MGM Resorts International (MGM) Stock Analysis
Verdict: WATCH (do not buy)
MGM's high leverage (13.7x Net Debt/EBITDA) and sub-6% operating margins face structural headwinds after People Inc. pulled its buyout offer.
Investment score: 41/100
Analysis as of
7-factor investment score
- Valuation: 40/100 (weight 20%)
- Financial Health: 45/100 (weight 15%)
- Technical Momentum: 35/100 (weight 15%)
- Earnings Quality: 30/100 (weight 15%)
- Insider Sentiment: 45/100 (weight 10%)
- Analyst Consensus: 60/100 (weight 10%)
- Risk-Adjusted Return: 40/100 (weight 15%)
MGM Resorts International opportunities and risks
What speaks for MGM
- Free Cash Flow Generation
What speaks against MGM
- Extreme Balance Sheet Leverage and Interest Burden
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| MGM | 22.7x | 0.5x | 18.5x | 44.2% | 2.4% | 17.6% |
| LVS | 15.2x | 1.9x | 8.1x | 50.9% | 12.8% | 11.0% |
| FLUT | n/a | 0.9x | 16.3x | 42.5% | -4.6% | 5.1% |
| DKNG | n/a | 1.7x | 70.3x | 40.5% | -2.7% | 5.8% |
| WYNN | 18.6x | 1.1x | 9.9x | 38.6% | 6.1% | 9.4% |
| CZR | n/a | 0.5x | 9.1x | 56.5% | -3.8% | 10.1% |
| Peer median | n/a | 1.1x | 9.9x | 42.5% | -2.7% | 9.4% |
Frequently asked questions about MGM Resorts International (MGM)
Is MGM stock a good investment?
The TradeMates model rates MGM Resorts International as WATCH (do not buy) with an investment score of 41/100. MGM's high leverage (13.7x Net Debt/EBITDA) and sub-6% operating margins face structural headwinds after People Inc. pulled its buyout offer. This is algorithmic model output, not personal investment advice.
Is MGM stock a buy?
The TradeMates model verdict for MGM is WATCH (do not buy) with an investment score of 41/100. Treat this as a model signal to review, not a personal buy recommendation.