MGM Resorts International
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MGM Resorts International, through its subsidiaries, owns and operates integrated casino, hotel, and entertainment resorts in the United States and Macau. The last earnings update was 40 days ago. More info.
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MGM Share Price and Events
7 Day Returns
1 Year Returns
MGM Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| MGM Resorts International (MGM) | 5.3% | 6.8% | 5.4% | -11.4% | 12.4% | 8.9% |
| US Hospitality | 1.6% | -0.6% | 1.2% | -10.8% | 40.4% | 20% |
| US Market | 0.5% | -0.1% | 1% | 0.8% | 37.5% | 37.5% |
1 Year Return vs Industry and Market
- MGM underperformed the Market in United States of America which returned 0.8% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
MGM Resorts International
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for MGM Resorts International.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 18 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 11.4% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Hospitality Unlevered Beta | Simply Wall St/ S&P Global | 0.92 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.92 (1 + (1- 21%) (103.02%)) |
1.448 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.45 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.448 * 5.96%) |
11.36% |
Discounted Cash Flow Calculation for NYSE:MGM using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for MGM Resorts International is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 11.36%) |
|
|---|---|---|---|
| 2019 | 1,183.40 | Analyst x4 | 1,062.67 |
| 2020 | 1,807.22 | Analyst x5 | 1,457.29 |
| 2021 | 1,847.50 | Analyst x2 | 1,337.79 |
| 2022 | 1,891.16 | Est @ 2.36% | 1,229.69 |
| 2023 | 1,937.93 | Est @ 2.47% | 1,131.55 |
| 2024 | 1,987.35 | Est @ 2.55% | 1,042.02 |
| 2025 | 2,039.10 | Est @ 2.6% | 960.09 |
| 2026 | 2,092.97 | Est @ 2.64% | 884.92 |
| 2027 | 2,148.82 | Est @ 2.67% | 815.84 |
| 2028 | 2,206.55 | Est @ 2.69% | 752.29 |
| Present value of next 10 years cash flows | $10,674.15 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $2,206.55 × (1 + 2.73%) ÷ (11.36% – 2.73%) |
$26,263.76 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $26,263.76 ÷ (1 + 11.36%)10 |
$8,954.27 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $10,674.15 + $8,954.27 |
$19,628.43 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $19,628.43 / 537.20 |
$36.54 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $36.54 |
| Current discount | Discount to share price of
$27.66
= -1 x ($27.66 - $36.54) / $36.54 |
24.3% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- MGM Resorts International's share price is below the future cash flow value, and at a moderate discount (> 20%).
- MGM Resorts International's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for MGM Resorts International's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
MGM Resorts International's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in USD | $0.47 |
| NYSE:MGM Share Price ** | NYSE (2019-06-14) in USD | $27.66 |
| United States of America Hospitality Industry PE Ratio | Median Figure of 74 Publicly-Listed Hospitality Companies | 22.39x |
| United States of America Market PE Ratio | Median Figure of 3,094 Publicly-Listed Companies | 17.69x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of MGM Resorts International.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:MGM Share Price ÷ EPS (both in USD) = 27.66 ÷ 0.47 |
58.42x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- MGM Resorts International is overvalued based on earnings compared to the US Hospitality industry average.
- MGM Resorts International is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
MGM Resorts International's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 58.42x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts |
23.3%per year |
| United States of America Hospitality Industry PEG Ratio | Median Figure of 55 Publicly-Listed Hospitality Companies | 1.94x |
| United States of America Market PEG Ratio | Median Figure of 2,125 Publicly-Listed Companies | 1.52x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 58.42x ÷ 23.3% |
2.51x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- MGM Resorts International is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
MGM Resorts International's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in USD | $12.63 |
| NYSE:MGM Share Price * | NYSE (2019-06-14) in USD | $27.66 |
| United States of America Hospitality Industry PB Ratio | Median Figure of 112 Publicly-Listed Hospitality Companies | 2.25x |
| United States of America Market PB Ratio | Median Figure of 5,244 Publicly-Listed Companies | 1.79x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:MGM Share Price ÷ Book Value per Share (both in USD) = 27.66 ÷ 12.63 |
2.19x |
* Primary Listing of MGM Resorts International.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- MGM Resorts International is good value based on assets compared to the US Hospitality industry average.
