MGM RESORTS INTERNATIONAL (MGM) Stock Fundamental Analysis
USA - NYSE:MGM - US5529531015 - Common Stock
31.21 USD
-0.74 (-2.32%)
29.5999 USD
-1.61 (-5.16%)
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 has an average financial health and profitability rating. MGM has a valuation in line with the averages, 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.
Of the past 5 years MGM 4 years were profitable.
MGM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of MGM (1.29%) is comparable to the rest of the industry.
The Return On Equity of MGM (18.04%) is better than 76.69% of its industry peers.
MGM's Return On Invested Capital of 3.03% is on the low side compared to the rest of the industry. MGM is outperformed by 64.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.29% | ||
| ROE | 18.04% | ||
| ROIC | 3.03% |
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 (3.12%) which is comparable to the rest of the industry.
MGM's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 8.59%, MGM is in line with its industry, outperforming 51.13% of the companies in the same industry.
MGM's Operating Margin has declined in the last couple of years.
The Gross Margin of MGM (44.95%) is comparable to the rest of the industry.
MGM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.59% | ||
| PM (TTM) | 3.12% | ||
| GM | 44.95% |
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.
MGM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MGM has less shares outstanding
The debt/assets ratio for MGM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.77, we must say that MGM is in the distress zone and has some risk of bankruptcy.
MGM has a Altman-Z score of 0.77. This is in the lower half of the industry: MGM underperforms 71.43% of its industry peers.
MGM has a debt to FCF ratio of 5.01. This is a neutral value as MGM would need 5.01 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.01, MGM is doing good in the industry, outperforming 75.94% of the companies in the same industry.
MGM has a Debt/Equity ratio of 2.16. This is a high value indicating a heavy dependency on external financing.
MGM has a Debt to Equity ratio (2.16) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.16 | ||
| Debt/FCF | 5.01 | ||
| Altman-Z | 0.77 |
ROIC/WACC0.38
WACC7.92%
2.3 Liquidity
MGM has a Current Ratio of 1.22. 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 1.22 is fine compared to the rest of the industry. MGM outperforms 60.90% of its industry peers.
MGM has a Quick Ratio of 1.18. This is a normal value and indicates that MGM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.18, MGM is in the better half of the industry, outperforming 62.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.18 |
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.
MGM shows a small growth in Revenue. In the last year, the Revenue has grown by 6.66%.
The Revenue has been growing slightly by 5.97% on average over the past years.
EPS 1Y (TTM)-32.19%
EPS 3Y-0.18%
EPS 5Y65.28%
EPS Q2Q%-55.56%
Revenue 1Y (TTM)6.66%
Revenue growth 3Y21.22%
Revenue growth 5Y5.97%
Sales Q2Q%1.61%
3.2 Future
MGM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.27% yearly.
Based on estimates for the next years, MGM will show a small growth in Revenue. The Revenue will grow by 2.57% on average per year.
EPS Next Y-2.5%
EPS Next 2Y1.35%
EPS Next 3Y7.26%
EPS Next 5Y4.27%
Revenue Next Year0.9%
Revenue Next 2Y1.44%
Revenue Next 3Y1.81%
Revenue Next 5Y2.57%
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.
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
The Price/Earnings ratio is 14.38, which indicates a correct valuation of MGM.
77.44% of the companies in the same industry are more expensive than MGM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.76, MGM is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 11.73, the valuation of MGM can be described as reasonable.
MGM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MGM is cheaper than 79.70% of the companies in the same industry.
MGM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 11.73 |
4.2 Price Multiples
MGM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MGM is cheaper than 90.98% 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 95.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.56 | ||
| EV/EBITDA | 5.43 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y1.35%
EPS Next 3Y7.26%
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 3.90.
Compared to an average S&P500 Dividend Yield of 2.31, 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 2Y1.35%
EPS Next 3Y7.26%
31.21
-0.74 (-2.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners71.7%
Inst Owner Change-2.14%
Ins Owners0.95%
Ins Owner Change0.24%
Market Cap8.50B
Revenue(TTM)17.24B
Net Income(TTM)536.37M
Analysts77.04
Price Target47.54 (52.32%)
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)2
Avg EPS beat(2)47.22%
Min EPS beat(2)47.09%
Max EPS beat(2)47.35%
EPS beat(4)3
Avg EPS beat(4)32.27%
Min EPS beat(4)-12.16%
Max EPS beat(4)47.35%
EPS beat(8)7
Avg EPS beat(8)33.83%
EPS beat(12)9
Avg EPS beat(12)-7.55%
EPS beat(16)12
Avg EPS beat(16)45.11%
Revenue beat(2)1
Avg Revenue beat(2)-0.28%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)1.03%
Revenue beat(4)2
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)1.03%
Revenue beat(8)6
Avg Revenue beat(8)1.12%
Revenue beat(12)10
Avg Revenue beat(12)2.37%
Revenue beat(16)14
Avg Revenue beat(16)3.32%
PT rev (1m)-0.51%
PT rev (3m)3.94%
EPS NQ rev (1m)-12.3%
EPS NQ rev (3m)-12.41%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)11.16%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 11.73 | ||
| P/S | 0.49 | ||
| P/FCF | 6.56 | ||
| P/OCF | 3.36 | ||
| P/B | 2.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.43 |
EPS(TTM)2.17
EY6.95%
EPS(NY)2.66
Fwd EY8.53%
FCF(TTM)4.76
FCFY15.25%
OCF(TTM)9.3
OCFY29.8%
SpS63.23
BVpS10.93
TBVpS-14.39
PEG (NY)N/A
PEG (5Y)0.22
Graham Number23.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.29% | ||
| ROE | 18.04% | ||
| ROCE | 3.83% | ||
| ROIC | 3.03% | ||
| ROICexc | 3.19% | ||
| ROICexgc | 3.93% | ||
| OM | 8.59% | ||
| PM (TTM) | 3.12% | ||
| GM | 44.95% | ||
| FCFM | 7.53% |
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-Score6
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.16 | ||
| Debt/FCF | 5.01 | ||
| Debt/EBITDA | 2.67 | ||
| Cap/Depr | 134.29% | ||
| Cap/Sales | 7.19% | ||
| Interest Coverage | 3.77 | ||
| Cash Conversion | 105.56% | ||
| Profit Quality | 241.47% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 0.77 |
F-Score6
WACC7.92%
ROIC/WACC0.38
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-2.5%
EPS Next 2Y1.35%
EPS Next 3Y7.26%
EPS Next 5Y4.27%
Revenue 1Y (TTM)6.66%
Revenue growth 3Y21.22%
Revenue growth 5Y5.97%
Sales Q2Q%1.61%
Revenue Next Year0.9%
Revenue Next 2Y1.44%
Revenue Next 3Y1.81%
Revenue Next 5Y2.57%
EBIT growth 1Y-15.9%
EBIT growth 3Y43.38%
EBIT growth 5Y3.23%
EBIT Next Year204.94%
EBIT Next 3Y48.87%
EBIT Next 5Y30.12%
FCF growth 1Y6.15%
FCF growth 3Y11.14%
FCF growth 5Y2.5%
OCF growth 1Y18.22%
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 6 / 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 4 / 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%.