(8)7
Avg Revenue beat(8)3.01%
Revenue beat(12)11
Avg Revenue beat(12)3.74%
Revenue beat(16)13
Avg Revenue beat(16)3.31%
PT rev (1m)-0.29%
PT rev (3m)-7.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-52.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.76%
Valuation
Industry RankSector Rank
PE 10.41
Fwd PE 14.38
P/S 0.57
P/FCF 7.45
P/OCF 4.12
P/B 3.07
P/tB N/A
EV/EBITDA 5.56
EPS(TTM)3.2
EY9.6%
EPS(NY)2.32
Fwd EY6.96%
FCF(TTM)4.47
FCFY13.42%
OCF(TTM)8.08
OCFY24.26%
SpS58
BVpS10.85
TBVpS-12.5
PEG (NY)N/A
PEG (5Y)0.37
Profitability
Industry RankSector Rank
ROA 2.11%
ROE 27.95%
ROCE 4.45%
ROIC 3.52%
ROICexc 3.81%
ROICexgc 4.72%
OM 10.02%
PM (TTM) 5.23%
GM 45.72%
FCFM 7.71%
ROA(3y)2.91%
ROA(5y)2.41%
ROE(3y)26.41%
ROE(5y)18.07%
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 3YN/A
ROICexcg growth 5Y-4.18%
ROICexc growth 3YN/A
ROICexc growth 5Y-3.35%
OM growth 3YN/A
OM growth 5Y-2.83%
PM growth 3YN/A
PM growth 5Y13.35%
GM growth 3Y12.46%
GM growth 5Y2.72%
F-Score6
Asset Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 2.01
Debt/FCF 5.44
Debt/EBITDA 2.54
Cap/Depr 129.99%
Cap/Sales 6.23%
Interest Coverage 4.19
Cash Conversion 94.13%
Profit Quality 147.4%
Current Ratio 1.24
Quick Ratio 1.21
Altman-Z 0.81
F-Score6
WACC7.92%
ROIC/WACC0.44
Cap/Depr(3y)59.69%
Cap/Depr(5y)51.61%
Cap/Sales(3y)5.55%
Cap/Sales(5y)5.53%
Profit Quality(3y)99.35%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2185.71%
EPS 3YN/A
EPS 5Y28.47%
EPS Q2Q%-15.62%
EPS Next Y-7.77%
EPS Next 2Y-7.86%
EPS Next 3Y1.12%
EPS Next 5Y9.78%
Revenue 1Y (TTM)12.28%
Revenue growth 3Y46.3%
Revenue growth 5Y6.56%
Sales Q2Q%5.28%
Revenue Next Year8.55%
Revenue Next 2Y4.26%
Revenue Next 3Y3.61%
Revenue Next 5Y3.3%
EBIT growth 1Y1133.83%
EBIT growth 3YN/A
EBIT growth 5Y3.55%
EBIT Next Year152.1%
EBIT Next 3Y36.06%
EBIT Next 5Y24.55%
FCF growth 1Y15.28%
FCF growth 3YN/A
FCF growth 5Y49.92%
OCF growth 1Y35.19%
OCF growth 3YN/A
OCF growth 5Y9.54%