MGM Resorts (MGM) AI Stock Analysis

• Market Cap: $9.55B
• Dividend Yield: N/A
• Average Volume (3M): 4.78M
• Price to Earnings (P/E): 19.1
• Beta (1Y): 1.49
• Revenue Growth: 0.89%
• EPS Growth: -31.56%
• Country: US
• Employees: 60,000
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.79
• Shares Outstanding: 272,191,040
• 10 Day Avg. Volume: 6,276,226
• 30 Day Avg. Volume: 4,778,595
• PEG Ratio: -0.59
• Price to Book (P/B): 3.52
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 8.79
• Enterprise Value/Market Cap: 4.18
• Enterprise Value/Revenue: 2.32
• Enterprise Value/Gross Profit: 5.15
• Enterprise Value/Ebitda: 17.67
• 1Y Price Target: $48.33
• Price Target Upside: 39.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 60 Neutral
• Price Target: $37.00 ▲(6.60% Upside)

MGM Resorts' overall stock score is driven by strong revenue growth and positive earnings call highlights, particularly in digital and international segments. However, the stock faces challenges from high leverage, declining profitability margins, and bearish technical indicators. The extension of CEO Hornbuckle's contract provides strategic stability, but the lack of a dividend yield and challenges in the Las Vegas market weigh on the score.

Positive Factors

Digital and repurchase activity

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

Investment plans

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

Regional performance

Better performance in Macau and regional markets is boosting estimates for MGM.

Negative Factors

Capital expenditure

Future investments and new projects are expected to pressure free cash flow and capital returns.

Las Vegas performance

Vegas trends have been weaker than expected, affecting casino and room revenue.

US gaming slowdown

Concerns around the US gaming slowdown remain headwinds, particularly in Las Vegas.

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 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, stagnant revenue growth and high leverage indicate potential risks and the need for balance sheet strengthening.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.21B	17.24B	16.16B	13.13B	9.68B	5.16B
Gross Profit	7.74B	7.85B	7.61B	6.47B	4.65B	1.71B
EBITDA	2.26B	2.39B	2.75B	1.77B	1.71B	558.86M
Net Income	539.51M	746.56M	1.14B	206.73M	1.25B	-1.32B
Balance Sheet
Total Assets	41.70B	42.23B	42.37B	45.69B	40.90B	36.49B
Cash, Cash Equivalents and Short-Term Investments	1.96B	2.42B	2.93B	5.91B	4.70B	5.10B
Total Debt	31.59B	31.61B	31.62B	33.99B	24.69B	21.02B
Total Liabilities	37.96B	38.51B	38.00B	40.32B	29.77B	25.25B
Stockholders Equity	2.97B	3.02B	3.81B	4.83B	6.07B	6.50B
Cash Flow
Free Cash Flow	1.30B	1.21B	1.76B	991.39M	882.73M	-1.76B
Operating Cash Flow	2.53B	2.36B	2.69B	1.76B	1.37B	-1.49B
Investing Cash Flow	-1.50B	-1.28B	-714.17M	2.12B	1.54B	2.16B
Financing Cash Flow	-1.53B	-1.56B	-5.00B	-3.02B	-2.81B	2.10B

MGM Resorts Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.71
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 34.71 is below the 20-day moving average (MA) of 37.08, below the 50-day MA of 35.23, and above the 200-day MA of 34.44, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 39.38 is Neutral, neither overbought nor oversold. The STOCH value of 13.36 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	80 Outperform	$6.68B	12.83	36.36%	0.85%	6.40%	26.09%
LVS	74 Outperform	$35.83B	26.36	49.16%	1.79%	1.62%	-7.14%
RRR	72 Outperform	$6.20B	22.23	81.59%	3.53%	7.47%	2.58%
WYNN	68 Neutral	$11.21B	29.26	-51.73%	0.93%	-0.08%	-48.66%
Sector *	61 Neutral	$16.55B	10.17	-9.03%	3.32%	1.46%	-22.90%
MGM	60 Neutral	$9.55B	19.13	17.34%	―	0.89%	-31.56%
CZR	58 Neutral	$5.17B	―	-4.76%	―	-0.15%	28.05%

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.