MGMMGM Resorts
Is the business good?
The checks split: earnings fully cash-backed (3.1×) and margins widening, but returns that lean on debt.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 9% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is MGM?
MGM Resorts earns 13% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 4.3 points above what the capital costs: growth creates value
- Operating margin
- 5.7%
Operating margin · Resorts & Casinos median 15% · 12 months to Q2 2026
- Cash conversion
- 3.07×
Cash conversion · 1.98× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −6.5%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −12% |
| FY2021 | 24% |
| FY2022 | 11% |
| FY2023 | 12% |
| FY2024 | 8.6% |
| FY2025 | 5.7% |
Details›
- Operating margin12 months to Q2 2026
- 5.7%
- Net margin12 months to Q2 2026
- 2.4%
- Free cash flow margin
- 8.4%
- Revenue, trailing twelve months
- $17.8B
- Free cash flow, trailing twelve months
- $1.49B
- Net income, trailing twelve months
- $426M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 13%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Resorts & Casinos
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