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MGM

MGM Resorts International NYSE:MGM Stock Report

Last Price

US$30.61

Market Cap

US$12.0b

7D

2.1%

1Y

-31.2%

Updated

03 Oct, 2022

Data

Company Financials +
MGM fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance1/6
Financial Health4/6
Dividends0/6

MGM Stock Overview

MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and Macau.

MGM Resorts International Competitors

Price History & Performance

Summary of all time highs, changes and price drops for MGM Resorts International
Historical stock prices
Current Share PriceUS$30.61
52 Week HighUS$51.17
52 Week LowUS$26.41
Beta2.11
1 Month Change-6.85%
3 Month Change0.82%
1 Year Change-31.23%
3 Year Change12.33%
5 Year Change-0.65%
Change since IPO683.62%

Recent News & Updates

Sep 28

MGM Resorts and ExteNet Systems enter national connectivity partnership

ExteNet Systems has announced a groundbreaking partnership with MGM Resorts International (NYSE:MGM) to design, build and operate ExteNet's advanced in-building signal and connectivity solutions across all MGM properties throughout the U.S. Through this partnership, MGM properties will offer guests unparalleled mobile connectivity with next-generation wireless infrastructure. The addition of greater connectivity will further enhance MGM's world-class offerings for guests and support upcoming plans and development with future-ready solutions. Properties are projected to be completed between fall 2022 through fall 2024 in advance of the Formula One World Championship in November 2023 and Super Bowl LVIII in February 2024. Already a leader in the Las Vegas market, ExteNet's partnership with MGM will strengthen the Company's position as a coverage and service leader in more than ten prime locations in the area.

Sep 07

MGM Resorts goes ex-dividend tomorrow

MGM Resorts (NYSE:MGM) had declared $0.0025/share quarterly dividend, in line with previous. Payable Sept. 15; for shareholders of record Sept. 9; ex-div Sept. 8. See MGM Dividend Scorecard, Yield Chart, & Dividend Growth.

Aug 23

BetMGM and SportsGrid expand multi-year betting content deal

MGM Resorts' (NYSE:MGM) BetMGM expands its partnership with sports wagering streaming video network- SportsGrid- through multi-year, multi-platform agreement. The sports betting and iGaming operator stated Tuesday that under this multi-year deal its trading team and experts will provide insight to SportsGrid during various broadcasts including Ferrall Coast to Coast, Pro Football Today and In-Game Live Primetime.  Sharp's live reports also will also be distributed over SportsGrid's multi-media content platforms. Now Read: Las Vegas casino stocks are called good bets to ride out economic downturn

Shareholder Returns

MGMUS HospitalityUS Market
7D2.1%0.6%1.0%
1Y-31.2%-32.1%-20.0%

Return vs Industry: MGM exceeded the US Hospitality industry which returned -34.1% over the past year.

Return vs Market: MGM underperformed the US Market which returned -23.2% over the past year.

Price Volatility

Is MGM's price volatile compared to industry and market?
MGM volatility
MGM Average Weekly Movement5.6%
Hospitality Industry Average Movement7.3%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: MGM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: MGM's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198660,500Bill Hornbucklehttps://www.mgmresorts.com

MGM Resorts International, through its subsidiaries, owns and operates 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.

MGM Resorts International Fundamentals Summary

How do MGM Resorts International's earnings and revenue compare to its market cap?
MGM fundamental statistics
Market CapUS$12.03b
Earnings (TTM)US$3.19b
Revenue (TTM)US$11.77b

3.8x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MGM income statement (TTM)
RevenueUS$11.77b
Cost of RevenueUS$5.92b
Gross ProfitUS$5.85b
Other ExpensesUS$2.65b
EarningsUS$3.19b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)8.13
Gross Margin49.68%
Net Profit Margin27.14%
Debt/Equity Ratio113.8%

How did MGM perform over the long term?

See historical performance and comparison

Dividends

0.03%

Current Dividend Yield

0.141%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is MGM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MGM?

Other financial metrics that can be useful for relative valuation.

MGM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.5x
Enterprise Value/EBITDA19x
PEG Ratio-0.09x

Price to Earnings Ratio vs Peers

How does MGM's PE Ratio compare to its peers?

MGM PE Ratio vs Peers
The above table shows the PE ratio for MGM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13x
CHDN Churchill Downs
14.2x10.3%US$6.9b
BYD Boyd Gaming
9.3x-7.0%US$5.2b
RRR Red Rock Resorts
7.2x6.5%US$3.6b
PENN PENN Entertainment
21.2x23.6%US$4.4b
MGM MGM Resorts International
3.8x-41.0%US$12.0b

Price-To-Earnings vs Peers: MGM is good value based on its Price-To-Earnings Ratio (3.8x) compared to the peer average (13x).


