MGM RESORTS INTERNATIONAL (MGM) Stock Fundamental Analysis
NYSE:MGM - New York Stock Exchange, Inc. - US5529531015 - Common Stock - Currency: USD
Taking everything into account, MGM scores 4 out of 10 in our fundamental rating. MGM was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. MGM has only an average score on both its financial health and profitability. MGM is valued correctly, but it does not seem to be growing.
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
Looking at the Return On Assets, with a value of 1.61%, MGM is in line with its industry, outperforming 46.62% of the companies in the same industry.
MGM has a better Return On Equity (23.64%) than 81.20% of its industry peers.
MGM's Return On Invested Capital of 3.21% is on the low side compared to the rest of the industry. MGM is outperformed by 65.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.61% | ||
| ROE | 23.64% | ||
| ROIC | 3.21% |
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 has a Profit Margin (3.94%) which is in line with its industry peers.
In the last couple of years the Profit Margin of MGM has declined.
Looking at the Operating Margin, with a value of 9.19%, MGM is in line with its industry, outperforming 49.62% of the companies in the same industry.
MGM's Operating Margin has declined in the last couple of years.
MGM has a Gross Margin (45.42%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of MGM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.19% | ||
| PM (TTM) | 3.94% | ||
| GM | 45.42% |
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
The number of shares outstanding for MGM has been reduced compared to 5 years ago.
The debt/assets ratio for MGM is higher compared to a year ago.
2.2 Solvency
MGM has an Altman-Z score of 0.80. This is a bad value and indicates that MGM is not financially healthy and even has some risk of bankruptcy.
MGM has a Altman-Z score of 0.80. This is in the lower half of the industry: MGM underperforms 69.92% of its industry peers.
The Debt to FCF ratio of MGM is 5.82, which is a neutral value as it means it would take MGM, 5.82 years of fcf income to pay off all of its debts.
MGM's Debt to FCF ratio of 5.82 is fine compared to the rest of the industry. MGM outperforms 76.69% of its industry peers.
A Debt/Equity ratio of 2.33 is on the high side and indicates that MGM has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.33, MGM is in line with its industry, outperforming 50.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.33 | ||
| Debt/FCF | 5.82 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.43
WACC7.49%
2.3 Liquidity
A Current Ratio of 1.31 indicates that MGM should not have too much problems paying its short term obligations.
MGM's Current ratio of 1.31 is fine compared to the rest of the industry. MGM outperforms 66.92% of its industry peers.
MGM has a Quick Ratio of 1.26. 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 Quick ratio of 1.26. This is in the better half of the industry: MGM outperforms 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The earnings per share for MGM have decreased strongly by -16.17% in the last year.
The Earnings Per Share has been growing by 65.28% on average over the past years. This is a very strong growth
Looking at the last year, MGM shows a small growth in Revenue. The Revenue has grown by 2.76% in the last year.
The Revenue has been growing slightly by 5.97% on average over the past years.
EPS 1Y (TTM)-16.17%
EPS 3Y-0.18%
EPS 5Y65.28%
EPS Q2Q%-6.76%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y21.22%
Revenue growth 5Y5.97%
Sales Q2Q%-2.43%
3.2 Future
Based on estimates for the next years, MGM will show a small growth in Earnings Per Share. The EPS will grow by 6.84% on average per year.
MGM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.63% yearly.
EPS Next Y-15.76%
EPS Next 2Y-0.8%
EPS Next 3Y6.01%
EPS Next 5Y6.84%
Revenue Next Year-0.14%
Revenue Next 2Y0.71%
Revenue Next 3Y1.28%
Revenue Next 5Y2.63%
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
With a Price/Earnings ratio of 13.54, MGM is valued correctly.
85.71% 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 (27.15), we can say MGM is valued rather cheaply.
With a Price/Forward Earnings ratio of 13.49, MGM is valued correctly.
