MGM RESORTS INTERNATIONAL (MGM)
US5529531015 - Common Stock
Overall MGM gets a fundamental rating of 5 out of 10. We evaluated MGM against 135 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 decent growth rate and is not valued too expensively.
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.
Of the past 5 years MGM 4 years had a positive operating cash flow.
1.2 Ratios
MGM has a Return On Assets of 2.70%. This is comparable to the rest of the industry: MGM outperforms 50.75% of its industry peers.
With a decent Return On Equity value of 30.03%, MGM is doing good in the industry, outperforming 79.85% of the companies in the same industry.
MGM has a worse Return On Invested Capital (3.19%) than 60.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.7% | ||
| ROE | 30.03% | ||
| ROIC | 3.19% |
ROA(3y)2.91%
ROA(5y)2.41%
ROE(3y)26.41%
ROE(5y)18.07%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 7.08%, MGM is in the better half of the industry, outperforming 64.93% of the companies in the same industry.
In the last couple of years the Profit Margin of MGM has grown nicely.
MGM has a Operating Margin of 9.79%. This is comparable to the rest of the industry: MGM outperforms 53.73% of its industry peers.
In the last couple of years the Operating Margin of MGM has declined.
MGM's Gross Margin of 47.08% is in line compared to the rest of the industry. MGM outperforms 47.01% of its industry peers.
MGM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.79% | ||
| PM (TTM) | 7.08% | ||
| GM | 47.08% |
OM growth 3YN/A
OM growth 5Y-2.83%
PM growth 3YN/A
PM growth 5Y13.35%
GM growth 3Y12.46%
GM growth 5Y2.72%
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.
Compared to 1 year ago, MGM has less shares outstanding
MGM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MGM has an improved debt to assets ratio.
2.2 Solvency
MGM has an Altman-Z score of 0.88. 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 0.88. This is in the lower half of the industry: MGM underperforms 67.16% of its industry peers.
The Debt to FCF ratio of MGM is 3.61, which is a good value as it means it would take MGM, 3.61 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MGM (3.61) is better than 79.10% of its industry peers.
MGM has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of MGM (1.69) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 3.61 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.37
WACC8.61%
2.3 Liquidity
MGM has a Current Ratio of 1.57. 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 1.57 is fine compared to the rest of the industry. MGM outperforms 76.12% of its industry peers.
MGM has a Quick Ratio of 1.53. This is a normal value and indicates that MGM is financially healthy and should not expect problems in meeting its short term obligations.
MGM has a better Quick ratio (1.53) than 74.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
MGM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 194.79%, which is quite impressive.
The Earnings Per Share has been growing by 28.47% on average over the past years. This is a very strong growth
The Revenue has grown by 23.13% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 6.56% on average over the past years.
EPS 1Y (TTM)194.79%
EPS 3YN/A
EPS 5Y28.47%
EPS growth Q2Q169.28%
Revenue 1Y (TTM)23.13%
Revenue growth 3Y46.3%
Revenue growth 5Y6.56%
Revenue growth Q2Q21.81%
3.2 Future
The Earnings Per Share is expected to grow by 5.12% on average over the next years.
MGM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.66% yearly.
EPS Next Y-9.68%
EPS Next 2Y3.84%
EPS Next 3Y8.07%
EPS Next 5Y5.12%
Revenue Next Year5.76%
Revenue Next 2Y3.66%
Revenue Next 3Y-0.21%
Revenue Next 5Y3.66%
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
The Price/Earnings ratio is 15.45, which indicates a correct valuation of MGM.
Based on the Price/Earnings ratio, MGM is valued a bit cheaper than the industry average as 77.61% 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 25.20.
With a Price/Forward Earnings ratio of 17.11, MGM is valued on the expensive side.
MGM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MGM is cheaper than 69.40% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.63. MGM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 17.11 |
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 82.09% of the companies listed in the same industry.
MGM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MGM is cheaper than 94.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.49 | ||
| EV/EBITDA | 7.04 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.54
EPS Next 2Y3.84%
EPS Next 3Y8.07%
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 a higher than the industry average which is at 2.62.
With a Dividend Yield of 0.02, MGM pays less dividend than the S&P500 average, which is at 2.44.
| 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 2Y3.84%
EPS Next 3Y8.07%
MGM RESORTS INTERNATIONAL
NYSE:MGM (4/25/2024, 7:04:43 PM)
After market: 42.18 0 (0%)42.18
-0.53 (-1.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.37B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 17.11 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.7% | ||
| ROE | 30.03% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.79% | ||
| PM (TTM) | 7.08% | ||
| GM | 47.08% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)194.79%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-9.68%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.13%
Revenue growth 3Y46.3%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y