MGM RESORTS INTERNATIONAL (MGM) Stock Fundamental Analysis
NYSE:MGM - New York Stock Exchange, Inc. - US5529531015 - Common Stock - Currency: USD
Overall MGM gets a fundamental rating of 4 out of 10. We evaluated MGM against 134 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of MGM get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past year MGM had a positive cash flow from operations.
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 (1.61%) is comparable to the rest of the industry.
The Return On Equity of MGM (23.64%) is better than 82.09% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.21%, MGM is doing worse than 66.42% of the companies in the same industry.
| 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
With a Profit Margin value of 3.94%, MGM perfoms like the industry average, outperforming 55.22% of the companies in the same industry.
MGM's Profit Margin has declined in the last couple of years.
MGM has a Operating Margin (9.19%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MGM has declined.
MGM has a Gross Margin (45.42%) which is in line with its industry peers.
MGM's Gross Margin has improved in the last couple of years.
| 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
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.
The number of shares outstanding for MGM has been reduced compared to 5 years ago.
MGM has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.79, we must say that MGM is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.79, MGM is doing worse than 70.90% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 5.82, MGM is in the better half of the industry, outperforming 74.63% of the companies in the same industry.
A Debt/Equity ratio of 2.33 is on the high side and indicates that MGM has dependencies on debt financing.
MGM has a Debt to Equity ratio of 2.33. This is comparable to the rest of the industry: MGM outperforms 52.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.33 | ||
| Debt/FCF | 5.82 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.37
WACC8.67%
2.3 Liquidity
MGM has a Current Ratio of 1.31. 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 1.31 is fine compared to the rest of the industry. MGM outperforms 67.91% of its industry peers.
A Quick Ratio of 1.26 indicates that MGM should not have too much problems paying its short term obligations.
MGM's Quick ratio of 1.26 is fine compared to the rest of the industry. MGM outperforms 70.15% 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.
Measured over the past years, MGM shows a very strong growth in Earnings Per Share. The EPS has been growing by 65.28% on average per year.
MGM shows a small growth in Revenue. In the last year, the Revenue has grown by 2.76%.
MGM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.97% yearly.
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
MGM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.54% yearly.
Based on estimates for the next years, MGM will show a small growth in Revenue. The Revenue will grow by 2.87% on average per year.
EPS Next Y-15.51%
EPS Next 2Y-1.14%
EPS Next 3Y6.51%
EPS Next 5Y6.54%
Revenue Next Year-0.1%
Revenue Next 2Y0.75%
Revenue Next 3Y1.37%
Revenue Next 5Y2.87%
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
A Price/Earnings ratio of 12.46 indicates a correct valuation of MGM.
MGM's Price/Earnings ratio is rather cheap when compared to the industry. MGM is cheaper than 85.82% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.25, MGM is valued rather cheaply.
The Price/Forward Earnings ratio is 12.50, which indicates a correct valuation of MGM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MGM indicates a rather cheap valuation: MGM is cheaper than 81.34% of the companies listed in the same industry.
MGM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.46 | ||
| Fwd PE | 12.5 |
4.2 Price Multiples
92.54% of the companies in the same industry are more expensive than MGM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MGM indicates a rather cheap valuation: MGM is cheaper than 97.01% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.47 | ||
| EV/EBITDA | 5.34 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.19
EPS Next 2Y-1.14%
EPS Next 3Y6.51%
5. Dividend
5.1 Amount
MGM has a yearly dividend return of 0.02%, which is pretty low.
MGM's Dividend Yield is comparable with the industry average which is at 3.84.
With a Dividend Yield of 0.02, MGM pays less dividend than the S&P500 average, which is at 2.38.
| 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-1.14%
EPS Next 3Y6.51%
31.65
-0.08 (-0.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners69.2%
Inst Owner Change-5.2%
Ins Owners1%
Ins Owner Change-0.01%
Market Cap8.61B
Analysts80.77
Price Target46.37 (46.51%)
Short Float %8.89%
Short Ratio3.06
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)-1.2%
PT rev (3m)-7.19%
EPS NQ rev (1m)-10.18%
EPS NQ rev (3m)-16.11%
EPS NY rev (1m)-3.87%
EPS NY rev (3m)-5.78%
Revenue NQ rev (1m)-0.64%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.46 | ||
| Fwd PE | 12.5 | ||
| P/S | 0.5 | ||
| P/FCF | 7.47 | ||
| P/OCF | 3.65 | ||
| P/B | 3.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.34 |
EPS(TTM)2.54
EY8.03%
EPS(NY)2.53
Fwd EY8%
FCF(TTM)4.24
FCFY13.39%
OCF(TTM)8.67
OCFY27.4%
SpS62.96
BVpS10.49
TBVpS-14.73
PEG (NY)N/A
PEG (5Y)0.19
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 | 0.79 |
F-Score5
WACC8.67%
ROIC/WACC0.37
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-15.51%
EPS Next 2Y-1.14%
EPS Next 3Y6.51%
EPS Next 5Y6.54%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y21.22%
Revenue growth 5Y5.97%
Sales Q2Q%-2.43%
Revenue Next Year-0.1%
Revenue Next 2Y0.75%
Revenue Next 3Y1.37%
Revenue Next 5Y2.87%
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%