MGM Resorts International (MGM) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

MGM Resorts International (MGM) Consumer Business Overview

MGM Resorts International is a global leader in casino entertainment and hospitality, operating iconic resorts in Las Vegas and Macau. The company distinguishes itself through its diverse portfolio of gaming, hotel, and entertainment offerings, catering to premium and leisure customers in the competitive consumer cyclical sector.

What Is the Investment Thesis for MGM?

With a market capitalization of $10.3B and a P/E ratio of 24.39, MGM demonstrates financial stability and growth prospects. Key value drivers include the expansion of its online gaming platform, BetMGM, and the continued recovery of the Las Vegas Strip and regional markets. The company's focus on enhancing customer experiences and leveraging its iconic brands positions it for sustained growth. Upcoming catalysts include the potential for further expansion in the Asian market and the development of new integrated resorts. However, potential risks include increased competition, regulatory changes, and economic downturns that could impact consumer spending.

Based on FMP financials and quantitative analysis

MGM Key Highlights

Market capitalization of $10.3B reflects investor confidence in MGM's market position.

• P/E ratio of 24.39 indicates a premium valuation based on earnings expectations.
• Gross margin of 44.2% demonstrates strong operational efficiency and pricing power.
• Operation of 29 hotel and destination gaming offerings as of February 17, 2021, showcasing extensive market reach.
• Online sports betting and iGaming through BetMGM provides a growth avenue in the digital gaming space.

Who Are MGM's Competitors?

MGM is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are MGM's Key Strengths?

Strong brand portfolio and reputation.

• Diversified revenue streams.
• Prime locations in Las Vegas and Macau.
• Established online gaming platform (BetMGM).

What Are MGM's Weaknesses?

High debt levels.

• Dependence on economic cycles.
• Exposure to regulatory changes.
• Intense competition in the gaming industry.

What Could Drive MGM Stock Higher?

Continued expansion and market share gains of BetMGM in the online gaming sector.

• Potential development of new integrated resorts in Asia, driving revenue growth.
• Recovery of the Las Vegas Strip and regional markets from the COVID-19 pandemic.
• Implementation of cost-saving initiatives to improve operational efficiency.

What Are the Key Risks for MGM?

Financial-distress signal — its Altman Z-Score of 0.80 sits in the distress zone (elevated bankruptcy risk).

• Economic downturns impacting consumer spending on leisure and entertainment.
• Increased competition from new entrants in the gaming industry.
• Regulatory changes and tax increases affecting gaming operations.
• Geopolitical risks in Macau impacting revenue from Asian operations.

What Are the Growth Opportunities for MGM?

• Growth opportunity 1: Expansion of BetMGM: BetMGM, MGM's online sports betting and iGaming platform, represents a significant growth opportunity. The online gaming market is experiencing rapid growth, with projections estimating a market size of over $92.9 billion by 2029. MGM can capitalize on this trend by expanding BetMGM's reach into new states and enhancing its product offerings. The company's established brand and customer base provide a competitive advantage in this rapidly evolving market. Timeline: Ongoing, with continuous expansion and product development.
• Growth opportunity 2: Development of Integrated Resorts in Asia: The Asian market, particularly Macau, offers substantial growth potential for MGM. The development of new integrated resorts in the region can drive revenue growth and increase market share. The Asian gaming market is expected to continue its growth trajectory, driven by increasing disposable incomes and tourism. MGM's experience in developing and operating successful resorts positions it well to capitalize on this opportunity. Timeline: Medium-term, with potential projects under development.
• Growth opportunity 3: Enhancement of Customer Loyalty Programs: Enhancing customer loyalty programs can drive repeat business and increase customer lifetime value. By offering personalized rewards and exclusive experiences, MGM can strengthen its relationships with its most valuable customers. The loyalty program market is highly competitive, but MGM's scale and resources provide an advantage in creating compelling and differentiated offerings. Timeline: Ongoing, with continuous refinement and optimization.
• Growth opportunity 4: Strategic Acquisitions and Partnerships: Strategic acquisitions and partnerships can expand MGM's reach and diversify its offerings. By acquiring complementary businesses or partnering with other companies, MGM can gain access to new markets, technologies, and customer segments. The mergers and acquisitions landscape in the gaming and hospitality industry is dynamic, with opportunities for consolidation and strategic alliances. Timeline: Opportunistic, with potential deals arising based on market conditions.
• Growth opportunity 5: Leveraging Data Analytics and AI: Leveraging data analytics and artificial intelligence (AI) can improve operational efficiency, personalize customer experiences, and optimize marketing efforts. By analyzing customer data, MGM can identify trends, predict demand, and tailor its offerings to meet individual preferences. The data analytics and AI market is rapidly evolving, with new technologies and applications emerging continuously. MGM's investment in these technologies can drive significant improvements in its business performance. Timeline: Ongoing, with continuous implementation and refinement.

