MGM Resorts (MGM) AI Stock Analysis

• Market Cap: $8.47B
• Dividend Yield: N/A
• Average Volume (3M): 6.43M
• Price to Earnings (P/E): 12.5
• Beta (1Y): 1.59
• Revenue Growth: 6.66%
• EPS Growth: -24.59%
• Country: US
• Employees: 60,000
• Sector: Consumer Cyclical
• Sector Strength: 55
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 2.39
• Shares Outstanding: 282,950,600
• 10 Day Avg. Volume: 7,868,617
• 30 Day Avg. Volume: 6,432,180
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.52
• Price to Cash Flow (P/CF): 3.30
• P/FCF Ratio: 3.30
• 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: $48.54
• Price Target Upside: 68.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

MGM Resorts demonstrates strong financial potential with robust revenue growth and effective cash generation. However, declining profitability margins and high leverage present notable risks. The technical analysis suggests a bearish outlook, adding caution to the stock's performance. Despite these challenges, the positive earnings call sentiment and strategic focus on growth offer a cautiously optimistic view for the future.

Positive Factors

Expansion and Growth

An agreement to build a new location in Japan bodes well for MGM's future prospects.

Financial Performance

MGM is aggressively repurchasing stock, which could help address its undervaluation in the market.

Negative Factors

Earnings Decrease

MGM reported adjusted 4Q24 EPS of $0.45, down from $1.06 in the prior-year period, indicating a decrease in earnings.

Revenue Decline

Las Vegas 4Q24 revenue saw a 6% decrease from 4Q23, reflecting tough comparisons to the previous year's strong results.

MGM Resorts Business Overview & Revenue Model

Company Description

MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and Macau. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. The company's casino operations include slots and table games, as well as online sports betting and iGaming through BetMGM. As of February 17, 2021, its portfolio consisted of 29 hotel and destination gaming offerings. The company also owns and operates Las Vegas Strip Resorts and Fallen Oak golf course. Its customers include premium gaming customers; leisure and wholesale travel customers; business travelers; and group customers, including conventions, trade associations, and small meetings. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was incorporated in 1986 and is based in Las Vegas, Nevada.

How the Company Makes Money

MGM Resorts makes money primarily through its operations in the hospitality and entertainment sectors. The company generates revenue from its hotel accommodations, casino gaming, food and beverage services, and entertainment offerings. Room bookings and related services provide significant income, while the casino segment contributes a substantial portion through gaming activities including table games, slot machines, and sports betting. Additionally, MGM Resorts earns from conventions and event hosting, leveraging its large-scale facilities and prime locations. Partnerships with entertainment companies and celebrity chefs also enhance its revenue streams by attracting visitors seeking high-profile experiences.

MGM Resorts Financial Statement Overview

Summary

MGM Resorts showcases robust revenue growth and a strong operating cash flow, yet faces challenges with declining profitability margins and high leverage. The company's financial position is solid but requires careful management of debt to sustain long-term growth.

Income Statement

MGM Resorts has demonstrated strong growth in its revenue, with a year-over-year increase of 6.65% from 2023 to 2024. The company also maintains a healthy gross profit margin of 100% in 2024. However, there is a notable decline in EBIT and EBITDA margins compared to the previous year, and net profit margin has decreased from 7.07% to 4.33%, indicating pressure on the company's profitability.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 8.60 in 2024, indicating significant leverage, which could pose financial risks. The equity ratio has decreased to 7.31%, suggesting lower financial stability. Return on equity has also declined to 24.69%, reflecting reduced profitability on shareholder investments.

Cash Flow

MGM Resorts' cash flow statement highlights a decrease in free cash flow from 2023 to 2024, although free cash flow remains positive at $1.21 billion. The operating cash flow to net income ratio is strong at 3.16, indicating effective cash generation relative to net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
17.24B	16.16B	13.13B	9.68B	5.16B
	Gross Profit
7.85B	7.61B	6.47B	4.65B	1.71B
	EBIT
1.49B	1.89B	-1.81B	631.33M	-2.08B
	EBITDA
2.39B	2.75B	1.77B	1.71B	558.86M
	Net Income Common Stockholders
746.56M	1.14B	206.73M	1.25B	-1.32B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.42B	2.93B	5.91B	4.70B	5.10B
	Total Assets
42.23B	42.37B	45.69B	40.90B	36.49B
	Total Debt
31.61B	31.62B	33.99B	24.69B	21.02B
	Net Debt
29.19B	28.69B	28.08B	19.99B	15.92B
	Total Liabilities
38.51B	38.00B	40.32B	29.77B	25.25B
	Stockholders Equity
3.02B	3.81B	4.83B	6.07B	6.50B
Cash Flow		Free Cash Flow
1.21B	1.76B	991.39M	882.73M	-1.76B
	Operating Cash Flow
2.36B	2.69B	1.76B	1.37B	-1.49B
	Investing Cash Flow
-1.28B	-714.17M	2.12B	1.54B	2.16B
	Financing Cash Flow
-1.56B	-5.00B	-3.02B	-2.81B	2.10B

MGM Resorts Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGM, the sentiment is Negative. The current price of 28.75 is below the 20-day moving average (MA) of 30.35, below the 50-day MA of 32.90, and below the 200-day MA of 36.83, indicating a bearish trend. The MACD of -0.94 indicates Positive momentum. The RSI at 36.60 is Neutral, neither overbought nor oversold. The STOCH value of 18.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MGM.

MGM Resorts Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYD	78 Outperform	$5.57B	10.91	34.76%	1.13%	5.13%	2.04%
WH	72 Outperform	$6.79B	24.30	41.40%	1.77%	―	6.40%
MGM	66 Neutral	$8.47B	12.52	21.76%	―	6.66%	-24.59%
H	64 Neutral	$11.37B	9.42	36.45%	0.57%	-6.41%	511.40%
WYNN	63 Neutral	$8.05B	17.42	-51.73%	1.51%	9.13%	-30.00%
Sector *	59 Neutral	$11.76B	10.11	-0.70%	3.92%	1.27%	-16.30%
CZR	46 Neutral	$5.85B	―	-6.38%	―	-2.45%	-135.17%

MGM Resorts Corporate Events

MGM Resorts Appoints Dame Donna Langley to Board

On March 12, 2025, MGM Resorts International appointed Dame Donna Langley, Chairman of NBCUniversal Entertainment & Studios, to its Board of Directors, expanding the board to 13 members. Langley’s extensive experience in entertainment programming and marketing is expected to significantly benefit MGM Resorts as it aims to enhance its gaming and entertainment offerings. Her appointment is seen as a strategic move to leverage her expertise in content strategy and industry leadership, potentially strengthening MGM’s market position and operational strategies.