Mgm Resorts International

Consumer Discretionary
Hotels/Resorts
www.mgmresorts.com

Earnings Score
Moat Score
Safety Score

Market Cap $12.09B
PE 14
Debt $6.33B
Cash $2.50B
EV $15.92B
FCF $1.48B

Earnings

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Sales & Net Margins

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Earnings	$879.13M
EBIT	$1.67B
ROE	23%
ROA	4%
FCF	$1.48B
Equity	$3.81B
Growth Stability	-89%
PE	13.75
PEG	0.66
PB	3.17
P/FCF	8.14
P/S	0.71
Price/Cash	0.21
Debt/Equity	1.66
Debt/FCF	4.26
Net Margins	5%
Op. Margins	10%
Earnings CAGR	-1%
Sales Growth YoY	10%
Sales Growth QoQ	-1%
Sales CAGR	4%
FCF CAGR	9%
Equity CAGR	-6%
Earnings Stability	0
Earnings Growth YoY	-7%
Earnings Growth QoQ	-14%

Earnings CAGR 5Y	21%
Sales CAGR 5Y	17%
FCF CAGR 5Y	19%
Equity CAGR 5Y	-25%
Earnings CAGR 3Y	28%
Sales CAGR 3Y	28%
FCF CAGR 3Y	48%
Equity CAGR 3Y	-34%
Market Cap	$12.09B
Revenue	$17.06B
Assets	$41.82B
Total Debt	$6.33B
Cash	$2.50B
Shares Outstanding	304.96M
EV	15.92B
Earnings Score	6%
Moat Score	73%
Safety Score	52%
Final Score	44%
Working Capital	1.41B
Current Ratio	1.47
Shares Growth 3y	-17%
Equity Growth QoQ	-5%
Equity Growth YoY	-21%

Assets & ROA

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Stockholders Equity & ROE

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MGM Resorts is the largest resort operator on the Las Vegas Strip with 35,000 guest rooms and suites, representing about one fourth of all units in the market. The company's Vegas properties include MGM Grand, Mandalay Bay, Mirage, Luxor, New York-New York, and CityCenter. The Strip contributed approximately 49% of total EBITDAR in the prepandemic year of 2019. MGM also owns U.S. regional assets, which represented 29% of 2019 EBITDAR. We estimate MGM's U.S. sports and iGaming operations are currently a mid-single-digit percentage of its total revenue. The company also operates the 56%-owned MGM Macau casinos with a new property that opened on the Cotai Strip in early 2018. Further, we estimate MGM will open a resort in Japan in 2027.

SEC Filings

Direct access to Mgm Resorts International (MGM) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Mgm Resorts International compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Mgm Resorts Internationalcompared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -1%

Stability 0%

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Discounted Cash Flow

Fully customizable DCF calculator online for Mgm Resorts International.

Years

Calculation mode

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.5B	$1.6B	$1.8B	$1.9B	$2.1B	$2.3B	$2.5B	$2.7B	$3B	$3.2B	$3.5B	$35B
DCF		$1.5B	$1.5B	$1.4B	$1.4B	$1.4B	$1.4B	$1.4B	$1.4B	$1.4B	$1.4B	$14B
Value	$28B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-1%	-11%	12%	18%	4%	16%	-26%	12%	2%	7%	5%
ROA	-	-1%	7%	6%	5%	12%	-2%	6%	3%	4%	4%
ROE	-	-13%	11%	17%	4%	16%	-12%	11%	4%	26%	23%

Bad Net Margins (4.64%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-28.49	-18.05	38.49	64.9	10.52	-7.08	15.7	10.13	3.62	4.26
Debt over Equity	2.02	1.69	1.32	1.13	1.46	0.89	1.12	1.26	1.93	1.47	1.66
Growth Stability	-	-	-	-	67%	100%	-89%	100%	33%	100%	-89%

Bad Debt/FCF ratio (4.26)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Bad Debt/Equity ratio (1.66)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (-89%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-9%	3%	14%	9%	10%	-60%	88%	36%	23%	17%
Earnings YoY growth	-	594%	-206%	76%	-77%	359%	-164%	-189%	-82%	452%	21%
Equity YoY growth	-	2%	28%	17%	-10%	21%	-12%	-2%	-53%	-17%	-25%
FCF YoY growth	-	-279%	58%	-147%	-31%	355%	-265%	-150%	12%	77%	19%