MGM Resorts (MGM) AI Stock Analysis

• Market Cap: $8.55B
• Dividend Yield: N/A
• Average Volume (3M): 6.55M
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.61
• Revenue Growth: 2.76%
• EPS Growth: -14.31%
• Country: US
• Employees: 60,000
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.69
• Shares Outstanding: 272,149,140
• 10 Day Avg. Volume: 6,044,174
• 30 Day Avg. Volume: 6,551,019
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 4.55
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.96
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $45.80
• Price Target Upside: 42.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

MGM Resorts scores a 73, reflecting strong earnings performance and strategic initiatives like the BetMGM turnaround and Marriott partnership. Operational efficiency and corporate governance improvements are notable strengths, while high leverage poses a risk. Technical indicators suggest moderate upward momentum, and the valuation appears reasonable.

Positive Factors

Growth Opportunities

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

Operational Performance

Improvement in MGM's Regional properties and Las Vegas Strip operations positions the company to benefit from strong demand.

Stock Buybacks

MGM is aggressively repurchasing stock, which could help address its undervaluation in the market.

Negative Factors

Digital Segment Losses

MGM's digital segment is expected to incur losses of ~$80m, despite being theoretically profitable on a stand-alone basis.

Earnings Decline

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

Revenue Decline

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, 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 makes money primarily through its operations in the hospitality and entertainment sectors. The company generates revenue from its hotel accommodations, casino gaming, food and beverage services, and entertainment offerings. Room bookings and related services provide significant income, while the casino segment contributes a substantial portion through gaming activities including table games, slot machines, and sports betting. Additionally, MGM Resorts earns from conventions and event hosting, leveraging its large-scale facilities and prime locations. Partnerships with entertainment companies and celebrity chefs also enhance its revenue streams by attracting visitors seeking high-profile experiences.

MGM Resorts Financial Statement Overview

Summary

MGM Resorts demonstrates strong operational efficiency with solid profit margins and cash flow generation. Although revenue growth is stagnant, profitability measures are positive. The balance sheet shows high leverage, indicating potential risk, and suggests a need for balance sheet strengthening. 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
	EBIT
1.49B	1.89B	-1.81B	631.33M	-2.08B
	EBITDA
2.39B	2.75B	1.77B	1.71B	558.86M
	Net Income Common Stockholders
746.56M	1.14B	206.73M	1.25B	-1.32B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.42B	2.93B	5.91B	4.70B	5.10B
	Total Assets
42.23B	42.37B	45.69B	40.90B	36.49B
	Total Debt
31.61B	31.62B	33.99B	24.69B	21.02B
	Net Debt
29.19B	28.69B	28.08B	19.99B	15.92B
	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: 32.21
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 32.21 is above the 20-day moving average (MA) of 30.68, above the 50-day MA of 30.96, and below the 200-day MA of 35.55, indicating a neutral trend. The MACD of 0.39 indicates Negative momentum. The RSI at 57.12 is Neutral, neither overbought nor oversold. The STOCH value of 52.32 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	78 Outperform	$5.62B	11.45	35.62%	0.97%	6.06%	10.05%
MGM	73 Outperform	$8.55B	14.07	21.38%	―	2.76%	-14.31%
H	72 Outperform	$11.60B	15.84	22.31%	0.48%	-7.38%	19.62%
WYNN	64 Neutral	$8.87B	19.06	-51.73%	1.19%	-0.08%	-48.66%
CZR	62 Neutral	$5.58B	―	-5.56%	―	-1.25%	-130.83%
WH	62 Neutral	$6.42B	19.99	53.31%	1.86%	4.79%	48.48%
Sector *	61 Neutral	$6.59B	11.77	3.06%	3.98%	2.56%	-20.85%

MGM Resorts Corporate Events

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.

Spark’s Take on MGM Stock

According to Spark, TipRanks’ AI Analyst, MGM is a Outperform.

MGM Resorts scores a 72, reflecting strong earnings performance driven by strategic initiatives such as the BetMGM turnaround and Marriott partnership. The company’s financial performance shows operational efficiency but highlights risks due to high leverage. Technical indicators suggest moderate upward momentum, while the valuation is reasonable. Recent corporate governance improvements further support potential growth.

To see Spark’s full report on MGM stock, click here.

MGM Resorts Appoints Dame Donna Langley to Board

On March 12, 2025, MGM Resorts International appointed Dame Donna Langley, Chairman of NBCUniversal Entertainment & Studios, to its Board of Directors, expanding the board to 13 members. Langley’s extensive experience in entertainment programming and marketing is expected to significantly benefit MGM Resorts as it aims to enhance its gaming and entertainment offerings. Her appointment is seen as a strategic move to leverage her expertise in content strategy and industry leadership, potentially strengthening MGM’s market position and operational strategies.