MGM China (MCHVY) AI Stock Analysis

• Market Cap: $7.55B
• Dividend Yield: 0.19%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.25
• Revenue Growth: 26.61%
• EPS Growth: 74.92%
• Country: US
• Employees: 13,327
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): N/A
• Shares Outstanding: 316,666,660
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 5.09
• Price to Book (P/B): 113.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.42
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $20.00
• Price Target Upside: -16.77% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: $24.50 ▲(1.96%Upside)

MGM China demonstrates strong financial performance with significant revenue growth and profitability margins. The technical indicators suggest caution due to overbought signals despite positive momentum. Valuation metrics are favorable, indicating potential undervaluation and attractive dividend yield. The overall score reflects a solid recovery and potential growth, with attention needed on leverage and market volatility.

MGM China Business Overview & Revenue Model

Company Description

MGM China Holdings Limited is a leading developer, owner, and operator of casino gaming and entertainment resort facilities in the Macau Special Administrative Region of the People's Republic of China. The company operates through its flagship property, MGM Macau, and its second integrated resort, MGM Cotai. MGM China is part of the MGM Resorts International group, leveraging its brand and expertise to provide world-class entertainment, luxury accommodations, and gaming experiences.

How the Company Makes Money

MGM China generates revenue primarily through its casino operations, which include gaming tables and slot machines catering to both VIP and mass-market players. The company also earns from its hotel and hospitality services, offering luxury accommodations, dining, retail, and entertainment experiences. A significant portion of its earnings is derived from partnerships and collaborations within the gaming and hospitality sectors, utilizing the MGM brand's global recognition. Additionally, non-gaming revenue streams, such as conventions, retail leases, and entertainment events, contribute to MGM China's overall financial performance.

MGM China Financial Statement Overview

Summary

MGM China's financial performance shows a promising recovery trajectory, with robust revenue growth and profitability margins indicating strong operational performance. While the balance sheet shows high leverage, recent profitability has improved returns on equity, though reliance on debt remains a risk. Cash flow metrics are stable, albeit with room for growth in free cash flow generation.

Income Statement

MGM China has shown strong recovery in revenue from its pandemic lows, with a significant revenue growth rate of 27.15% in the latest year. The company has a healthy gross profit margin of 37.8% and a net profit margin of 14.7%, indicating operational efficiency and profitability. EBIT and EBITDA margins are also robust at 19.6% and 25.6%, respectively. The positive trajectory in revenue and profitability metrics signals strong performance in a recovering market.

Balance Sheet

The balance sheet presents a mixed picture with a high debt-to-equity ratio due to significant debt levels, evidenced by total debt far exceeding stockholders' equity. However, the return on equity is an impressive 873.2%, driven by recent profitability. The equity ratio is low at 1.7%, highlighting a reliance on debt financing, which could pose a risk in volatile market conditions despite the recent improvement in equity position.

Cash Flow

Cash flow analysis shows a strong operating cash flow to net income ratio of 1.8, indicating good cash generation efficiency. The free cash flow to net income ratio is also favorable at 1.5. However, the free cash flow growth rate is negative at -10.7%, suggesting some constraints on cash flow growth. Overall, the cash flow position is solid, but the company should focus on maintaining and improving free cash flow generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.39B	24.68B	5.27B	9.41B	5.10B
Gross Profit	11.87B	19.67B	-419.99M	1.58B	-516.17M
EBITDA	8.02B	6.39B	-1.69B	-287.02M	-1.73B
Net Income	4.60B	2.64B	-5.23B	-3.85B	-5.20B
Balance Sheet
Total Assets	30.60B	29.18B	31.21B	28.44B	29.67B
Cash, Cash Equivalents and Short-Term Investments	5.32B	4.23B	6.71B	3.11B	2.64B
Total Debt	23.15B	24.30B	32.92B	24.15B	21.37B
Total Liabilities	30.08B	30.51B	35.21B	27.24B	24.65B
Stockholders Equity	527.53M	-1.33B	-4.00B	1.20B	5.02B
Cash Flow
Free Cash Flow	7.07B	7.91B	-2.41B	-977.32M	-3.81B
Operating Cash Flow	8.27B	8.27B	-2.11B	-449.61M	-2.97B
Investing Cash Flow	-1.52B	-124.64M	-1.32B	-518.49M	-831.96M
Financing Cash Flow	-5.66B	-10.62B	7.04B	1.44B	3.16B

MGM China Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCHVY, the sentiment is Positive. The current price of 24.03 is above the 20-day moving average (MA) of 22.66, above the 50-day MA of 19.24, and above the 200-day MA of 16.49, indicating a bullish trend. The MACD of 1.56 indicates Positive momentum. The RSI at 71.61 is Negative, neither overbought nor oversold. The STOCH value of 60.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MCHVY.

MGM China Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LVS	74 Outperform	$34.41B	24.62	39.21%	1.77%	1.62%	-7.14%
MGM	71 Outperform	$10.17B	16.73	21.38%	―	2.76%	-14.31%
MCHVY	70 Outperform	$7.55B	12.90	-198.78%	0.19%	26.61%	74.92%
WYNN	69 Neutral	$11.34B	29.38	-51.73%	0.92%	-0.08%	-48.66%
Sector *	63 Neutral	$17.10B	10.79	-8.01%	2.94%	1.62%	-25.73%
CZR	59 Neutral	$5.96B	―	-5.56%	―	-1.25%	-130.83%
MLCO	58 Neutral	$3.67B	63.17	25.40%	―	14.07%	―