MGM Resorts (MGM) AI Stock Analysis

• Market Cap: $10.20B
• Dividend Yield: N/A
• Average Volume (3M): 4.24M
• Price to Earnings (P/E): 235.7
• Beta (1Y): 1.33
• Revenue Growth: 0.05%
• EPS Growth: -94.07%
• Country: US
• Employees: 60,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.24
• Shares Outstanding: 273,506,440
• 10 Day Avg. Volume: 4,054,357
• 30 Day Avg. Volume: 4,242,536
• PEG Ratio: -0.57
• Price to Book (P/B): 3.52
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 8.79
• Enterprise Value/Market Cap: 3.88
• Enterprise Value/Revenue: 2.29
• Enterprise Value/Gross Profit: 5.13
• Enterprise Value/Ebitda: 22.52
• 1Y Price Target: $38.76
• Price Target Upside: 3.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): 2.27
• Revenue Forecast (FY): $17.35B

• Rating: 63 Neutral
• Price Target: $37.00 ▼(-1.46% Downside)

MGM Resorts' overall stock score reflects strong revenue growth and positive technical momentum, but is tempered by high valuation concerns and mixed earnings call outcomes. The company's high leverage and low profitability are significant risks that need addressing to improve its financial health.

Positive Factors

Revenue Growth

Robust revenue growth indicates successful market expansion and strong demand across MGM's diverse service offerings, supporting long-term business sustainability.

Digital and BetMGM Performance

Strong performance in digital operations and BetMGM enhances MGM's competitive position in the growing online gaming market, contributing to future revenue streams.

Macau Market Share

Record performance and increased market share in Macau highlight MGM's resilience and strategic positioning in a key international market, boosting long-term growth prospects.

Negative Factors

High Leverage

Significant leverage poses a financial risk, potentially limiting MGM's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Profitability Challenges

Low profitability margins indicate difficulty in converting revenue growth into sustainable profits, necessitating improved cost management and operational efficiency.

Las Vegas Segment Decline

Decline in Las Vegas performance due to increased expenses and disruptions may impact overall profitability, highlighting the need for strategic adjustments in core markets.

MGM Resorts Business Overview & Revenue Model

Company Description

MGM Resorts International is a leading global entertainment and hospitality company based in the United States, primarily known for its luxury hotels and casinos. The company operates a diverse portfolio of properties, including iconic destinations such as the Bellagio, MGM Grand, and Mandalay Bay in Las Vegas, as well as resorts in other parts of the world. MGM Resorts offers a wide range of services, including gaming, dining, entertainment, and retail, catering to both leisure and business travelers.

How the Company Makes Money

MGM Resorts generates revenue through multiple key streams, including gaming operations, hotel accommodations, food and beverage services, and entertainment offerings. The gaming segment is the largest contributor, where the company earns money from slot machines, table games, and sports betting. Hotel accommodations provide significant revenue through room bookings, while food and beverage sales from restaurants and bars enhance profitability. Additionally, MGM Resorts hosts a variety of entertainment events, including concerts and shows, which attract visitors and generate ticket sales. The company also benefits from loyalty programs, such as M Life Rewards, which encourage repeat business. Partnerships with various entertainment and sports organizations further enhance its offerings and attract a broader customer base, contributing to overall earnings.

MGM Resorts Financial Statement Overview

Summary

MGM Resorts is experiencing strong revenue growth, reflecting a positive recovery trend. However, profitability margins have declined, and the company faces high leverage, which could pose financial risks. Cash flow generation is improving, but there is room for enhancing cash efficiency. Overall, while the company is on a growth trajectory, it needs to manage its leverage and improve profitability margins to ensure long-term financial stability.

Income Statement

MGM Resorts shows a strong revenue growth trajectory with a 45.2% increase in TTM, indicating robust recovery and expansion. However, the gross profit margin has decreased from previous years, and the net profit margin remains relatively low at 3.72% in TTM. The EBIT and EBITDA margins have also declined, reflecting potential inefficiencies or increased costs.

