MGM Resorts International
Market Cap
US$8.5b
Last Updated
2020/06/01 01:19 UTC
Data Sources
Company Financials +
Executive Summary
MGM Resorts International, through its subsidiaries, owns and operates integrated casino, hotel, and entertainment resorts in the United States and Macau.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with solid track record.
Similar Companies
Share Price & News
How has MGM Resorts International's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 0JWC's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
101.3%
0JWC
4.4%
GB Hospitality
2.0%
GB Market
1 Year Return
26.2%
0JWC
-29.6%
GB Hospitality
-12.5%
GB Market
Return vs Industry: 0JWC exceeded the UK Hospitality industry which returned -29.6% over the past year.
Return vs Market: 0JWC exceeded the UK Market which returned -12.5% over the past year.
Shareholder returns
| 0JWC | Industry | Market | |
|---|---|---|---|
| 7 Day | 101.3% | 4.4% | 2.0% |
| 30 Day | 86.9% | -5.2% | 3.8% |
| 90 Day | 28.9% | -26.6% | -7.3% |
| 1 Year | 29.0%26.2% | -27.2%-29.6% | -8.3%-12.5% |
| 3 Year | n/a | -24.3%-32.6% | -5.9%-17.4% |
| 5 Year | n/a | -2.8%-20.1% | 12.9%-12.4% |
Price Volatility Vs. Market
How volatile is MGM Resorts International's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is MGM Resorts International undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 0JWC ($32.01) is trading below our estimate of fair value ($98.28)
Significantly Below Fair Value: 0JWC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 0JWC is good value based on its PE Ratio (3.1x) compared to the Hospitality industry average (17.8x).
PE vs Market: 0JWC is good value based on its PE Ratio (3.1x) compared to the UK market (14.7x).
Price to Earnings Growth Ratio
PEG Ratio: 0JWC is good value based on its PEG Ratio (0.1x)
Price to Book Ratio
PB vs Industry: 0JWC is overvalued based on its PB Ratio (1x) compared to the GB Hospitality industry average (1x).
Next Steps
Future Growth
How is MGM Resorts International forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
26.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 0JWC's forecast earnings growth (26.4% per year) is above the savings rate (1.2%).
Earnings vs Market: 0JWC's earnings (26.4% per year) are forecast to grow faster than the UK market (20.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 0JWC's revenue (19.3% per year) is forecast to grow faster than the UK market (3.6% per year).
High Growth Revenue: 0JWC's revenue (19.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 0JWC is forecast to be unprofitable in 3 years.
Next Steps
Past Performance
How has MGM Resorts International performed over the past 5 years?
41.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 0JWC has a large one-off gain of $3.6B impacting its March 31 2020 financial results.
Growing Profit Margin: 0JWC's current net profit margins (24.5%) are higher than last year (2.2%).
Past Earnings Growth Analysis
Earnings Trend: 0JWC has become profitable over the past 5 years, growing earnings by 41.4% per year.
Accelerating Growth: 0JWC's earnings growth over the past year (1018.9%) exceeds its 5-year average (41.4% per year).
Earnings vs Industry: 0JWC earnings growth over the past year (1018.9%) exceeded the Hospitality industry -10.9%.
Return on Equity
High ROE: 0JWC's Return on Equity (21%) is considered high.
Next Steps
Financial Health
How is MGM Resorts International's financial position?
Financial Position Analysis
Short Term Liabilities: 0JWC's short term assets ($7.6B) exceed its short term liabilities ($2.6B).
Long Term Liabilities: 0JWC's short term assets ($7.6B) do not cover its long term liabilities ($23.1B).
Debt to Equity History and Analysis
Debt Level: 0JWC's debt to equity ratio (88.5%) is considered high.
Reducing Debt: 0JWC's debt to equity ratio has reduced from 189% to 88.5% over the past 5 years.
Debt Coverage: 0JWC's debt is not well covered by operating cash flow (8.3%).
Interest Coverage: 0JWC's interest payments on its debt are not well covered by EBIT (1.1x coverage).
