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MGM Resorts (MGM)
NYSE:MGM
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MGM Resorts
(NYSE:MGM)
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Rating:61Neutral
Price Target:
$36.00
▲(4.41% Upside)
MGM's strong revenue growth and positive earnings call sentiment are significant strengths, but declining profitability margins and high leverage are major risks. Technical indicators suggest bearish momentum, and valuation is moderate.
Positive Factors
Revenue Growth
The significant revenue growth reflects MGM's strong market position and ability to capitalize on recovery trends, supporting long-term expansion.
Digital and International Expansion
The success in digital and international markets highlights MGM's strategic diversification, enhancing resilience against regional downturns.
Regional Property Performance
Strong performance in regional properties underscores MGM's effective operational strategy and diversification across different markets.
Negative Factors
Declining Profit Margins
Decreasing profit margins suggest rising costs or inefficiencies, which could pressure long-term profitability if not addressed.
High Leverage
High leverage increases financial risk and limits flexibility, potentially impacting MGM's ability to invest in growth opportunities.
Challenges in Las Vegas
Challenges in Las Vegas, a key market, could affect overall performance if trends persist, highlighting the need for strategic adjustments.
MGM Resorts (MGM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.40B
Dividend YieldN/A
Average Volume (3M)4.28M
Price to Earnings (P/E)19.0
Beta (1Y)1.42
Revenue Growth0.89%
EPS Growth-31.56%
CountryUS
Employees60,000
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.79
Shares Outstanding272,191,040
10 Day Avg. Volume5,101,001
30 Day Avg. Volume4,280,749
Financial Highlights & Ratios
PEG Ratio-0.59
Price to Book (P/B)3.52
Price to Sales (P/S)0.62
P/FCF Ratio8.79
Enterprise Value/Market Cap4.24
Enterprise Value/Revenue2.32
Enterprise Value/Gross Profit5.15
Enterprise Value/Ebitda17.67
Forecast
1Y Price Target
$47.15Price Target Upside36.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
MGM Resorts Business Overview & Revenue Model
Company DescriptionMGM 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 MoneyMGM Resorts generates revenue primarily through its gaming operations, which include casino games, slot machines, and sports betting. A significant portion of its income is derived from hotel room bookings, with the company operating thousands of hotel rooms across its properties. Additional revenue streams include food and beverage sales from its numerous restaurants and bars, as well as entertainment offerings such as concerts, shows, and events. MGM also has partnerships with various organizations and brands that enhance its offerings and drive customer engagement. Furthermore, the company's membership in loyalty programs, such as M life Rewards, incentivizes repeat business and customer retention, contributing to its overall earnings.
MGM Resorts Key Performance Indicators (KPIs)
MGM Resorts Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted several positive achievements, including record-breaking revenue, success in digital and international operations, and strong performance in regional properties. However, there were challenges in Las Vegas, with declines in adjusted EBITDAR, visitation, and disruptions due to room remodels. Despite these challenges, the positive aspects, particularly in global ventures and digital growth, suggest optimism for future quarters.Q2-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
MGM Resorts International reported record-high consolidated net revenues this quarter, driven by their diverse global portfolio.
BetMGM North America Success
The BetMGM North America venture raised its full-year 2025 guidance for the second time, with an EBITDA turnaround of nearly $400 million compared to the previous year.
Strong Las Vegas Performance
Despite some setbacks, Las Vegas saw record 2Q table games volume and record slot volumes at ultra-luxury properties.
MGM China Achievements
MGM China achieved record adjusted EBITDAR and a market share of 16.6%, representing the highest sequential gain among all concessionaires.
Regional Properties' Success
Three regional properties reported record high net revenues, with strong performance across gaming, hotel, and food and beverage segments.
MGM Digital Improvement
The international digital segment showed solid improvement, achieving near breakeven performance excluding investment in Brazil.
Negative Updates
Challenges in Las Vegas
Las Vegas experienced a decline in adjusted EBITDAR primarily confined to the MGM Grand and midweek performance at Luxor and Excalibur, with MGM Grand representing $60 million of the difference.
Strip Visitation Decline
Strip visitation has been declining throughout the year, with international inbound and Southern California visitation remaining challenges.
Impact of Room Remodel
MGM Grand faced disruptions due to a room remodel, impacting results by $65 million, with $40 million hit in the first six months.
Company Guidance
In the second quarter of 2025, MGM Resorts International reported record-high consolidated net revenues, driven by strong performances in both digital growth and regional properties, offsetting weaknesses in Las Vegas. The BetMGM North America venture raised its full-year 2025 guidance for the second time, indicating an EBITDA turnaround of nearly $400 million compared to the previous year. Las Vegas showed resilience with record table games and slot volumes, despite a decline in adjusted EBITDAR attributed to room remodel disruptions at MGM Grand and midweek weaknesses. The company's regional properties achieved record net revenues, and MGM China saw a record adjusted EBITDAR with a market share of 16.6%. MGM remains optimistic about future growth, leveraging their diverse portfolio and strategic initiatives, including developments in Japan and Dubai, and a strategic relationship with Marriott that boosted room bookings by 31% year-over-year.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.65
Positive
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.55
Neutral
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.70
Positive
| 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
Negative
34.48
Price Trends
36.55
Negative
35.24
Negative
34.12
Positive
Market Momentum
-0.60
Positive
38.60
Neutral
17.85
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 34.48 is below the 20-day moving average (MA) of 36.22, below the 50-day MA of 36.55, and above the 200-day MA of 34.12, indicating a neutral trend. The MACD of -0.60 indicates Positive momentum. The RSI at 38.60 is Neutral, neither overbought nor oversold. The STOCH value of 17.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MGM.
MGM Resorts Risk Analysis
MGM Resorts disclosed 33 risk factors in its most recent earnings report. MGM Resorts reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
MGM Resorts Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | 6.77B | 13.00 | 40.43% | 0.84% | 6.40% | 26.09% | |
72 Outperform | 6.43B | 23.23 | 71.63% | 3.33% | 7.47% | 2.58% | |
68 Neutral | 13.09B | 37.15 | -86.94% | 0.79% | -1.94% | -53.90% | |
61 Neutral | $9.40B | 19.04 | 17.34% | ― | 0.89% | -31.56% | |
59 Neutral | 36.38B | 26.76 | 70.92% | 1.79% | 1.62% | -7.14% | |
52 Neutral | 5.48B | -28.01 | -5.01% | ― | -0.15% | 28.05% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
MGM
MGM Resorts
34.48
-3.83
-10.00%
BYD
Boyd Gaming
84.49
20.21
31.44%
LVS
Las Vegas Sands
53.06
5.67
11.96%
WYNN
Wynn Resorts
125.84
35.74
39.67%
CZR
Caesars Entertainment
25.91
-15.17
-36.93%
RRR
Red Rock Resorts
59.98
7.82
14.99%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.