MGM Resorts International
MGM Resorts International Fundamental Analysis
MGM Resorts International (MGM) shows weak financial fundamentals with a PE ratio of 43.95, profit margin of 1.18%, and ROE of 7.55%. The company generates $18.1B in annual revenue with weak year-over-year growth of 1.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 25.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MGM's fundamental strength across five key dimensions:
Efficiency Score
WeakMGM struggles to generate sufficient returns from assets.
Valuation Score
ModerateMGM shows balanced valuation metrics.
Growth Score
WeakMGM faces weak or negative growth trends.
Financial Health Score
ModerateMGM shows balanced financial health with some risks.
Profitability Score
WeakMGM struggles to sustain strong margins.
Key Financial Metrics
Is MGM Expensive or Cheap?
P/E Ratio
MGM trades at 43.95 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MGM's PEG of 0.13 indicates potential undervaluation.
Price to Book
The market values MGM Resorts International at 3.73 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -26.04 times EBITDA. This is generally considered low.
How Well Does MGM Make Money?
Net Profit Margin
For every $100 in sales, MGM Resorts International keeps $1.18 as profit after all expenses.
Operating Margin
Core operations generate 5.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.55 in profit for every $100 of shareholder equity.
ROA
MGM Resorts International generates $0.50 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MGM Resorts International produces operating cash flow of $2.80B, showing steady but balanced cash generation.
Free Cash Flow
MGM Resorts International produces free cash flow of $1.69B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $6.18 in free cash annually.
FCF Yield
MGM converts 17.54% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
43.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
23.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How MGM Stacks Against Its Sector Peers
| Metric | MGM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 43.95 | 24.85 | Worse (Expensive) |
| ROE | 7.55% | 1165.00% | Weak |
| Net Margin | 1.18% | 749.00% | Weak |
| Debt/Equity | 23.11 | 0.76 | Weak (High Leverage) |
| Current Ratio | 1.23 | 9.23 | Neutral |
| ROA | 0.50% | 1271.00% | Weak |
MGM outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MGM Resorts International's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
540.79%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
135.81%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
100.00%
Industry Style: Cyclical, Growth, Discretionary
High Growth