MGM RESORTS INTERNATIONAL (MGM) Stock Fundamental Analysis
USA - NYSE:MGM - US5529531015 - Common Stock
33.43 USD
-0.49 (-1.44%)
Overall MGM gets a fundamental rating of 4 out of 10. We evaluated MGM against 135 industry peers in the Hotels, Restaurants & Leisure industry. MGM has only an average score on both its financial health and profitability. MGM has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
MGM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.29%, MGM perfoms like the industry average, outperforming 41.48% of the companies in the same industry.
MGM has a Return On Equity of 18.04%. This is in the better half of the industry: MGM outperforms 77.04% of its industry peers.
MGM has a Return On Invested Capital of 3.03%. This is in the lower half of the industry: MGM underperforms 63.70% 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
The Profit Margin of MGM (3.12%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of MGM has declined.
Looking at the Operating Margin, with a value of 8.59%, MGM is in line with its industry, outperforming 51.85% of the companies in the same industry.
In the last couple of years the Operating Margin of MGM has declined.
With a Gross Margin value of 44.95%, MGM perfoms like the industry average, outperforming 44.44% of the companies in the same 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
Compared to 1 year ago, MGM has a worse debt to assets ratio.
2.2 Solvency
MGM has an Altman-Z score of 0.78. 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 0.78. This is in the lower half of the industry: MGM underperforms 71.85% 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.
The Debt to FCF ratio of MGM (5.01) is better than 74.81% of its industry peers.
A Debt/Equity ratio of 2.16 is on the high side and indicates that MGM has dependencies on debt financing.
MGM's Debt to Equity ratio of 2.16 is in line compared to the rest of the industry. MGM outperforms 48.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.16 | ||
| Debt/FCF | 5.01 | ||
| Altman-Z | 0.78 |
ROIC/WACC0.38
WACC7.92%
2.3 Liquidity
A Current Ratio of 1.22 indicates that MGM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.22, MGM is in the better half of the industry, outperforming 62.22% of the companies in the same industry.
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.
MGM's Quick ratio of 1.18 is fine compared to the rest of the industry. MGM outperforms 63.70% of its industry peers.
| 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 -25.15%.
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 0.89% in the last year.
MGM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.97% yearly.
EPS 1Y (TTM)-25.15%
EPS 3Y-0.18%
EPS 5Y65.28%
EPS Q2Q%-8.14%
Revenue 1Y (TTM)0.89%
Revenue growth 3Y21.22%
Revenue growth 5Y5.97%
Sales Q2Q%1.79%
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-1.94%
EPS Next 2Y1.84%
EPS Next 3Y8.15%
EPS Next 5Y4.27%
Revenue Next Year1%
Revenue Next 2Y1.51%
Revenue Next 3Y1.84%
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.
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 13.53.
Based on the Price/Earnings ratio, MGM is valued cheaply inside the industry as 85.19% of the companies are valued more expensively.
MGM is valuated cheaply when we compare the Price/Earnings ratio to 27.90, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.44, which indicates a correct valuation of MGM.
MGM's Price/Forward Earnings ratio is rather cheap when compared to the industry. MGM is cheaper than 81.48% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.36. MGM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.53 | ||
| Fwd PE | 12.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MGM indicates a rather cheap valuation: MGM is cheaper than 89.63% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MGM is valued cheaply inside the industry as 96.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.03 | ||
| EV/EBITDA | 5.74 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.21
EPS Next 2Y1.84%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
MGM has a yearly dividend return of 0.02%, which is pretty low.
Compared to an average industry Dividend Yield of 6.99, MGM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, 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 2Y1.84%
EPS Next 3Y8.15%
NYSE:MGM (10/7/2025, 10:29:08 AM)
33.43
-0.49 (-1.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners71.7%
Inst Owner Change0%
Ins Owners0.95%
Ins Owner Change-0.03%
Market Cap9.10B
Analysts77.04
Price Target49.2 (47.17%)
Short Float %12.58%
Short Ratio5.54
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)-0.27%
PT rev (3m)4.77%
EPS NQ rev (1m)-1.97%
EPS NQ rev (3m)-6.42%
EPS NY rev (1m)1.94%
EPS NY rev (3m)16.41%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.53 | ||
| Fwd PE | 12.44 | ||
| P/S | 0.53 | ||
| P/FCF | 7.03 | ||
| P/OCF | 3.59 | ||
| P/B | 3.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.74 |
EPS(TTM)2.47
EY7.39%
EPS(NY)2.69
Fwd EY8.04%
FCF(TTM)4.76
FCFY14.23%
OCF(TTM)9.3
OCFY27.83%
SpS63.23
BVpS10.93
TBVpS-14.39
PEG (NY)N/A
PEG (5Y)0.21
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
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-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 | 0.78 |
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)-25.15%
EPS 3Y-0.18%
EPS 5Y65.28%
EPS Q2Q%-8.14%
EPS Next Y-1.94%
EPS Next 2Y1.84%
EPS Next 3Y8.15%
EPS Next 5Y4.27%
Revenue 1Y (TTM)0.89%
Revenue growth 3Y21.22%
Revenue growth 5Y5.97%
Sales Q2Q%1.79%
Revenue Next Year1%
Revenue Next 2Y1.51%
Revenue Next 3Y1.84%
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%