MGM Resorts International (MGM) AI Stock Analysis
MGM AI stock analysis summary
AI ResearchMGM Resorts International operates casino resorts in Las Vegas, regional US markets, and Macau, as well as digital gaming through BetMGM. Trailing twelve month revenue reached $17.76B with net income dropping in recent fiscal years to $206.2M in FY2025. The company carries $29.85B in total debt while retiring equity, shrinking its share count by 45.2% over 5 years.
- Market cap
- $7.32B
- Revenue (TTM)
- $17.76B
- P/E
- 17.7x fwd 17.4x
- 1Y return
- -9.8% S&P 500 16.8%
- Avg. target
- $45.70 59.8% vs last close
Bull case
- Quarterly earnings increased 519.4% year-over-year in the quarter ended June 30, 2026.
- Aggressive capital returns reduced the share count by 45.2% over a 5-year period, supported by $1.67B in FY2025 free cash flow.
- The consensus mean price target of $45.70 sits 59.8% above the last closing price of $28.60.
Bear case
- Total debt of $29.85B versus $2.55B in cash results in a high debt-to-equity ratio of 11.87.
- Net income fell from $1.25B in FY2021 to $206.2M in FY2025, as annual operating margins declined to 5.7%.
- Consensus estimates project current fiscal year EPS to fall 45.8% to $1.79.
What MGM Resorts does
MGM Resorts International is a hospitality and entertainment company that operates casino, hotel, and entertainment resorts across the United States and Macau. It operates through three main segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. The company's portfolio features gaming facilities, luxury accommodations, convention spaces, dining, entertainment venues, and retail outlets catering to gaming enthusiasts, leisure travelers, and business groups. In addition to physical resort operations, MGM engages in online sports betting and iGaming through its digital platform, BetMGM.
Growth and profitability
Revenue rose from $9.68B in FY2021 to $17.54B in FY2025, reflecting a 5-year revenue CAGR of 29.0%, though annual growth slowed to 1.7% in FY2025. Operating margin contracted over that period from 23.5% in FY2021 to 5.7% in FY2025, with net income decreasing from $1.25B in FY2021 to $206.2M in FY2025. Over the trailing twelve months, revenue totaled $17.76B, with an operating margin of 6.8% and net profit margin of 2.4%. In the latest quarter ended June 30, 2026, quarterly revenue grew 1.0% year-over-year, while quarterly earnings grew 519.4%.
Balance sheet and cash flow
As of June 30, 2026, MGM Resorts held $2.55B in cash and short-term investments against $29.85B in total debt, resulting in net debt of $27.30B. Shareholders' equity stood at $2.51B, yielding a debt-to-equity ratio of 11.87 and a current ratio of 1.33. In FY2025, operating cash flow was $2.74B and free cash flow reached $1.67B. Cash utilization included $1.07B in capital expenditures and $1.23B spent on share buybacks, contributing to a 45.2% reduction in share count over 5 years.
Valuation and performance
MGM's enterprise value is $37.09B, with a market capitalization of $7.32B. The stock trades at a trailing P/E of 17.7x, below the 20.1x median of its S&P 500 Consumer Cyclical peers. Its forward P/E of 17.4x and EV/EBITDA of 18.6x sit above the peer group medians of 15.6x and 13.2x, respectively. Over the past year, MGM's stock fell 9.8%, while the S&P 500 (SPY) returned 16.8%. Over 5 years, the stock decreased 40.3% compared to an 83.0% gain for SPY.
What analysts expect
Wall Street analysts hold 8 Strong Buy, 2 Buy, 11 Hold, 0 Sell, and 2 Strong Sell recommendations. The mean price target is $45.70, which is 59.8% above the last close of $28.60. For the fiscal year ending December 31, 2026, consensus estimates project an EPS of $1.79, reflecting a 45.8% decline, on revenue of $17.63B. Over the last 4 quarters, the company beat EPS estimates 2 times. The next earnings date is October 28, 2026.
Key risks and what to watch
- High financial leverage is underscored by $27.30B in net debt against $2.51B in shareholders' equity.
- The stock has a beta of 1.35 and trades 27.4% below its 200-day moving average.
- Short interest is elevated, with short percent of float standing at 15.9%.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this MGM AI stock analysis
This page is an AI-written research summary of MGM Resorts International (MGM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: MGM income statement, MGM balance sheet, MGM key metrics, MGM analyst forecast, MGM chart. See the MGM stock overview for the latest quote and news.
MGM AI stock analysis FAQ
What is MGM's current debt level?
As of June 30, 2026, MGM Resorts International held $29.85B in total debt and $2.55B in cash and short-term investments, resulting in net debt of $27.30B and a debt-to-equity ratio of 11.87.
What are analysts forecasting for MGM's earnings?
For the fiscal year ending December 31, 2026, analysts estimate an EPS of $1.79, down 45.8% year-over-year, and revenue of $17.63B. For the following fiscal year, 14 analysts project EPS to rebound 6.1% to $1.90 on $17.82B in revenue.
Does MGM trade at a discount compared to consumer cyclical peers?
MGM's trailing P/E of 17.7x is lower than the S&P 500 Consumer Cyclical median of 20.1x, and its price-to-sales ratio of 0.4x is below the peer median of 2.0x. However, its forward P/E of 17.4x and EV/EBITDA of 18.6x sit higher than the peer medians of 15.6x and 13.2x.
When does MGM report its next earnings?
MGM's next earnings report is scheduled for October 28, 2026.