| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 4/6 |
| Past Performance | 0/6 |
| Financial Health | 2/6 |
| Dividends | 0/6 |
MGM Overview
MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and Macau.
MGM Resorts International Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$40.55 |
| 52 Week High | US$19.55 |
| 52 Week Low | US$45.34 |
| Beta | 2.45 |
| 1 Month Change | 5.60% |
| 3 Month Change | -5.96% |
| 1 Year Change | 87.56% |
| 3 Year Change | 45.50% |
| 5 Year Change | 58.58% |
| Change since IPO | 938.08% |
Recent News & Updates
Does MGM Resorts International (NYSE:MGM) Have A Healthy Balance Sheet?
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
MGM Resorts: Valuation Too High With Persistent Headwinds
MGM Resorts is highly dependent on casino and resort markets, which have been very volatile post the COVID-19 pandemic. As they invested heavily in new regions before the pandemic, local woes have limited their recovery potential to just the Las Vegas region income. As a result, I believe the company is overvalued and remain slightly bearish on their 2-3 year share value prospects.
Shareholder Returns
| MGM | US Hospitality | US Market | |
|---|---|---|---|
| 7D | -2.1% | -0.9% | -1.8% |
| 1Y | 87.6% | 31.3% | 31.5% |
Return vs Industry: MGM exceeded the US Hospitality industry which returned 34.8% over the past year.
Return vs Market: MGM exceeded the US Market which returned 33% over the past year.
Price Volatility
| MGM volatility | |
|---|---|
| MGM Beta | 2.45 |
| Industry Beta | 1.71 |
| Market Beta | 1 |
Stable Share Price: MGM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: MGM's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1986 | 54,000 | Bill Hornbuckle | https://www.mgmresorts.com |
MGM Resorts International, through its subsidiaries, owns and operates 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.
Valuation
Is MGM Resorts International undervalued compared to its fair value and its price relative to the market?
3.16x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: MGM ($40.55) is trading above our estimate of fair value ($4.82)
Significantly Below Fair Value: MGM is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MGM is unprofitable, so we can't compare its PE Ratio to the US Hospitality industry average.
PE vs Market: MGM is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate MGM's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: MGM is good value based on its PB Ratio (3.2x) compared to the US Hospitality industry average (3.4x).
Future Growth
How is MGM Resorts International forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
63.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MGM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).
Earnings vs Market: MGM is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: MGM's is expected to become profitable in the next 3 years.
Revenue vs Market: MGM's revenue (15% per year) is forecast to grow faster than the US market (9.8% per year).
High Growth Revenue: MGM's revenue (15% 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 (0.7%).
Past Performance
How has MGM Resorts International performed over the past 5 years?
-17.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MGM is currently unprofitable.
Growing Profit Margin: MGM is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: MGM is unprofitable, and losses have increased over the past 5 years at a rate of 17.6% per year.
Accelerating Growth: Unable to compare MGM's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: MGM is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (95.3%).
Return on Equity
High ROE: MGM has a negative Return on Equity (-11.62%), as it is currently unprofitable.
Financial Health
How is MGM Resorts International's financial position?
Financial Position Analysis
Short Term Liabilities: MGM's short term assets ($6.6B) exceed its short term liabilities ($2.0B).
Long Term Liabilities: MGM's short term assets ($6.6B) do not cover its long term liabilities ($23.5B).
Debt to Equity History and Analysis
Debt Level: MGM's debt to equity ratio (112.8%) is considered high.
Reducing Debt: MGM's debt to equity ratio has reduced from 128.2% to 112.8% over the past 5 years.
Debt Coverage: MGM's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if MGM's interest payments on its debt are well covered by EBIT.
Balance Sheet
Dividend
What is MGM Resorts International current dividend yield, its reliability and sustainability?
0.024%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MGM's dividend (0.024%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: MGM's dividend (0.024%) is low compared to the top 25% of dividend payers in the US market (3.65%).
Stability and Growth of Payments
Stable Dividend: MGM is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: MGM is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: MGM is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of MGM's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.8yrs
Average management tenure
CEO
Bill Hornbuckle (63 yo)
1.5yrs
Tenure
US$13,988,135
Compensation
Mr. William Joseph Hornbuckle, IV, also known as Bill, has been Executive Chairperson of MGM China Holdings Limited since March 26, 2020. He serves as a Director of PLAYSTUDIOS, Inc. since June 21, 2021. H...
CEO Compensation Analysis
Compensation vs Market: Bill's total compensation ($USD13.99M) is about average for companies of similar size in the US market ($USD11.33M).
Compensation vs Earnings: Bill's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: MGM's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.
Board Members
Experienced Board: MGM's board of directors are considered experienced (4.1 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 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$19.540b
- Shares outstanding: 481.88m
- Website: https://www.mgmresorts.com
Number of Employees
Location
- MGM Resorts International
- 3600 Las Vegas Boulevard South
- Las Vegas
- Nevada
- 89109
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/22 00:11 |
| End of Day Share Price | 2021/09/21 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.