Value checks
We assess MGM Resorts International's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check) MGM Resorts International has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- MGM Resorts International's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- MGM Resorts International's earnings growth is expected to exceed the United States of America market average.
- MGM Resorts International's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:MGM Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts | 23.3% |
| NYSE:MGM Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts | 3.4% |
| United States of America Hospitality Industry Earnings Growth Rate | Market Cap Weighted Average | 16.5% |
| United States of America Hospitality Industry Revenue Growth Rate | Market Cap Weighted Average | 7.4% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.9% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.3% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 18 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 14,787 | 2,972 | 1,369 | 2 |
| 2022-12-31 | 14,284 | 2,798 | 1,226 | 3 |
| 2021-12-31 | 13,919 | 2,555 | 954 | 9 |
| 2020-12-31 | 13,521 | 2,345 | 876 | 18 |
| 2019-12-31 | 13,022 | 2,211 | 581 | 18 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 11,684 | 1,545 | 254 |
| 2018-12-31 | 11,338 | 1,723 | 445 |
| 2018-09-30 | 10,870 | 2,090 | 1,853 |
| 2018-06-30 | 10,675 | 2,360 | 1,862 |
| 2018-03-31 | 10,497 | 2,379 | 1,946 |
| 2017-12-31 | 10,395 | 2,206 | 1,934 |
| 2017-09-30 | 10,263 | 1,997 | 589 |
| 2017-06-30 | 9,951 | 1,859 | 976 |
| 2017-03-31 | 9,567 | 1,715 | 1,241 |
| 2016-12-31 | 9,081 | 1,534 | 1,100 |
| 2016-09-30 | 8,789 | 1,316 | 295 |
| 2016-06-30 | 8,556 | 1,171 | -174 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 18 Analyst Estimates (S&P Global) | See Below |
All data from MGM Resorts International Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 2.64 | 2.96 | 2.31 | 2.00 |
| 2022-12-31 | 2.37 | 2.57 | 2.16 | 2.00 |
| 2021-12-31 | 1.79 | 2.18 | 1.45 | 6.00 |
| 2020-12-31 | 1.61 | 2.19 | 1.17 | 13.00 |
| 2019-12-31 | 1.02 | 1.43 | 0.75 | 13.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-03-31 | 0.47 |
| 2018-12-31 | 0.82 |
| 2018-09-30 | 3.35 |
| 2018-06-30 | 3.31 |
| 2018-03-31 | 3.42 |
| 2017-12-31 | 3.38 |
| 2017-09-30 | 1.03 |
| 2017-06-30 | 1.70 |
| 2017-03-31 | 2.18 |
| 2016-12-31 | 1.94 |
| 2016-09-30 | 0.52 |
| 2016-06-30 | -0.31 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- MGM Resorts International is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Future performance checks
We assess MGM Resorts International's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
MGM Resorts International has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has MGM Resorts International performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- MGM Resorts International has delivered over 20% year on year earnings growth in the past 5 years.
- MGM Resorts International's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- MGM Resorts International's 1-year earnings growth is negative, it can't be compared to the US Hospitality industry average.
