One-glance verdict
Within fair range
$-2.99 our estimate vs market $27.99
Wall Street consensus: $41.68 (-1,493.7% lower than our fair-value estimate)
1036% below our estimate
Fundamentals snapshot
MGM Resorts International
MGM · NYQ · Consumer Cyclical · Resorts & Casinos
Current price
$27.99
52-week range
$27.69 - $51.59
Market cap
$7.16B
Balance sheet
Distressed
3.19x Stretched
Net debt $27.40B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 1.3% last year.
- Reward Returns 18.9% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 8/10 years.
- Risk Net debt grew 4.4% over 3 years.
What this company does
MGM Resorts International
MGM Resorts International is a company that runs big resorts with casinos, hotels, and entertainment, making most of its money from people gambling and staying at these places. They also have online gambling operations, which is a growing part of their business. This matters because it shows how they make money and where they are focusing their efforts for future growth.
How the company got here
MGM Resorts International has a history stretching back to 1969, when Kirk Kerkorian opened the International Hotel in Las Vegas. The company evolved through various names and acquisitions, including becoming MGM Grand, Inc. in 1987 and later MGM Mirage in 2000 after acquiring Mirage Resorts. In 2010, it officially became MGM Resorts International to reflect its broader global reach and focus beyond just gaming. A significant turning point was the development of the massive CityCenter project in the mid-2000s, which aimed to expand the company's real estate and leisure offerings, though it faced challenges during the 2008 financial crisis. Today, MGM Resorts is a major player in the global hospitality and entertainment industry.
What it actually does
MGM Resorts International is a company that owns and operates large resort properties. Think of them as giant entertainment complexes. These resorts offer a wide range of services, including places to stay (hotels), opportunities to gamble (casinos), places to eat and drink (restaurants and bars), shows and events (entertainment), and shops (retail). They aim to provide a complete experience for their guests, whether they are visiting for leisure, business, or a special event.
Las Vegas Strip Resorts
This is MGM's most well-known business segment, encompassing iconic properties right on the Las Vegas Strip. These resorts offer a full suite of amenities, including casinos with slot machines and table games, luxury hotels, numerous dining options, and world-class entertainment venues. This segment is a significant revenue generator for the company, representing a substantial portion of its overall business.
Regional Operations
This segment includes MGM's casino resorts located outside of the Las Vegas Strip, spread across various states in the U.S. like Michigan, Mississippi, New Jersey, Maryland, and Massachusetts. These properties offer similar services to their Las Vegas counterparts, providing gaming, hotel accommodations, dining, and entertainment to local and regional customers. This diversified approach helps MGM maintain a strong presence across different markets.
MGM China
MGM China operates resort properties in Macau, a major gambling hub in Asia. These resorts feature casinos, hotels, and entertainment offerings tailored to the international market, particularly catering to visitors from mainland China and other parts of Asia. This segment is crucial for MGM's global strategy, tapping into the lucrative Asian gaming market.
MGM Digital
This segment represents MGM's online and digital gaming ventures, most notably through its BetMGM platform. It offers online sports betting and iGaming (internet gambling) services to customers in various regions. While still growing, this digital arm is a key focus for the company as it expands its reach beyond physical resorts and taps into the rapidly growing online entertainment sector.
What management is betting on now
MGM Resorts is focusing on several key strategies to drive future growth. They are investing in technology and AI to enhance guest experiences and operational efficiency. Expansion into new international markets, like Japan with the MGM Osaka development, is a major priority. Additionally, they are continuing to grow their digital gaming presence, particularly with BetMGM, and are leveraging their strong brand and loyalty programs to increase spending per customer across all their offerings. The company is also committed to sustainability and community engagement as part of its long-term vision.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$331.18M
FY2024 Q4
$267.54M
FY2025 Q1
$319.04M
FY2025 Q2
$377.43M
FY2025 Q3
$405.44M
FY2025 Q4
$358.54M
FY2026 Q1
$413.12M
FY2026 Q2
$317.44M
Revenue
$4.45B
Net income
$292.43M
Diluted EPS
1.11
Operating cash flow
$558.82M
Free cash flow
$317.44M
Fetching…
Sources
Revenue
$4.45B
Net income
$125.14M
Diluted EPS
0.48
Operating cash flow
$567.79M
Free cash flow
$413.12M
Fetching…
Sources
Revenue
$4.61B
Net income
$293.61M
Diluted EPS
1.12
Operating cash flow
$655.00M
Free cash flow
$358.54M
Fetching…
Sources
Revenue
$4.25B
Net income
$-285.25M
Diluted EPS
-1.05
Operating cash flow
$681.43M
Free cash flow
$405.44M
Fetching…
Sources
Revenue
$4.40B
Net income
$48.95M
Diluted EPS
0.18
Operating cash flow
$645.87M
Free cash flow
$377.43M
Fetching…
Sources
Revenue
$4.28B
Net income
$148.55M
Diluted EPS
0.51
Operating cash flow
$547.08M
Free cash flow
$319.04M
Fetching…
Sources
Revenue
$4.35B
Net income
$157.43M
Diluted EPS
0.52
Operating cash flow
$671.55M
Free cash flow
$267.54M
Fetching…
Sources
Revenue
$4.18B
Net income
$184.58M
Diluted EPS
0.61
Operating cash flow
$667.43M
Free cash flow
$331.18M
Fetching…
Sources
Is it cheap or expensive?
Fair value $-2.99 vs current price $27.99
Wall Street consensus is the average analyst price target: $41.68 (-1,493.7% lower than our fair-value estimate).
Our most-likely fair value is $-2.99 a share — about 110.7% away from today's price of $27.99, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $27.4B. Interest coverage 3.2x.
Net debt
$27.40B
Interest coverage
3.19x
MGM Resorts International's profit covers its interest bill about 3.2 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
MGM
BASELINE
MGM Resorts International
Total debt $30.16B Interest coverage 3.19x This is the baseline the peer rows are being compared against.
Total debt $15.46B Interest coverage 4.14x +30% vs MGM Carries about 1.3x more debt cushion than MGM.
Total debt $12.34B Interest coverage 1.93x -40% vs MGM Carries about 1.7x less debt cushion than MGM.
Total debt $25.92B Interest coverage 0.89x -72% vs MGM Carries about 3.6x less debt cushion than MGM.
Total debt $3.26B Interest coverage 5.56x +74% vs MGM Carries about 1.7x more debt cushion than MGM.
Total debt $11.06B Interest coverage 0.67x -79% vs MGM Carries about 4.8x less debt cushion than MGM.
What you should know
The case for and against MGM
3 Rewards
1 Risk
Rewards
-
Revenue grew 1.3% last year.
-
Returns 18.9% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
-
Net debt grew 4.4% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
17.28x
Forward P/E
15.85x
P/B
2.80x
P/S
0.40x
EV/EBITDA
15.78x
PEG ratio
0.36x
Profitability
How much profit each dollar creates
Gross margin
44.2%
Operating margin
6.8%
Net margin
2.4%
ROE
18.9%
ROA
1.8%
Health
Liquidity and balance-sheet strength
Debt / equity
8.93x
Current ratio
1.33x
Quick ratio
1.21x
Total debt
$30.16B
Total cash
$2.76B
Growth
How the business has been compounding
Revenue TTM
$17.76B
Revenue 5Y CAGR
16.0%
EPS TTM
1.62
EPS 5Y CAGR
-39.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.46B
Free CF TTM
$1.46B
FCF margin
8.2%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2022-12-08