MGM RESORTS INTERNATIONAL (MGM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MGM - US5529531015 - Common Stock
35.15 USD
+1.03 (+3.02%)
35 USD
-0.15 (-0.43%)
We assign a fundamental rating of 4 out of 10 to MGM. MGM was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. The financial health of MGM is average, but there are quite some concerns on its profitability. MGM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MGM was profitable.
In the past year MGM had a positive cash flow from operations.
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 (0.16%) is worse than 62.41% of its industry peers.
MGM has a Return On Equity (2.48%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 2.82%, MGM is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
| 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
MGM's Profit Margin of 0.38% is on the low side compared to the rest of the industry. MGM is outperformed by 61.65% of its industry peers.
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 49.62% of its industry peers.
In the last couple of years the Operating Margin of MGM has declined.
MGM has a Gross Margin (44.65%) which is in line with its industry peers.
In the last couple of years the Gross Margin of MGM has grown nicely.
| 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.
MGM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MGM has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.78, we must say that MGM is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.78, MGM is not doing good in the industry: 69.17% of the companies in the same industry are doing better.
MGM has a debt to FCF ratio of 4.70. This is a neutral value as MGM would need 4.70 years to pay back of all of its debts.
MGM has a better Debt to FCF ratio (4.70) than 75.94% of its industry peers.
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 47.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | 4.7 | ||
| Altman-Z | 0.78 |
ROIC/WACC0.34
WACC8.26%
2.3 Liquidity
A Current Ratio of 1.23 indicates that MGM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.23, MGM is in the better half of the industry, outperforming 63.91% 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.
With a decent Quick ratio value of 1.19, MGM is doing good in the industry, outperforming 65.41% of the companies in the same industry.
| 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
The Revenue has been growing slightly by 0.05% in the past year.
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)0.05%
Revenue growth 3Y21.22%
Revenue growth 5Y5.97%
Sales Q2Q%1.61%
3.2 Future
MGM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.07% yearly.
The Revenue is expected to grow by 2.76% on average over the next years.
EPS Next Y-16.83%
EPS Next 2Y-5.5%
EPS Next 3Y4.26%
EPS Next 5Y8.07%
Revenue Next Year0.93%
Revenue Next 2Y1.15%
Revenue Next 3Y1.45%
Revenue Next 5Y2.76%
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
Based on the Price/Earnings ratio of 16.20, the valuation of MGM can be described as correct.
Based on the Price/Earnings ratio, MGM is valued a bit cheaper than the industry average as 78.20% of the companies are valued more expensively.
MGM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.00.
A Price/Forward Earnings ratio of 15.20 indicates a correct valuation of MGM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MGM indicates a somewhat cheap valuation: MGM is cheaper than 76.69% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MGM to the average of the S&P500 Index (23.70), we can say MGM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.2 | ||
| Fwd PE | 15.2 |
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 90.23% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MGM is valued cheaper than 95.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.02 | ||
| EV/EBITDA | 6.02 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y-5.5%
EPS Next 3Y4.26%
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 1.94.
With a Dividend Yield of 0.02, MGM pays less dividend than the S&P500 average, which is at 1.94.
| 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-5.5%
EPS Next 3Y4.26%
35.15
+1.03 (+3.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners69.26%
Inst Owner Change0%
Ins Owners1.05%
Ins Owner Change1.1%
Market Cap9.61B
Revenue(TTM)17.28B
Net Income(TTM)66.38M
Analysts74.48
Price Target43.95 (25.04%)
Short Float %10.93%
Short Ratio4.93
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)-3.5%
PT rev (3m)-10.67%
EPS NQ rev (1m)-5.24%
EPS NQ rev (3m)-13.69%
EPS NY rev (1m)-1.06%
EPS NY rev (3m)-15.19%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.2 | ||
| Fwd PE | 15.2 | ||
| P/S | 0.56 | ||
| P/FCF | 7.02 | ||
| P/OCF | 3.78 | ||
| P/B | 3.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.02 |
EPS(TTM)2.17
EY6.17%
EPS(NY)2.31
Fwd EY6.58%
FCF(TTM)5.01
FCFY14.24%
OCF(TTM)9.31
OCFY26.48%
SpS63.17
BVpS9.78
TBVpS-14.2
PEG (NY)N/A
PEG (5Y)0.25
Graham Number21.86
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 | 0.78 |
F-Score5
WACC8.26%
ROIC/WACC0.34
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-16.83%
EPS Next 2Y-5.5%
EPS Next 3Y4.26%
EPS Next 5Y8.07%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y21.22%
Revenue growth 5Y5.97%
Sales Q2Q%1.61%
Revenue Next Year0.93%
Revenue Next 2Y1.15%
Revenue Next 3Y1.45%
Revenue Next 5Y2.76%
EBIT growth 1Y-21.1%
EBIT growth 3Y43.38%
EBIT growth 5Y3.23%
EBIT Next Year183.08%
EBIT Next 3Y48.47%
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 fundamental rating for MGM stock?
ChartMill assigns a fundamental rating of 4 / 10 to MGM.
Can you provide the valuation status for MGM RESORTS INTERNATIONAL?
ChartMill assigns a valuation rating of 5 / 10 to MGM RESORTS INTERNATIONAL (MGM). This can be considered as Fairly Valued.
Can you provide the profitability details for MGM RESORTS INTERNATIONAL?
MGM RESORTS INTERNATIONAL (MGM) has a profitability rating of 3 / 10.
What are the PE and PB ratios of MGM RESORTS INTERNATIONAL (MGM) stock?
The Price/Earnings (PE) ratio for MGM RESORTS INTERNATIONAL (MGM) is 16.2 and the Price/Book (PB) ratio is 3.59.
What is the financial health of MGM RESORTS INTERNATIONAL (MGM) stock?
The financial health rating of MGM RESORTS INTERNATIONAL (MGM) is 4 / 10.