NYSE:MGM

Stock Analysis Report

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Market Cap

US$20.0b

Last Updated

2021/06/21 01:25 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


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 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.


Market Performance


7 Day Return

-5.4%

MGM

-3.6%

US Hospitality

-1.9%

US Market


1 Year Return

124.4%

MGM

51.5%

US Hospitality

38.2%

US Market

Return vs Industry: MGM exceeded the US Hospitality industry which returned 51.5% over the past year.

Return vs Market: MGM exceeded the US Market which returned 38.2% over the past year.


Shareholder returns

MGMIndustryMarket
7 Day-5.4%-3.6%-1.9%
30 Day2.9%0.8%1.0%
90 Day4.7%-8.3%3.8%
1 Year124.5%124.4%51.9%51.5%40.4%38.2%
3 Year40.7%35.9%3.3%-1.0%57.5%47.8%
5 Year88.7%78.4%70.9%58.2%127.2%101.7%

Long-Term 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?

3.19x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: MGM ($40.86) is trading above our estimate of fair value ($8.09)

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 (4x).


Future Growth

How is MGM Resorts International forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

60.0%

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 (15.7% per year) is forecast to grow faster than the US market (9.5% per year).

High Growth Revenue: MGM's revenue (15.7% 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 (2.8%).


Past Performance

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

-2.4%

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 2.4% 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 (-8.1%).


Return on Equity

High ROE: MGM has a negative Return on Equity (-20.62%), 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 ($7.1B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: MGM's short term assets ($7.1B) do not cover its long term liabilities ($24.2B).


Debt to Equity History and Analysis

Debt Level: MGM's debt to equity ratio (117.8%) is considered high.

Reducing Debt: MGM's debt to equity ratio has reduced from 162.4% to 117.8% 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?

0.023%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MGM's dividend (0.023%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: MGM's dividend (0.023%) is low compared to the top 25% of dividend payers in the US market (3.49%).


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?

1.3yrs

Average management tenure


CEO

Bill Hornbuckle (62 yo)

1.25yrs

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 has been Chief Executive Officer of Marina District Development ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD13.99M) is about average for companies of similar size in the US market ($USD11.31M).

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 ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: MGM's board of directors are considered experienced (5.9 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$20.043b
  • Shares outstanding: 490.54m
  • Website: https://www.mgmresorts.com

Number of Employees


Location

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

Listings


Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/21 01:25
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.