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

Fundamentals

Moderate growth potential unattractive dividend payer.


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

2.4%

MGM

-0.7%

US Hospitality

-0.2%

US Market


1 Year Return

23.8%

MGM

8.9%

US Hospitality

16.1%

US Market

Return vs Industry: MGM exceeded the US Hospitality industry which returned 8.9% over the past year.

Return vs Market: MGM exceeded the US Market which returned 16.1% over the past year.


Shareholder returns

MGMIndustryMarket
7 Day2.4%-0.7%-0.2%
30 Day13.9%2.7%3.7%
90 Day15.0%5.6%8.5%
1 Year26.1%23.8%11.7%8.9%18.7%16.1%
3 Year16.5%11.4%29.5%20.3%46.9%37.4%
5 Year46.4%40.0%33.1%18.6%61.8%44.0%

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?

17.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MGM ($31.94) is trading below our estimate of fair value ($38.85)

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 poor value based on its PE Ratio (9652.5x) compared to the Hospitality industry average (22x).

PE vs Market: MGM is poor value based on its PE Ratio (9652.5x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: MGM is poor value based on its PEG Ratio (273.8x)


Price to Book Ratio

PB vs Industry: MGM is overvalued based on its PB Ratio (2.7x) compared to the US Hospitality industry average (2.2x).


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?

35.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGM's forecast earnings growth (35.2% per year) is above the savings rate (2.7%).

Earnings vs Market: MGM's earnings (35.2% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MGM's revenue (2.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: MGM's revenue (2.3% 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 (11.6%).


Next Steps

Past Performance

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

36.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGM has large one-off items impacting its financial results.

Growing Profit Margin: MGM's current net profit margins (0.01%) are lower than last year (16.9%).


Past Earnings Growth Analysis

Earnings Trend: MGM's earnings have grown significantly by 36.2% per year over the past 5 years.

Accelerating Growth: MGM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MGM had negative earnings growth (-99.9%) over the past year, making it difficult to compare to the Hospitality industry average (-15.7%).


Return on Equity

High ROE: MGM's Return on Equity (1.5%) 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 ($2.9B) do not cover its short term liabilities ($3.3B)

Long Term Liabilities: MGM's short term assets ($2.9B) do not cover its long term liabilities (17.2B)


Debt to Equity History and Analysis

Debt Level: MGM's debt to equity ratio (140.6%) is considered high.

Reducing Debt: MGM's debt to equity ratio has reduced from 163.7% to 140.6% over the past 5 years.

Debt Coverage: MGM's debt is not well covered by operating cash flow (11.3%).

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 0.2x debt).


Next Steps

Dividend

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

1.63%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage3.1%forecastin3Years1.7%

Current dividend yield vs market & industry

Notable Dividend: MGM's dividend (1.63%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: MGM's dividend (1.63%) is low compared to the top 25% of dividend payers in the US market (3.69%).


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 high payout ratio (15412.5%), MGM's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MGM's dividends in 3 years are forecast to be well covered by earnings (35% payout ratio).


Next Steps

Management

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

6.9yrs

Average management tenure


CEO

Jim Murren (57yo)

10.9yrs

Tenure

US$12,849,021

Compensation

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 and MGM Grand Det ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD12.85M) is about average for companies of similar size in the US market ($USD11.04M).

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


Management Age and Tenure

6.9yrs

Average Tenure

57yo

Average Age

Experienced Management: MGM's management team is seasoned and experienced (6.9 years average tenure).


Board Age and Tenure

8.3yrs

Average Tenure

62yo

Average Age

Experienced Board: MGM's board of directors are considered experienced (8.3 years average tenure).


Insider Trading

Insider Buying: MGM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$9,205,80019 Nov 19
Corvex Management LP
EntityCompany
Shares295,000
Max PriceUS$31.21
BuyUS$2,324,86706 Nov 19
Corvex Management LP
EntityCompany
Shares79,000
Max PriceUS$29.43
SellUS$151,85613 Sep 19
Mary Jammet
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,200
Max PriceUS$29.20
SellUS$75,16210 Sep 19
Rose McKinney-James
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,670
Max PriceUS$28.15
BuyUS$250,09726 Aug 19
Atif Rafiq
EntityIndividual
Shares8,761
Max PriceUS$28.55
BuyUS$20,322,24010 May 19
Paul Salem
EntityIndividual
Shares800,000
Max PriceUS$25.40
BuyUS$30,07509 Mar 19
William Grounds
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,145
Max PriceUS$26.27
BuyUS$100,88607 Mar 19
Mary Jammet
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,700
Max PriceUS$27.27

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jim Murren (57yo)

    Chairman & CEO

    • Tenure: 10.9yrs
    • Compensation: US$12.85m
  • Alan Feldman (60yo)

    Executive Vice President of Global Government & Industry Affairs

    • Tenure: 0yrs
  • Robert Selwood (63yo)

    Executive VP & Chief Accounting Officer

    • Tenure: 12.3yrs
    • Compensation: US$1.21m
  • Bill Hornbuckle (61yo)

    President & COO

    • Tenure: 6.9yrs
    • Compensation: US$6.14m
  • Lilian Tomovich (51yo)

    Chief Experience & Marketing Officer

    • Tenure: 0yrs
  • John McManus (52yo)

    Executive VP

    • Tenure: 11.3yrs
    • Compensation: US$2.89m
  • Corey Sanders (55yo)

    CFO & Treasurer

    • Tenure: 0.7yrs
    • Compensation: US$5.75m
  • Catherine Park

    Executive Director of Investor Relations

    • Tenure: 4.8yrs
  • Brian Ahern

    Director of Media Relations

    • Tenure: 0yrs
  • Laura Lee

    Senior Vice President of Human Resources

    • Tenure: 0.3yrs

Board Members

  • Greg Spierkel (62yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$306.95k
  • Jim Murren (57yo)

    Chairman & CEO

    • Tenure: 10.9yrs
    • Compensation: US$12.85m
  • John Kilroy (70yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$288.20k
  • Rose McKinney-James (67yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$316.95k
  • Roland Hernandez (61yo)

    Lead Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$366.95k
  • Alexis Herman (71yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$306.95k
  • Jan Swartz (49yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$315.70k
  • Dan Taylor (62yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$288.20k
  • Bill Grounds (63yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$13.20k
  • Chris Jammet (51yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$295.70k

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$16.325b
  • Shares outstanding: 514.98m
  • 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

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 V ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 23:41
End of Day Share Price2019/11/22 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.