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MGM Resorts International

LSE:0JWC
Snowflake Description

Moderate growth potential and overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
0JWC
LSE
$14B
Market Cap
  1. Home
  2. GB
  3. Consumer Services
Company description

MGM Resorts International, through its subsidiaries, owns and operates integrated casino, hotel, and entertainment resorts in the United States and Macau. The last earnings update was 18 days ago. More info.


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0JWC Share Price and Events
7 Day Returns
0%
LSE:0JWC
-0.6%
GB Hospitality
-0.6%
GB Market
1 Year Returns
-20.8%
LSE:0JWC
-9.6%
GB Hospitality
-5.8%
GB Market
0JWC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
MGM Resorts International (0JWC) 0% -7.7% - -20.8% - -
GB Hospitality -0.6% -0.7% -2.8% -9.6% 10.2% 28.1%
GB Market -0.6% -2.4% 1.4% -5.8% 13.1% 1.3%
1 Year Return vs Industry and Market
  • 0JWC underperformed the Hospitality industry which returned -9.6% over the past year.
  • 0JWC underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.8% over the past year.
Price Volatility
0JWC
Industry
5yr Volatility vs Market

Value

 Is MGM Resorts International undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of MGM Resorts International to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for MGM Resorts International.

LSE:0JWC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 18 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.1%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:0JWC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.913 (1 + (1- 21%) (111.57%))
1.481
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.48
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.481 * 5.96%)
10.05%

Discounted Cash Flow Calculation for LSE:0JWC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for MGM Resorts International is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:0JWC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.05%)
2019 1,183.40 Analyst x4 1,075.32
2020 1,807.22 Analyst x5 1,492.18
2021 1,847.50 Analyst x2 1,386.11
2022 1,882.83 Est @ 1.91% 1,283.60
2023 1,914.96 Est @ 1.71% 1,186.27
2024 1,944.88 Est @ 1.56% 1,094.76
2025 1,973.32 Est @ 1.46% 1,009.32
2026 2,000.78 Est @ 1.39% 929.90
2027 2,027.63 Est @ 1.34% 856.31
2028 2,054.14 Est @ 1.31% 788.27
Present value of next 10 years cash flows $11,102.02
LSE:0JWC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $2,054.14 × (1 + 1.23%) ÷ (10.05% – 1.23%)
$23,563.68
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $23,563.68 ÷ (1 + 10.05%)10
$9,042.50
LSE:0JWC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $11,102.02 + $9,042.50
$20,144.52
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $20,144.52 / 537.20
$37.5
LSE:0JWC Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in LSE:0JWC represents 0.99295x of NYSE:MGM
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99295x
Value per Share
(Listing Adjusted, USD)
= Value per Share (USD) x Listing Adjustment Factor
= $ 37.50 x 0.99295
$37.23
Value per share (USD) From above. $37.23
Current discount Discount to share price of $25.36
= -1 x ($25.36 - $37.23) / $37.23
31.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price MGM Resorts International is available for.
Intrinsic value
32%
Share price is $25.36 vs Future cash flow value of $37.23
Current Discount Checks
For MGM Resorts International to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • MGM Resorts International's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • MGM Resorts International's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for MGM Resorts International's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are MGM Resorts International's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:0JWC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.47
NYSE:MGM Share Price ** NYSE (2019-05-14) in USD $25.54
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PE Ratio Median Figure of 34 Publicly-Listed Hospitality Companies 18.2x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.22x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of MGM Resorts International.

LSE:0JWC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MGM Share Price ÷ EPS (both in USD)

= 25.54 ÷ 0.47

53.94x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MGM Resorts International is overvalued based on earnings compared to the GB Hospitality industry average.
  • MGM Resorts International is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does MGM Resorts International's expected growth come at a high price?
Raw Data
LSE:0JWC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 53.94x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts
23.3%per year
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PEG Ratio Median Figure of 28 Publicly-Listed Hospitality Companies 2.25x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 575 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

