MGM Resorts International
Market Cap
US$10.7b
Last Updated
2020/09/23 05:49 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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued with high growth potential.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-6.0%
MGM
-6.3%
US Hospitality
-3.1%
US Market
1 Year Return
-23.5%
MGM
-20.3%
US Hospitality
12.7%
US Market
Return vs Industry: MGM underperformed the US Hospitality industry which returned -20.3% over the past year.
Return vs Market: MGM underperformed the US Market which returned 12.7% over the past year.
Shareholder returns
| MGM | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.0% | -6.3% | -3.1% |
| 30 Day | -2.9% | 1.1% | -2.9% |
| 90 Day | 29.5% | 12.7% | 8.2% |
| 1 Year | -22.6%-23.5% | -18.9%-20.3% | 15.3%12.7% |
| 3 Year | -30.3%-33.4% | -12.7%-18.3% | 37.8%28.5% |
| 5 Year | 24.0%17.2% | 22.5%10.1% | 90.9%69.4% |
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
6 days ago | Simply Wall St
A Look At MGM Resorts International's (NYSE:MGM) Share Price Returns6 months ago | Simply Wall St
What Is MGM Resorts International's (NYSE:MGM) P/E Ratio After Its Share Price Tanked?6 months ago | Simply Wall St
Is It Smart To Buy MGM Resorts International (NYSE:MGM) Before It Goes Ex-Dividend?Valuation
Is MGM Resorts International undervalued compared to its fair value and its price relative to the market?
43.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MGM ($21.62) is trading below our estimate of fair value ($38.5)
Significantly Below Fair Value: MGM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MGM is good value based on its PE Ratio (5.6x) compared to the US Hospitality industry average (27x).
PE vs Market: MGM is good value based on its PE Ratio (5.6x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: MGM is good value based on its PEG Ratio (0.1x)
Price to Book Ratio
PB vs Industry: MGM is good value based on its PB Ratio (1.4x) 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?
43.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MGM's forecast earnings growth (43.9% per year) is above the savings rate (2.2%).
Earnings vs Market: MGM's earnings (43.9% per year) are forecast to grow faster than the US market (23.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MGM's revenue (22.4% per year) is forecast to grow faster than the US market (9.9% per year).
High Growth Revenue: MGM's revenue (22.4% per year) is forecast to grow faster 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 (0.1%).
Next Steps
Past Performance
How has MGM Resorts International performed over the past 5 years?
39.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MGM has a large one-off gain of $3.6B impacting its June 30 2020 financial results.
Growing Profit Margin: MGM's current net profit margins (22.5%) are higher than last year (1.5%).
Past Earnings Growth Analysis
Earnings Trend: MGM has become profitable over the past 5 years, growing earnings by 39% per year.
Accelerating Growth: MGM's earnings growth over the past year (999.1%) exceeds its 5-year average (39% per year).
Earnings vs Industry: MGM earnings growth over the past year (999.1%) exceeded the Hospitality industry -46.9%.
Return on Equity
High ROE: MGM's Return on Equity (14.6%) is considered low.
Next Steps
Financial Health
How is MGM Resorts International's financial position?
Financial Position Analysis
Short Term Liabilities: MGM's short term assets ($6.4B) exceed its short term liabilities ($2.6B).
Long Term Liabilities: MGM's short term assets ($6.4B) do not cover its long term liabilities ($22.5B).
Debt to Equity History and Analysis
Debt Level: MGM's debt to equity ratio (92.5%) is considered high.
Reducing Debt: MGM's debt to equity ratio has reduced from 145.5% to 92.5% 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
Next Steps
Dividend
What is MGM Resorts International current dividend yield, its reliability and sustainability?
0.047%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MGM's dividend (0.047%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.71%).
High Dividend: MGM's dividend (0.047%) is low compared to the top 25% of dividend payers in the US market (4.88%).
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.
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Management
How experienced are the management team and are they aligned to shareholders interests?
1.5yrs
Average management tenure
CEO
Bill Hornbuckle (62 yo)
0.50
Tenure
US$6,289,556
Compensation
Mr. William Joseph Hornbuckle, IV, also known as Bill, has been Executive Chairperson of MGM China Holdings Limited since March 26, 2020. He has been Chief Executive Officer of Marina District Development ...
CEO Compensation Analysis
Compensation vs Market: Bill's total compensation ($USD6.29M) is below average for companies of similar size in the US market ($USD11.33M).
Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.50yr | US$6.29m | 0.078% $ 8.3m | |
| CFO & Treasurer | 1.5yrs | US$5.89m | 0.091% $ 9.7m | |
| Executive VP | 12.17yrs | US$3.03m | 0.017% $ 1.8m | |
| President of Commercial & Growth | 1.42yrs | US$4.89m | 0.0038% $ 402.1k | |
| Executive VP & Chief Accounting Officer | 13.08yrs | US$1.21m | 0.037% $ 3.9m | |
| Executive Director of Investor Relations | 5.67yrs | no data | no data | |
| Senior VP of Global Corporate Communications | no data | no data | no data | |
| Chief Marketing Officer | 0.33yr | no data | no data | |
| Senior Vice President of Human Resources | 1.08yrs | no data | no data | |
| Executive Vice President of Global Government & Industry Affairs | no data | no data | no data | |
| Chief Diversity & Corporate Responsibility Officer | 18.5yrs | no data | 0.0029% $ 305.0k | |
| Senior Vice President of Public Relations | no data | no data | no data |
1.5yrs
Average Tenure
58.5yo
Average Age
Experienced Management: MGM's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.50yr | US$6.29m | 0.078% $ 8.3m | |
| Independent Chairman | 0.50yr | US$293.20k | 0.31% $ 32.8m | |
| Independent Director | 7.42yrs | US$313.20k | 0.0032% $ 345.5k | |
| Independent Director | 3.67yrs | US$293.20k | 0.0017% $ 185.6k | |
| Independent Director | 15.67yrs | US$323.20k | 0.0015% $ 164.2k | |
| Lead Independent Director | 10.67yrs | US$373.20k | 0.0092% $ 982.2k | |
| Independent Director | 18.67yrs | US$313.20k | 0.0050% $ 530.0k | |
| Independent Director | 1.67yrs | US$334.80k | no data | |
| Independent Director | 2.5yrs | US$293.20k | 0.0024% $ 258.1k | |
| Independent Director | 13.5yrs | US$308.20k | 0% $ 0 | |
| Director | 7.58yrs | US$245.70k | 0.0021% $ 228.2k | |
| Independent Director | 6.58yrs | US$293.20k | 0.0051% $ 546.0k |
7.0yrs
Average Tenure
62.5yo
Average Age
Experienced Board: MGM's board of directors are considered experienced (7 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$10.665b
- Shares outstanding: 493.28m
- 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 V ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/09/23 05:49 |
| End of Day Share Price | 2020/09/22 00:00 |
| Earnings | 2020/06/30 |
| 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.