MGM GoodMoat Verdict
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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) Quality Analysis
GoodMoat Analysis
MGM Resorts International presents a mixed quality profile for a value investor. While it generates substantial free cash flow, its core profitability metrics are weak and its capital structure is highly leveraged, which is a significant concern. Its competitive position is anchored in scale and regulatory barriers, but it lacks the high-return, asset-light profile typical of a high-quality business.
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Assessing MGM Resorts through the GoodMoat quality lens reveals significant weaknesses. The company's profitability is low, with an operating margin of 5.3% and a profit margin of just 1.2%, far below the high-margin thresholds for a quality business. Its Return on Equity of 8.5% also falls short of the framework's high-return benchmark of 15-20%. The balance sheet is a major concern, with a Debt/Equity ratio of 12.9, indicating extreme leverage and failing the framework's test for a substantial net cash position. A positive signal is the strong Free Cash Flow Yield of 14.3%, which exceeds the 10-15% target, suggesting the asset-heavy model can generate cash. However, the lack of a gross margin figure and the high debt load overshadow this strength. From a moat perspective, MGM likely scores on criteria like Scale Privilege (large physical infrastructure) and Regulatory Barriers (scarce gaming licenses), but it misses on many others like high Switching Costs, Proprietary Data, and an Asset-Light Model. Compared to an ideal high-quality company, MGM's profile is unfavourable due to its low returns, high financial risk, and cyclical, capital-intensive nature. Its quality is defined by cash generation capability rather than pristine financial strength.
MGM Profitability
Profitability trend analysis coming soon
MGM Growth
Growth trend analysis coming soon
MGM Financial Health
Financial health indicators coming soon
MGM Quality & Fundamental Analysis
MGM Resorts International (MGM) is a Consumer Cyclical company in the Resorts & Casinos industry, listed on NYSE. This quality analysis page evaluates MGM Resorts International's financial health using the Piotroski F-Score methodology, profitability ratios, growth trajectory, and balance sheet strength.
MGM Resorts International has a Piotroski F-Score of N/A out of 9, measuring profitability, leverage, and operating efficiency. The company operates with a profit margin of 1.03% and a return on equity (ROE) of 7.51%. Return on assets (ROA) stands at 0.44%.
The debt-to-equity ratio is 12.87, with a current ratio of 1.23. Operating margin is 5.31%.
GoodMoat's quality analysis uses AI-powered insights to evaluate whether MGM Resorts International is a fundamentally sound investment. The GoodMoat Verdict synthesizes profitability, growth, and financial health scores into a clear investment quality rating. Use these metrics alongside valuation tools like the DCF calculator and fair value models to make informed investment decisions.