MGM Resorts International (NYSE: MGM)

Sector: Consumer Cyclical Industry: Resorts & Casinos CIK: 0000789570
Market Cap 9.16 Bn
P/B 3.77
P/E 44.51
P/S 0.52
ROIC (Qtr) 75.90
Div Yield % 0.00
Rev 1y % (Qtr) 5.95
Total Debt (Qtr) 31.26 Bn
Debt/Equity (Qtr) 12.87
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About

MGM Resorts International (MGM), a Delaware corporation, is a prominent player in the global gaming and entertainment industry. With a diverse portfolio of properties across the United States and Macau, MGM is one of the largest hospitality companies worldwide. Its operations encompass the ownership and management of luxury resorts, casinos, and entertainment venues, offering a wide array of amenities such as hotels, restaurants, nightclubs, retail shops, and various gaming options including slots, table games, and sports betting. MGM's revenue...

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Investment thesis

Bull case

  • Healthy cash reserves of 2.06B provide 28.71x coverage of short-term debt 71.84M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 2.53B provides strong 27.96x coverage of stock compensation 90.47M, indicating sustainable incentive practices.
  • Robust tangible asset base of 35.12B provides 42.81x coverage of working capital 820.32M, indicating strong operational backing.
  • Operating cash flow of 2.53B provides strong 20.31x coverage of inventory 124.53M, indicating efficient inventory management.
  • Tangible assets of 35.12B provide robust 11.63x coverage of other current liabilities 3.02B, indicating strong asset backing.

Bear case

  • Operating cash flow of 2.53B barely covers its investment activities of (1.14B), with a coverage ratio of -2.22, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 2.06B provide limited coverage of acquisition spending of (237.76M), which is -8.68x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 1.12B relative to inventory of 124.53M (9.02 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating cash flow of 2.53B provides minimal -10.53x coverage of tax expenses of (240.09M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 384.81M show weak coverage of depreciation charges of 1.53B, with a 0.25 ratio indicating high capital intensity and potential reinvestment needs.

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Resorts & Casinos
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 LVS Las Vegas Sands Corp 39.82 Bn 24.48 3.06 15.78 Bn
2 WYNN Wynn Resorts Ltd 20.12 Bn 2,860.00 4.09 12.20 Bn
3 MGM MGM Resorts International 9.16 Bn 44.51 0.52 31.26 Bn
4 BYD Boyd Gaming Corp 8.33 Bn -92.47 2.92 2.46 Bn
5 MTN Vail Resorts Inc 4.91 Bn 196.79 4.35 3.38 Bn
6 HGV Hilton Grand Vacations Inc. 4.44 Bn 83.82 0.89 7.28 Bn
7 CZR Caesars Entertainment, Inc. 3.93 Bn -7.83 0.34 24.88 Bn
8 RRR Red Rock Resorts, Inc. 3.66 Bn 20.78 2.12 3.41 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.93 1.18
EV to Cash from Ops. EV/CFO 15.13 39.36
EV to Debt EV to Debt 1.22 32.02
EV to EBIT EV/EBIT 99.47 44.55
EV to EBITDA EV/EBITDA 15.57 19.91
EV to Free Cash Flow [EV/FCF] EV/FCF 26.08 -82.04
EV to Market Cap EV to Market Cap 4.18 4.40
EV to Revenue EV/Rev 2.18 4.33
Price to Book Value [P/B] P/B 3.77 3.49
Price to Earnings [P/E] P/E 44.51 199.09
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 2.40
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 38.73
Dividend per Basic Share Div per Share (Qtr) 0.00 1.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 21.58
Interest Coverage Int. cover (Qtr) 0.92 -1.90
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 6.65 7.02
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -14.59 3.69
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 6.21
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -299.38 -15.96
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -16.02 -13.29
EBIT Growth (1y) % EBIT 1y % (Qtr) -69.02 -1.32
EBT Growth (1y) % EBT 1y % (Qtr) -104.28 -10.90
EPS Growth (1y) % EPS 1y % (Qtr) -68.18 9.03
FCF Growth (1y) % FCF 1y % (Qtr) 19.79 81.04
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.72 4.33
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.42 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.11
Cash Ratio Cash Ratio (Qtr) 0.59 0.59
Current Ratio Curr Ratio (Qtr) 1.23 0.90
Debt to Equity Ratio Debt/Equity (Qtr) 12.87 4.57
Interest Cover Ratio Int Coverage (Qtr) 0.92 -1.90
Times Interest Earned Times Interest Earned (Qtr) 0.92 -1.90
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 10.90 18.45
EBIT Margin % EBIT Margin % (Qtr) 2.19 11.71
EBT Margin % EBT Margin % (Qtr) -0.20 4.06
Gross Margin % Gross Margin % (Qtr) 44.40 47.91
Net Profit Margin % Net Margin % (Qtr) 1.20 2.46