Earnings and Revenue History
All data from MGM Resorts International Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 11,683.80 | 254.07 | 2,408.75 | |
| 2018-12-31 | 11,337.60 | 445.45 | 2,335.23 | |
| 2018-09-30 | 10,869.59 | 1,852.73 | 2,337.19 | |
| 2018-06-30 | 10,674.76 | 1,862.34 | 2,248.67 | |
| 2018-03-31 | 10,497.04 | 1,946.15 | 2,142.25 | |
| 2017-12-31 | 10,395.44 | 1,933.69 | 2,034.92 | |
| 2017-09-30 | 10,262.81 | 589.20 | 1,939.04 | |
| 2017-06-30 | 9,950.82 | 976.48 | 1,910.56 | |
| 2017-03-31 | 9,566.69 | 1,241.00 | 1,897.70 | |
| 2016-12-31 | 9,081.12 | 1,100.38 | 1,831.31 | |
| 2016-09-30 | 8,789.08 | 295.32 | 1,734.54 | |
| 2016-06-30 | 8,555.81 | -173.88 | 1,655.17 | |
| 2016-03-31 | 8,668.69 | -550.77 | 1,624.33 | |
| 2015-12-31 | 8,791.23 | -447.72 | 1,654.98 | |
| 2015-09-30 | 8,986.44 | -8.53 | 1,625.24 | |
| 2015-06-30 | 9,190.61 | -95.22 | 1,632.50 | |
| 2015-03-31 | 9,394.31 | -82.68 | 1,612.98 | |
| 2014-12-31 | 9,698.55 | -149.87 | 1,596.82 | |
| 2014-09-30 | 9,830.97 | 135.59 | 1,573.53 | |
| 2014-06-30 | 9,815.27 | 133.54 | 1,555.56 | |
| 2014-03-31 | 9,718.51 | -75.63 | 1,534.07 | |
| 2013-12-31 | 9,445.00 | -171.73 | 1,508.51 | |
| 2013-09-30 | 9,227.51 | -1,338.76 | 1,520.66 | |
| 2013-06-30 | 9,023.81 | -1,497.60 | 1,502.21 | |
| 2013-03-31 | 8,868.11 | -1,543.89 | 1,484.03 | |
| 2012-12-31 | 8,803.25 | -1,767.69 | 1,476.91 | |
| 2012-09-30 | 8,805.77 | -657.56 | 1,442.69 | |
| 2012-06-30 | 8,784.92 | -600.18 | 1,407.40 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- MGM Resorts International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- MGM Resorts International used its assets less efficiently than the US Hospitality industry average last year based on Return on Assets.
- MGM Resorts International's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess MGM Resorts International's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
MGM Resorts International has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is MGM Resorts International's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up MGM Resorts International's finances.
The net worth of a company is the difference between its assets and liabilities.
- MGM Resorts International's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
- MGM Resorts International's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from MGM Resorts International Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 11,317.20 | 15,307.27 | 1,223.40 |
| 2018-12-31 | 10,572.04 | 15,139.42 | 1,526.76 |
| 2018-09-30 | 10,839.52 | 14,663.97 | 1,302.68 |
| 2018-06-30 | 10,926.91 | 13,513.34 | 1,272.87 |
| 2018-03-31 | 11,479.05 | 13,282.47 | 1,525.40 |
| 2017-12-31 | 11,690.90 | 12,909.09 | 1,500.00 |
| 2017-09-30 | 10,384.08 | 13,495.68 | 1,986.69 |
| 2017-06-30 | 10,288.34 | 13,200.81 | 1,757.06 |
| 2017-03-31 | 10,196.49 | 13,100.72 | 1,395.44 |
| 2016-12-31 | 10,023.45 | 12,987.60 | 1,446.58 |
| 2016-09-30 | 9,923.71 | 12,786.42 | 1,446.16 |
| 2016-06-30 | 9,533.13 | 12,364.92 | 2,503.26 |
| 2016-03-31 | 7,871.26 | 12,929.28 | 1,664.91 |
| 2015-12-31 | 7,770.68 | 12,696.75 | 1,670.31 |
| 2015-09-30 | 9,244.72 | 12,821.04 | 1,807.80 |
| 2015-06-30 | 9,181.83 | 13,382.24 | 2,542.55 |
| 2015-03-31 | 7,653.04 | 14,551.81 | 2,195.54 |
| 2014-12-31 | 7,628.27 | 14,050.61 | 2,283.72 |
| 2014-09-30 | 7,898.64 | 12,915.20 | 1,313.43 |
| 2014-06-30 | 7,941.53 | 12,923.71 | 1,434.14 |
| 2014-03-31 | 7,822.85 | 12,930.73 | 1,192.74 |
| 2013-12-31 | 7,860.50 | 13,447.23 | 1,803.67 |
| 2013-09-30 | 7,827.17 | 13,034.52 | 1,465.40 |
| 2013-06-30 | 7,857.17 | 13,111.96 | 1,383.67 |
| 2013-03-31 | 7,879.05 | 13,690.70 | 1,600.64 |
| 2012-12-31 | 8,116.02 | 13,589.28 | 1,663.51 |
| 2012-09-30 | 9,265.50 | 13,825.45 | 2,563.16 |
| 2012-06-30 | 9,412.21 | 13,366.99 | 1,866.92 |
- MGM Resorts International's level of debt (130.2%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (165.3% vs 130.2% today).