LSE:0JWC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 53.94x ÷ 23.3%

2.32x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MGM Resorts International is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on MGM Resorts International's assets?
Raw Data
LSE:0JWC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $12.63
NYSE:MGM Share Price * NYSE (2019-05-14) in USD $25.54
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PB Ratio Median Figure of 54 Publicly-Listed Hospitality Companies 1.34x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,369 Publicly-Listed Companies 1.49x
LSE:0JWC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MGM Share Price ÷ Book Value per Share (both in USD)

= 25.54 ÷ 12.63

2.02x

* Primary Listing of MGM Resorts International.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MGM Resorts International is overvalued based on assets compared to the GB Hospitality industry average.
X
Value checks
We assess MGM Resorts International's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. MGM Resorts International has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is MGM Resorts International expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
23.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is MGM Resorts International expected to grow at an attractive rate?
  • MGM Resorts International's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • MGM Resorts International's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • MGM Resorts International's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:0JWC Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:0JWC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts 23.3%
LSE:0JWC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 3.4%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 11.8%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 5.7%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.8%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:0JWC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:0JWC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 14,787 2,937 1,369 2
2022-12-31 14,284 2,761 1,226 3
2021-12-31 13,947 2,531 954 9
2020-12-31 13,534 2,330 876 18
2019-12-31 13,033 2,202 581 18
LSE:0JWC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 11,684 1,545 254
2018-12-31 11,338 1,723 445
2018-09-30 10,870 2,090 1,853
2018-06-30 10,675 2,360 1,862
2018-03-31 10,497 2,379 1,946
2017-12-31 10,395 2,206 1,934
2017-09-30 10,263 1,997 589
2017-06-30 9,951 1,859 976
2017-03-31 9,567 1,715 1,241
2016-12-31 9,081 1,534 1,100
2016-09-30 8,789 1,316 295
2016-06-30 8,556 1,171 -174

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • MGM Resorts International's earnings are expected to grow significantly at over 20% yearly.
  • MGM Resorts International's revenue is expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:0JWC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below

All data from MGM Resorts International Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:0JWC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 2.64 2.96 2.31 2.00
2022-12-31 2.37 2.57 2.16 2.00
2021-12-31 1.80 2.18 1.50 6.00
2020-12-31 1.61 2.19 1.22 13.00
2019-12-31 1.02 1.43 0.78 13.00
LSE:0JWC Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.47
2018-12-31 0.82
2018-09-30 3.35
2018-06-30 3.31
2018-03-31 3.42
2017-12-31 3.38
2017-09-30 1.03
2017-06-30 1.70
2017-03-31 2.18
2016-12-31 1.94
2016-09-30 0.52
2016-06-30 -0.31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • MGM Resorts International is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess MGM Resorts International's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
MGM Resorts International has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has MGM Resorts International performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare MGM Resorts International's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • MGM Resorts International has delivered over 20% year on year earnings growth in the past 5 years.
  • MGM Resorts International's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • MGM Resorts International's 1-year earnings growth is negative, it can't be compared to the GB Hospitality industry average.
Earnings and Revenue History
MGM Resorts International's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from MGM Resorts International Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:0JWC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 11,683.80 254.07 2,408.75
2018-12-31 11,337.60 445.45 2,335.23
2018-09-30 10,869.59 1,852.73 2,337.19
2018-06-30 10,674.76 1,862.34 2,248.67
2018-03-31 10,497.04 1,946.15 2,142.25
2017-12-31 10,395.44 1,933.69 2,034.92
2017-09-30 10,262.81 589.20 1,939.04
2017-06-30 9,950.82 976.48 1,910.56
2017-03-31 9,566.69 1,241.00 1,897.70
2016-12-31 9,081.12 1,100.38 1,831.31
2016-09-30 8,789.08 295.32 1,734.54
2016-06-30 8,555.81 -173.88 1,655.17
2016-03-31 8,668.69 -550.77 1,624.33
2015-12-31 8,791.23 -447.72 1,654.98
2015-09-30 8,986.44 -8.53 1,625.24
2015-06-30 9,190.61 -95.22 1,632.50
2015-03-31 9,394.31 -82.68 1,612.98
2014-12-31 9,698.55 -149.87 1,596.82
2014-09-30 9,830.97 135.59 1,573.53
2014-06-30 9,815.27 133.54 1,555.56
2014-03-31 9,718.51 -75.63 1,534.07
2013-12-31 9,445.00 -171.73 1,508.51
2013-09-30 9,227.51 -1,338.76 1,520.66
2013-06-30 9,023.81 -1,497.60 1,502.21
2013-03-31 8,868.11 -1,543.89 1,484.03
2012-12-31 8,803.25 -1,767.69 1,476.91
2012-09-30 8,805.77 -657.56 1,442.69
2012-06-30 8,784.92 -600.18 1,407.40