Based on the Price/Forward Earnings ratio, MGM is valued a bit cheaper than 77.44% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.60. MGM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.54 | ||
| Fwd PE | 13.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MGM is valued cheaper than 91.73% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MGM indicates a rather cheap valuation: MGM is cheaper than 96.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.11 | ||
| EV/EBITDA | 5.64 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.21
EPS Next 2Y-0.8%
EPS Next 3Y6.01%
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 3.71.
Compared to an average S&P500 Dividend Yield of 2.42, 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-0.8%
EPS Next 3Y6.01%
34.39
+0.02 (+0.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners70.21%
Inst Owner Change-5.2%
Ins Owners1.09%
Ins Owner Change0.03%
Market Cap9.36B
Analysts80
Price Target46.96 (36.55%)
Short Float %10.44%
Short Ratio3.75
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)2
Avg EPS beat(2)46.93%
Min EPS beat(2)46.78%
Max EPS beat(2)47.09%
EPS beat(4)3
Avg EPS beat(4)30.04%
Min EPS beat(4)-12.16%
Max EPS beat(4)47.09%
EPS beat(8)7
Avg EPS beat(8)28.9%
EPS beat(12)8
Avg EPS beat(12)-18.76%
EPS beat(16)12
Avg EPS beat(16)45.76%
Revenue beat(2)1
Avg Revenue beat(2)-0.44%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)0.71%
Revenue beat(4)2
Avg Revenue beat(4)-0.22%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)1.56%
Revenue beat(8)6
Avg Revenue beat(8)1.27%
Revenue beat(12)10
Avg Revenue beat(12)2.82%
Revenue beat(16)13
Avg Revenue beat(16)3.16%
PT rev (1m)1.26%
PT rev (3m)-6.82%
EPS NQ rev (1m)7.06%
EPS NQ rev (3m)-9.16%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-6.29%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.54 | ||
| Fwd PE | 13.49 | ||
| P/S | 0.55 | ||
| P/FCF | 8.11 | ||
| P/OCF | 3.97 | ||
| P/B | 3.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.64 |
EPS(TTM)2.54
EY7.39%
EPS(NY)2.55
Fwd EY7.41%
FCF(TTM)4.24
FCFY12.33%
OCF(TTM)8.67
OCFY25.22%
SpS62.96
BVpS10.49
TBVpS-14.73
PEG (NY)N/A
PEG (5Y)0.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.61% | ||
| ROE | 23.64% | ||
| ROCE | 4.07% | ||
| ROIC | 3.21% | ||
| ROICexc | 3.41% | ||
| ROICexgc | 4.2% | ||
| OM | 9.19% | ||
| PM (TTM) | 3.94% | ||
| GM | 45.42% | ||
| FCFM | 6.73% |
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
ROICexcg growth 3Y36.7%
ROICexcg 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 Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.33 | ||
| Debt/FCF | 5.82 | ||
| Debt/EBITDA | 2.71 | ||
| Cap/Depr | 138.53% | ||
| Cap/Sales | 7.04% | ||
| Interest Coverage | 3.68 | ||
| Cash Conversion | 96.49% | ||
| Profit Quality | 171.04% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 0.8 |
F-Score5
WACC7.49%
ROIC/WACC0.43
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)-16.17%
EPS 3Y-0.18%
EPS 5Y65.28%
EPS Q2Q%-6.76%
EPS Next Y-15.76%
EPS Next 2Y-0.8%
EPS Next 3Y6.01%
EPS Next 5Y6.84%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y21.22%
Revenue growth 5Y5.97%
Sales Q2Q%-2.43%
Revenue Next Year-0.14%
Revenue Next 2Y0.71%
Revenue Next 3Y1.28%
Revenue Next 5Y2.63%
EBIT growth 1Y-5.9%
EBIT growth 3Y43.38%
EBIT growth 5Y3.23%
EBIT Next Year200.26%
EBIT Next 3Y47.88%
EBIT Next 5Y30.12%
FCF growth 1Y-6.71%
FCF growth 3Y11.14%
FCF growth 5Y2.5%
OCF growth 1Y15.7%
OCF growth 3Y19.82%
OCF growth 5Y5.47%