Why Are People Talking About Investing in MGM Resorts International (MGM)?

MGM Resorts International moved 1.2% this afternoon session, trading between a high of $38.78 and a low of $37.1499 per share. Yesterday the stock finished at $38.21 per share, compared to an average analyst target price of $56.78.

MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and Macau. The large-cap hotels/resorts company is based in the United States, and over the last twelve months it has returned a dividend yield of 0.0%. MGM Resorts International has trailing twelve months earnings per share (EPS) of 2.98, which at today's prices amounts to a price to earnings (P/E) ratio of 13.0.

Based on its expected future earnings growth, the company has a price to earnings growth (PEG) ratio of -0.07. Usually a PEG ratio between 0 and 1 indicates a potentially undervalued company.

Overview of the Company's Gross Margins:

Date Reported Revenue ($ k) Cost of Revenue ($ k) Gross Margins (%) YoY Growth (%)
2023 14,823,791 14,620,461 1 -91.67
2022 13,127,485 11,527,900 12 -47.83
2021 9,680,140 7,486,264 23 276.92
2020 5,162,082 5,847,454 -13 -143.33
2019 12,899,672 9,078,978 30 172.73
2018 11,763,096 10,441,300 11

MGM Resorts International's 10.7% average gross margins are thinner than the 56.29% average of the Lodging industry, implying that the firm might be lacking in competitivity.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.