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • MGM Resorts International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • MGM Resorts International used its assets less efficiently than the GB Hospitality industry average last year based on Return on Assets.
  • MGM Resorts International's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess MGM Resorts International's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
MGM Resorts International has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is MGM Resorts International's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up MGM Resorts International's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • MGM Resorts International's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • MGM Resorts International's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of MGM Resorts International's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from MGM Resorts International Company Filings, last reported 1 month ago.

LSE:0JWC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 11,317.20 15,307.27 1,223.40
2018-12-31 10,572.04 15,139.42 1,526.76
2018-09-30 10,839.52 14,663.97 1,302.68
2018-06-30 10,926.91 13,513.34 1,272.87
2018-03-31 11,479.05 13,282.47 1,525.40
2017-12-31 11,690.90 12,909.09 1,500.00
2017-09-30 10,384.08 13,495.68 1,986.69
2017-06-30 10,288.34 13,200.81 1,757.06
2017-03-31 10,196.49 13,100.72 1,395.44
2016-12-31 10,023.45 12,987.60 1,446.58
2016-09-30 9,923.71 12,786.42 1,446.16
2016-06-30 9,533.13 12,364.92 2,503.26
2016-03-31 7,871.26 12,929.28 1,664.91
2015-12-31 7,770.68 12,696.75 1,670.31
2015-09-30 9,244.72 12,821.04 1,807.80
2015-06-30 9,181.83 13,382.24 2,542.55
2015-03-31 7,653.04 14,551.81 2,195.54
2014-12-31 7,628.27 14,050.61 2,283.72
2014-09-30 7,898.64 12,915.20 1,313.43
2014-06-30 7,941.53 12,923.71 1,434.14
2014-03-31 7,822.85 12,930.73 1,192.74
2013-12-31 7,860.50 13,447.23 1,803.67
2013-09-30 7,827.17 13,034.52 1,465.40
2013-06-30 7,857.17 13,111.96 1,383.67
2013-03-31 7,879.05 13,690.70 1,600.64
2012-12-31 8,116.02 13,589.28 1,663.51
2012-09-30 9,265.50 13,825.45 2,563.16
2012-06-30 9,412.21 13,366.99 1,866.92
  • MGM Resorts International's level of debt (135.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (165.3% vs 135.3% today).
  • Debt is not well covered by operating cash flow (10.1%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.6x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess MGM Resorts International's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. MGM Resorts International has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is MGM Resorts International's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.04%
Current annual income from MGM Resorts International dividends. Estimated to be 2.26% next year.
If you bought $2,000 of MGM Resorts International shares you are expected to receive $41 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • MGM Resorts International's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.04%).
  • MGM Resorts International's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.32%).
Upcoming dividend payment

Purchase MGM Resorts International before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:0JWC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 32 Stocks 3.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:0JWC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.91 2.00
2022-12-31 0.79 2.00
2021-12-31 0.60 8.00
2020-12-31 0.54 12.00
2019-12-31 0.51 12.00
LSE:0JWC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-07 0.520 2.026
2019-04-29 0.520 1.991
2019-02-27 0.520 1.940
2019-02-13 0.520 1.853
2018-08-02 0.480 1.770
2018-02-20 0.480 1.482
2017-11-09 0.440 1.288
2017-11-08 0.440 1.337
2017-08-08 0.440 1.395
2017-07-27 0.440 1.363
2017-05-09 0.440 1.367
2017-04-27 0.440 1.426
2017-03-01 0.440 1.618
2017-02-16 0.440 1.657

