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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.

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1.b. Last Insights on MGM

MGM Resorts International's recent performance has been impacted by mixed Q3 results, with weakness in the Las Vegas Strip segment due to MGM Grand's renovation. However, the company has shown strength in China, capturing market share on top of strong industry growth. A $300 million room and suite remodel at MGM Grand Hotel & Casino has been completed, enhancing its hospitality offerings. Additionally, the company's digital operations, including BetMGM, have contributed to growth, with BetMGM revenues surging 36% YoY. Institutional investors, such as HG Vora Capital Management, have sold shares.

1.c. Company Highlights

2. MGM Resorts' Q3 2025 Earnings: A Mixed Bag

MGM Resorts International reported a mixed financial performance for the third quarter of 2025, with consolidated net revenues growing thanks to the geographic and channel diversity of their business. However, the Las Vegas segment reported $601 million in EBITDAR, down $130 million year-over-year, primarily due to decreased business interruption proceeds, increased insurance expense, and disruption from the MGM Grand Room renovation. The company's EPS came out at -$1.04674, missing estimates of $0.37. Revenue growth was modest, and the company's EBITDAR margin was impacted by the challenges in Las Vegas.

Publication Date: Oct -30

📋 Highlights
  • Withdrawal from Yonkers Project:: MGM abandoned its $400M minimum tax commercial license application in Yonkers, NY, prioritizing capital discipline over high-hurdle returns.
  • Northfield Park Sale:: Sold Northfield Park for $546M cash, capitalizing on 6 years of value creation and portfolio optimization.
  • Las Vegas Segment EBITDAR Decline:: Q3 EBITDAR fell to $601M (down $130M YoY), driven by $65M lower business interruption proceeds and $6M insurance expense increase.
  • BetMGM Cash Distribution:: Anticipated $100M+ cash return from BetMGM in Q4, reflecting digital venture's profitability and strategic capital reallocation.
  • Macau Market Share:: Maintained mid-teens gaming share in Macau with October growth, leveraging 56.7% ownership in MGM China and Pansy Ho’s partnership.

Segment Performance

The Las Vegas segment was a major contributor to the company's mixed performance, with EBITDAR down $130 million year-over-year. The regional operations, on the other hand, had another steady quarter, growing net revenues modestly. The company's digital business, BetMGM, reported strong results and raised the company's full-year guidance for the second time this year. BetMGM is expected to return capital to MGM Resorts with an initial cash distribution of at least $100 million in the fourth quarter.

Valuation and Outlook

With a P/E Ratio of 122.06 and an EV/EBITDA of 21.4, MGM Resorts' valuation suggests that the market is pricing in significant growth expectations. However, the company's ROE and ROIC are relatively low, at 2.42% and 2.35%, respectively. The company's Net Debt / EBITDA ratio is high, at 15.75, indicating a significant debt burden. Analysts estimate revenue growth of 1.5% for next year, which may not be sufficient to justify the current valuation. As William Hornbuckle mentioned, "We remain very bullish on Las Vegas and expect stabilization in the fourth quarter and growth in 2026 and beyond." The company's diversification efforts, including its digital business, may help drive growth and unlock value.

Digital Investments and M&A

MGM Resorts is prioritizing its digital investments, particularly BetMGM, which is expected to drive growth and return capital to the company. The company's return thresholds are high, around 25-30%, and they are disciplined allocators of capital. They are looking for opportunities with attractive returns, including share buybacks. The company's M&A appetite is focused on high-end opportunities that align with their brand and strategy.

Conclusion on Financials

The financial performance and guidance indicate a challenging quarter, but the company is optimistic about the future. The stock's valuation metrics suggest that the market is pricing in significant growth expectations, but the company's financial performance and guidance do not entirely justify these expectations. The company's diversification efforts, including its digital business, may help drive growth and unlock value.

3. NewsRoom

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ARIA Resort & Casino and JKS Restaurants Unveil Gymkhana, Bringing Indian Fine Dining to the Las Vegas Strip for the First Time

Dec -04

Source: prnewswire.com

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MGM's BetMGM Expands Into Missouri With New Sportsbook & Mobile App

Dec -02

Source: zacks.com

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New York City Getting 3 Casinos: Billionaire Steve Cohen, Trump Organization Could Be Big Winners

Dec -01

Source: feeds.benzinga.com

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Why These Casino Stocks May See a Bull Market, Even If the Rest of the Market Is Selling Off

Dec -01

Source: 247wallst.com

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NoMad Las Vegas Set to Rebrand into The Reserve at Park MGM

Dec -01

Source: prnewswire.com

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BetMGM Launches Sports Betting in Missouri

Dec -01

Source: prnewswire.com

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Century Casinos Goes Live with Online Sports Betting and Retail Sportsbook at Century Casino & Hotel Cape Girardeau in Partnership with BetMGM in Missouri

Dec -01

Source: prnewswire.com

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Are MGM Stock Investors Happy, Or Did They Miss Out?

Nov -24

Source: fool.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

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Vail Resorts

A-Score: 5.5/10

Value: 3.7

Growth: 5.9

Quality: 5.5

Yield: 8.0

Momentum: 3.0

Volatility: 7.0

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Marriott Vacations Worldwide

A-Score: 5.4/10

Value: 6.7

Growth: 5.8

Quality: 5.5

Yield: 6.0

Momentum: 3.5

Volatility: 4.7

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Wynn Resorts

A-Score: 5.0/10

Value: 5.4

Growth: 5.7

Quality: 4.8

Yield: 1.0

Momentum: 7.5

Volatility: 5.7

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Hilton Grand Vacations

A-Score: 4.6/10

Value: 4.8

Growth: 5.6

Quality: 4.6

Yield: 0.0

Momentum: 7.0

Volatility: 5.3

1-Year Total Return ->

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Churchill Downs

A-Score: 4.5/10

Value: 4.3

Growth: 8.9

Quality: 5.5

Yield: 0.0

Momentum: 1.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
MGM Resorts

A-Score: 3.9/10

Value: 4.4

Growth: 7.7

Quality: 2.4

Yield: 0.0

Momentum: 3.5

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

36.07$

Current Price

36.07$

Potential

-0.00%

Expected Cash-Flows