Balance Sheet

The company's debt-to-equity ratio is high at 8.67 in TTM, indicating significant leverage and potential financial risk. Return on equity has decreased to 21.19% in TTM, showing reduced profitability from equity. The equity ratio is low, suggesting a heavy reliance on debt financing.

Cash Flow

MGM Resorts has shown positive free cash flow growth of 13.75% in TTM, indicating improved cash generation. The operating cash flow to net income ratio is healthy, though slightly below 1, suggesting good cash conversion. However, the free cash flow to net income ratio is moderate, indicating room for improvement in cash efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.28B	17.24B	16.16B	13.13B	9.68B	4.92B
Gross Profit	7.71B	7.85B	7.61B	6.47B	4.65B	1.71B
EBITDA	1.76B	2.39B	2.40B	4.98B	3.41B	-779.79M
Net Income	69.68M	746.56M	1.14B	1.47B	1.25B	-1.03B
Balance Sheet
Total Assets	41.41B	42.23B	42.37B	45.69B	40.90B	36.49B
Cash, Cash Equivalents and Short-Term Investments	2.13B	2.42B	2.93B	5.91B	4.70B	5.10B
Total Debt	31.52B	31.85B	31.62B	33.99B	24.69B	21.02B
Total Liabilities	37.96B	38.51B	38.00B	40.32B	29.77B	25.25B
Stockholders Equity	2.68B	3.02B	3.81B	4.83B	6.07B	6.50B
Cash Flow
Free Cash Flow	1.37B	1.21B	1.77B	1.00B	882.73M	-1.76B
Operating Cash Flow	2.55B	2.36B	2.70B	1.77B	1.37B	-1.49B
Investing Cash Flow	-1.34B	-1.28B	-722.52M	2.11B	1.54B	2.16B
Financing Cash Flow	-2.02B	-1.56B	-5.00B	-3.02B	-2.81B	2.10B

MGM Resorts Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGM, the sentiment is Positive. The current price of 37.55 is above the 20-day moving average (MA) of 35.98, above the 50-day MA of 33.66, and above the 200-day MA of 33.85, indicating a bullish trend. The MACD of 1.07 indicates Negative momentum. The RSI at 66.51 is Neutral, neither overbought nor oversold. The STOCH value of 65.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MGM.

MGM Resorts Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LVS	74 Outperform	$45.27B	30.21	62.28%	1.49%	8.37%	10.20%
BYD	71 Outperform	$6.75B	3.78	87.17%	0.83%	5.91%	336.91%
RRR	71 Outperform	$6.68B	22.36	96.16%	3.16%	4.69%	15.18%
MGM	63 Neutral	$10.20B	235.72	2.25%	―	0.05%	-94.07%
WYNN	62 Neutral	$13.30B	28.22	―	0.79%	-0.26%	-44.45%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CZR	51 Neutral	$4.98B	-21.78	-6.06%	―	0.87%	31.28%

MGM Resorts Corporate Events

MGM Resorts Secures JPY45.2 Billion Credit Agreement

On October 23, 2025, MGM Resorts International entered into a secured credit agreement with Sumitomo Mitsui Banking Corporation for a term loan facility of JPY45.2 billion, with an option to increase to JPY67.8 billion. This agreement, which matures in October 2030, includes covenants that may limit the company’s ability to incur additional debt, impacting its financial flexibility. Additionally, MGM Resorts reported a 2% increase in consolidated net revenues for the third quarter of 2025, driven by strong performance from MGM China and BetMGM North America. However, the company faced a net loss of $285 million due to a non-cash goodwill impairment charge and other write-offs related to Empire City. Despite these challenges, MGM Resorts announced a $300 million yen-denominated credit facility to support its MGM Osaka project and the sale of MGM Northfield Park operations for $546 million.

MGM Resorts Announces New Executive Employment Agreements

On September 16, 2025, MGM Resorts International announced new employment agreements for two key executives, Jonathan Halkyard and Gary Fritz, effective October 1, 2025. These agreements outline their compensation packages, including base salaries, bonuses, and equity grants, as well as conditions for termination and non-compete clauses. The agreements aim to secure the leadership of these executives through 2029 and 2028, respectively, potentially impacting the company’s strategic direction and stability in the gaming and digital sectors.