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, MGM Resorts International has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but MGM Resorts International only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of MGM Resorts International's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).
X
Income/ dividend checks
We assess MGM Resorts International's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can MGM Resorts International afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. MGM Resorts International has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of MGM Resorts International's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jim Murren
COMPENSATION $12,849,021
AGE 56
TENURE AS CEO 10.4 years
CEO Bio

Mr. James Joseph Murren, also known as Jim, serves as Manager of MGM Growth Properties OP GP LLC. Mr. Murren has been the Chairman and Chief Executive Officer of MGM Resorts International since December 1, 2008. He serves as a Co-Chairperson at MGM China Holdings Limited since 2013 and has been its Executive Director since September 22, 2010. He has been an Executive Director of MGM Resorts International since 1998. He has been the President of Galleon Inc. since December 2008. He served as Treasurer of Galleon, a joint venture firm of Circus & Eldorado Joint Venture since April 2005. He served as an Equity Analyst at Deutsche Bank AG, Research Division. He served as the President at MGM Resorts International from December 1999 to December 2012 and also served as its Chief Operating Officer from August 21, 2007 to December 2008, Chief Financial Officer from January 1998 to August 21, 2007, Treasurer from November 2001 to August 21, 2007 and Principal Accounting Officer until August 21, 2007. Mr. Murren served as MGM’s President from December 1999 to December 2012, Chief Operating Officer from August 2007 through December 2008 and as Chief Financial Officer from January 1998 to August 2007 and as Treasurer from November 2001 to August 2007. He served as an Executive Vice President of MGM Mirage from January 1998 to December 1999. Prior to joining the Board of MGM Grand Paradise, he was involved in the design, development, financing, management and operations of MGM Grand Paradise. Prior to his employment at MGM Mirage, he spent 14 years on Wall Street as a top-ranked Equity Analyst. He served as Managing Director and Co-Director of Research for Deutsche Morgan Grenfell and served in various other capacities since 1984. He served as Director of Research and Managing Director of U.S. Equity Research of Deutsche Bank AG, Research Division. He serves as the Chairman of CityCenter Holdings, LLC and MGM Growth Properties LLC. He has been Director of MGM Growth Properties LLC since 2016. He has been a Director of MGM Grand Paradise since January 19, 2010 and Silver Legacy Capital Corp. since November 2007. He serves as a Director of American Gaming Association. He served as a Director of Nevada Cancer Institute from 2002 to 2012 and Delta Petroleum Corp. (now Par Pacific Holdings, Inc.) from February 2008 to November 21, 2011. He serves on the Board of Trustees at the Brookings Institute, Trinity College and Howard University. Mr. Murren received a Bachelor of Arts degree in Art History and Urban Studies from Trinity College in 1983.

CEO Compensation
  • Jim's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jim's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the MGM Resorts International management team in years:

6.4
Average Tenure
55
Average Age
  • The average tenure for the MGM Resorts International management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jim Murren

TITLE
Chairman & CEO
COMPENSATION
$13M
AGE
56
TENURE
10.4 yrs

Bill Hornbuckle

TITLE
President & COO
COMPENSATION
$6M
AGE
60
TENURE
6.4 yrs

Corey Sanders

TITLE
CFO & Treasurer
COMPENSATION
$6M
AGE
54
TENURE
0.2 yrs

John McManus

TITLE
Executive VP
COMPENSATION
$3M
AGE
51
TENURE
10.8 yrs

Robert Selwood

TITLE
Executive VP & Chief Accounting Officer
COMPENSATION
$1M
AGE
62
TENURE
11.8 yrs

Catherine Park

TITLE
Executive Director of Investor Relations
TENURE
4.3 yrs

Andrew Hagopian

TITLE
Chief Corporate Counsel & Assistant Secretary
TENURE
2.4 yrs

Brian Ahern

TITLE
Director of Media Relations

Lilian Tomovich

TITLE
Chief Experience & Marketing Officer
AGE
50

Michelle DiTondo

TITLE
Senior VP & Chief Human Resources Officer
Board of Directors Tenure

Average tenure and age of the MGM Resorts International board of directors in years:

