Latest news with #Entain
Yahoo
5 hours ago
- Business
- Yahoo
MGM Resorts International (MGM): A Bull Case Theory
We came across a bullish thesis on MGM Resorts International (MGM) on MileHighMonk's Substack. In this article, we will summarize the bulls' thesis on MGM. MGM Resorts International (MGM)'s share was trading at $33.39 as of 10th June. MGM's trailing and forward P/E were 14.5 and 14.88 respectively according to Yahoo Finance. A bright and luxurious casino resort illuminated in the evening skyline. MGM Resorts International presents a diversified investment case rooted in dominant assets, global expansion, and disciplined capital returns. At its core is Las Vegas, where MGM commands a 40% market share with iconic properties like Bellagio and MGM Grand. Over half of Las Vegas' revenue is non-gaming, driven by hospitality, conventions, and entertainment, with partnerships like Marriott fueling room demand. MGM's regional casinos add stability, generating over $1.1 billion in annual EBITDAR with low capital intensity. In Macau, MGM has doubled its market share to 16% since 2018, riding mass-market recovery and expanding premium offerings, supported by a $2 billion loan for growth and refinancing. Japan represents a future growth engine, with MGM's $10 billion Osaka resort projected to generate $3.6 billion in annual revenue. Meanwhile, BetMGM, a 50/50 venture with Entain, has captured a leading position in U.S. iGaming and online sports betting, producing $424 million in 2024 EBITDA. With a potential EBITDA of $500 million and a conservative 10x multiple, MGM's stake could be worth $2.5 billion. Despite these high-quality assets, MGM trades at a discount to peers across both P/E and EV/EBITDA metrics, further distorted by its lease-heavy, asset-light model that inflates leverage optics. Still, net debt excluding leases is only ~$4 billion. The company has repurchased nearly $9 billion of stock since 2021, cutting share count by 45%, and continues aggressively buying back shares under a new $2 billion program. Backed by IAC's 23% stake and long-term conviction, MGM is viewed as a 'forever asset' with near- and long-term catalysts underappreciated by the market. Previously, we covered a bullish thesis on MGM Resorts (MGM) by David on Substack, which emphasized the company's asset-light transformation, iconic Las Vegas assets, and aggressive buybacks driving per-share value. The stock price has appreciated by roughly 27% since the coverage in April 2025. MileHighMonk expands on this view, highlighting MGM's global growth via Macau and Japan, BetMGM's digital upside, and valuation gaps versus peers despite strong capital returns. MGM Resorts International (MGM) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held MGM at the end of the first quarter which was 47 in the previous quarter. While we acknowledge the risk and potential of MGM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 hours ago
- Business
- Yahoo
MGM Resorts International (MGM): A Bull Case Theory
We came across a bullish thesis on MGM Resorts International (MGM) on MileHighMonk's Substack. In this article, we will summarize the bulls' thesis on MGM. MGM Resorts International (MGM)'s share was trading at $33.39 as of 10th June. MGM's trailing and forward P/E were 14.5 and 14.88 respectively according to Yahoo Finance. A bright and luxurious casino resort illuminated in the evening skyline. MGM Resorts International presents a diversified investment case rooted in dominant assets, global expansion, and disciplined capital returns. At its core is Las Vegas, where MGM commands a 40% market share with iconic properties like Bellagio and MGM Grand. Over half of Las Vegas' revenue is non-gaming, driven by hospitality, conventions, and entertainment, with partnerships like Marriott fueling room demand. MGM's regional casinos add stability, generating over $1.1 billion in annual EBITDAR with low capital intensity. In Macau, MGM has doubled its market share to 16% since 2018, riding mass-market recovery and expanding premium offerings, supported by a $2 billion loan for growth and refinancing. Japan represents a future growth engine, with MGM's $10 billion Osaka resort projected to generate $3.6 billion in annual revenue. Meanwhile, BetMGM, a 50/50 venture with Entain, has captured a leading position in U.S. iGaming and online sports betting, producing $424 million in 2024 EBITDA. With a potential EBITDA of $500 million and a conservative 10x multiple, MGM's stake could be worth $2.5 billion. Despite these high-quality assets, MGM trades at a discount to peers across both P/E and EV/EBITDA metrics, further distorted by its lease-heavy, asset-light model that inflates leverage optics. Still, net debt excluding leases is only ~$4 billion. The company has repurchased nearly $9 billion of stock since 2021, cutting share count by 45%, and continues aggressively buying back shares under a new $2 billion program. Backed by IAC's 23% stake and long-term conviction, MGM is viewed as a 'forever asset' with near- and long-term catalysts underappreciated by the market. Previously, we covered a bullish thesis on MGM Resorts (MGM) by David on Substack, which emphasized the company's asset-light transformation, iconic Las Vegas assets, and aggressive buybacks driving per-share value. The stock price has appreciated by roughly 27% since the coverage in April 2025. MileHighMonk expands on this view, highlighting MGM's global growth via Macau and Japan, BetMGM's digital upside, and valuation gaps versus peers despite strong capital returns. MGM Resorts International (MGM) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held MGM at the end of the first quarter which was 47 in the previous quarter. While we acknowledge the risk and potential of MGM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
4 days ago
- Business
- Forbes
Buy Or Fear MGM Stock At $34?