Price to Earnings Ratio vs Industry

How does MGM's PE Ratio compare vs other companies in the US Hospitality Industry?

Price-To-Earnings vs Industry: MGM is good value based on its Price-To-Earnings Ratio (3.8x) compared to the US Hospitality industry average (16.9x)


Price to Earnings Ratio vs Fair Ratio

What is MGM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MGM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.8x
Fair PE Ratio14.5x

Price-To-Earnings vs Fair Ratio: MGM is good value based on its Price-To-Earnings Ratio (3.8x) compared to the estimated Fair Price-To-Earnings Ratio (14.5x).


Share Price vs Fair Value

What is the Fair Price of MGM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MGM ($30.61) is trading above our estimate of fair value ($0.72)

Significantly Below Fair Value: MGM is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is MGM Resorts International forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-41.0%

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 (-41% per year).

Earnings vs Market: MGM's earnings are forecast to decline over the next 3 years (-41% per year).

High Growth Earnings: MGM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MGM's revenue (6.6% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: MGM's revenue (6.6% 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 (9.6%).


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Past Performance

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

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-7.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MGM has a large one-off gain of $3.8B impacting its June 30 2022 financial results.

Growing Profit Margin: MGM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MGM's earnings have declined by 7.3% per year over the past 5 years.

Accelerating Growth: MGM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MGM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (36.2%).


Return on Equity

High ROE: Whilst MGM's Return on Equity (41.44%) is outstanding, this metric is skewed due to their high level of debt.


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Financial Health

How is MGM Resorts International's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MGM's short term assets ($9.2B) exceed its short term liabilities ($5.5B).

Long Term Liabilities: MGM's short term assets ($9.2B) do not cover its long term liabilities ($35.5B).


Debt to Equity History and Analysis

Debt Level: MGM's net debt to equity ratio (35.1%) is considered satisfactory.

Reducing Debt: MGM's debt to equity ratio has reduced from 128.3% to 113.8% over the past 5 years.

Debt Coverage: MGM's debt is well covered by operating cash flow (23.2%).

Interest Coverage: MGM's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.032%

Current Dividend Yield

Dividend Yield vs Market

MGM Resorts International Dividend Yield vs Market
How does MGM Resorts International dividend yield compare to the market?
SegmentDividend Yield
Company (MGM Resorts International)0.03%
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.6%
Industry Average (Hospitality)2.0%
Analyst forecast in 3 Years (MGM Resorts International)0.1%

Notable Dividend: MGM's dividend (0.032%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: MGM's dividend (0.032%) is low compared to the top 25% of dividend payers in the US market (4.75%).


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.


Earnings Payout to Shareholders

Earnings Coverage: MGM is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: MGM is not paying a notable dividend for the US market.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Bill Hornbuckle (64 yo)

2.25yrs

Tenure

US$13,274,524

Compensation

Mr. William Joseph Hornbuckle, IV, also known as Bill, has been Executive Chairperson of MGM China Holdings Limited since March 26, 2020. Mr. Hornbuckle had been a Director of PLAYSTUDIOS, Inc. since June...


CEO Compensation Analysis

Bill Hornbuckle's Compensation vs MGM Resorts International Earnings
How has Bill Hornbuckle's remuneration changed compared to MGM Resorts International's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$3b

Mar 31 2022n/an/a

US$1b

Dec 31 2021US$13mUS$2m

US$1b

Sep 30 2021n/an/a

US$615m

Jun 30 2021n/an/a

-US$1b

Mar 31 2021n/an/a

-US$2b

Dec 31 2020US$14mUS$1m

-US$997m

Sep 30 2020n/an/a

US$1b

Jun 30 2020n/an/a

US$2b

Mar 31 2020n/an/a

US$3b

Dec 31 2019US$6mUS$1m

US$2b

Sep 30 2019n/an/a

US$2m

Jun 30 2019n/an/a

US$181m

Mar 31 2019n/an/a

US$254m

Dec 31 2018US$6mUS$1m

US$445m

Sep 30 2018n/an/a

US$2b

Jun 30 2018n/an/a

US$2b

Mar 31 2018n/an/a

US$2b

Dec 31 2017US$7mUS$1m

US$2b

Sep 30 2017n/an/a

US$589m

Jun 30 2017n/an/a

US$976m

Mar 31 2017n/an/a

US$1b

Dec 31 2016US$6mUS$1m

US$1b

Sep 30 2016n/an/a

US$295m

Jun 30 2016n/an/a

-US$174m

Mar 31 2016n/an/a

-US$551m

Dec 31 2015US$6mUS$1m

-US$448m

Compensation vs Market: Bill's total compensation ($USD13.27M) is about average for companies of similar size in the US market ($USD13.04M).

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


Leadership Team

Experienced Management: MGM's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: MGM's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

NYSE:MGM Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
25 Aug 22BuyUS$498,784Janet SwartzIndividual14,230US$35.05
23 Aug 22BuyUS$1,758,351IAC Inc.Company51,100US$34.41
22 Aug 22BuyUS$9,998,763IAC Inc.Company291,700US$34.79
18 Aug 22BuyUS$9,996,935IAC Inc.Company283,400US$35.28
16 Aug 22BuyUS$9,996,840IAC Inc.Company279,800US$35.96
12 Aug 22BuyUS$9,994,608IAC Inc.Company283,700US$35.36
10 Aug 22SellUS$154,811Daniel TaylorIndividual4,499US$34.41
13 Jun 22BuyUS$997,695Paul SalemIndividual34,500US$28.92
25 May 22BuyUS$109,370Paul SalemIndividual3,500US$31.25
23 Feb 22SellUS$141,765Alexis HermanIndividual3,250US$43.62
22 Feb 22SellUS$364,946Mary JammetIndividual8,440US$43.24
17 Feb 22BuyUS$248,387Janet SwartzIndividual5,628US$44.13
14 Feb 22BuyUS$202,500,000IAC Inc.Company4,500,000US$45.00
14 Feb 22SellUS$202,500,000Corvex Management LPCompany4,500,000US$45.00
08 Nov 21SellUS$162,134Alexis HermanIndividual3,200US$50.67
08 Nov 21SellUS$300,840Todd MeinertIndividual6,000US$50.14
08 Nov 21SellUS$350,260John McManusIndividual7,000US$50.04

Ownership Breakdown

What is the ownership structure of MGM?
Owner TypeNumber of SharesOwnership Percentage
State or Government155,1450.04%
Individual Insiders13,110,0373.3%
General Public16,121,4294.1%
Private Companies20,898,7385.3%
Public Companies64,723,60216.5%
Institutions278,093,19670.7%

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


Top Shareholders

Top 25 shareholders own 70.93% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
16.46%
IAC Inc.
64,723,602$2.0b1.87%no data
9.77%
The Vanguard Group, Inc.
38,404,663$1.2b-8.12%0.03%
6.16%
BlackRock, Inc.
24,198,589$740.7m-4.72%0.02%
5.32%
Dubai World Corporation
20,898,738$639.7m0%no data
5.2%
T. Rowe Price Group, Inc.
20,424,636$625.2m19.43%0.07%
3.45%
State Street Global Advisors, Inc.
13,573,505$415.5m-9.2%0.02%
2.93%
Fred Alger Management, LLC
11,500,421$352.0m11.83%1.63%
2.67%
Chiu Ho
10,505,580$321.6m0%no data
1.76%
CPP Investments
6,911,523$211.6m-20.5%0.29%
1.74%
Geode Capital Management, LLC
6,842,146$209.4m-4.28%0.03%
1.7%
Corvex Management LP
6,673,778$204.3m0%10.63%
1.41%
Southeastern Asset Management, Inc.
5,535,635$169.4m-3.08%3%
1.3%
Orbis Investment Management Limited
5,094,995$156.0m-27.19%0.68%
1.18%
BNP Paribas, Private & Investment Banking Investments
4,634,920$141.9m0%0.97%
1.04%
Massachusetts Financial Services Company
4,098,554$125.5m0%0.03%
0.99%
Allianz Asset Management AG
3,902,873$119.5m-2.91%0.1%
0.98%
Citadel Advisors LLC
3,851,459$117.9m-18.28%0.18%
0.96%
Dimensional Fund Advisors LP
3,783,928$115.8m-2.17%0.03%
0.93%
Invesco Capital Management LLC
3,672,197$112.4m9.83%0.09%
0.91%
SRS Investment Management, LLC
3,588,718$109.9m-37.04%2.1%
0.89%
Norges Bank Investment Management
3,493,350$106.9m0%0.01%
0.86%
Northern Trust Global Investments
3,387,362$103.7m-6.67%0.02%
0.78%
Senvest Management, LLC
3,054,998$93.5m1.75%2.96%
0.77%
Eaton Vance Management
3,033,617$92.9m2.44%0.04%
0.77%
Westfield Capital Management Company, L.P.
3,023,646$92.6m-10.78%0.72%

Company Information

MGM Resorts International's 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
  • Implied Market Cap: US$12.033b
  • Shares outstanding: 393.10m
  • 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
M1GM34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD0.01BRBRLJan 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/03 00:00
End of Day Share Price2022/10/03 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.