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MGM Resorts
(NYSE:MGM)
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Rating:56Neutral
Price Target:
$33.00
▼(-23.86% Downside)
Action:Reiterated
Date:09/29/26
The score reflects mixed financial quality (margin compression and very high leverage, partly offset by solid revenue growth and strong cash generation) and weak price/momentum trends. These are balanced by a comparatively positive earnings call highlighting record results, continued operating momentum across key segments, and ongoing buybacks, while valuation appears broadly neutral at a ~19 P/E with no dividend yield provided.
Positive Factors
Strong Revenue Growth
Meaningful revenue expansion indicates sustained demand across MGM’s resort, gaming, and entertainment portfolio. Record quarterly revenue and continued growth provide a stronger base for operating leverage, reinvestment, and durable cash generation over the next several quarters.
Negative Factors
Very High Leverage
Extremely high leverage increases sensitivity to refinancing conditions, interest costs, and downturns in discretionary casino and resort demand. It can also constrain capital allocation, making it harder for MGM to absorb volatility or pursue investments without relying heavily on ongoing cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Meaningful revenue expansion indicates sustained demand across MGM’s resort, gaming, and entertainment portfolio. Record quarterly revenue and continued growth provide a stronger base for operating leverage, reinvestment, and durable cash generation over the next several quarters.
Read all positive factors
MGM Resorts Key Performance Indicators (KPIs)
Any
Revenue by Operation
Shows revenue generated from various operations, offering insight into the performance of different business units and their contribution to overall growth.
Shows revenue generated from various operations, offering insight into the performance of different business units and their contribution to overall growth.
Data provided by:
The Fly
The FlyMGM Resorts (MGM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.38B
Dividend Yield0.03%
Average Volume (3M)4.38M
Price to Earnings (P/E)17.6
Beta (1Y)1.04
Revenue Growth3.19%
EPS Growth-8.14%
CountryUS
Employees69,000
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)1.67
Shares Outstanding251,592,760
10 Day Avg. Volume5,557,152
30 Day Avg. Volume4,378,889
Financial Highlights & Ratios
PEG Ratio-0.70
Price to Book (P/B)3.98
Price to Sales (P/S)0.55
P/FCF Ratio5.80
Enterprise Value/Market Cap5.53
Enterprise Value/Revenue2.30
Enterprise Value/Gross Profit5.20
Enterprise Value/Ebitda20.50
Forecast
1Y Price Target
$43.73Price Target Upside0.89% Upside
Rating ConsensusHold
Number of Analyst Covering13
EPS Forecast (FY)1.83
Revenue Forecast (FY)$17.63B
MGM Resorts Business Overview & Revenue Model
Company Description
MGM Resorts International, through its various divisions, manages and possesses casino, lodging, and entertainment complexes across the United States and Macau. The company's operations are segmented into three main areas: Las Vegas Strip Resorts,...
How the Company Makes Money
MGM Resorts makes money by operating integrated resorts and related entertainment assets, monetizing real estate and brand value, and offering digital gaming products. (1) Casino gaming revenue: A major portion of revenue is generated from casino ...
MGM Resorts Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial positives — record consolidated revenue, Strip EBITDAR improvement, all‑time regional results, double‑digit digital/topline growth, higher convention mix and tangible progress on Osaka — while acknowledging some short‑term headwinds such as hold volatility, seasonal softness at lower‑tier Strip properties, digital profitability still negative in the near term, and sensitivity in Macau to events. Management emphasized momentum, normalization (Macau rebound, July improvement in Vegas), disciplined capital allocation (share buybacks, targeted CapEx), and an overall constructive outlook.Positive Updates
Record Consolidated Revenue and Strip Momentum
Company delivered record second quarter consolidated net revenue; Las Vegas Strip resorts posted year‑over‑year revenue growth for the second consecutive quarter and Strip segment adjusted EBITDAR increased by $25 million year‑over‑year, driven largely by recovery at MGM Grand.
Negative Updates
Lower‑End Strip Properties Still Challenged
Lower‑tier Strip properties (notably Luxor and Excalibur) remain pressured; while offers (e.g., all‑inclusive) have stabilized occupancy and been margin‑accretive, these assets have not fully recovered and continue to weigh on some RevPAR metrics.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Consolidated Revenue and Strip Momentum
Company delivered record second quarter consolidated net revenue; Las Vegas Strip resorts posted year‑over‑year revenue growth for the second consecutive quarter and Strip segment adjusted EBITDAR increased by $25 million year‑over‑year, driven largely by recovery at MGM Grand.
