MGM RESORTS INTERNATIONAL (MGM) Stock Fundamental Analysis
USA - NYSE:MGM - US5529531015 - Common Stock
31.72 USD
-0.29 (-0.91%)
31.72 USD
0 (0%)
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 is valued correctly, but it does not seem to be growing.
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.
Of the past 5 years MGM 4 years were profitable.
Of the past 5 years MGM 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.16%, MGM is doing worse than 64.39% of the companies in the same industry.
Looking at the Return On Equity, with a value of 2.48%, MGM is in line with its industry, outperforming 52.27% of the companies in the same industry.
MGM has a worse Return On Invested Capital (2.82%) than 65.91% 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
With a Profit Margin value of 0.38%, MGM is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
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 46.97% of its industry peers.
MGM's Operating Margin has declined in the last couple of years.
MGM has a Gross Margin of 44.65%. This is comparable to the rest of the industry: MGM outperforms 44.70% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MGM is destroying value.
The number of shares outstanding for MGM has been reduced compared to 1 year ago.
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
Based on the Altman-Z score of 0.76, we must say that MGM is in the distress zone and has some risk of bankruptcy.
MGM has a worse Altman-Z score (0.76) than 70.45% 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.
With a decent Debt to FCF ratio value of 4.70, MGM is doing good in the industry, outperforming 78.03% of the companies in the same industry.
MGM has a Debt/Equity ratio of 2.38. This is a high value indicating a heavy dependency on external financing.
MGM's Debt to Equity ratio of 2.38 is in line compared 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 | 0.76 |
ROIC/WACC0.36
WACC7.9%
2.3 Liquidity
A Current Ratio of 1.23 indicates that MGM should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.23, MGM is doing good in the industry, outperforming 61.36% of the companies in the same industry.
A Quick Ratio of 1.19 indicates that MGM should not have too much problems paying its short term obligations.
The Quick ratio of MGM (1.19) is better than 62.12% 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%.
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%.
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 4.27% on average over the next years.
The Revenue is expected to grow by 2.57% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
MGM is valuated correctly with a Price/Earnings ratio of 14.62.
76.52% 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 (25.67), we can say MGM is valued slightly cheaper.
The Price/Forward Earnings ratio is 12.42, which indicates a correct valuation of MGM.
78.03% of the companies in the same industry are more expensive than MGM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 31.86. MGM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.62 | ||
| Fwd PE | 12.42 |
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.
98.48% 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 | 6.3 | ||
| EV/EBITDA | 5.63 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y-0.71%
EPS Next 3Y4.63%
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 4.11.
Compared to an average S&P500 Dividend Yield of 2.40, 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-0.71%
EPS Next 3Y4.63%
31.72
-0.29 (-0.91%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners71.7%
Inst Owner Change-2.62%
Ins Owners0.95%
Ins Owner Change0.23%
Market Cap8.63B
Revenue(TTM)17.28B
Net Income(TTM)66.38M
Analysts76.3
Price Target47.54 (49.87%)
Short Float %10.78%
Short Ratio4.98
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)-3.86%
PT rev (3m)0.44%
EPS NQ rev (1m)-11.31%
EPS NQ rev (3m)-11.44%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)11.16%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.62 | ||
| Fwd PE | 12.42 | ||
| P/S | 0.5 | ||
| P/FCF | 6.3 | ||
| P/OCF | 3.39 | ||
| P/B | 3.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.63 |
EPS(TTM)2.17
EY6.84%
EPS(NY)2.55
Fwd EY8.05%
FCF(TTM)5.03
FCFY15.86%
OCF(TTM)9.35
OCFY29.49%
SpS63.48
BVpS9.83
TBVpS-14.27
PEG (NY)N/A
PEG (5Y)0.22
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 | 0.76 |
F-Score5
WACC7.9%
ROIC/WACC0.36
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%.