NYSE:MGM

Stock Analysis Report

Executive Summary

MGM Resorts International, through its subsidiaries, owns and operates integrated casino, hotel, and entertainment resorts in the United States and Macau.


Snowflake Analysis

Good value with proven 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: MGM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-17.4%

MGM

-13.9%

US Hospitality

-7.6%

US Market


1 Year Return

-0.2%

MGM

-7.9%

US Hospitality

10.2%

US Market

Return vs Industry: MGM exceeded the US Hospitality industry which returned -4.5% over the past year.

Return vs Market: MGM underperformed the US Market which returned 10.5% over the past year.


Shareholder returns

MGMIndustryMarket
7 Day-17.4%-13.9%-7.6%
30 Day-13.8%-11.3%-4.5%
90 Day-16.4%-9.8%-0.6%
1 Year1.7%-0.2%-5.4%-7.9%12.5%10.2%
3 Year6.6%1.5%14.9%7.2%37.1%28.3%
5 Year27.9%21.8%26.0%12.5%60.8%43.2%

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

Valuation

Is MGM Resorts International undervalued compared to its fair value and its price relative to the market?

11.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MGM ($27.89) is trading below our estimate of fair value ($31.2)

Significantly Below Fair Value: MGM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MGM is good value based on its PE Ratio (7.1x) compared to the Hospitality industry average (21.5x).

PE vs Market: MGM is good value based on its PE Ratio (7.1x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: MGM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MGM is good value based on its PB Ratio (1.8x) compared to the US Hospitality industry average (2x).


Next Steps

Future Growth

How is MGM Resorts International forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

-44.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGM's earnings are forecast to decline over the next 3 years (-44.3% per year).

Earnings vs Market: MGM's earnings are forecast to decline over the next 3 years (-44.3% per year).

High Growth Earnings: MGM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MGM's revenue (3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: MGM's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MGM's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

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

39.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGM has a large one-off gain of $2.7B impacting its December 31 2019 financial results.

Growing Profit Margin: MGM's current net profit margins (16.4%) are higher than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: MGM has become profitable over the past 5 years, growing earnings by 39.2% per year.

Accelerating Growth: MGM's earnings growth over the past year (360%) exceeds its 5-year average (39.2% per year).

Earnings vs Industry: MGM earnings growth over the past year (360%) exceeded the Hospitality industry -8.2%.


Return on Equity

High ROE: MGM's Return on Equity (17.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MGM Resorts International's financial position?


Financial Position Analysis

Short Term Liabilities: MGM's short term assets ($4.0B) exceed its short term liabilities ($3.2B).

Long Term Liabilities: MGM's short term assets ($4.0B) do not cover its long term liabilities ($17.7B).


Debt to Equity History and Analysis

Debt Level: MGM's debt to equity ratio (86.9%) is considered high.

Reducing Debt: MGM's debt to equity ratio has reduced from 184.3% to 86.9% over the past 5 years.

Debt Coverage: MGM's debt is not well covered by operating cash flow (15.2%).

Interest Coverage: MGM's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet

Inventory Level: MGM has a high level of physical assets or inventory.

Debt Coverage by Assets: MGM's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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

2.25%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company2.2%marketbottom25%1.5%markettop25%4.0%industryaverage3.6%forecastin3Years2.3%

Current dividend yield vs market & industry

Notable Dividend: MGM's dividend (2.15%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: MGM's dividend (2.15%) is low compared to the top 25% of dividend payers in the US market (3.9%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MGM has been paying a dividend for less than 10 years.

Growing Dividend: MGM's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.3%), MGM's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MGM's dividends in 3 years are forecast to be well covered by earnings (41.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.2yrs

Average management tenure


CEO

Jim Murren (57yo)

11.2yrs

Tenure

US$12,849,021

Compensation

Mr. James Joseph Murren, also known as Jim, serves as Manager of MGM Growth Properties Operating Partnership LP since July 2016. He serves as Manager of MGM Growth Properties OP GP LLC. Mr. Murren has been ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD12.85M) is about average for companies of similar size in the US market ($USD10.82M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Murren
Chairman & CEO11.2yrsUS$12.85m0.17% $22.2m
William Hornbuckle
President & COO7.2yrsUS$6.14m0.060% $7.9m
Corey Sanders
CFO & Treasurer0.9yrsUS$5.75m0.079% $10.4m
John McManus
Executive VP11.6yrsUS$2.89m0.025% $3.4m
Robert Selwood
Executive VP & Chief Accounting Officer12.5yrsUS$1.21m0.037% $4.8m
Catherine Park
Executive Director of Investor Relations5.1yrsno datano data
Brian Ahern
Director of Media Relations0yrsno datano data
Laura Lee
Senior Vice President of Human Resources0.5yrsno datano data
Alan Feldman
Executive Vice President of Global Government & Industry Affairs0yrsno datano data
Phyllis James
Chief Diversity & Corporate Responsibility Officer17.9yrsno data0.0029% $376.2k

9.2yrs

Average Tenure

60yo

Average Age

Experienced Management: MGM's management team is seasoned and experienced (9.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Murren
Chairman & CEO11.2yrsUS$12.85m0.17% $22.2m
Gregory M. Spierkel
Independent Director6.8yrsUS$306.95k0.0010% $133.3k
John Kilroy
Independent Director3.1yrsUS$288.20k0.00052% $68.6k
Rose McKinney-James
Independent Director15.1yrsUS$316.95k0.00093% $122.7k
Roland Hernandez
Lead Independent Director10.1yrsUS$366.95k0.0080% $1.1m
Alexis Herman
Independent Director18.1yrsUS$306.95k0.0037% $485.7k
Janet Swartz
Independent Director1.9yrsUS$315.70k0.0012% $158.4k
Daniel Taylor
Independent Director12.9yrsUS$288.20kno data
William Grounds
Director7yrsUS$13.20k0.00092% $121.4k
Mary Jammet
Independent Director6yrsUS$295.70k0.0036% $473.8k

8.5yrs

Average Tenure

62yo

Average Age

Experienced Board: MGM's board of directors are considered experienced (8.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MGM insiders have only sold shares 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: MGM
  • Exchange: NYSE
  • Founded: 1986
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: US$13.199b
  • Shares outstanding: 494.15m
  • Website: https://www.mgmresorts.com

Number of Employees


Location

  • MGM Resorts International
  • 3600 Las Vegas Boulevard South
  • Las Vegas
  • Nevada
  • 89109
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MGMNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 1988
MGM *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMay 1988
MGGDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1988
0JWCLSE (London Stock Exchange)YesCommon StockGBUSDMay 1988
M1GM34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD0.01BRBRLJan 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 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 00:39
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.