MGM Resorts (MGM) AI Stock Analysis

• Market Cap: $10.27B
• Dividend Yield: N/A
• Average Volume (3M): 4.60M
• Price to Earnings (P/E): 16.7
• Beta (1Y): 1.56
• Revenue Growth: 2.76%
• EPS Growth: -14.31%
• Country: US
• Employees: 60,000
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.69
• Shares Outstanding: 272,149,140
• 10 Day Avg. Volume: 3,565,564
• 30 Day Avg. Volume: 4,602,364
• PEG Ratio: -2.41
• Price to Book (P/B): 3.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.03
• Enterprise Value/Market Cap: 3.84
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 5.20
• Enterprise Value/Ebitda: 3.88
• 1Y Price Target: $44.57
• Price Target Upside: 18.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 71 Outperform
• Price Target: $42.00 ▲(11.79%Upside)

MGM Resorts' strong earnings call performance and strategic corporate events are significant positives, driving the overall score. While financial performance shows stability, high leverage and stagnant revenue growth are concerns. Technical indicators suggest overbought conditions, and valuation is fair, with no dividend yield.

Positive Factors

Business Segments Performance

Solid performance in other segments, including Macau and Digital, coupled with the repurchase activity should further support upside in the shares.

Market Momentum

Las Vegas momentum remains positive, despite macro concerns.

Strategic Partnerships

The deal with MAR Bonvoy is exceeding expectations in volumes and yield.

Negative Factors

Consumer Sentiment

Our sector is down following weaker consumer sentiment, increased political/corporate uncertainty, and select pockets of concern.

Earnings

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

Revenue Performance

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 is a global hospitality and entertainment company renowned for its premier destination resorts. These resorts offer a wide array of amenities, including world-class hotels, casinos, dining, entertainment, and meeting spaces. The company operates predominantly in the United States, with properties in Las Vegas, Detroit, and other major cities, as well as international locations such as Macau. MGM Resorts is known for its iconic properties like MGM Grand, Bellagio, and Mandalay Bay, which attract millions of visitors annually.

How the Company Makes Money

MGM Resorts generates revenue primarily through its casino operations, which include gaming tables, slot machines, and sports betting. Additionally, the company earns substantial income from its hotel accommodations, which offer luxury stays and unique experiences. Food and beverage sales from its numerous restaurants and bars across its properties also contribute significantly to its revenue. Furthermore, MGM Resorts makes money through entertainment offerings, including concerts, shows, and events hosted in its venues. Another key revenue stream is its convention and meeting facilities, which attract business travelers and large conferences. The company also benefits from partnerships and joint ventures, such as its stake in BetMGM, a leading sports betting and online gaming platform. These diversified revenue streams enable MGM Resorts to capitalize on various aspects of the hospitality and entertainment industry.

MGM Resorts Financial Statement Overview

Summary

MGM Resorts demonstrates strong operational efficiency with solid profit margins and cash flow generation. However, revenue growth is stagnant, and the balance sheet shows high leverage, indicating potential risk. Overall, MGM maintains a stable financial position with room for growth and improvement in financial leverage.

Income Statement

MGM Resorts shows solid performance with a positive gross profit margin of 57.8% for TTM, indicating efficient revenue generation. Net profit margin improved to 4.9%, reflecting better cost control. However, revenue growth is slightly negative at -0.6% compared to the previous year, indicating a need for top-line expansion. EBIT and EBITDA margins remain stable at 8.6% and 13.0%, respectively, showcasing operational efficiency with a need for increased revenue growth.

Balance Sheet

The balance sheet shows high leverage with a debt-to-equity ratio of 9.07, pointing to significant reliance on debt. Return on equity stands at a modest 29.3%, indicating decent profitability relative to equity. The equity ratio is a low 6.95%, highlighting potential risk due to high liabilities. Strengthening equity and reducing debt could improve financial stability.

Cash Flow

MGM's cash flow is robust with a healthy operating cash flow to net income ratio of 2.81, indicating strong cash generation relative to earnings. Free cash flow to net income ratio is solid at 1.36, ensuring sufficient cash to cover investments. However, free cash flow growth is negative at -6.05%, suggesting a drop in cash available for expansion.

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
EBITDA	2.39B	2.75B	1.77B	1.71B	558.86M
Net Income	746.56M	1.14B	206.73M	1.25B	-1.32B
Balance Sheet
Total Assets	42.23B	42.37B	45.69B	40.90B	36.49B
Cash, Cash Equivalents and Short-Term Investments	2.42B	2.93B	5.91B	4.70B	5.10B
Total Debt	31.61B	31.62B	33.99B	24.69B	21.02B
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: Positive
• Last Price: 37.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 37.57 is above the 20-day moving average (MA) of 36.17, above the 50-day MA of 34.04, and above the 200-day MA of 34.66, indicating a bullish trend. The MACD of 1.28 indicates Positive momentum. The RSI at 61.85 is Neutral, neither overbought nor oversold. The STOCH value of 47.86 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
BYD	80 Outperform	$6.64B	13.33	35.62%	0.88%	6.06%	10.05%
LVS	72 Outperform	$35.23B	27.79	39.21%	2.00%	-0.09%	-13.07%
MGM	71 Outperform	$10.27B	16.71	21.38%	―	2.76%	-14.31%
WYNN	69 Neutral	$11.61B	30.30	-51.73%	0.91%	-0.08%	-48.66%
RRR	66 Neutral	$5.90B	24.36	81.59%	1.80%	9.48%	-11.92%
CZR	64 Neutral	$6.20B	―	-5.56%	―	-1.25%	-130.83%
Sector *	56 Neutral	HK$25.22B	4.10	-2.03%	6.15%	-0.31%	-67.64%

MGM Resorts Corporate Events

MGM Resorts Confirms Board and Auditor at Annual Meeting

On May 7, 2025, MGM Resorts International held its annual meeting of stockholders where key proposals were voted on. The election of the Board of Directors was confirmed with all nominees receiving a majority of votes. Additionally, Deloitte & Touche LLP was ratified as the independent registered public accounting firm for 2025, and the compensation of the company’s named executive officers was approved.

MGM Resorts Extends CEO Hornbuckle’s Contract to 2028

On May 8, 2025, MGM Resorts International extended its employment agreement with CEO William Hornbuckle until December 31, 2028, ensuring his leadership for the long term. The agreement includes a base salary of $2 million per year, annual bonuses, equity grants, and a special signing bonus, reflecting the company’s commitment to stability and strategic leadership. This move is expected to strengthen MGM’s industry positioning and provide continuity in its operations, particularly with the upcoming Japan Integrated Resort project.