Download PDF

1. Company Snapshot

1.a. Company Description

MGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and Macau.The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China.Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities.


The company's casino operations include slots and table games, as well as online sports betting and iGaming through BetMGM.As of February 17, 2021, its portfolio consisted of 29 hotel and destination gaming offerings.The company also owns and operates Las Vegas Strip Resorts and Fallen Oak golf course.


Its customers include premium gaming customers; leisure and wholesale travel customers; business travelers; and group customers, including conventions, trade associations, and small meetings.The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010.MGM Resorts International was incorporated in 1986 and is based in Las Vegas, Nevada.

Show Full description

1.b. Last Insights on MGM

Breaking News: MGM Resorts International has announced an update on its earnings release date, now set for Thursday, February 5, 2026. Meanwhile, its joint venture BetMGM reported a strong FY 2025 performance, delivering EBITDA inflection and a successful strategic execution. BetMGM also started paying dividends, returning $270 million in cash to parent companies Entain and MGM Resorts International in Q4. Analysts at various firms have issued recommendations, with some reiterating a buy rating, while others maintain a hold or sell rating, citing varying expectations for the company's future performance.

1.c. Company Highlights

2. MGM Resorts International's 2025 Earnings: A Strong Recovery in Sight

MGM Resorts International reported consolidated net revenues growth of 6% in 2025, with a significant turnaround in BetMGM North America, achieving a nearly $470 million EBITDA turnaround. The company's EPS came out at $1.6, beating analyst estimates of $0.64. The strong performance was driven by record fourth-quarter and full-year EBITDAR in Macau, as well as solid results from regional operations. The company's Las Vegas segment showed signs of stabilization, with a decline in RevPAR being offset by an increase in casino revenue.

Publication Date: Feb -09

📋 Highlights
  • Record EBITDAR in Macau: Achieved 4Q and full-year EBITDAR records in Macau, contributing to consolidated net revenue growth of 6% in 2025.
  • BetMGM EBITDA Turnaround: North America segment turned annual EBITDA around by nearly $470 million, exceeding 2025 guidance.
  • Las Vegas Stabilization: EBITDAR stabilized in 4Q 2025, with RevPAR declines moderating and casino revenue up amid premium customer growth.
  • Regional Growth Drivers: Regional operations achieved record 4Q slot wins, with future projects like Maryland’s Sphere expected to add 2 million annual visitors.
  • Share Buybacks and Capital Allocation: Increased share repurchases in Q4, leveraging $650M in annual cash flow from operations and BetMGM distributions for Osaka investment and buybacks.

Segment Performance

The regional operations delivered solid results, with record fourth-quarter slot win and best-ever annual slot win performance for 2025. MGM China remains a strong outperformer, ending the year with a record high quarterly and full-year segment adjustment in EBITDAR. BetMGM North America beat 2025 guidance, turning annual EBITDA around by nearly $470 million. As Bill Hornbuckle, CEO, noted, "We exited 2025 with Las Vegas showing signs of stabilization and an improving trajectory."

Outlook for 2026

The outlook for 2026 is encouraging, with a more constructive backdrop and stabilizing environment. MGM Resorts is optimistic about growth in Las Vegas, driven by the return of the MGM Grand room inventory and improvements in the group and convention channel. The company is also identifying opportunities to operate more efficiently and make further progress on AI and technology initiatives.

Valuation

With a P/E Ratio of 48.7 and an EV/EBITDA of 32.48, the stock appears to be priced for significant growth. However, the company's ROE of 7.53% and ROIC of -0.43% suggest that there is still room for improvement in terms of profitability. The Net Debt / EBITDA ratio of 22.66 is a concern, but the company's cash flow generation and share buybacks are helping to mitigate this issue.

Conclusion on Growth Prospects

The company's growth pipeline includes digital growth in the near to medium term and the significant opportunity presented by MGM Osaka, set to open in 2030. Analysts estimate revenue growth of 1.5% for the next year, but the company's diversified portfolio and improving trajectory in Las Vegas suggest that this could be a conservative estimate. With a Free Cash Flow Yield of 13.36%, the stock presents an attractive investment opportunity for those looking for value in the hospitality and gaming sector.

3. NewsRoom

Card image cap

Super Bowl Is Our ‘Peak Moment,' Says BetMGM CEO

Feb -08

Source: youtube.com

Card image cap

MGM Resorts Q4 Earnings & Revenues Top Estimates, Rise Y/Y

Feb -06

Source: zacks.com

Card image cap

MGM Sees Clear Path to Las Vegas Growth

Feb -06

Source: gurufocus.com

Card image cap

MGM Resorts International (MGM) Q4 2025 Earnings Call Transcript

Feb -06

Source: seekingalpha.com

Card image cap

MGM Resorts International (MGM) Q4 2025 Earnings Call Highlights: Strong Digital Growth and Macau Success Amid Las Vegas Challenges

Feb -06

Source: gurufocus.com

Card image cap

MGM (MGM) Reports Q4 Earnings: What Key Metrics Have to Say

Feb -06

Source: zacks.com

Card image cap

MGM Resorts (MGM) Tops Q4 Earnings and Revenue Estimates

Feb -06

Source: zacks.com

Card image cap

MGM China Reports 2025 Annual Results

Feb -05

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.85%)

6. Segments

Las Vegas Strip Resorts

Expected Growth: 1.8%

MGM Resorts International's Las Vegas Strip Resorts growth of 1.8% is driven by increasing demand for luxury experiences, strategic room renovations, and a strong events calendar. Additionally, the company's focus on non-gaming revenue streams, such as entertainment and dining, has contributed to the growth. Furthermore, the ongoing recovery of the meetings and conventions business has also supported the segment's expansion.

