MGM RESORTS INTERNATIONAL (MGM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MGM - US5529531015 - Common Stock
37.3 USD
+0.53 (+1.44%)
37.55 USD
+0.25 (+0.67%)
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. MGM scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
MGM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of MGM (0.16%) is worse than 62.88% of its industry peers.
With a Return On Equity value of 2.48%, MGM perfoms like the industry average, outperforming 55.30% of the companies in the same industry.
MGM has a Return On Invested Capital of 2.82%. This is in the lower half of the industry: MGM underperforms 63.64% 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
Looking at the Profit Margin, with a value of 0.38%, MGM is doing worse than 62.12% 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 49.24% 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 in line with its industry peers.
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.
MGM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MGM has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.78, we must say that MGM is in the distress zone and has some risk of bankruptcy.
MGM has a Altman-Z score of 0.78. This is in the lower half of the industry: MGM underperforms 69.70% of its industry peers.
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.
With a Debt to Equity ratio value of 2.38, MGM perfoms like the industry average, outperforming 47.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | 4.7 | ||
| Altman-Z | 0.78 |
ROIC/WACC0.34
WACC8.31%
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's Current ratio of 1.23 is fine compared to the rest of the industry. MGM outperforms 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.
MGM has a Quick ratio of 1.19. This is in the better half of the industry: MGM outperforms 65.15% 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%.
MGM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 65.28% yearly.
Looking at the last year, MGM shows a small growth in Revenue. The Revenue has grown by 0.05% in the last year.
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
MGM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.07% yearly.
Based on estimates for the next years, MGM will show a small growth in Revenue. The Revenue will grow by 2.76% on average per year.
EPS Next Y-15.94%
EPS Next 2Y-4.77%
EPS Next 3Y2.99%
EPS Next 5Y8.07%
Revenue Next Year0.9%
Revenue Next 2Y1.13%
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.
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
A Price/Earnings ratio of 17.19 indicates a rather expensive valuation of MGM.
Based on the Price/Earnings ratio, MGM is valued a bit cheaper than the industry average as 76.52% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.38. MGM is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.88 indicates a correct valuation of MGM.
MGM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MGM is cheaper than 72.73% of the companies in the same industry.
MGM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 15.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MGM is valued cheaply inside the industry as 89.39% of the companies are valued more expensively.
95.45% 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 | 7.45 | ||
| EV/EBITDA | 6.21 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-4.77%
EPS Next 3Y2.99%
5. Dividend
5.1 Amount
With a yearly dividend of 0.02%, MGM is not a good candidate for dividend investing.
MGM's Dividend Yield is comparable with the industry average which is at 1.47.
With a Dividend Yield of 0.02, MGM pays less dividend than the S&P500 average, which is at 1.87.
| 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-4.77%
EPS Next 3Y2.99%
37.3
+0.53 (+1.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners69.22%
Inst Owner Change-5.35%
Ins Owners1.05%
Ins Owner Change1.1%
Market Cap10.20B
Revenue(TTM)17.28B
Net Income(TTM)66.38M
Analysts74.48
Price Target44.09 (18.2%)
Short Float %11.21%
Short Ratio4.77
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)-7.25%
PT rev (3m)-10.83%
EPS NQ rev (1m)0.66%
EPS NQ rev (3m)-8.95%
EPS NY rev (1m)-8.93%
EPS NY rev (3m)-12.62%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 15.88 | ||
| P/S | 0.59 | ||
| P/FCF | 7.45 | ||
| P/OCF | 4.01 | ||
| P/B | 3.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.21 |
EPS(TTM)2.17
EY5.82%
EPS(NY)2.35
Fwd EY6.3%
FCF(TTM)5.01
FCFY13.42%
OCF(TTM)9.31
OCFY24.96%
SpS63.17
BVpS9.78
TBVpS-14.2
PEG (NY)N/A
PEG (5Y)0.26
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 | 0.78 |
F-Score5
WACC8.31%
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-15.94%
EPS Next 2Y-4.77%
EPS Next 3Y2.99%
EPS Next 5Y8.07%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y21.22%
Revenue growth 5Y5.97%
Sales Q2Q%1.61%
Revenue Next Year0.9%
Revenue Next 2Y1.13%
Revenue Next 3Y1.45%
Revenue Next 5Y2.76%
EBIT growth 1Y-21.1%
EBIT growth 3Y43.38%
EBIT growth 5Y3.23%
EBIT Next Year184.73%
EBIT Next 3Y48.33%
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%.