MGM China (MCHVY) AI Stock Analysis

• Market Cap: $6.96B
• Dividend Yield: 4.5%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.21
• Revenue Growth: 5.99%
• EPS Growth: -4.03%
• Country: US
• Employees: 13,327
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.97
• Shares Outstanding: 316,792,850
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.11
• Price to Book (P/B): 69.92
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 5.22
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 0.69
• Enterprise Value/Ebitda: 1.04
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: $24.00 ▲(11.42% Upside)

MGM China's overall stock score reflects a strong financial performance with robust revenue growth and profitability, offset by technical indicators suggesting bearish momentum. The stock's valuation is attractive with a reasonable P/E ratio and a high dividend yield, providing a balanced investment opportunity despite the technical challenges.

MGM China Business Overview & Revenue Model

Company Description

MGM China Holdings Limited, a subsidiary of MGM Resorts International, operates in the gaming and hospitality industry in Macau. The company owns and operates two premier integrated resorts, MGM Macau and MGM Cotai, which offer a range of gaming, dining, and entertainment options. MGM China focuses on providing a high-end experience to its guests, with luxurious accommodations, fine dining restaurants, and various entertainment attractions, catering primarily to both local and international tourists.

How the Company Makes Money

MGM China generates revenue primarily through its gaming operations, which include table games, slot machines, and other gaming activities. The company earns income from both VIP and mass-market gaming segments, with the VIP segment often contributing a significant portion of its revenue. In addition to gaming, MGM China also derives income from its hotel and resort operations, including room bookings, food and beverage sales, and entertainment events. The company benefits from strategic partnerships with junket operators, who bring high-stakes gamblers to its properties. Furthermore, MGM China's focus on premium offerings and exceptional guest experiences helps to drive customer loyalty and repeat visits, contributing to its overall revenue growth.

MGM China Financial Statement Overview

Summary

MGM China's financial performance is strong with robust revenue growth and profitability margins, indicating solid operational performance. However, the balance sheet shows high leverage, which poses a risk. Cash flow metrics are stable but there's 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.83B	31.39B	24.68B	5.27B	9.41B	5.10B
Gross Profit	12.01B	11.87B	19.67B	1.65B	1.58B	-516.17M
EBITDA	7.99B	8.02B	6.39B	-1.69B	-287.02M	-1.73B
Net Income	4.30B	4.60B	2.64B	-5.23B	-3.85B	-5.20B
Balance Sheet
Total Assets	30.86B	30.60B	29.18B	31.21B	28.44B	29.67B
Cash, Cash Equivalents and Short-Term Investments	5.52B	5.32B	4.23B	6.71B	3.11B	2.64B
Total Debt	21.82B	23.15B	24.30B	32.92B	24.15B	21.37B
Total Liabilities	28.90B	30.08B	30.51B	35.21B	27.24B	24.65B
Stockholders Equity	1.97B	527.53M	-1.33B	-4.00B	1.20B	5.02B
Cash Flow
Free Cash Flow	6.71B	7.07B	7.91B	-2.41B	-977.32M	-3.81B
Operating Cash Flow	8.47B	8.27B	8.27B	-2.11B	-449.61M	-2.97B
Investing Cash Flow	-1.84B	-1.52B	-124.64M	-1.32B	-518.49M	-831.96M
Financing Cash Flow	-6.33B	-5.66B	-10.62B	7.04B	1.44B	3.16B

MGM China Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCHVY, the sentiment is Negative. The current price of 21.54 is below the 20-day moving average (MA) of 23.67, below the 50-day MA of 24.07, and above the 200-day MA of 18.98, indicating a neutral trend. The MACD of -0.78 indicates Positive momentum. The RSI at 37.57 is Neutral, neither overbought nor oversold. The STOCH value of 12.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MCHVY.

MGM China Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCHVY	65 Neutral	$6.96B	12.34	452.88%	4.50%	5.99%	-4.03%
MGM	64 Neutral	$8.60B	17.40	17.34%	―	0.89%	-31.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LVS	60 Neutral	$34.14B	24.51	49.16%	1.91%	1.62%	-7.14%
CZR	57 Neutral	$4.62B	―	-4.76%	―	-0.15%	28.05%
WYNN	53 Neutral	$12.25B	34.75	―	0.82%	-1.94%	-53.90%
MLCO	47 Neutral	$3.08B	57.73	―	―	12.22%	―