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 scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MGM is not valued too expensively and it also shows a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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's Return On Equity of 2.48% is in line compared to the rest of the industry. MGM outperforms 57.89% of its industry peers.
The Return On Invested Capital of MGM (2.82%) is worse than 63.16% of its industry peers.

		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

With a Profit Margin value of 0.38%, MGM is not doing good in the industry: 61.65% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of MGM has declined.
MGM has a Operating Margin (7.90%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MGM has declined.
MGM's Gross Margin of 44.65% is in line compared to the rest of the industry. MGM outperforms 43.61% of its industry peers.
MGM's Gross Margin has improved in the last couple of years.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
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 0.77, 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 69.92% of its industry peers.
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.
With a decent Debt to FCF ratio value of 4.70, MGM is doing good in the industry, outperforming 75.94% of the companies in the same industry.
A Debt/Equity ratio of 2.38 is on the high side and indicates that MGM has dependencies on debt financing.
MGM has a Debt to Equity ratio (2.38) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	2.38
Debt/FCF	4.7
Altman-Z	0.77

ROIC/WACC0.35

WACC8.12%

2.3 Liquidity

A Current Ratio of 1.23 indicates that MGM should not have too much problems paying its short term obligations.
MGM has a better Current ratio (1.23) than 63.91% of its industry peers.
A Quick Ratio of 1.19 indicates that MGM should not have too much problems paying its short term obligations.
MGM has a Quick ratio of 1.19. This is in the better half of the industry: MGM outperforms 65.41% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.23
Quick Ratio	1.19

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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

Based on estimates for the next years, MGM will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.07% on average per year.
MGM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.76% yearly.

EPS Next Y-16.83%

EPS Next 2Y-5.5%

EPS Next 3Y4.26%

EPS Next 5Y8.07%

Revenue Next Year0.93%

Revenue Next 2Y1.06%

Revenue Next 3Y1.42%

Revenue Next 5Y2.76%

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 15.86, which indicates a correct valuation of MGM.
Based on the Price/Earnings ratio, MGM is valued a bit cheaper than 78.95% of the companies in the same industry.
When comparing the Price/Earnings ratio of MGM to the average of the S&P500 Index (27.30), we can say MGM is valued slightly cheaper.
MGM is valuated correctly with a Price/Forward Earnings ratio of 14.88.
Based on the Price/Forward Earnings ratio, MGM is valued a bit cheaper than 75.94% of the companies in the same industry.
MGM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	15.86
Fwd PE	14.88

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MGM is valued cheaply inside the industry as 91.73% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MGM is valued cheaply inside the industry as 96.24% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	6.87
EV/EBITDA	5.93

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)0.24

EPS Next 2Y-5.5%

EPS Next 3Y4.26%

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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 1.19.
With a Dividend Yield of 0.02, MGM pays less dividend than the S&P500 average, which is at 1.82.

		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%

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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 15.86 and the Price/Book (PB) ratio is 3.52.

What is the financial health of MGM RESORTS INTERNATIONAL (MGM) stock?

The financial health rating of MGM RESORTS INTERNATIONAL (MGM) is 4 / 10.