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MGM Resorts International MGM

Morningstar Rating
$42.96 −0.32 (0.74%)
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Company Report

Price vs Fair Value

MGM is trading at a 22% discount.
Price
$42.96
Fair Value
$99.00
Uncertainty
High
1-Star Price
$73.36
5-Star Price
$98.00
Economic Moat
Mpn
Capital Allocation
Ggjblcs

Bulls Say, Bears Say

Bulls

We expect MGM to be awarded the only urban Japanese gaming concession due to its strong experience operating leading resorts in Las Vegas and its successful record of working with partners.

Bears

The majority of cash flow for MGM comes from the Las Vegas region, which has lower regulatory barriers, margins, and ROICs than Macao.

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News

Trading Information

Previous Close Price
$43.28
Day Range
$42.1943.09
52-Week Range
$34.1251.35
Bid/Ask
$42.75 / $42.95
Market Cap
$13.73 Bil
Volume/Avg
4.1 Mil / 4.7 Mil

Key Statistics

Price/Earnings (Normalized)
15.73
Price/Sales
0.95
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
16.69%

Company Profile

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, Park MGM, Luxor, New York-New York, and Bellagio. The Strip contributed approximately 74% of total EBITDAR in 2022. MGM also owns U.S. regional assets, which represented 31% of 2022 EBITDAR (MGM's Macao EBITDAR was negative in 2022). MGM's U.S. sports and iGaming operations are currently a high-single-digit percentage of its total revenue. The company also operates the 56%-owned MGM China 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 2030.
Sector
Consumer Cyclical
Industry
Resorts & Casinos
Stock Style Box
Mid Core
Total Number of Employees
63,000

Competitors

Valuation

Metric
MGM
LVS
DKNG
Price/Earnings (Normalized)
15.7327.57
Price/Book Value
3.689.3824.49
Price/Sales
0.953.785.49
Price/Cash Flow
6.0713.83
Price/Earnings
MGM
LVS
DKNG

Financial Strength

Metric
MGM
LVS
DKNG
Quick Ratio
1.281.261.05
Current Ratio
1.571.311.34
Interest Coverage
4.202.82−316.16
Quick Ratio
MGM
LVS
DKNG

Profitability

Metric
MGM
LVS
DKNG
Return on Assets (Normalized)
1.88%6.41%−11.51%
Return on Equity (Normalized)
18.62%33.98%−44.18%
Return on Invested Capital (Normalized)
3.30%9.69%−20.84%
Return on Assets
MGM
LVS
DKNG
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Resorts & Casinos Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
LVS
Las Vegas Sands CorpSrdcl$38.6 Bil
GXYYY
Galaxy Entertainment Group Ltd ADRTcqxyz$23.5 Bil
GXYEF
Galaxy Entertainment Group LtdPnsktj$23.5 Bil
SCHYF
Sands China Ltd Shs Unitary 144A/Reg SWzkdpfz$22.8 Bil
SCHYY
Sands China Ltd ADRVqwzv$22.8 Bil
WYNN
Wynn Resorts LtdFfhqml$11.3 Bil
CZR
Caesars Entertainment IncZwcm$9.3 Bil
MLCO
Melco Resorts and Entertainment Ltd ADRMndwsj$3.1 Bil
PENN
PENN Entertainment IncFgwyj$2.8 Bil

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