What Are MGM's Competitive Advantages?

• Strong brand recognition and reputation in the gaming and hospitality industry.
• Prime locations of resorts in Las Vegas and Macau.
• Diversified revenue streams across gaming, hotel, and entertainment.
• Extensive customer loyalty programs and relationships.

What Does MGM Do?

MGM Resorts International, established in 1986 and formerly known as MGM MIRAGE until 2010, is a global leader in the gaming and entertainment industry. Headquartered in Las Vegas, Nevada, the company owns and operates a diverse portfolio of casino, hotel, and entertainment resorts across the United States and Macau. MGM's operations are divided into three key segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. These segments encompass a wide array of offerings, including gaming, hotel accommodations, convention facilities, dining experiences, entertainment venues, and retail outlets. The company's casino operations feature both traditional slots and table games, as well as innovative online sports betting and iGaming platforms through BetMGM. As of February 17, 2021, MGM's portfolio included 29 hotel and destination gaming offerings, showcasing its extensive reach and market presence. In addition to its resort properties, MGM also owns and operates the prestigious Las Vegas Strip Resorts and the Fallen Oak golf course, further diversifying its revenue streams and enhancing its brand image. MGM caters to a broad customer base, including premium gaming clients, leisure and wholesale travelers, business travelers, and group customers attending conventions, trade associations, and meetings. This diversified approach allows MGM to capture a significant share of the global gaming and hospitality market.

What Products and Services Does MGM Offer?

• Owns and operates casino resorts in the United States and Macau.
• Offers gaming, hotel, convention, dining, entertainment, and retail amenities.
• Operates online sports betting and iGaming through BetMGM.
• Manages Las Vegas Strip Resorts.
• Operates the Fallen Oak golf course.
• Caters to premium gaming customers, leisure travelers, and business travelers.

How Does MGM Make Money?

• Generates revenue from gaming operations, including slots and table games.
• Earns revenue from hotel accommodations, dining, and entertainment.
• Derives income from online sports betting and iGaming through BetMGM.
• Receives revenue from convention and meeting facilities.

What Industry Does MGM Operate In?

MGM Resorts International operates within the dynamic and competitive gambling, resorts, and casinos industry. The industry is characterized by evolving consumer preferences, technological advancements, and regulatory changes. Market trends include the growing popularity of online gaming, the increasing demand for integrated resort experiences, and the expansion of gaming into new geographic regions. MGM competes with other major players in the industry, such as Las Vegas Sands and Wynn Resorts, as well as regional casino operators and emerging online gaming platforms. The industry is subject to economic cycles, with consumer spending on leisure and entertainment impacting revenue and profitability.

Who Are MGM's Key Customers?

• Premium gaming customers seeking high-stakes gaming experiences.
• Leisure and wholesale travel customers visiting resorts for vacation.
• Business travelers attending conventions and meetings.
• Group customers, including trade associations and small meetings.

MGM Resorts International Financial Trajectory

MGM Resorts International (MGM) reported $4.45B in revenue for Q2 FY2026, a decline of 0.1% compared to the prior quarter. The company recorded net income of $292.4M, with diluted EPS of $1.13. Revenue has contracted over three consecutive quarters, which investors in this large-cap Consumer Cyclical stock should monitor closely. Across the four most recent quarters, MGM averaged $0.42 in diluted EPS.

Company Profile

MGM Resorts International operates in the Gambling, Resorts & Casinos industry within the Consumer Cyclical sector. It is headquartered in Las Vegas, US. The company is led by CEO William Joseph Hornbuckle. MGM has traded publicly since 1988.

How MGM Resorts International Is Valued

MGM Resorts International carries a market capitalization of $10.3B, placing it in the large-cap category. Analyst price targets span from $35.00 to $55.00, with a consensus of $48.03. At the current price of $40.73, that implies approximately 18% upside potential. Relative to its peer group, MGM's quantitative score of 48/100 is below the peer average of 60/100.

Return on equity for MGM Resorts International stands at 7.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.4%, showing how much profit it generates from its asset base. MGM trades at a trailing price-to-earnings ratio of 24.39, below the Consumer Cyclical sector average of ~32.70x. Its free cash flow yield is 14.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.33 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 1.6%, the inverse of the P/E and a quick read on earnings relative to price.

MGM Resorts International's Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 0.80 places it in the distress zone, a signal of elevated financial risk.

MGM Resorts International has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 25.4% above estimates on average.

Over the past six months, MGM Resorts International insiders filed 43 SEC Form 4 transactions — 14 sales and 29 purchases. On net that is roughly 1.1M shares acquired (about $36.9M) — insiders putting money in tends to read as conviction.

MGM Financials

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Latest MGM Resorts International Analysis

MGM Resorts International Consumer Cyclical Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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