NYSE:MGP

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Average dividend payer and fair value.


Similar Companies

Share Price & News

How has MGM Growth Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.0%

NYSE:MGP

1.3%

US REITs

0.8%

US Market


1 Year Return

0.2%

NYSE:MGP

12.8%

US REITs

1.9%

US Market

MGP underperformed the REITs industry which returned 10.8% over the past year.

MGP underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

MGPIndustryMarket
7 Day-3.0%1.3%0.8%
30 Day2.0%1.8%3.4%
90 Day-6.6%1.9%2.1%
1 Year6.7%0.2%17.9%12.8%4.2%1.9%
3 Year37.1%14.8%30.5%13.5%46.7%37.2%
5 Yearn/a71.6%35.4%62.3%44.5%

Price Volatility Vs. Market

How volatile is MGM Growth Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MGM Growth Properties undervalued based on future cash flows and its price relative to the stock market?

44%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

MGM Growth Properties's share price is below the future cash flow value, and at a moderate discount (> 20%).

MGM Growth Properties's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

MGM Growth Properties is overvalued based on earnings compared to the US REITs industry average.

MGM Growth Properties is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

MGM Growth Properties is poor value based on expected growth next year.


Price Based on Value of Assets

MGM Growth Properties is good value based on assets compared to the US REITs industry average.


Next Steps

Future Growth

How is MGM Growth Properties expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

MGM Growth Properties's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

MGM Growth Properties's earnings are expected to grow by 11.8% yearly, however this is not considered high growth (20% yearly).

MGM Growth Properties's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

MGM Growth Properties's earnings growth is positive but not above the United States of America market average.

MGM Growth Properties's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

MGM Growth Properties is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

73.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

MGM Growth Properties has delivered over 20% year on year earnings growth in the past 5 years.

MGM Growth Properties's 1-year earnings growth is less than its 5-year average (30.7% vs 73.3%)

MGM Growth Properties's earnings growth has exceeded the US REITs industry average in the past year (30.7% vs 17%).


Return on Equity

MGM Growth Properties has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

MGM Growth Properties used its assets less efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

MGM Growth Properties has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is MGM Growth Properties's financial position?


Financial Position Analysis

MGM Growth Properties's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

MGM Growth Properties's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

MGM Growth Properties's level of debt (76.5%) compared to net worth is high (greater than 40%).

Unable to establish if MGM Growth Properties's debt level has increased without past 5-year debt data.

Debt is not well covered by operating cash flow (1.4%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0x debt.


Next Steps

Dividend

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

6.41%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase MGM Growth Properties before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

MGM Growth Properties's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

MGM Growth Properties's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Whilst dividend payments have been stable, MGM Growth Properties has been paying a dividend for less than 10 years.

Dividend payments have increased, but MGM Growth Properties only paid a dividend in the past 3 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (328.9x coverage).


Next Steps

Management

What is the CEO of MGM Growth Properties's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average board tenure


CEO

James Stewart (53yo)

3.4yrs

Tenure

US$3,541,157

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

James's remuneration is lower than average for companies of similar size in United States of America.

James's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

3.5yrs

Average Tenure

58yo

Average Age

The tenure for the MGM Growth Properties board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$62,27829 May 19
Robert Smith
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceUS$31.14

Ownership Breakdown


Management Team

  • James Stewart (53yo)

    Chief Executive Officer

    • Tenure: 3.4yrs
    • Compensation: US$3.54m
  • Andy Chien (43yo)

    CFO & Treasurer

    • Tenure: 3.4yrs
    • Compensation: US$1.43m
  • Andrew Hagopian

    Secretary

    • Tenure: 0yrs
  • Knicks Lau

    Controller

    • Tenure: 0yrs

Board Members

  • Jim Murren (57yo)

    Chairman of the Board

    • Tenure: 3.5yrs
  • Tom Roberts (72yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$261.88k
  • Bill Hornbuckle (61yo)

    Director

    • Tenure: 3.5yrs
  • Dan Taylor (62yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: US$202.50k
  • Mike Rietbrock (50yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: US$212.50k
  • Bob Smith (58yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$212.50k
  • John McManus (52yo)

    Director

    • Tenure: 3.5yrs

Company Information

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


Key Information

  • Name: MGM Growth Properties LLC
  • Ticker: MGP
  • Exchange: NYSE
  • Founded: 2015
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Implied Market Cap: US$8.862b
  • Market Cap: US$2.779b
  • Shares outstanding: 292.47m
  • Website: https://www.mgmgrowthproperties.com

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MGPNYSE (New York Stock Exchange)YesClass A SharesUSUSDApr 2016
293DB (Deutsche Boerse AG)YesClass A SharesDEEURApr 2016

Biography

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 leisu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 01:17
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.