MGM Resorts (MGM) AI Stock Analysis

• Market Cap: $9.68B
• Dividend Yield: N/A
• Average Volume (3M): 3.97M
• Price to Earnings (P/E): 219.6
• Beta (1Y): 1.35
• 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: 5,338,814
• 30 Day Avg. Volume: 3,971,247
• 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: 4.09
• Enterprise Value/Revenue: 2.29
• Enterprise Value/Gross Profit: 5.13
• Enterprise Value/Ebitda: 22.52
• 1Y Price Target: $38.91
• Price Target Upside: 11.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): 2.38
• Revenue Forecast (FY): $17.52B

• Rating: 57 Neutral
• Price Target: $37.00 ▲(5.77% Upside)

The score is primarily driven by solid growth and cash flow trends but held back by very high leverage and weak profitability. Technical signals are mixed with soft near-term momentum, and valuation is a notable negative due to the extremely high P/E. The latest earnings call adds moderate support from strong Macau and BetMGM performance and a beneficial asset sale, partly offset by Las Vegas headwinds.

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, 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 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: 34.98
• 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 34.98 is below the 20-day moving average (MA) of 36.00, above the 50-day MA of 34.91, and above the 200-day MA of 34.21, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 46.38 is Neutral, neither overbought nor oversold. The STOCH value of 35.76 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	77 Outperform	$7.00B	3.92	87.17%	0.84%	5.91%	336.91%
LVS	74 Outperform	$40.98B	27.35	62.28%	1.51%	8.37%	10.20%
RRR	71 Outperform	$6.73B	22.51	96.16%	3.22%	4.69%	15.18%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MGM	57 Neutral	$9.68B	219.59	2.25%	―	0.05%	-94.07%
WYNN	53 Neutral	$12.20B	25.88	―	0.80%	-0.26%	-44.45%
CZR	51 Neutral	$5.17B	-21.20	-6.06%	―	0.87%	31.28%

MGM Resorts Corporate Events

MGM Resorts Approves Long-Term Compensation Package for CLO

On January 15, 2026, MGM Resorts International approved a new employment agreement for Chief Legal and Administrative Officer and Secretary John McManus, effective retroactively from January 1, 2026 through December 31, 2029, setting his minimum annual base salary at $1 million and an annual target bonus equal to 150% of base salary, with any bonus above that threshold delivered as fully vested deferred restricted stock units payable over three years. The contract outlines robust equity-based compensation with annual equity grants targeted at $2.5 million from 2026 to 2029 split between performance share units and restricted stock units, detailed severance protections in cases of death, disability, termination without cause or resignation for good cause, and includes a 12‑month non-compete and ongoing confidentiality obligations, underscoring MGM’s commitment to retaining senior legal leadership and aligning his incentives with long-term shareholder value and corporate stability.

The most recent analyst rating on (MGM) stock is a Sell with a $33.00 price target. To see the full list of analyst forecasts on MGM Resorts stock, see the MGM Stock Forecast page.

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.

The most recent analyst rating on (MGM) stock is a Buy with a $33.07 price target. To see the full list of analyst forecasts on MGM Resorts stock, see the MGM Stock Forecast page.