MGM - Embedded Expectations Analysis - 2021 07 13
MGM Resorts International (MGM:USA) currently trades at a premium relative to UAFRS-based (Uniform) assets, with a 1.4x Uniform V/A. At these levels, the market has bullish expectations for the firm, but management may have concerns about securing large-scale events, ramping up digital investments, and BetMGM.Specifically, management may lack confidence in their ability to continue securing large-scale events, improve their occupancy rate, and ramp up their digital and IT investments. Moreover, they may also lack confidence in ability to offer unique online and offline gaming experiences through BetMGM and solidify its position as one of the top 3 operators in U.S. online sports betting. Furthermore, management may be concerned about the utility of their Mega Solar Array and the progress of their growth initiatives in Japan. Furthermore, management may lack confidence in their ability to grow market share in Macau, operate in regional markets due to labor shortages and cost pressures, and maintain overall margin improvements.
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.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.