Despite No Competitive Edge, MGM’s Las Vegas Mix Remains Strong; Shares Undervalued
We plan to increase our $37.50 fair value estimate by about $1, as the time value of money and a higher 2018 sales forecast (due to economic resiliency) are offset by lower fourth-quarter Las Vegas (55% of EBITDA) performance resulting from a mass shooting on Oct. 1.No-moat MGM showed solid third-quarter Las Vegas performance, with growth in revenue per available room of 4.2%, well ahead of 2%-3% guidance, and on top of last year’s 10.6%. Meanwhile, Vegas year-to-date EBITDA margins reached 32....
MGM Resorts International is a holding company. Through its subsidiaries, the company owns and operates casino, hotel, and entertainment resorts across the United States and in Macau. The company's segments include: Las Vegas Strip Resorts, which consists of casino resorts such as Bellagio, MGM Grand Las Vegas, Mandalay Bay, The Mirage, Luxor, New York-New York, Excalibur, and Park MGM; Regional Operations, which consists of casino resorts such as MGM Grand Detroit, Beau Rivage, Gold Strike Tunica, Borgata, MGM National Harbor, MGM Springfield, Empire City, and MGM Northfield Park; and MGM China, which owns and operates casino resorts and the related gaming subconcession and land concessions.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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