📊 MGM Key Takeaways
Is MGM Resorts International (MGM) a Good Investment?
MGM demonstrates solid operational cash generation and interest coverage, but concerning profitability trends and high leverage limit upside potential. The company faces challenging fundamentals with declining EPS despite revenue growth, suggesting margin pressure and operational headwinds in its hospitality segment.
MGM Resorts International shows solid cash-generation capacity, with $2.53B of operating cash flow and $1.46B of free cash flow, supported by modest revenue growth and adequate liquidity. However, profitability quality is weak relative to scale, with a 1.2% net margin, very low ROA, and a sharp decline in diluted EPS, suggesting earnings are under pressure despite stable operations. The fundamentals support financial resilience, but not enough operating efficiency or bottom-line momentum to justify a more bullish rating.
Why Buy MGM Resorts International Stock? MGM Key Strengths
- Strong free cash flow generation of $1.5B with 8.3% FCF margin providing financial flexibility
- Healthy interest coverage ratio of 9.1x indicating manageable debt service capability
- Adequate liquidity with current ratio of 1.23x and $2.1B cash position
- Strong operating cash flow and positive free cash flow provide internal funding flexibility
- Liquidity appears adequate, with a 1.23x current ratio and 9.1x interest coverage
- Revenue remained positive year over year, indicating stable demand in the core business
MGM Stock Risks: MGM Resorts International Investment Risks
- High financial leverage with debt-to-equity ratio of 2.56x constraining financial flexibility and increasing distress risk
- Declining profitability with net income down 2.5% YoY and diluted EPS collapsing 68.3% despite revenue growth, indicating significant margin compression
- Thin net margin of 1.2% and low ROA of 0.5% reflect capital-intensive business model with limited returns on assets
- Net profitability is thin, with only a 1.2% net margin and weak asset returns
- Diluted EPS fell sharply year over year, indicating pressure on per-share earnings quality
- Leverage remains meaningful relative to equity, limiting balance-sheet flexibility if operations weaken
Key Metrics to Watch
- Operating margin trend and ability to maintain or expand margins amid competitive pressures
- Debt reduction progress and debt-to-equity ratio movement toward healthier leverage levels
- Same-store revenue and occupancy rates as leading indicators of operational performance
- Operating margin and net margin progression
- Free cash flow consistency versus capital expenditure needs
MGM Resorts International (MGM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
MGM Resorts International presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
MGM Profit Margin, ROE & Profitability Analysis
MGM vs Real Estate Sector: How MGM Resorts International Compares
How MGM Resorts International compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is MGM Resorts International Stock Overvalued? MGM Valuation Analysis 2026
Based on fundamental analysis, MGM Resorts International shows some fundamental concerns relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
MGM Resorts International Balance Sheet: MGM Debt, Cash & Liquidity
MGM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: MGM Resorts International's revenue has grown significantly by 36% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.19 reflects profitable operations.
MGM Revenue Growth, EPS Growth & YoY Performance
MGM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $4.2B | -$87.8M | $-0.32 |
| Q2 2025 | $4.3B | $49.0M | $0.18 |
| Q1 2025 | $4.3B | $148.6M | $0.51 |
| Q3 2024 | $4.0B | $161.1M | $0.46 |
| Q2 2024 | $3.9B | $187.1M | $0.55 |
| Q1 2024 | $3.9B | $217.5M | $0.67 |
| Q3 2023 | $3.4B | $161.1M | $0.46 |
| Q2 2023 | $3.3B | $200.8M | $0.55 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
MGM Resorts International Dividends, Buybacks & Capital Allocation
MGM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for MGM Resorts International (CIK: 0000789570)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MGM
What is the AI rating for MGM?
MGM Resorts International (MGM) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MGM's key strengths?
Claude: Strong free cash flow generation of $1.5B with 8.3% FCF margin providing financial flexibility. Healthy interest coverage ratio of 9.1x indicating manageable debt service capability. ChatGPT: Strong operating cash flow and positive free cash flow provide internal funding flexibility. Liquidity appears adequate, with a 1.23x current ratio and 9.1x interest coverage.
What are the risks of investing in MGM?
Claude: High financial leverage with debt-to-equity ratio of 2.56x constraining financial flexibility and increasing distress risk. Declining profitability with net income down 2.5% YoY and diluted EPS collapsing 68.3% despite revenue growth, indicating significant margin compression. ChatGPT: Net profitability is thin, with only a 1.2% net margin and weak asset returns. Diluted EPS fell sharply year over year, indicating pressure on per-share earnings quality.
What is MGM's revenue and growth?
MGM Resorts International reported revenue of $17.5B.
Does MGM pay dividends?
MGM Resorts International does not currently pay dividends.
Where can I find MGM SEC filings?
Official SEC filings for MGM Resorts International (CIK: 0000789570) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MGM's EPS?
MGM Resorts International has a diluted EPS of $0.76.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MGM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, MGM Resorts International has a HOLD rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is MGM stock overvalued or undervalued?
Valuation metrics for MGM: ROE of 8.5% (sector avg: 8%), net margin of 1.2% (sector avg: 20%). Higher ROE suggests strong returns relative to peers.
Should I buy MGM stock in 2026?
Our dual AI analysis gives MGM Resorts International a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MGM's free cash flow?
MGM Resorts International's operating cash flow is $2.5B, with capital expenditures of $1.1B. FCF margin is 8.3%.
How does MGM compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 1.2% (avg: 20%), ROE 8.5% (avg: 8%), current ratio 1.23 (avg: 1.5).
Is MGM Resorts International carrying too much debt?
MGM has a debt-to-equity ratio of 2.56x, which is above the Real Estate sector average of 1.5x. However, the current ratio of 1.23 suggests adequate short-term liquidity.