MGM Resorts International: Value, Growth, Deleveraging, And Buybacks

Mitchell Rosenthal
209 Followers

Summary

  • MGM Resorts International has seen record revenue, free cash flow (FCF), and FCF margins since 2014, with net debt falling 82% from its 2019 peak.
  • The company is investing in property upgrades and remodels, and plans to continue share buybacks, making it an attractive long-term investment opportunity.
  • Risks include a lack of geographical diversification, credit provision to gaming customers, and potential impacts from energy price surges, geopolitical events, and pandemic-related restrictions.

Croupier holds poker cards in his hands at a table in a casino.

Lacheev

About

MGM Resorts International (NYSE:MGM) operates hotels, casinos, luxurious conference spaces, theatrical experiences, and offers other entertainment services. As their 10-K explains:

As of December 31, 2022, we operate 17 domestic casino resorts and, through our 56% controlling interest in MGM China Holdings

This article was written by

209 Followers
Mitch considers price action (trends), long-term fundamentals, relative valuations, insider buying/selling, and macro factors to find interesting long and short ideas. He has a Master of Quantitative Finance from the University of Maryland. For more of his observations, visit his blog: https://watchingrisk.substack.com

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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