Read all positive updates
Company Guidance
Management said the company is well positioned to meet full‑year guidance, keeping group & convention on pace to represent 20% of room mix for the year; MGM Digital grew net revenue 20% in Q2 and reported segment‑adjusted EBITDAR losses of $31M but expects full‑year EBITDA losses to be less than last year; BetMGM/ iGaming now drives over two‑thirds of net revenue, with iGaming net revenue up 8% in Q2, H1 handle per active +7% and NGR per active +9%, and online sports H1 handle per active and NGR per active up ~18% and 17%; MGM China held 16.4% market share (up 1 ppt sequential); regionals produced an all‑time same‑store quarterly revenue with same‑store slot handle and slot win up ~43%; Osaka construction is on time/on budget with >60% of foundation piles complete and a H2 2026 funding commitment of $125–$175M (≈$600M spent to date and ~ $1B planned in each of 2027 and 2028 for the 2030 opening); and the company repurchased ~4.3M shares for $164M in Q2, having reduced share count ~50% over five years.MGM Resorts Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
34
Negative
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.76B | 17.54B | 17.24B | 16.16B | 13.13B | 9.68B |
| Gross Profit | 7.84B | 7.79B | 7.85B | 7.61B | 6.47B | 4.65B |
| EBITDA | 1.99B | 1.72B | 2.39B | 2.40B | 4.98B | 3.41B |
| Net Income | 426.31M | 206.25M | 746.56M | 1.14B | 1.47B | 1.25B |
Balance Sheet | ||||||
| Total Assets | 39.85B | 41.37B | 42.23B | 42.37B | 45.69B | 40.90B |
| Cash, Cash Equivalents and Short-Term Investments | 2.55B | 2.06B | 2.42B | 2.93B | 5.91B | 4.70B |
| Total Debt | 29.85B | 56.16B | 31.61B | 31.62B | 33.99B | 24.69B |
| Total Liabilities | 36.47B | 38.10B | 38.51B | 38.00B | 40.32B | 29.77B |
| Stockholders Equity | 2.51B | 2.43B | 3.02B | 3.81B | 4.83B | 6.07B |
Cash Flow | ||||||
| Free Cash Flow | 1.67B | 1.67B | 1.21B | 1.77B | 1.00B | 882.73M |
| Operating Cash Flow | 2.64B | 2.74B | 2.36B | 2.70B | 1.77B | 1.37B |
| Investing Cash Flow | -781.08M | -1.35B | -1.28B | -722.52M | 2.11B | 1.54B |
| Financing Cash Flow | -1.26B | -1.73B | -1.56B | -5.00B | -3.02B | -2.81B |
MGM Resorts Technical Analysis
Negative
43.34
Price Trends
39.09
Negative
42.58
Negative
39.54
Negative
Market Momentum
-3.01
Positive
13.53
Positive
11.25
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 43.34 is above the 20-day moving average (MA) of 33.51, above the 50-day MA of 39.09, and above the 200-day MA of 39.54, indicating a bearish trend. The MACD of -3.01 indicates Positive momentum. The RSI at 13.53 is Positive, neither overbought nor oversold. The STOCH value of 11.25 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $5.04B | 3.05 | 70.49% | 1.12% | 1.75% | 249.96% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $5.27B | 12.87 | 91.10% | 4.07% | 0.86% | -3.37% | |
57 Neutral | $23.41B | 14.01 | 141.97% | 3.18% | 18.11% | 29.86% | |
56 Neutral | $7.38B | 17.56 | 16.96% | 0.03% | 3.19% | -8.14% | |
56 Neutral | $7.72B | 17.15 | -174.87% | 1.33% | 6.36% | 21.32% | |
50 Neutral | $6.03B | -12.97 | -13.21% | ― | 2.41% | -146.70% |
* Consumer Cyclical Sector Average
MGM
MGM Resorts
29.32
-3.13
-9.65%
BYD
Boyd Gaming
69.37
-13.20
-15.99%
LVS
Las Vegas Sands
36.15
-10.87
-23.12%
WYNN
Wynn Resorts
74.96
-40.07
-34.84%
CZR
Caesars Entertainment
29.58
7.44
33.60%
RRR
Red Rock Resorts
50.18
-5.62
-10.07%
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.