Shares of Large-cap consumer discretionary company MGM Resorts International moved 3.7% this evening, and are now trading at $36.25 per share. The average analyst target price for the stock is $56.78.
MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and Macau.
Based on its trailing earning per share of 1.27, MGM Resorts International has a trailing 12 month Price to Earnings (P/E) ratio of 28.5 MGM has a forward P/E ratio of 14.2 based on its earnings guidance of $None.
The company has a price to earnings growth (PEG) ratio of -0.07. A number between 0 and 1 could mean that the market is undervaluing MGM Resorts International's estimated growth potential
EPS Trend Sustained Primarily by Reducing the Number of Shares Outstanding
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $11,763 | $12,900 | $5,162 | $9,680 | $13,127 | $14,824 |
| Gross Margins | 11% | 30% | -13% | 23% | 12% | 1% |
| Operating Margins | 12.0% | 31.0% | -12.0% | 24.0% | 11.0% | 0.0% |
| Net Margins | 5.0% | 17.0% | -6.0% | 13.0% | 11.0% | 3.0% |
| Net Income (MM) | $584 | $2,214 | -$287 | $1,254 | $1,473 | $375 |
| Net Interest Expense (MM) | $770 | $848 | $676 | $800 | $595 | $505 |
| Depreciation & Amort. (MM) | $1,178 | $1,305 | $1,211 | $1,151 | $3,482 | $3,234 |
| Earnings Per Share | $0.81 | $3.88 | -$2.02 | $2.41 | $3.49 | $1.14 |
| Diluted Shares (MM) | 550 | 528 | 494 | 487 | 413 | 292 |
| Free Cash Flow (MM) | $236 | $1,071 | -$1,764 | $883 | $991 | $1,183 |
| Capital Expenditures (MM) | $1,487 | $739 | $271 | $491 | $765 | $922 |
| Net Current Assets (MM) | -$17,112 | -$17,101 | -$4,296 | -$8,829 | -$21,510 | -$22,269 |
| Long Term Debt (MM) | $15,088 | $11,169 | $12,377 | $11,771 | $7,433 | $6,674 |
| Net Debt / EBITDA | 5.14 | 1.69 | 12.95 | 2.22 | 0.59 | 0.88 |
MGM Resorts International has a pattern of improving cash flows, growing revenues and decreasing reinvestment in the business, and decent operating margins with a negative growth trend. However, MGM Resorts International has slimmer gross margins than its peers, EPS growth achieved by reducing the number of outstanding shares, and a highly leveraged balance sheet.
