MGM Growth Properties
Market Cap
US$9.5b
Last Updated
2021/01/25 23:25 UTC
Data Sources
Company Financials +
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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Proven track record average dividend payer.
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
Stable Share Price: MGP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: MGP's weekly volatility has decreased from 9% to 3% over the past year.
Market Performance
7 Day Return
2.8%
MGP
1.7%
US REITs
2.6%
US Market
1 Year Return
-0.3%
MGP
-9.7%
US REITs
26.0%
US Market
Return vs Industry: MGP exceeded the US REITs industry which returned -9.7% over the past year.
Return vs Market: MGP underperformed the US Market which returned 26% over the past year.
Shareholder returns
| MGP | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.8% | 1.7% | 2.6% |
| 30 Day | -0.2% | 2.3% | 5.1% |
| 90 Day | 17.7% | 9.5% | 17.1% |
| 1 Year | 7.2%-0.3% | -5.4%-9.7% | 28.9%26.0% |
| 3 Year | 35.8%11.6% | 27.8%12.1% | 46.3%36.6% |
| 5 Year | n/a | 54.1%22.5% | 126.9%101.6% |
Long-Term 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
1 month ago | Simply Wall St
What Did MGM Growth Properties' (NYSE:MGP) CEO Take Home Last Year?2 months ago | Simply Wall St
Should You Review Recent Insider Transactions At MGM Growth Properties LLC (NYSE:MGP)?3 months ago | Simply Wall St
Declining Stock and Decent Financials: Is The Market Wrong About MGM Growth Properties LLC (NYSE:MGP)?Valuation
Is MGM Growth Properties undervalued compared to its fair value and its price relative to the market?
41.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MGP ($31.55) is trading below our estimate of fair value ($53.66)
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 (63.8x) compared to the US REITs industry average (38.2x).
PE vs Market: MGP is poor value based on its PE Ratio (63.8x) compared to the US market (21.3x).
Price to Earnings Growth Ratio
PEG Ratio: MGP is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: MGP's PB Ratio (1.6x) is in line with the US REITs industry average.
Next Steps
Future Growth
How is MGM Growth Properties forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
54.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MGP's forecast earnings growth (54.2% per year) is above the savings rate (2%).
Earnings vs Market: MGP's earnings (54.2% per year) are forecast to grow faster than the US market (21.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MGP's revenue (1.1% per year) is forecast to grow slower than the US market (10.6% 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 (8.6%).
Next Steps
Past Performance
How has MGM Growth Properties performed over the past 5 years?
33.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MGP has high quality earnings.
Growing Profit Margin: MGP's current net profit margins (6.8%) are higher than last year (5.8%).
Past Earnings Growth Analysis
Earnings Trend: MGP has become profitable over the past 5 years, growing earnings by 33.4% per year.
Accelerating Growth: MGP's earnings growth over the past year (20.3%) is below its 5-year average (33.4% per year).
Earnings vs Industry: MGP earnings growth over the past year (20.3%) exceeded the REITs industry 2.9%.
Return on Equity
High ROE: MGP's Return on Equity (2.2%) is considered low.
Next Steps
Financial Health
How is MGM Growth Properties's financial position?
Financial Position Analysis
Short Term Liabilities: MGP's short term assets ($681.7M) exceed its short term liabilities ($203.7M).
Long Term Liabilities: MGP's short term assets ($681.7M) do not cover its long term liabilities ($4.2B).
Debt to Equity History and Analysis
Debt Level: MGP's debt to equity ratio (57.4%) is considered high.
Reducing Debt: Insufficient data to determine if MGP's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: MGP's debt is not well covered by operating cash flow (19.8%).
Interest Coverage: MGP's interest payments on its debt are not well covered by EBIT (1.8x coverage).
Balance Sheet
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Dividend
What is MGM Growth Properties's current dividend yield, its reliability and sustainability?
6.18%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MGP's dividend (6.18%) is higher than the bottom 25% of dividend payers in the US market (1.38%).
High Dividend: MGP's dividend (6.18%) is in the top 25% of dividend payers in the US market (3.85%)
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 4 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (96.6%), 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 (87.1% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
0.8yrs
Average board tenure
CEO
James Stewart (54 yo)
4.75yrs
Tenure
US$4,076,602
Compensation
Mr. James C. Stewart is Chief Executive Officer of MGM Growth Properties LLC since April 2016. Mr. Stewart serves as Chief Executive Officer of MGP Finance Co-Issuer, Inc. and MGM Growth Properties Operati...
CEO Compensation Analysis
Compensation vs Market: James's total compensation ($USD4.08M) is below average for companies of similar size in the US market ($USD6.39M).
Compensation vs Earnings: James's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board | 0.83yr | no data | no data | |
| Director | 0.50yr | no data | no data | |
| Lead Independent Director | no data | US$288.75k | 0.0040% $ 378.0k | |
| Director | 4.83yrs | US$228.75k | no data | |
| Director | 4.83yrs | no data | 0.021% $ 2.0m | |
| Director | 0.83yr | no data | 0.18% $ 17.0m | |
| Director | 0.50yr | no data | 0.00076% $ 72.2k |
0.8yrs
Average Tenure
56yo
Average Age
Experienced Board: MGP's board of directors are not considered experienced ( 0.8 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 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$9.499b
- Market Cap: US$4.115b
- Shares outstanding: 303.47m
- Website: https://www.mgmgrowthproperties.com
Location
- MGM Growth Properties LLC
- 1980 Festival Plaza Drive
- Suite 750
- Las Vegas
- Nevada
- 89135
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MGP | NYSE (New York Stock Exchange) | Yes | Class A Shares | US | USD | Apr 2016 |
| 293 | DB (Deutsche Boerse AG) | Yes | Class A Shares | DE | EUR | Apr 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/25 23:25 |
| End of Day Share Price | 2021/01/25 00:00 |
| Earnings | 2020/09/30 |
| 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.