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MGP

MGM Growth PropertiesNYSE:MGP Stock Report

Market Cap

US$10.9b

7D

0.6%

1Y

39.7%

Updated

27 Sep, 2021

Data

Company Financials +
MGP fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance5/6
Financial Health1/6
Dividends4/6

MGP Overview

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

Summary of all time highs, changes and price drops for MGM Growth Properties
Historical stock prices
Current Share PriceUS$40.16
52 Week HighUS$25.84
52 Week LowUS$43.19
Beta0.84
1 Month Change-1.13%
3 Month Change10.79%
1 Year Change39.74%
3 Year Change36.97%
5 Year Change54.11%
Change since IPO82.46%

Recent News & Updates

Sep 08

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.

Aug 26

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.

Shareholder Returns

MGPUS REITsUS Market
7D0.6%-0.9%0.1%
1Y39.7%34.7%35.3%

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.

Price Volatility

Is MGP's price volatile compared to industry and market?
MGP volatility
MGP Beta0.84
Industry Beta0.83
Market Beta1

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

FoundedEmployeesCEOWebsite
2015n/aJames Stewarthttps://www.mgmgrowthproperties.com

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

How do MGM Growth Properties's earnings and revenue compare to its market cap?
MGP fundamental statistics
Market CapUS$10.94b
Earnings (TTM)US$189.58m
Revenue (TTM)US$878.37m

56.8x

P/E Ratio

12.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MGP income statement (TTM)
RevenueUS$878.37m
Cost of RevenueUS$24.05m
Gross ProfitUS$854.32m
ExpensesUS$664.74m
EarningsUS$189.58m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.71
Gross Margin97.26%
Net Profit Margin21.58%
Debt/Equity Ratio82.3%

How did MGP perform over the long term?

See historical performance and comparison

Dividends

5.2%

Current Dividend Yield

86%

Payout Ratio

Does MGP pay a reliable dividends?

See MGP dividend history and benchmarks
When do you need to buy MGP by to receive an upcoming dividend?
MGM Growth Properties dividend dates
Ex Dividend DateSep 29 2021
Dividend Pay DateOct 15 2021
Days until Ex dividend1 day
Days until Dividend pay date17 days

Does MGP pay a reliable dividends?

See MGP dividend history and benchmarks

Valuation

Is MGM Growth Properties undervalued compared to its fair value and its price relative to the market?

35.1%

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).


Future Growth

How is MGM Growth Properties forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-5.7%

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%).


Past Performance

How has MGM Growth Properties performed over the past 5 years?

35.6%

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.


Financial Health

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).


Balance Sheet


Dividend

What is MGM Growth Properties's current dividend yield, its reliability and sustainability?

5.18%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 27 2021Ex Dividend DateSep 29 2021Dividend Pay DateOct 15 202116 days from Ex DividendBuy in the next 1 day to receive the upcoming dividend

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).


Next Steps

Management

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

1.5yrs

Average board tenure


CEO

James Stewart (55 yo)

5.42yrs

Tenure

US$4,169,329

Compensation

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.


Board Members

Experienced Board: MGP's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

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

Ownership Breakdown

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


Top Shareholders

Company Information

MGM Growth Properties LLC's employee growth, exchange listings and data sources


Key Information

  • 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

Location

  • MGM Growth Properties LLC
  • 1980 Festival Plaza Drive
  • Suite 750
  • Las Vegas
  • Nevada
  • 89135
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 22:14
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.