MGM Resorts International
Exchange: NYSESector: Consumer CyclicalIndustry: Resorts & Casinos
MGM Resorts International is an S&P 500® global gaming and entertainment company with national and international destinations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 31 unique hotel and gaming destinations globally, including some of the most recognizable resort brands in the industry. The Company's 50/50 venture, BetMGM, LLC, offers sports betting and online gaming in North America through market-leading brands, including BetMGM and partypoker, and the Company's subsidiary, LV Lion Holding Limited, offers sports betting and online gaming through market-leading brands in several jurisdictions throughout Europe and Brazil. The Company is currently pursuing targeted expansion in Asia through an integrated resort development in Japan. Through its Focused on What Matters philosophy, MGM Resorts commits to creating a more sustainable future, while striving to make a bigger difference in the lives of its employees, guests and in the communities where it operates. The global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine's World's Most Admired Companies®.
Current Price
$36.51
+1.36%GoodMoat Value
$47.97
31.4% undervaluedProfile
Valuation (TTM)
Market Cap$9.34B
P/E51.20
EV$39.31B
P/B3.84
Shares Out255.83M
P/Sales0.53
Revenue$17.72B
EV/EBITDA20.31
MGM Resorts International (MGM) Stock Analysis
GoodMoat Analysis
MGM Resorts International is a major casino and resort operator with a portfolio of iconic properties, but it shows mixed signals for a value investor. While its high free cash flow yield is attractive, its low moat score and high valuation multiples present significant hurdles for a traditional value framework.
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MGM Resorts International operates a global portfolio of integrated resorts and casinos, including flagship properties in Las Vegas and Macau. Applying the GoodMoat framework, the company's competitive advantages are limited. It would likely score low on the Moat Identification checklist (Section 1), potentially meeting only a few criteria such as brand recognition and regulatory barriers in its key markets, but falling short of the 5+ score threshold that indicates a durable moat. Its financial quality indicators are mixed, with a low profit margin of 1.2% and a high debt-to-equity ratio of 12.9, though the 14.3% free cash flow yield is a notable positive. The current P/E of 49.8 is high relative to its 6.0% revenue growth, and the GoodMoat target price of $46.84 suggests a potential margin of safety of approximately 25% from the current $37.49 price. According to the Decision Framework (Section 6), the low moat score would likely cause the analysis to stop at Step 1 (The Moat & Quality Gate), as the business lacks the durable competitive advantage required to proceed. While the valuation appears favourable based on the target, the fundamental business profile does not meet the initial quality gates of the framework, making it an unfavourable candidate for further investigation from a strict value investing perspective.
Market Cap$9.34B
Current Price$36.51
P/E Ratio51.20
Forward P/E—
PEG Ratio-8.87
EPS$0.76
Book Value$9.50
P/B Ratio3.84
MGM Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 5.3% FCF growth (CAGR)
Cash vs Debt
Net Debt: 29.2B
Revenue
12.9B
FY19
5.2B
FY20
9.7B
FY21
13.1B
FY22
16.2B
FY23
17.2B
FY24
17.5B
FY25
Net Income
2.0B
FY19
—
FY20
1.3B
FY21
1.5B
FY22
1.1B
FY23
747M
FY24
206M
FY25
MGM 52-Week Range
$30.72
$40.55
50-Day MA: $37.56200-Day MA: $35.61
Did you know?
Free cash flow has been growing at 5.3% annually.
MGM Resorts International (MGM) Financial Summary
MGM Resorts International (MGM) is a Consumer Cyclical company in the Resorts & Casinos industry, listed on NYSE. The stock currently trades at $36.51 with a market capitalization of $9.34B.
Key valuation metrics include a P/E ratio of 51.20, price-to-book ratio of 3.84, and EPS of $0.76. The company reports a profit margin of 1.0% and return on equity of 7.5%.
MGM Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $9.34B |
| P/E Ratio | 51.20 |
| EPS | $0.76 |
| P/B Ratio | 3.84 |
| P/S Ratio | 0.53 |
| EV/EBITDA | 20.31 |
| Profit Margin | 1.0% |
| Return on Equity | 7.5% |
| Debt/Equity | 12.87 |
MGM Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $12.90B | $2.05B |
| FY20 | $5.16B | $-1.03B |
| FY21 | $9.68B | $1.25B |
| FY22 | $13.13B | $1.47B |
| FY23 | $16.16B | $1.14B |
| FY24 | $17.24B | $746.56M |
| FY25 | $17.54B | $205.86M |
MGM Resorts International (MGM) Valuation
Based on GoodMoat's DCF model, MGM Resorts International has a fair value estimate of $47.97. At the current price of $36.51, the stock appears 23.9% undervalued relative to our intrinsic value estimate.
MGM Quality Indicators
MGM Resorts International maintains a profit margin of 1.0% and an operating margin of 5.3%. Return on equity stands at 7.5%. The current ratio is 1.23. Debt-to-equity ratio is 12.87.
About MGM Resorts International
MGM Resorts International is an S&P 500® global gaming and entertainment company with national and international destinations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 31 unique hotel and gaming destinations globally, including some of the most recognizable resort brands in the industry. The Company's 50/50 venture, BetMGM, LLC, offers sports betting and online gaming in North America through market-leading brands, including BetMGM and partypoker, and the Company's subsidiary, LV Lion Holding Limited, offers sports betting and online gaming through market-leading brands in several jurisdictions throughout Europe and Brazil. The Company is currently pursuing targeted expansion in Asia through an integrated resort development in Japan. Through its Focused on What Matters philosophy, MGM Resorts commits to creating a more sustainable future, while striving to make a bigger difference in the lives of its employees, guests and in the communities where it operates. The global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine's World's Most Admired Companies®.
MGM Free Cash Flow
MGM Resorts International generated $1.47B in trailing twelve-month free cash flow, representing an FCF yield of 15.71%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
MGM Shares Outstanding
MGM Resorts International has 0.26 billion shares outstanding at a share price of $36.51, giving it a market capitalization of $9.34B.
MGM Recent Insider Trades
Recent insider transactions at MGM Resorts International include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Meister Keith A. (Director) | SELL | 37,500 | $1.29M |