- Debt is not well covered by operating cash flow (10.5%, less than 20% of total debt).
- Interest payments on debt are not well covered by earnings (EBIT is 1.6x annual interest expense, ideally 3x coverage).
Financial health checks
We assess MGM Resorts International's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) MGM Resorts International has a total score of 1/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is MGM Resorts International's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
MGM Resorts International
shares you are expected to receive
$38
in your first year as a dividend.
Dividend Amount
- MGM Resorts International's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
- MGM Resorts International's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 18 Analyst Estimates (S&P Global) | See Below |
| United States of America Hospitality Industry Average Dividend Yield | Market Cap Weighted Average of 47 Stocks | 2.8% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2011 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.5% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | 0.91 | 2.00 |
| 2022-12-31 | 0.79 | 2.00 |
| 2021-12-31 | 0.60 | 8.00 |
| 2020-12-31 | 0.54 | 12.00 |
| 2019-12-31 | 0.52 | 12.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-05-07 | 0.520 | 2.006 |
| 2019-04-29 | 0.520 | 1.991 |
| 2019-02-27 | 0.520 | 1.940 |
| 2019-02-13 | 0.520 | 1.853 |
| 2018-08-02 | 0.480 | 1.770 |
| 2018-02-20 | 0.480 | 1.482 |
| 2017-11-09 | 0.440 | 1.288 |
| 2017-11-08 | 0.440 | 1.337 |
| 2017-08-08 | 0.440 | 1.395 |
| 2017-07-27 | 0.440 | 1.363 |
| 2017-05-09 | 0.440 | 1.367 |
| 2017-04-27 | 0.440 | 1.426 |
| 2017-03-01 | 0.440 | 1.618 |
| 2017-02-16 | 0.440 | 1.657 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Whilst dividend payments have been stable, MGM Resorts International has been paying a dividend for less than 10 years.
- Dividend payments have increased, but MGM Resorts International only paid a dividend in the past 2 years.
Income/ dividend checks
We assess MGM Resorts International's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can MGM Resorts International afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) MGM Resorts International has a total score of 2/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $12,849,021 |
| AGE | 56 |
| TENURE AS CEO | 10.5 years |
CEO Bio
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 since December 1, 2008. He serves as a Co-Chairperson at MGM China Holdings Limited since 2013 and has been its Executive Director since September 22, 2010. He has been an Executive Director of MGM Resorts International since 1998. He has been the President of Galleon Inc. since December 2008. He served as Treasurer of Galleon, a joint venture firm of Circus & Eldorado Joint Venture since April 2005. He served as an Equity Analyst at Deutsche Bank AG, Research Division. He served as the President at MGM Resorts International from December 1999 to December 2012 and also served as its Chief Operating Officer from August 21, 2007 to December 2008, Chief Financial Officer from January 1998 to August 21, 2007, Treasurer from November 2001 to August 21, 2007 and Principal Accounting Officer until August 21, 2007. Mr. Murren served as MGM’s President from December 1999 to December 2012, Chief Operating Officer from August 2007 through December 2008 and as Chief Financial Officer from January 1998 to August 2007 and as Treasurer from November 2001 to August 2007. He served as an Executive Vice President of MGM Mirage from January 1998 to December 1999. Prior to joining the Board of MGM Grand Paradise, he was involved in the design, development, financing, management and operations of MGM Grand Paradise. Prior to his employment at MGM Mirage, he spent 14 years on Wall Street as a top-ranked Equity Analyst. He served as Managing Director and Co-Director of Research for Deutsche Morgan Grenfell and served in various other capacities since 1984. He served as Director of Research and Managing Director of U.S. Equity Research of Deutsche Bank AG, Research Division. He serves as the Chairman of CityCenter Holdings, LLC and MGM Growth Properties LLC. He has been Director of MGM Growth Properties LLC since 2016. He has been a Director of MGM Grand Paradise since January 19, 2010 and Silver Legacy Capital Corp. since November 2007. He serves as a Director of American Gaming Association. He served as a Director of Nevada Cancer Institute from 2002 to 2012 and Delta Petroleum Corp. (now Par Pacific Holdings, Inc.) from February 2008 to November 21, 2011. He serves on the Board of Trustees at the Brookings Institute, Trinity College and Howard University. Mr. Murren received a Bachelor of Arts degree in Art History and Urban Studies from Trinity College in 1983.