LAS VEGAS, NV - SEPTEMBER 24: General views of the MGM Grand Las Vegas Hotel & Casino on September ... More 24, 2024 in Las Vegas, Nevada. (Photo by AaronP/Bauer-Griffin/GC Images) Despite a positive update from BetMGM and aggressive stock buybacks, MGM Resorts stock (NYSE: MGM) appears to be a value trap rather than a value opportunity. MGM stock has seen a slight decline year-to-date, while the S&P 500 has increased by approximately 3%. There is evident momentum in online gaming, an exciting new casino development approaching in Japan, and—most importantly—a new $2 billion stock buyback approved by management just last week. On Monday, MGM shares jumped by over 8% following encouraging news from BetMGM, its equal joint venture with Entain. The sports betting and iGaming enterprise raised its revenue projection for 2025 to at least $2.6 billion, an increase from its previous estimate of $2.4–$2.5 billion, with EBITDA now anticipated to be no less than $100 million. This represents a significant improvement from the previously ambiguous commitment to achieve 'EBITDA positive.' The announcement positively impacted competitors as well, with Wynn stock (NASDAQ: WYNN) and Las Vegas Sands stock (NYSE: LVS) both rising about 5%. Yet MGM stock continues to be sidelined for a reason. Even with a low price of approximately $34 per share, the stock still appears unappealing. Our analysis indicates that MGM exhibits significant challenges in profitability, financial robustness, and resilience to economic downturns. These weaknesses undermine its attractive valuation metrics and strong recent growth. However, if you are looking for gains with lower volatility than individual stocks, the Trefis High Quality portfolio offers an alternative - having outperformed the S&P 500 and producing returns exceeding 91% since its launch. When considering your expenditure per dollar of sales or profit, MGM stock appears inexpensive relative to the wider market. • MGM Resorts International has a price-to-sales (P/S) ratio of 0.5 in comparison to a figure of 3.1 for the S&P 500 • Furthermore, the company's price-to-free cash flow (P/FCF) ratio is 7.8 versus 20.9 for the S&P 500 • Additionally, it holds a price-to-earnings (P/E) ratio of 15.4 against the benchmark's 26.9 MGM Resorts International's Revenues have exhibited noteworthy growth in past years. • MGM Resorts International has averaged a growth rate of 21.8% in its top line over the last 3 years (comparing to a 5.5% increase for the S&P 500) • Its revenues have increased by 6.7% from $16 Bil to $17 Bil over the last 12 months (in comparison to growth of 5.5% for the S&P 500) • Moreover, its quarterly revenues fell 0.7% to $4.3 Bil in the latest quarter from $4.4 Bil a year prior (contrasted with a 4.8% enhancement for the S&P 500) MGM Resorts International's profit margins are significantly lower than most firms within the Trefis coverage universe. • MGM Resorts International's Operating Income for the past four quarters was $1.7 Bil, reflecting a low Operating Margin of 9.7% • MGM Resorts International's Operating Cash Flow (OCF) for that period amounted to $2.4 Bil, indicating a low OCF Margin of 13.7% (compared to 14.9% for the S&P 500) • For the past four-quarter period, MGM Resorts International's Net Income stood at $747 Mil – suggesting a low Net Income Margin of 4.3% (against 11.6% for the S&P 500) MGM Resorts International's balance sheet seems fragile. • MGM Resorts International's Debt level was $32 Bil by the conclusion of the latest quarter, while its market capitalization is $9.8 Bil (as of 6/16/2025). This translates to a very poor Debt-to-Equity Ratio of 335.0% (comparatively, 19.4% for the S&P 500). [Note: A lower Debt-to-Equity Ratio is preferable] • Cash (including cash equivalents) constitutes $2.3 Bil of the $42 Bil in Total Assets for MGM Resorts International. This results in a moderate Cash-to-Assets Ratio of 5.7% MGM stock has performed significantly worse than the S&P 500 index during several recent downturns. While investors are hopeful for a soft