MGM Resorts International (MGM)

FairStock Score: 29/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Graham-style investor, I start with what is proven. MGM operates casino resorts and online gaming across Las Vegas, regional markets, China and digital channels. Scale is evident—60,000 employees—and trailing free cash flow is $1.5B, a 20.8% FCF yield on the $7.2B market cap as calculated by FairStock. But the earnings record is erratic: in fiscal 2025, the year ended 2025-12-31, revenue was $17.5B, net income $205.9M, and diluted EPS $0.76, down from net income of $746.6M and diluted EPS of $2.40 in fiscal 2024, the year ended 2024-12-31. Fiscal Q3 2025, the quarter ended 2025-09-30, showed a $285.3M net loss. More recent fiscal Q2 2026, the quarter ended 2026-06-30, produced $4.5B revenue and $292.4M net income, but I need more than one good quarter. The balance sheet warns me: D/E is 8.93 and Altman Z is 0.37, both FairStock measures, while ROCE is only 1.77%; ROE of 18.92% may reflect leverage as much as business quality. Piotroski is 8/9, a positive sign. At the 2026-10-26 close of $28.54, FairStock's P/E is 17.30 and P/B is 2.86; the Graham Number is $19.26, leaving a negative 45.69% margin of safety. FairStock tags it a Slow Grower—Shrinking, with profit falling 36.4% a year over four years and revenue 16.0%. I see a cyclical, leveraged operator. The FCF yield is attractive, but the price is not demonstrably cheap against conservative value.

In plain English: MGM runs casino resorts and online gaming in Las Vegas, other U.S. regions and China. It produces a lot of cash, but profits have been uneven and the company carries high debt. At $28.54, the stock looks expensive versus conservative measures of value, not cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer