MGM Growth Properties LLC (NYSE:MGP) is one of the leading publicly traded real estate investment trusts engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts, whose diverse amenities include casino gaming, hotel, convention, dining, entertainment and retail offerings.
MGM Growth Properties Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$40.16|
|52 Week High||US$25.84|
|52 Week Low||US$43.19|
|1 Month Change||-1.13%|
|3 Month Change||10.79%|
|1 Year Change||39.74%|
|3 Year Change||36.97%|
|5 Year Change||54.11%|
|Change since IPO||82.46%|
Recent News & Updates
Is VICI Properties A Buy Or Sell? Allow Me To Introduce You
VICI Properties announced last month that they would be acquiring MGM Growth Properties, making it the largest publicly traded owner of casino properties in the US. The deal is expected to diversify VICI's holdings, reduce its cost of capital, and could possibly lead to an S&P 500 inclusion. While VICI stock has some inflation and recession risk, the stock is priced to earn double-digit returns in the coming years. MGP stock offers an additional premium to VICI due to the spread between the market price and deal price in the stock acquisition deal.
MGM Growth Properties: A Good Yield But Mainly A Strategy To Buy VICI Properties At A 2% Discount
MGM Growth Properties posted respectable results as a standalone REIT. However, I will be buying the stock only to tender it into the VICI Properties buyout offer. This will allow me to get VICI at a 2% discount to the current share price. I expect the cash synergy benefits to reach $40-$50M per year once VICI refinances the more expensive MGP debt.
|MGP||US REITs||US Market|
Return vs Industry: MGP exceeded the US REITs industry which returned 34.7% over the past year.
Return vs Market: MGP exceeded the US Market which returned 35.3% over the past year.
Stable Share Price: MGP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: MGP's weekly volatility (4%) has been stable over the past year.
About the Company
MGM Growth Properties LLC (NYSE:MGP) is one of the leading publicly traded real estate investment trusts engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts, whose diverse amenities include casino gaming, hotel, convention, dining, entertainment and retail offerings. MGP, together with its joint venture, currently owns a portfolio of properties, consisting of 12 premier destination resorts in Las Vegas and elsewhere across the United States, MGM Northfield Park in Northfield, OH, Empire Resort Casino in Yonkers, NY, as well as a retail and entertainment district, The Park in Las Vegas. As of December 31, 2019, our destination resorts, the Park, Empire Resort Casino, and MGM Northfield Park collectively comprised approximately 27,400 hotel rooms, 1.4 million casino square footage, and 2.7 million convention square footage.
MGM Growth Properties Fundamentals Summary
|MGP fundamental statistics|
Is MGP overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|MGP income statement (TTM)|
|Cost of Revenue||US$24.05m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||0.71|
|Net Profit Margin||21.58%|
How did MGP perform over the long term?See historical performance and comparison
5.2%Current Dividend Yield
Does MGP pay a reliable dividends?See MGP dividend history and benchmarks
|MGM Growth Properties dividend dates|
|Ex Dividend Date||Sep 29 2021|
|Dividend Pay Date||Oct 15 2021|
|Days until Ex dividend||1 day|
|Days until Dividend pay date||17 days|
Does MGP pay a reliable dividends?See MGP dividend history and benchmarks
Is MGM Growth Properties undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MGP ($40.8) is trading below our estimate of fair value ($61.89)
Significantly Below Fair Value: MGP is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MGP is poor value based on its PE Ratio (57.7x) compared to the US REITs industry average (50.1x).
PE vs Market: MGP is poor value based on its PE Ratio (57.7x) compared to the US market (17.9x).
Price to Earnings Growth Ratio
PEG Ratio: MGP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: MGP is overvalued based on its PB Ratio (3.6x) compared to the US REITs industry average (2x).
How is MGM Growth Properties forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MGP's earnings are forecast to decline over the next 3 years (-5.7% per year).
Earnings vs Market: MGP's earnings are forecast to decline over the next 3 years (-5.7% per year).
High Growth Earnings: MGP's earnings are forecast to decline over the next 3 years.
Revenue vs Market: MGP's revenue (1.1% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: MGP's revenue (1.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MGP's Return on Equity is forecast to be low in 3 years time (9.5%).
How has MGM Growth Properties performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MGP has high quality earnings.
Growing Profit Margin: MGP's current net profit margins (21.6%) are higher than last year (4.3%).
Past Earnings Growth Analysis
Earnings Trend: MGP's earnings have grown significantly by 35.6% per year over the past 5 years.
Accelerating Growth: MGP's earnings growth over the past year (392.6%) exceeds its 5-year average (35.6% per year).
Earnings vs Industry: MGP earnings growth over the past year (392.6%) exceeded the REITs industry 3.9%.
Return on Equity
High ROE: MGP's Return on Equity (7.3%) is considered low.
How is MGM Growth Properties's financial position?
Financial Position Analysis
Short Term Liabilities: MGP's short term assets ($322.4M) exceed its short term liabilities ($204.8M).
Long Term Liabilities: MGP's short term assets ($322.4M) do not cover its long term liabilities ($4.8B).
Debt to Equity History and Analysis
Debt Level: MGP's debt to equity ratio (82.3%) is considered high.
Reducing Debt: MGP's debt to equity ratio has increased from 63.1% to 82.3% over the past 5 years.
Debt Coverage: MGP's debt is not well covered by operating cash flow (16.1%).
Interest Coverage: MGP's interest payments on its debt are not well covered by EBIT (2.8x coverage).
What is MGM Growth Properties's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: MGP's dividend (5.1%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: MGP's dividend (5.1%) is in the top 25% of dividend payers in the US market (3.6%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, MGP has been paying a dividend for less than 10 years.
Growing Dividend: MGP's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (86.3%), MGP's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MGP's dividends in 3 years are forecast to be covered by earnings (86.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
James Stewart (55 yo)
Mr. James C. Stewart is Chief Executive Officer of MGM Growth Properties LLC since April 2016. Mr. Stewart serves as Chief Executive Officer of MGP Finance Co-Issuer, Inc. and MGM Growth Properties Operati...
CEO Compensation Analysis
Compensation vs Market: James's total compensation ($USD4.17M) is below average for companies of similar size in the US market ($USD11.36M).
Compensation vs Earnings: James's compensation has been consistent with company performance over the past year.
Experienced Board: MGP's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
MGM Growth Properties LLC's employee growth, exchange listings and data sources
- Name: MGM Growth Properties LLC
- Ticker: MGP
- Exchange: NYSE
- Founded: 2015
- Industry: Specialized REITs
- Sector: Real Estate
- Implied Market Cap: US$10.937b
- Market Cap: US$6.391b
- Shares outstanding: 268.05m
- Website: https://www.mgmgrowthproperties.com
- MGM Growth Properties LLC
- 1980 Festival Plaza Drive
- Suite 750
- Las Vegas
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/27 22:14|
|End of Day Share Price||2021/09/27 00:00|
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.