landing of the U.S. economy, what are the potential risks if another recession occurs? Our dashboard How Low Can Stocks Go During A Market Crash illustrates how key stocks performed during and after the last six market crashes. • MGM stock dropped 46.1% from a peak of $50.37 on 5 November 2021 to $27.17 on 23 June 2022, compared to a peak-to-trough decline of 25.4% for the S&P 500 • The stock fully rebounded to its pre-Crisis peak by 28 July 2023 • Since that time, the stock has climbed to a high of $50.90 on 30 July 2023 and currently trades near $34 • MGM stock decreased 79.3% from a high of $34.54 on 17 January 2020 to $7.14 on 18 March 2020, while the S&P 500 experienced a peak-to-trough decline of 33.9% • The stock completely regained its pre-Crisis peak by 8 February 2021 • MGM stock decreased 98.1% from a peak of $99.75 on 9 October 2007 to $1.89 on 5 March 2009, whereas the S&P 500 faced a peak-to-trough decline of 56.8% • The stock is still yet to return to its pre-Crisis high In conclusion, MGM Resorts International's performance across the discussed parameters is summarized as follows: • Growth: Very Strong • Profitability: Very Weak • Financial Stability: Very Weak • Downturn Resilience: Extremely Weak • Overall: Weak Considering the factors mentioned above and keeping in view the company's extremely low valuation, we find the stock to be unattractive. Although BetMGM's potential and the Japan expansion present long-term prospects, the immediate risks outweigh the benefits at current valuations. While it is advisable to steer clear of MGM stock for the time being, you might consider exploring the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stock benchmark (a combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) delivering substantial returns for investors. What accounts for this? The quarterly rebalanced mixture of large, mid-, and small-cap RV Portfolio stocks has provided a responsive strategy to maximize gains during favorable market conditions while minimizing losses during downturns, as outlined in RV Portfolio performance metrics.
Business Insider
4 days ago
- Business
- Business Insider
Citi Remains a Buy on Entain plc (ENT)
Citi analyst Monique Pollard maintained a Buy rating on Entain plc (ENT – Research Report) today and set a price target of £12.50. The company's shares closed yesterday at p866.00. Confident Investing Starts Here: Pollard covers the Consumer Cyclical sector, focusing on stocks such as Delivery Hero SE, Deliveroo plc Class A, and Marks and Spencer. According to TipRanks, Pollard has an average return of 8.4% and a 53.80% success rate on recommended stocks. The word on The Street in general, suggests a Strong Buy analyst consensus rating for Entain plc with a p1,042.00 average price target, which is a 20.32% upside from current levels. In a report released yesterday, Jefferies also upgraded the stock to a Buy with a p1,140.00 price target. ENT market cap is currently £4.81B and has a P/E ratio of -10.61. Based on the recent corporate insider activity of 6 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ENT in relation to earlier this year.
Times
5 days ago
- Business
- Times
Entain lifted by the success of its American joint venture BetMGM
Entain's American betting and gaming joint venture has raised full-year revenue and profit guidance, boosting investor confidence in the potential of the business. In an unscheduled trading update, the FTSE 100 group said the 'positive momentum' of BetMGM, its venture with MGM Resorts International, the Las Vegas casinos group, had continued in the second quarter, with strong net revenue growth in both online sports betting and online gaming. Entain, which operates Ladbrokes and Sportingbet, said trading at BetMGM was 'broadly consistent' with the 34 per cent year-on-year net revenue growth it posted during the first quarter. Therefore the full-year net revenue growth for BetMGM is now expected to be at least $2.6 billion, up from the previous guidance range of $2.4 billion to $2.5 billion, issued in February.
