MGM
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Horizon6–12M
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MGM Stock AI Analysis

ESEN AI analysis of MGM stock updated every 12 hours.

ESEN Institutional Analysis

MGM Systematic Research

MGM Resorts International presents a distinctive profile within the integrated resort sector, with systematic screening revealing a revenue-to-market cap ratio of 0.63 that positions the operator at a notable discount to sales relative to historical gaming industry multiples. The current market capitalization of $11.2 billion reflects a 13.6% distance from the 52-week high of $51.59, while the stock trades at $44.57 following a 2.39% single-day decline.

The fundamental framework highlights several structural attributes:

  • Operating leverage characteristics: The gross margin of 44.16% contrasts sharply with the operating margin of 5.18% and net margin of 1.03%, indicating significant fixed-cost absorption dynamics typical of capital-intensive resort operations.
  • Profitability compression: The trailing twelve-month P/E ratio of 61.16 combined with earnings per share of $0.68 reflects year-over-year EPS contraction of 69.81%, suggesting earnings normalization challenges following post-pandemic recovery peaks.
  • Balance sheet structure: The debt-to-equity ratio of 2.67 characterizes the leveraged capital structure common among major resort operators, while the current ratio of 1.23 indicates adequate near-term liquidity coverage.

Return metrics warrant attention, with ROE at 6.94% and ROA at 0.44% trailing broader hospitality sector benchmarks. The price-to-book ratio of 4.11 against book value per share of $9.41 implies market expectations for asset productivity improvements. The beta coefficient of 1.3 signals amplified sensitivity to broader economic cycles. Relative to peers including Las Vegas Sands and Flutter Entertainment, MGM's revenue growth of 3.39% year-over-year represents moderate expansion within a competitive landscape experiencing varying degrees of regional gaming market maturation.

Analysis updated monthly based on systematic screening of fundamentals, profitability, growth, and peer positioning.

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