Skip to Content
Morningstar

MGM Resorts International MGM

Morningstar Rating
Unlock
Stock XNYS Rating as of
$40.35 −0.49 (1.20%)
View Full Chart
As of Delayed Price Closed
Unlock Our Analysis with Morningstar Investor
Start Free Trial

Company Report

View Archive

MGM Resorts: Digital Update Targets Notable Long-Term Share Gains, Which Might Be a Tough Bet

Dan Wasiolek

Entain’s Dec. 4 update on digital gaming company BetMGM, of which no-moat MGM Resorts International owns 50%, included in-line 2023 results but optimistic goals for the long term, in our view. We don’t plan to adjust our $55 fair value estimate for MGM; we view the shares as undervalued, offering investors an opportunity to own a company with a leading physical and digital presence in U.S. gaming.

Read Full Report

Price vs Fair Value

View History
MGM is trading at a 27% discount.
Price
$40.35
Fair Value
$87.00
Uncertainty
High
1-Star Price
$29.66
5-Star Price
$83.00
Economic Moat
Qlzs
Capital Allocation
Dymsxgxxx

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.

Show More
Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if MGM is a good fit for your portfolio.
Get 7 Days Free

News

View All

Trading Information

Previous Close Price
$40.84
Day Range
$40.19–41.40
52-Week Range
$32.43–51.35
Bid/Ask
$40.01 / $40.35
Market Cap
$13.78 Bil
Volume/Avg
4.9 Mil / 5.0 Mil

Key Statistics

Price/Earnings (Normalized)
285.46
Price/Sales
0.97
Dividend Yield
< 0.01%
Dividend Yield (Forward)
0.02%
Total Yield
14.67%

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 Growth
Total Number of Employees
75,000
Website
https://www.mgmresorts.com

Competitors

Valuation

View More
Metric
MGM
WYNN
DKNG
Price/Earnings (Normalized)
 285.46101.08—
Price/Book Value
 3.47—21.62
Price/Sales
 0.971.665.18
Price/Cash Flow
 6.8611.28—
Price/Earnings
MGM
WYNN
DKNG

Financial Strength

Metric
MGM
WYNN
DKNG
Quick Ratio
 1.452.530.88
Current Ratio
 1.782.661.29
Interest Coverage
 3.280.78—
Quick Ratio
MGM
WYNN
DKNG

Profitability

Metric
MGM
WYNN
DKNG
Return on Assets (Normalized)
 −3.62%0.83%−16.13%
Return on Equity (Normalized)
 −35.08%—−56.04%
Return on Invested Capital (Normalized)
 −3.21%4.92%−27.17%
Return on Assets
MGM
WYNN
DKNG

Resorts & Casinos Industry Comparables

Screen in Investor
Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
LVS
Las Vegas Sands CorpZrlbq$34.4 Bil
GXYYY
Galaxy Entertainment Group Ltd ADRFrxjx$22.8 Bil
GXYEF
Galaxy Entertainment Group LtdQlygtx$22.8 Bil
SCHYF
Sands China Ltd Shs Unitary 144A/Reg SGvndnv$20.8 Bil
SCHYY
Sands China Ltd ADRFfgkjs$20.8 Bil
CZR
Caesars Entertainment IncLvqb$10.0 Bil
WYNN
Wynn Resorts LtdVbjdwcy$9.5 Bil
PENN
PENN Entertainment IncLmlg$3.8 Bil
MLCO
Melco Resorts and Entertainment Ltd ADRScnykb$3.1 Bil