MGM RESORTS INTERNATIONAL (MGM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MGM - US5529531015 - Common Stock
37.4 USD
-0.04 (-0.11%)
37.2028 USD
-0.2 (-0.53%)
Taking everything into account, MGM scores 4 out of 10 in our fundamental rating. MGM was compared to 132 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year MGM was profitable.
MGM had a positive operating cash flow in the past year.
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
MGM has a Return On Assets of 0.16%. This is in the lower half of the industry: MGM underperforms 62.88% of its industry peers.
MGM has a Return On Equity (2.48%) which is comparable to the rest of the industry.
MGM has a Return On Invested Capital of 2.82%. This is in the lower half of the industry: MGM underperforms 64.39% 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
MGM has a Profit Margin of 0.38%. This is in the lower half of the industry: MGM underperforms 62.12% of its industry peers.
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.
MGM's Operating Margin has declined in the last couple of years.
MGM has a Gross Margin (44.65%) which is comparable to the rest of the industry.
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MGM is destroying value.
Compared to 1 year ago, MGM has less shares outstanding
MGM has less shares outstanding than it did 5 years ago.
MGM has a worse debt/assets ratio than last year.
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.
MGM has a Altman-Z score of 0.78. This is in the lower half of the industry: MGM underperforms 69.70% 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.
MGM has a Debt to FCF ratio of 4.70. This is in the better half of the industry: MGM outperforms 75.76% of its industry peers.
A Debt/Equity ratio of 2.38 is on the high side and indicates that MGM has dependencies on debt financing.
MGM's Debt to Equity ratio of 2.38 is in line compared to the rest of the industry. MGM outperforms 47.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.38 | ||
| Debt/FCF | 4.7 | ||
| Altman-Z | 0.78 |
ROIC/WACC0.34
WACC8.34%
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 63.64% of its industry peers.
MGM has a Quick Ratio of 1.19. This is a normal value and indicates that MGM is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of MGM (1.19) is better than 65.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The earnings per share for MGM have decreased strongly by -32.19% in the last year.
The Earnings Per Share has been growing by 65.28% on average over the past years. This is a very strong growth
MGM shows a small growth in Revenue. In the last year, the Revenue has grown by 0.05%.
Measured over the past years, MGM shows a small growth in Revenue. The Revenue has been growing by 5.97% on average per year.
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
The Earnings Per Share is expected to grow by 8.07% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.76% on average over the next years.
EPS Next Y-15.94%
EPS Next 2Y-4.77%
EPS Next 3Y2.99%
EPS Next 5Y8.07%
Revenue Next Year0.9%
Revenue Next 2Y1.13%
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.
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 17.24, the valuation of MGM can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MGM indicates a somewhat cheap valuation: MGM is cheaper than 74.24% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MGM to the average of the S&P500 Index (26.56), we can say MGM is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.92, MGM is valued correctly.
Based on the Price/Forward Earnings ratio, MGM is valued a bit cheaper than 72.73% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.79. MGM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.24 | ||
| Fwd PE | 15.92 |
4.2 Price Multiples
MGM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MGM is cheaper than 88.64% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MGM indicates a rather cheap valuation: MGM is cheaper than 95.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.47 | ||
| EV/EBITDA | 6.28 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-4.77%
EPS Next 3Y2.99%
5. Dividend
5.1 Amount
MGM has a yearly dividend return of 0.02%, which is pretty low.
Compared to an average industry Dividend Yield of 1.48, MGM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, 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-4.77%
EPS Next 3Y2.99%
37.4
-0.04 (-0.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners69.22%
Inst Owner Change-5.35%
Ins Owners1.05%
Ins Owner Change1.1%
Market Cap10.23B
Revenue(TTM)17.28B
Net Income(TTM)66.38M
Analysts74.48
Price Target44.09 (17.89%)
Short Float %11%
Short Ratio4.48
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)-7.25%
PT rev (3m)-10.83%
EPS NQ rev (1m)0.66%
EPS NQ rev (3m)-8.95%
EPS NY rev (1m)-8.93%
EPS NY rev (3m)-12.62%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.24 | ||
| Fwd PE | 15.92 | ||
| P/S | 0.59 | ||
| P/FCF | 7.47 | ||
| P/OCF | 4.02 | ||
| P/B | 3.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.28 |
EPS(TTM)2.17
EY5.8%
EPS(NY)2.35
Fwd EY6.28%
FCF(TTM)5.01
FCFY13.39%
OCF(TTM)9.31
OCFY24.89%
SpS63.17
BVpS9.78
TBVpS-14.2
PEG (NY)N/A
PEG (5Y)0.26
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
WACC8.34%
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-15.94%
EPS Next 2Y-4.77%
EPS Next 3Y2.99%
EPS Next 5Y8.07%
Revenue 1Y (TTM)0.05%
Revenue growth 3Y21.22%
Revenue growth 5Y5.97%
Sales Q2Q%1.61%
Revenue Next Year0.9%
Revenue Next 2Y1.13%
Revenue Next 3Y1.45%
Revenue Next 5Y2.76%
EBIT growth 1Y-21.1%
EBIT growth 3Y43.38%
EBIT growth 5Y3.23%
EBIT Next Year184.73%
EBIT Next 3Y48.33%
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 ChartMill fundamental rating of MGM RESORTS INTERNATIONAL (MGM) stock?
ChartMill assigns a fundamental rating of 4 / 10 to MGM.
What is the valuation status for MGM stock?
ChartMill assigns a valuation rating of 5 / 10 to MGM RESORTS INTERNATIONAL (MGM). This can be considered as Fairly Valued.
What is the profitability of MGM stock?
MGM RESORTS INTERNATIONAL (MGM) has a profitability rating of 3 / 10.
How financially healthy is MGM RESORTS INTERNATIONAL?
The financial health rating of MGM RESORTS INTERNATIONAL (MGM) is 4 / 10.
Can you provide the dividend sustainability for MGM stock?
The dividend rating of MGM RESORTS INTERNATIONAL (MGM) is 2 / 10 and the dividend payout ratio is 0%.