MGM Resorts International
Market Cap
US$16.3b
Last Updated
2019/11/22 23:41 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.
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
| MGM | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.4% | -0.7% | -0.2% |
| 30 Day | 13.9% | 2.7% | 3.7% |
| 90 Day | 15.0% | 5.6% | 8.5% |
| 1 Year | 26.1%23.8% | 11.7%8.9% | 18.7%16.1% |
| 3 Year | 16.5%11.4% | 29.5%20.3% | 46.9%37.4% |
| 5 Year | 46.4%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
1 week ago | Simply Wall St
Calculating The Fair Value Of MGM Resorts International (NYSE:MGM)3 weeks ago | Simply Wall St
MGM Resorts International Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?3 weeks ago | Simply Wall St
Should You Be Concerned About MGM Resorts International's (NYSE:MGM) ROE?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
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
| Entity | Company |
| Shares | 295,000 |
| Max Price | US$31.21 |
| Entity | Company |
| Shares | 79,000 |
| Max Price | US$29.43 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 5,200 |
| Max Price | US$29.20 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,670 |
| Max Price | US$28.15 |
| Entity | Individual |
| Shares | 8,761 |
| Max Price | US$28.55 |
| Entity | Individual |
| Shares | 800,000 |
| Max Price | US$25.40 |
| Entity | Individual |
| Role | Member of the Board of Directors Director |
| Shares | 1,145 |
| Max Price | US$26.27 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 3,700 |
| Max Price | US$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
| 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 |
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/22 23:41 |
| End of Day Share Price | 2019/11/22 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.