MGM China Holdings Limited
MGM China Holdings Limited Fundamental Analysis
MGM China Holdings Limited (MCHVY) shows moderate financial fundamentals with a PE ratio of 8.39, profit margin of 18.91%, and ROE of 1.94%. The company generates $26.8B in annual revenue with strong year-over-year growth of 27.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze MCHVY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMCHVY demonstrates superior asset utilization.
Valuation Score
ExcellentMCHVY trades at attractive valuation levels.
Growth Score
ExcellentMCHVY delivers strong and consistent growth momentum.
Financial Health Score
WeakMCHVY carries high financial risk with limited liquidity.
Profitability Score
ExcellentMCHVY achieves industry-leading margins.
Key Financial Metrics
Is MCHVY Expensive or Cheap?
P/E Ratio
MCHVY trades at 8.39 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MCHVY's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values MGM China Holdings Limited at 13.10 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 3.12 times EBITDA. This is generally considered low.
How Well Does MCHVY Make Money?
Net Profit Margin
For every $100 in sales, MGM China Holdings Limited keeps $18.91 as profit after all expenses.
Operating Margin
Core operations generate 25.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.94 in profit for every $100 of shareholder equity.
ROA
MGM China Holdings Limited generates $17.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MGM China Holdings Limited generates strong operating cash flow of $8.46B, reflecting robust business health.
Free Cash Flow
MGM China Holdings Limited generates strong free cash flow of $6.70B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $21.16 in free cash annually.
FCF Yield
MCHVY converts 15.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
13.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.90
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.54
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.94
vs 25 benchmark
ROA
Return on assets percentage
0.17
vs 25 benchmark
ROCE
Return on capital employed
0.37
vs 25 benchmark
How MCHVY Stacks Against Its Sector Peers
| Metric | MCHVY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.39 | 23.78 | Better (Cheaper) |
| ROE | 194.45% | 1098.00% | Weak |
| Net Margin | 18.91% | -626.00% (disorted) | Strong |
| Debt/Equity | 5.90 | 0.86 | Weak (High Leverage) |
| Current Ratio | 0.54 | 2.64 | Weak Liquidity |
| ROA | 17.08% | -8081.00% (disorted) | Strong |
MCHVY outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MGM China Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
37.83%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
138.30%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
54.96%
Industry Style: Cyclical, Growth, Discretionary
High Growth