Regional Operations

Expected Growth: 1.5%

MGM Resorts International's Regional Operations segment growth of 1.5% is driven by increasing demand for gaming and entertainment in regional markets, strategic marketing initiatives, and operational efficiencies. Additionally, the segment benefits from a strong presence in high-growth markets, such as the Midwest and Northeast regions, and a diversified portfolio of properties.

MGM China

Expected Growth: 2.5%

MGM China's 2.5% growth driven by increasing tourism in Macau, rising middle-class disposable income in China, and strategic expansion into new markets. Additionally, the company's focus on premium mass market and non-gaming amenities, such as luxury hotels and entertainment options, contributes to its growth momentum.

Corporate and Other

Expected Growth: 1.2%

MGM Resorts International's Corporate and Other segment growth of 1.2% is driven by increased management and licensing fees, growth in interactive gaming, and cost savings initiatives. Additionally, the company's focus on strategic partnerships, such as the BetMGM joint venture, and its efforts to enhance operational efficiencies also contribute to this growth.

7. Detailed Products

Luxury Hotel Rooms

MGM Resorts International offers luxurious hotel rooms and suites at its various properties, providing guests with comfortable and stylish accommodations.

Casino Gaming

MGM Resorts International operates casinos at its properties, offering a range of games, including slots, table games, and poker.

Dining and Nightlife

MGM Resorts International offers a diverse range of restaurants, bars, and nightclubs at its properties, featuring celebrity-chef restaurants and trendy lounges.

Entertainment and Shows

MGM Resorts International hosts various entertainment options, including Cirque du Soleil productions, concerts, and comedy acts.

Meetings and Conventions

MGM Resorts International offers extensive meeting and convention spaces at its properties, catering to corporate events and conferences.

Spas and Wellness

MGM Resorts International provides luxurious spa and wellness facilities at its properties, offering massages, treatments, and fitness centers.

Golf and Recreation

MGM Resorts International offers golf courses, pools, and recreational activities at its properties, providing guests with leisure options.

8. MGM Resorts International's Porter Forces

Forces Ranking

Threat Of Substitutes

MGM Resorts International faces moderate threat from substitutes, as customers have alternative options for entertainment and leisure activities.

Bargaining Power Of Customers

MGM Resorts International has a high bargaining power of customers, as customers have many options for gaming, hospitality, and entertainment, giving them the power to negotiate prices and services.

Bargaining Power Of Suppliers

MGM Resorts International has a low bargaining power of suppliers, as the company has a strong brand and scale, allowing it to negotiate favorable terms with suppliers.

Threat Of New Entrants

MGM Resorts International faces a low threat of new entrants, as the gaming and hospitality industry has high barriers to entry, including regulatory hurdles and significant capital requirements.

Intensity Of Rivalry

MGM Resorts International operates in a highly competitive industry, with intense rivalry among existing players, including Caesars Entertainment, Las Vegas Sands, and Wynn Resorts.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 63.00%
Debt Cost 3.95%
Equity Weight 37.00%
Equity Cost 15.04%
WACC 8.05%
Leverage 170.24%

11. Quality Control: MGM Resorts International passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Vail Resorts

A-Score: 5.6/10

Value: 4.0

Growth: 5.9

Quality: 6.4

Yield: 8.0

Momentum: 3.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Wynn Resorts

A-Score: 5.2/10

Value: 5.6

Growth: 6.1

Quality: 4.7

Yield: 1.0

Momentum: 8.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Churchill Downs

A-Score: 4.7/10

Value: 4.3

Growth: 8.9

Quality: 5.5

Yield: 0.0

Momentum: 1.5

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Marriott Vacations Worldwide

A-Score: 4.6/10

Value: 7.4

Growth: 5.7

Quality: 4.0

Yield: 6.0

Momentum: 1.0

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
MGM Resorts

A-Score: 4.0/10

Value: 4.2

Growth: 7.6

Quality: 2.6

Yield: 0.0

Momentum: 4.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Hilton Grand Vacations

A-Score: 3.8/10

Value: 3.6

Growth: 5.6

Quality: 3.2

Yield: 0.0

Momentum: 5.0

Volatility: 5.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

38.06$

Current Price

38.06$

Potential

-0.00%

Expected Cash-Flows