7.8
Average Tenure
61
Average Age
  • The tenure for the MGM Resorts International board of directors is about average.
Board of Directors

Jim Murren

TITLE
Chairman & CEO
COMPENSATION
$13M
AGE
56
TENURE
10.4 yrs

Alexis Herman

TITLE
Director
COMPENSATION
$307K
AGE
70
TENURE
17.3 yrs

Roland Hernandez

TITLE
Lead Independent Director
COMPENSATION
$367K
AGE
60
TENURE
9.3 yrs

Rose McKinney-James

TITLE
Director
COMPENSATION
$317K
AGE
66
TENURE
14.3 yrs

Greg Spierkel

TITLE
Director
COMPENSATION
$307K
AGE
61
TENURE
6.1 yrs

Dan Taylor

TITLE
Director
COMPENSATION
$288K
AGE
61
TENURE
12.2 yrs

Bill Grounds

TITLE
Director
COMPENSATION
$13K
AGE
62
TENURE
6.3 yrs

Chris Gay

TITLE
Director
COMPENSATION
$296K
AGE
50
TENURE
5.3 yrs

John Kilroy

TITLE
Director
COMPENSATION
$288K
AGE
69
TENURE
2.3 yrs

Jan Swartz

TITLE
Director
COMPENSATION
$316K
AGE
48
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by MGM Resorts International insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
10. May 19 Buy Paul Salem Individual 08. May 19 08. May 19 800,000 $25.40 $20,322,240
09. Mar 19 Buy William Grounds Individual 07. Mar 19 07. Mar 19 1,145 $26.27 $30,075
07. Mar 19 Buy Mary Gay Individual 06. Mar 19 06. Mar 19 3,700 $27.27 $100,886
07. Nov 18 Sell Robert Baldwin Individual 02. Nov 18 02. Nov 18 -108,000 $28.15 $-3,040,060
02. Nov 18 Sell Phyllis James Individual 02. Nov 18 02. Nov 18 -15,815 $28.26 $-446,886
17. Aug 18 Sell Alexis Herman Individual 16. Aug 18 16. Aug 18 -1,750 $28.28 $-49,490
06. Aug 18 Sell Alexis Herman Individual 06. Aug 18 06. Aug 18 -3,500 $28.85 $-100,975
07. Jun 18 Sell Mary Gay Individual 05. Jun 18 05. Jun 18 -1,585 $30.94 $-49,045
04. Jun 18 Sell Rose McKinney-James Individual 01. Jun 18 01. Jun 18 -5,624 $31.89 $-179,330
X
Management checks
We assess MGM Resorts International's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. MGM Resorts International has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

MGM Resorts International, through its subsidiaries, owns and operates integrated casino, hotel, and entertainment resorts in the United States and Macau. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. The company’s casino operations include slots, table games, and race and sports book wagering. As of February 27, 2019, its portfolio consisted of 29 hotel and destination gaming offerings. The company also owns and operates Shadow Creek golf course, Primm Valley Golf Club, and Fallen Oak golf course. Its customers include premium gaming customers; leisure and wholesale travel customers; business travelers; and group customers, including conventions, trade associations, and small meetings. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was founded in 1986 and is based in Las Vegas, Nevada.

Details
Name: MGM Resorts International
0JWC
Exchange: LSE
Founded: 1986
$13,720,120,742
537,201,282
Website: http://www.mgmresorts.com
Address: MGM Resorts International
3600 Las Vegas Boulevard South,
Las Vegas,
Nevada, 89109,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MGM Common Stock New York Stock Exchange US USD 02. May 1988
DB MGG Common Stock Deutsche Boerse AG DE EUR 02. May 1988
LSE 0JWC Common Stock London Stock Exchange GB USD 02. May 1988
BMV MGM * Common Stock Bolsa Mexicana de Valores MX MXN 02. May 1988
Number of employees
Current staff
Staff numbers
74,500
MGM Resorts International employees.
Industry
Casinos and Gaming
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/25 22:17
End of day share price update: 2019/05/14 00:00
Last estimates confirmation: 2019/05/22
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.