Balance Sheet
Next Steps
Dividend
What is MGM Resorts International's current dividend yield, its reliability and sustainability?
0.058%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 0JWC's dividend (0.058%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.03%).
High Dividend: 0JWC's dividend (0.058%) is low compared to the top 25% of dividend payers in the UK market (5.68%).
Stability and Growth of Payments
Stable Dividend: 0JWC is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.
Growing Dividend: 0JWC is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: 0JWC is not paying a notable dividend for the UK market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 0JWC's dividend in 3 years as they are not forecast to pay a notable one for the UK market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.2yrs
Average management tenure
CEO
Bill Hornbuckle (61yo)
0.25
Tenure
US$6,289,556
Compensation
Mr. William Joseph Hornbuckle, IV, also known as Bill, has been Executive Chairperson of MGM China Holdings Limited since March 26, 2020. He has been Chief Executive Officer of Marina District Development ...
CEO Compensation Analysis
Compensation vs Market: Bill's total compensation ($USD6.29M) is above average for companies of similar size in the UK market ($USD3.36M).
Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President & Acting CEO | 0.25yr | US$6.29m | 0.078% $6.6m | |
| CFO & Treasurer | 1.25yrs | US$5.89m | 0.091% $7.7m | |
| Executive VP | 11.92yrs | US$3.03m | 0.027% $2.3m | |
| President of Commercial & Growth | 1.17yrs | US$4.89m | 0.0038% $319.5k | |
| Executive VP & Chief Accounting Officer | 12.83yrs | US$1.21m | 0.037% $3.1m | |
| Executive Director of Investor Relations | 5.42yrs | no data | no data | |
| Senior VP of Global Corporate Communications | no data | no data | no data | |
| Chief Marketing Officer | 0.083yr | no data | no data | |
| Senior Vice President of Human Resources | 0.83yr | no data | no data | |
| Executive Vice President of Global Government & Industry Affairs | no data | no data | no data |
1.2yrs
Average Tenure
57.5yo
Average Age
Experienced Management: 0JWC's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Chairman | 0.25yr | US$293.20k | 0.31% $26.1m | |
| Independent Director | 7.17yrs | US$313.20k | 0.0032% $275.4k | |
| Independent Director | 3.42yrs | US$293.20k | 0.0017% $147.4k | |
| Independent Director | 15.42yrs | US$323.20k | 0.0015% $130.5k | |
| Lead Independent Director | 10.42yrs | US$373.20k | 0.0092% $780.4k | |
| Independent Director | 18.42yrs | US$313.20k | 0.0050% $421.1k | |
| Independent Director | 2.25yrs | US$293.20k | 0.0024% $205.1k | |
| Independent Director | 13.25yrs | US$308.20k | 0.00033% $28.0k | |
| Director | 7.33yrs | US$245.70k | 0.0021% $181.3k | |
| Independent Director | 6.33yrs | US$293.20k | 0.0051% $433.8k |
7.3yrs
Average Tenure
62yo
Average Age
Experienced Board: 0JWC's board of directors are considered experienced (7.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 0JWC insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
MGM Resorts International's company bio, employee growth, exchange listings and data sources
Key Information
- Name: MGM Resorts International
- Ticker: 0JWC
- Exchange: LSE
- Founded: 1986
- Industry: Casinos and Gaming
- Sector: Consumer Services
- Market Cap: US$8.473b
- Shares outstanding: 493.22m
- Website: https://www.mgmresorts.com
Number of Employees
Location
- MGM Resorts International
- 3600 Las Vegas Boulevard South
- Las Vegas
- Nevada
- 89109
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MGM | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | May 1988 |
| MGM * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | May 1988 |
| MGG | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | May 1988 |
| 0JWC | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | May 1988 |
| M1GM34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM USD0.01 | BR | BRL | Jan 2020 |
Biography
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 March 22, 2020, its portfolio consisted of 29 hotel and destination gaming offerings. The company also owns and operates Las Vegas Strip Resorts, 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/01 01:19 |
| End of Day Share Price | 2020/05/27 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.