MGM Resorts International
Market Cap
US$13.2b
Last Updated
2020/02/27 00:39 UTC
Data Sources
Company Financials +
Executive Summary
MGM Resorts International, through its subsidiaries, owns and operates integrated casino, hotel, and entertainment resorts in the United States and Macau.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -44.3% per year for the next 3 years
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
| MGM | Industry | Market | |
|---|---|---|---|
| 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 Year | 1.7%-0.2% | -5.4%-7.9% | 12.5%10.2% |
| 3 Year | 6.6%1.5% | 14.9%7.2% | 37.1%28.3% |
| 5 Year | 27.9%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
3 days ago | Simply Wall St
Chairman & CEO James Murren Just Sold A Bunch Of Shares In MGM Resorts International (NYSE:MGM)1 week ago | Simply Wall St
Does MGM Resorts International's (NYSE:MGM) CEO Salary Reflect Performance?3 months ago | Simply Wall St
Calculating The Fair Value Of MGM Resorts International (NYSE:MGM)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
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 11.2yrs | US$12.85m | 0.17% $22.2m | |
| President & COO | 7.2yrs | US$6.14m | 0.060% $7.9m | |
| CFO & Treasurer | 0.9yrs | US$5.75m | 0.079% $10.4m | |
| Executive VP | 11.6yrs | US$2.89m | 0.025% $3.4m | |
| Executive VP & Chief Accounting Officer | 12.5yrs | US$1.21m | 0.037% $4.8m | |
| Executive Director of Investor Relations | 5.1yrs | no data | no data | |
| Director of Media Relations | 0yrs | no data | no data | |
| Senior Vice President of Human Resources | 0.5yrs | no data | no data | |
| Executive Vice President of Global Government & Industry Affairs | 0yrs | no data | no data | |
| Chief Diversity & Corporate Responsibility Officer | 17.9yrs | no data | 0.0029% $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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 11.2yrs | US$12.85m | 0.17% $22.2m | |
| Independent Director | 6.8yrs | US$306.95k | 0.0010% $133.3k | |
| Independent Director | 3.1yrs | US$288.20k | 0.00052% $68.6k | |
| Independent Director | 15.1yrs | US$316.95k | 0.00093% $122.7k | |
| Lead Independent Director | 10.1yrs | US$366.95k | 0.0080% $1.1m | |
| Independent Director | 18.1yrs | US$306.95k | 0.0037% $485.7k | |
| Independent Director | 1.9yrs | US$315.70k | 0.0012% $158.4k | |
| Independent Director | 12.9yrs | US$288.20k | no data | |
| Director | 7yrs | US$13.20k | 0.00092% $121.4k | |
| Independent Director | 6yrs | US$295.70k | 0.0036% $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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MGM | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | May 1988 |
| MGM * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | May 1988 |
| MGG | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | May 1988 |
| 0JWC | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | May 1988 |
| M1GM34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM USD0.01 | BR | BRL | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/27 00:39 |
| End of Day Share Price | 2020/02/26 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.