CEO Compensation
- Jim's compensation has been consistent with company performance over the past year, both up more than 20%.
- Jim's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the MGM Resorts International management team in years:
- The average tenure for the MGM Resorts International management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Jim Murren
Chairman & CEO
$13M
56
10.5 yrs
Bill Hornbuckle
President & COO
$6M
60
6.5 yrs
Corey Sanders
CFO & Treasurer
$6M
54
0.3 yrs
John McManus
Executive VP
$3M
51
10.9 yrs
Robert Selwood
Executive VP & Chief Accounting Officer
$1M
62
11.8 yrs
Catherine Park
Executive Director of Investor Relations
4.4 yrs
Andrew Hagopian
Chief Corporate Counsel & Assistant Secretary
2.5 yrs
Brian Ahern
Director of Media Relations
Lilian Tomovich
Chief Experience & Marketing Officer
50
Michelle DiTondo
Senior VP & Chief Human Resources Officer
Board of Directors Tenure
Average tenure and age of the MGM Resorts International board of directors in years:
- The tenure for the MGM Resorts International board of directors is about average.
Board of Directors
Jim Murren
Chairman & CEO
$13M
56
10.5 yrs
Alexis Herman
Director
$307K
70
17.4 yrs
Roland Hernandez
Lead Independent Director
$367K
60
9.4 yrs
Rose McKinney-James
Director
$317K
66
14.4 yrs
Greg Spierkel
Director
$307K
61
6.2 yrs
Dan Taylor
Director
$288K
61
12.3 yrs
Bill Grounds
Director
$13K
62
6.3 yrs
Chris Gay
Director
$296K
50
5.3 yrs
John Kilroy
Director
$288K
69
2.4 yrs
Jan Swartz
Director
$316K
48
1.3 yrs
Who owns this company?
Recent Insider Trading
- More shares have been bought than sold by MGM Resorts International insiders in the past 3 months.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 10. May 19 | Buy | Paul Salem | Individual | 08. May 19 | 08. May 19 | 800,000 | $25.40 | $20,322,240 | ||
| 09. Mar 19 | Buy | William Grounds | Individual | 07. Mar 19 | 07. Mar 19 | 1,145 | $26.27 | $30,075 | ||
| 07. Mar 19 | Buy | Mary Gay | Individual | 06. Mar 19 | 06. Mar 19 | 3,700 | $27.27 | $100,886 | ||
| 07. Nov 18 | Sell | Robert Baldwin | Individual | 02. Nov 18 | 02. Nov 18 | -108,000 | $28.15 | $-3,040,060 | ||
| 02. Nov 18 | Sell | Phyllis James | Individual | 02. Nov 18 | 02. Nov 18 | -15,815 | $28.26 | $-446,886 | ||
| 17. Aug 18 | Sell | Alexis Herman | Individual | 16. Aug 18 | 16. Aug 18 | -1,750 | $28.28 | $-49,490 | ||
| 06. Aug 18 | Sell | Alexis Herman | Individual | 06. Aug 18 | 06. Aug 18 | -3,500 | $28.85 | $-100,975 | ||
Management checks
We assess MGM Resorts International's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) MGM Resorts International has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
How Much Are MGM Resorts International (NYSE:MGM) Insiders Spending On Buying Shares?
So we'll take a look at whether insiders have been buying or selling shares in MGM Resorts International (NYSE:MGM). … NYSE:MGM Recent Insider Trading, May 23rd 2019 There are plenty of other companies that have insiders buying up shares. … When combined with notable insider ownership, these factors suggest MGM Resorts International insiders are well aligned, and that they may think the share price is too low.
