MGM Growth Properties
Market Cap
US$11.2b
Last Updated
2020/02/17 01:20 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.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.3%
MGP
3.0%
US REITs
1.5%
US Market
1 Year Return
7.8%
MGP
16.2%
US REITs
20.1%
US Market
Return vs Industry: MGP underperformed the US REITs industry which returned 16.2% over the past year.
Return vs Market: MGP underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| MGP | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.3% | 3.0% | 1.5% |
| 30 Day | 4.4% | 4.5% | 1.4% |
| 90 Day | 3.9% | 6.1% | 8.7% |
| 1 Year | 14.5%7.8% | 20.9%16.2% | 22.7%20.1% |
| 3 Year | 57.8%32.0% | 40.7%23.1% | 50.1%40.5% |
| 5 Year | n/a | 57.9%25.3% | 73.1%54.1% |
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 week ago | Simply Wall St
Is Now The Time To Put MGM Growth Properties (NYSE:MGP) On Your Watchlist?1 month ago | Simply Wall St
Need To Know: MGM Growth Properties LLC (NYSE:MGP) Insiders Have Been Buying Shares1 month ago | Simply Wall St
How Much is MGM Growth Properties LLC's (NYSE:MGP) CEO Getting Paid?Valuation
Is MGM Growth Properties undervalued compared to its fair value and its price relative to the market?
19.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MGP ($33.75) is trading below our estimate of fair value ($41.94)
Significantly Below Fair Value: MGP is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: MGP is poor value based on its PE Ratio (42.4x) compared to the REITs industry average (37.3x).
PE vs Market: MGP is poor value based on its PE Ratio (42.4x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: MGP is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: MGP is good value based on its PB Ratio (1.5x) compared to the US REITs industry average (2.1x).
Next Steps
Future Growth
How is MGM Growth Properties forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
24.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MGP's forecast earnings growth (24.8% per year) is above the savings rate (1.7%).
Earnings vs Market: MGP's earnings (24.8% per year) are forecast to grow faster than the US market (14.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MGP's revenue (3.2% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: MGP's revenue (3.2% 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 (5.8%).
Next Steps
Past Performance
How has MGM Growth Properties performed over the past 5 years?
64.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MGP has high quality earnings.
Growing Profit Margin: MGP's current net profit margins (8.4%) are higher than last year (6.7%).
Past Earnings Growth Analysis
Earnings Trend: MGP has become profitable over the past 5 years, growing earnings by 64.3% per year.
Accelerating Growth: MGP's earnings growth over the past year (10.4%) is below its 5-year average (64.3% per year).
Earnings vs Industry: MGP earnings growth over the past year (10.4%) exceeded the REITs industry 6.9%.
Return on Equity
High ROE: MGP's Return on Equity (3.8%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is MGM Growth Properties's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: MGP has a high level of physical assets or inventory.
Debt Coverage by Assets: MGP's debt is not covered by short term assets (assets are 0.1x debt).
Financial Institutions Analysis
Asset Level: MGP's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if MGP has a sufficient allowance for bad loans.
Low Risk Liabilities: MGP reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if MGP has an acceptable proportion of non-loan assets held.
Low Risk Deposits: MGP has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if MGP has an appropriate level of bad loans.
Next Steps
Dividend
What is MGM Growth Properties's current dividend yield, its reliability and sustainability?
5.57%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: MGP's dividend (5.57%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: MGP's dividend (5.57%) is in the top 25% of dividend payers in the US market (3.69%)
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 (88%), MGP's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MGP's dividends in 3 years are forecast to be thoroughly covered by earnings (0.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.9yrs
Average board tenure
CEO
James Stewart (53yo)
3.8yrs
Tenure
US$3,541,157
Compensation
Mr. James C. Stewart is Chief Executive Officer of MGM Growth Properties LLC since April 2016. Mr. Stewart serves as Chief Executive Officer of MGP Finance Co-Issuer, Inc. and MGM Growth Properties Operati ...
CEO Compensation Analysis
Compensation vs Market: James's total compensation ($USD3.54M) is below average for companies of similar size in the US market ($USD10.81M).
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 | 3.9yrs | no data | 0.23% $25.8m | |
| Lead Independent Director | 0yrs | US$261.88k | 0.0046% $513.5k | |
| Director | 3.9yrs | no data | 0.034% $3.9m | |
| Director | 3.9yrs | US$202.50k | no data | |
| Independent Director | 3.9yrs | US$212.50k | 0.012% $1.3m | |
| Independent Director | 3.1yrs | US$212.50k | 0.0077% $867.1k | |
| Director | 3.9yrs | no data | 0.024% $2.7m |
3.9yrs
Average Tenure
58yo
Average Age
Experienced Board: MGP's board of directors are considered experienced (3.9 years average tenure).
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 been diluted in the past year, with total shares outstanding growing by 31.1%.
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$11.188b
- Market Cap: US$3.841b
- Shares outstanding: 331.51m
- 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 leisure resorts, whose diverse amenities include casino gaming, hotel, convention, dining, entertainment and retail offerings. MGP currently owns a portfolio of properties, consisting of 11 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, 2018, our destination resorts, the Park, and MGM Northfield Park collectively comprised approximately 27,400 hotel rooms, 2.7 million convention square footage, 150 retail outlets, 300 food and beverage outlets and 20 entertainment venues. As a growth-oriented public real estate entity, MGP expects its relationship with MGM Resorts and other entertainment providers to attractively position MGP for the acquisition of additional properties across the entertainment, hospitality and leisure industries.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 01:20 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| 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.