MGM Intrinsic Value – MGM RESORTS INTERNATIONAL Reports Earnings Results for Q2 of FY2023
August 8, 2023
🌥️Earnings Overview
MGM RESORTS INTERNATIONAL ($NYSE:MGM) reported total revenue of USD 3.9 billion for the second quarter of FY2023, a 20.9% year-over-year rise, on June 30 2023. Nevertheless, net income for the quarter decreased 88.8% from the same period of the previous year to USD 0.2 billion.
Price History
On Wednesday, MGM RESORTS INTERNATIONAL released their financial report for the second quarter of their fiscal year 2023. Their stock opened at $49.2 and closed at $49.3, down by 1.5% from prior closing price of 50.0, as investors seemed to be disappointed with the company’s results. In spite of these unfavorable results, MGM Resorts International reported strong performance in other areas.
Overall, MGM Resorts International’s financial report for Q2 of FY2023 showed mixed results with both positive and negative trends. While investors may have been disappointed with the company’s performance, the company is optimistic that their cost-cutting measures and steady revenue from other areas will help them remain profitable in the long run. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for MGM. More…
| Total Revenues | Net Income | Net Margin |
| 14.82k | 365.69 | -3.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for MGM. More…
| Operations | Investing | Financing |
| 2.1k | -167.52 | -3.81k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for MGM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 42.91k | 38.06k | 12.52 |
Key Ratios Snapshot
Some of the financial key ratios for MGM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.9% | -24.9% | 1.4% |
| FCF Margin | ROE | ROA |
| 8.0% | 2.9% | 0.3% |
Analysis – MGM Intrinsic Value
At GoodWhale, we have conducted an analysis of MGM RESORTS INTERNATIONAL’s wellbeing. Our proprietary Valuation Line shows that the intrinsic value of MGM RESORTS INTERNATIONAL share is around $78.6. Meanwhile, the stock is currently trading at $49.3, undervalued by 37.3%. This indicates that MGM RESORTS INTERNATIONAL’s stock may be an interesting investment opportunity for investors. Therefore, we recommend investors to take a closer look at this stock and possibly enter into the position. More…
Peers
MGM Resorts International is one of the world’s leading global hospitality companies, operating a portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay, The Mirage, and more. The company’s competitors include SkyCity Entertainment Group Ltd, Wyndham Hotels & Resorts Inc, and Cruzani Inc.
– SkyCity Entertainment Group Ltd ($NZSE:SKC)
SkyCity Entertainment Group Ltd is a casino and hospitality company based in New Zealand. The company has a market cap of 2B as of 2022 and a Return on Equity of 3.48%. SkyCity operates four casinos in New Zealand, two in Australia, and one in Chile. The company also has a number of hotels, restaurants, and bars.
– Wyndham Hotels & Resorts Inc ($NYSE:WH)
Wyndham Hotels & Resorts, Inc. is one of the largest hotel companies in the world, with over 9,000 hotels across more than 80 countries. The company offers a variety of hotel brands, including Wyndham, Ramada, Days Inn, Super 8, and Howard Johnson. Wyndham Hotels & Resorts is headquartered in Parsippany, New Jersey. The company’s market cap is 6.2B as of 2022 and its ROE is 30.65%.
Summary
MGM Resorts International reported a strong quarter in Q2 of FY2023 with total revenues of $3.9 billion, up 20.9% from the same quarter of the previous year. Net income, however, decreased sharply from the previous year’s period by 88.8%, amounting to just $0.2 billion. Investors may be concerned that despite increasing revenues, net income decreased so significantly. It is important to keep an eye on the company’s operations and financials for further analysis of potential investment opportunities.
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