MGM RESORTS INTERNATIONAL (MGM) Stock Fundamental Analysis
NYSE:MGM - New York Stock Exchange, Inc. - US5529531015 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to MGM. MGM was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. MGM has an average financial health and profitability rating. 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.
Of the past 5 years MGM 4 years had a positive operating cash flow.
1.2 Ratios
MGM's Return On Assets of 1.61% is in line compared to the rest of the industry. MGM outperforms 46.27% of its industry peers.
With an excellent Return On Equity value of 23.64%, MGM belongs to the best of the industry, outperforming 82.09% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.21%, MGM is doing worse than 65.67% 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
The Profit Margin of MGM (3.94%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of MGM has declined.
MGM has a Operating Margin (9.19%) which is in line with its industry peers.
MGM's Operating Margin has declined in the last couple of years.
MGM's Gross Margin of 45.42% is in line compared to the rest of the industry. MGM outperforms 44.03% of its industry peers.
In the last couple of years the Gross Margin of MGM has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MGM is destroying value.
MGM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MGM has less shares outstanding
The debt/assets ratio for MGM is higher compared to a year ago.
2.2 Solvency
MGM has an Altman-Z score of 0.79. This is a bad value and indicates that MGM is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.79, MGM is not doing good in the industry: 70.90% of the companies in the same industry are doing better.
MGM has a debt to FCF ratio of 5.82. This is a neutral value as MGM would need 5.82 years to pay back of all of its debts.
MGM has a better Debt to FCF ratio (5.82) than 76.87% of its industry peers.
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 (2.33) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.33 | ||
| Debt/FCF | 5.82 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.43
WACC7.52%
2.3 Liquidity
A Current Ratio of 1.31 indicates that MGM should not have too much problems paying its short term obligations.
MGM has a better Current ratio (1.31) than 66.42% 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 has a Quick ratio of 1.26. This is in the better half of the industry: MGM outperforms 67.91% 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.
MGM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 65.28% yearly.
MGM shows a small growth in Revenue. In the last year, the Revenue has grown by 2.76%.
The Revenue has been growing slightly by 5.97% on average over the past years.
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
Based on estimates for the next years, MGM will show a small growth in Earnings Per Share. The EPS will grow by 6.84% on average per year.
MGM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.63% yearly.
EPS Next Y-15.51%
EPS Next 2Y-1.14%
EPS Next 3Y6.51%
EPS Next 5Y6.84%
Revenue Next Year-0.1%
Revenue Next 2Y0.72%
Revenue Next 3Y1.3%
Revenue Next 5Y2.63%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.30, the valuation of MGM can be described as correct.
Based on the Price/Earnings ratio, MGM is valued cheaper than 83.58% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.35. MGM is valued slightly cheaper when compared to this.
MGM is valuated correctly with a Price/Forward Earnings ratio of 13.34.
76.12% of the companies in the same industry are more expensive than MGM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.19. MGM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.3 | ||
| Fwd PE | 13.34 |
4.2 Price Multiples
91.79% of the companies in the same industry are more expensive than MGM, based on the Enterprise Value to EBITDA ratio.
MGM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MGM is cheaper than 96.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.97 | ||
| EV/EBITDA | 5.59 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.2
EPS Next 2Y-1.14%
EPS Next 3Y6.51%
5. Dividend
5.1 Amount
With a yearly dividend of 0.02%, MGM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.56, MGM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, 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 2Y-1.14%
EPS Next 3Y6.51%
33.77
-0.17 (-0.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners70.21%
Inst Owner Change-5.2%
Ins Owners1.09%
Ins Owner Change-0.01%
Market Cap9.19B
Analysts80
Price Target46.96 (39.06%)
Short Float %10.44%
Short Ratio3.75
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)0.65%
PT rev (3m)-7.38%
EPS NQ rev (1m)6.78%
EPS NQ rev (3m)-10.19%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.78%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.3 | ||
| Fwd PE | 13.34 | ||
| P/S | 0.54 | ||
| P/FCF | 7.97 | ||
| P/OCF | 3.89 | ||
| P/B | 3.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.59 |
EPS(TTM)2.54
EY7.52%
EPS(NY)2.53
Fwd EY7.5%
FCF(TTM)4.24
FCFY12.55%
OCF(TTM)8.67
OCFY25.68%
SpS62.96
BVpS10.49
TBVpS-14.73
PEG (NY)N/A
PEG (5Y)0.2
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
WACC7.52%
ROIC/WACC0.43
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 5Y6.84%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y21.22%
Revenue growth 5Y5.97%
Sales Q2Q%-2.43%
Revenue Next Year-0.1%
Revenue Next 2Y0.72%
Revenue Next 3Y1.3%
Revenue Next 5Y2.63%
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%