NEW YORK (TheStreet) -- MGM Resorts (MGM) - Get MGM Resorts International Report shares are down 0.6% to $21.34 in trading on Tuesday following the release of the latest gambling numbers from November by the Nevada Gaming Control Board.
State officials reported that gambling revenue in November was basically flat with the state's casinos, bringing in $876 million during the month.
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Gambling revenues on the Las Vegas Strip were down 4% year over year to $508 million, although downtown revenue was up 13% over last year to $43 million during the month.
The state said that it collected $47 million in taxes from that monthly revenue, a 5% decline from the same period last year.
TheStreet Ratings team rates MGM RESORTS INTERNATIONAL as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate MGM RESORTS INTERNATIONAL (MGM) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 9.5%. Since the same quarter one year prior, revenues slightly increased by 0.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- MGM RESORTS INTERNATIONAL has improved earnings per share by 20.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, MGM RESORTS INTERNATIONAL continued to lose money by earning -$0.31 versus -$3.61 in the prior year. This year, the market expects an improvement in earnings ($0.50 versus -$0.31).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Hotels, Restaurants & Leisure industry average. The net income increased by 9.2% when compared to the same quarter one year prior, going from -$22.31 million to -$20.27 million.
- Net operating cash flow has decreased to $217.84 million or 40.43% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- Although MGM's debt-to-equity ratio of 2.92 is very high, it is currently less than that of the industry average. To add to this, MGM has a quick ratio of 0.52, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- You can view the full analysis from the report here: MGM Ratings Report