Simply Wall St - – Full articleIs There An Opportunity With MGM Resorts International's (NYSE:MGM) 26% Undervaluation?
Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $1.18k $1.81k $1.85k $1.89k $1.94k $1.99k $2.04k $2.09k $2.15k $2.21k Growth Rate Estimate Source Analyst x4 Analyst x5 Analyst x2 Est @ 2.36% Est @ 2.47% Est @ 2.55% Est @ 2.6% Est @ 2.64% Est @ 2.67% Est @ 2.69% Present Value ($, Millions) Discounted @ 11.85% $1.06k $1.44k $1.32k $1.21k $1.11k $1.02k $931.29 $854.65 $784.52 $720.27 Present Value of 10-year Cash Flow (PVCF)= $10.44b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … NYSE:MGM Intrinsic value, May 10th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.
Simply Wall St - – Full articleIs MGM Resorts International (NYSE:MGM) Trading At A 30% Discount?
by taking the expected future cash flows and discounting them to today's value. … We generally believe that a company's value is the present value of all of the cash it will generate in the future. … The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period.
Simply Wall St - – Full articleHere's How We Evaluate MGM Resorts International's (NYSE:MGM) Dividend
Dividend paying stocks like MGM Resorts International (NYSE:MGM) tend to be popular with investors, and for good reason - some research shows that a significant amount of all stock market returns come from reinvested dividends.. … Some readers mightn't know much about MGM Resorts International's 1.9% dividend, as it has only been paying distributions for the last two years.! … Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1
Simply Wall St - – Full articleShould MGM Resorts International (NYSE:MGM) Focus On Improving This Fundamental Metric?
Our data shows MGM Resorts International has a return on equity of 5.5% for the last year. … That means that for every $1 worth of shareholders' equity, it generated $0.055 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleMGM Resorts International’s (NYSE:MGM) Investment Returns Are Lagging Its Industry
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
Simply Wall St - – Full articleWhat Should Investors Know About MGM Resorts International's (NYSE:MGM) Future?
On 31 December 2018, MGM Resorts International (NYSE:MGM) released its earnings update. … as a 48% increase in profits is expected in the upcoming year,
Simply Wall St - – Full articleHere's What We Think About MGM Resorts International's (NYSE:MGM) CEO Pay
This analysis aims first to contrast CEO compensation with other large companies. … At the time of writing our data says that MGM Resorts International has a market cap of US$14b, and is paying total annual CEO compensation of US$15m. … We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO compensation to be US$11m
Simply Wall St - – Full articleWhat Do Analysts Think About MGM Resorts International's (NYSE:MGM) Growth?
Want to participate in a short research study? … Help shape the future of investing tools and receive a $20 prize! … MGM Resorts International's (NYSE:MGM) announced its latest earnings update in December 2018, which
Simply Wall St - – Full articleHere's What MGM Resorts International's (NYSE:MGM) P/E Ratio Is Telling Us
We'll show how you can use MGM Resorts International's (NYSE:MGM) P/E ratio to inform your assessment of the investment opportunity. … MGM Resorts International has a price to earnings ratio of 8.85, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleCompany Info
Description
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.
Details
| Name: | MGM Resorts International |
| MGM | |
| Exchange: | NYSE |
| Founded: | 1986 |
| $14,858,987,460 | |
| 537,201,282 | |
| Website: | http://www.mgmresorts.com |
| Address: |
MGM Resorts International 3600 Las Vegas Boulevard South, Las Vegas, Nevada, 89109, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | MGM | Common Stock | New York Stock Exchange | US | USD | 02. May 1988 | |
| DB | MGG | Common Stock | Deutsche Boerse AG | DE | EUR | 02. May 1988 | |
| LSE | 0JWC | Common Stock | London Stock Exchange | GB | USD | 02. May 1988 | |
| BMV | MGM * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 02. May 1988 |
Number of employees
Current staff
Industry
| Casinos and Gaming | |
| Consumer Services |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/06/16 23:37 |
| End of day share price update: | 2019/06/14 00:00 |
| Last estimates confirmation: | 2019/06/05 |
| Last earnings filing: | 2019/05/07 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
