Should I Buy MGM Resorts (MGM)? Finance YouTuber Analysis

The YouTuber, a current shareholder, believes that even a premium buyout offer of $53-55 per share would undervalue MGM Resorts' long-term potential. He highlights the company's free cash flow generation and the potential from its Japan resort as key drivers that the market may be underappreciating.

“I would be very disappointed as a shareholder with a buyout even if they get a little bit of a premium up to let's say 53, 54, 55 dollars per share. Even that I think would underestimate the potential for MGM Resorts long term.”

Hoium identifies MGM Resorts as a value and buyback stock, citing its aggressive share buybacks (10-15% annually) and undervalued business segments. He points to strong revenue growth in Las Vegas Strip operations (up from $5.8 billion pre-pandemic to $8.4 billion in 2025) and significant growth in MGM China. The company's positive free cash flow ($1.5 billion) and the upcoming Japan resort in 2030, which could generate over $1 billion in adjusted EBITDA, make it an attractive long-term investment, especially given its low valuation compared to industry peers.

“Management has talked about valuations where if you just pull out the valuation in their bet MGM property, what they own in Macau, which is actually publicly traded, you get to the rest of the business trading for only three or four times adjusted IBITA. Typically, you would see casino stocks trade for between 8 and 12 times adjusted IBITA. So, very undervalued from a market perspective.”

The analyst is buying MGM Resorts due to the anticipated opening of its Japan resort in 2030, which is projected to generate significant cash flow comparable to the highly profitable Marina Bay Sands. Additionally, MGM is aggressively buying back shares, reducing share count by 10-15% annually, and its BetMGM and digital businesses are transitioning from investment to cash generation mode, further improving the company's financial outlook and balance sheet.

“One of the stocks that I think the market is vastly overlooking right now is MGM Resorts. This is a stock I've been buying for the asymmetric portfolio for quite a while now.”

The YouTuber recommends MGM Resorts as a high cash flow business in a supply-constrained environment, trading at a good valuation. The company has consistently repurchased shares, significantly reducing its share count. Future growth drivers include improving online gaming (Bet MGM) and the highly anticipated MGM Japan resort opening in 2030, which is projected to generate over $2 billion annually in adjusted EBITDA.

“But there are two things investors need to know about this company that's trading at a really good valuation. There's upside from online gaming. So, Bet MGM, their business continues to improve. Total IBIDA for fiscal 2025 was 221 million $220 million. That was up from $71 million a year ago.”

The YouTuber believes MGM Resorts offers significant upside due to its online gaming segment (BetMGM) now generating cash flow back to the parent company sooner than expected. He also highlights the future potential of the Japan resort opening in 2030, which could be highly profitable. The stock is considered a value play, trading at a low multiple of cash flow, and management is actively buying back shares.

“I think there's still huge upside for MGM resorts. you get a nice combination of value and optionality for growth as investors. That's exactly what I want from an asymmetric investment.”

The analyst owns MGM Resorts and sees significant upside due to its ownership of half the Las Vegas Strip, two casinos in Macau, and a new casino being built in Japan. Despite recent market sentiment, the underlying gaming revenue data for Las Vegas is not as bad as headlines suggest, and MGM is well-positioned for long-term cash flow and growth.

“I own shares of MGM Resorts. I think there's a lot of upside for MGM Resorts.”

The analyst views MGM Resorts as undervalued, with a forward P/E of 16 and strong cash flow generation from its Las Vegas and regional operations. The company is actively buying back shares and has significant growth catalysts in its now EBITDA-positive BetMGM online gaming division and the upcoming MGM Japan casino, which is expected to be highly profitable.

“I think the stock is even cheaper than that when you look at their cash flow. Let's go to some of the operating numbers. There are three places where you're going to want to look at the operating trends for MGM resorts.”

The YouTuber is buying MGM Resorts, noting its aggressive share buyback program (15% of shares annually) despite the stock not appreciating. He believes this value opportunity will eventually pay off for patient investors.

“Then there's a company like MGM Resorts who is buying about 15% of its shares back each year. And the stock isn't going anywhere eventually. I'm just going to be the last shareholder left standing.”

The YouTuber suggests buying MGM Resorts due to its low trading multiple and management's aggressive share buyback program, repurchasing about 15% of outstanding shares annually. He also sees growth potential on the horizon for the company.

“MGM MGM Resorts is one that I think trades for a very low multiple. Management is buying back about 15% of their shares outstanding each year with the cash that they're generating, and there's growth on the horizon.”

The YouTuber recommends accumulating MGM Resorts due to its current low valuation, trading at an enterprise value to EBITDA multiple of 3.3x, which management is leveraging through significant share buybacks. He also highlights substantial long-term optionality from the Japan resort project, expected to open in 2030 and potentially generate over $2 billion in adjusted EBITDA annually, and the growing digital gaming business, which is becoming EBITDA positive.

“This continues to be one of my favorite stocks on the market just because it's so cheap and there's phenomenal optionality for the business long-term.”

The analyst views MGM Resorts as a value stock generating significant free cash flow, which is being used for substantial share buybacks. Key growth optionality comes from its digital business (BetMGM) expected to become EBIT positive, and the highly anticipated integrated resort in Japan opening in 2030, which is expected to be a major cash flow driver.

“Number three is really a value stock that is MGM Resort's $9.1 billion market cap. This enterprise value actually includes all of the rent that they need to pay for their resorts over the next 20 or 30 years.”

The YouTuber suggests buying MGM Resorts due to its strong balance sheet, cheap valuation (implied P/E under 15), and management's ability to buy back shares even if revenue declines. Despite being in the entertainment business, which is sensitive to economic downturns, its fixed costs and excess cash provide resilience and upside potential when the market recovers.

“So, management has said they basically have excess cash of 1 to 2 billion on the balance sheet and their costs are pretty fixed. So, even a pullback in their revenue is going to leave them probably with positive free cash flow.”

The YouTuber suggests buying MGM Resorts, citing its strong cash flow from Las Vegas and Macau operations, and the significant growth potential from its 40% stake in the upcoming Japan casino. He also notes aggressive share buybacks (15% annually) and the digital business (BetMGM, LeoVegas) expected to become cash flow positive, all at a P/E of 13.

“Love the valuation and that growth potential if you have a long-term view like I do.”

The analyst believes MGM Resorts is currently overlooked by the market, trading at a low valuation relative to its free cash flow generation and share buyback activity. The primary growth catalyst is the upcoming Japan casino, which is projected to be highly profitable, potentially exceeding the performance of Marina Bay Sands, and significantly impact MGM's overall EBITDA, especially given its current market cap.

“That's why I'm so excited about MGM Resorts and in particular the value that you get with the current business combined with the growth opportunities from properties like MGM Japan.”

The YouTuber sees MGM Resorts as a value stock due to its cash-generating casinos and aggressive share buybacks. Key growth drivers include its 50% stake in BetMGM, which is expected to generate $500 million in annual cash flow, and a 40% ownership in the only casino being built in Japan, projected to be a highly profitable resort. These growth areas are currently undervalued by the market.

“you're basically getting it for free at the current price with MGM stock”

The YouTuber considers MGM Resorts a value stock with a phenomenal strategic position. He expects long-term demand for its destinations (Las Vegas, Macau, Japan) to rise as remote work increases. The company trades at a low valuation (around 4x adjusted EBITDA when publicly traded assets are excluded), allowing for significant share buybacks and investments in iGaming and new resorts, while generating consistent cash flow from non-gaming activities.

“If you pull out the assets that are publicly traded which their maau property is the company actually only trades for about four times adjusted iita.”

The analyst recommends buying MGM Resorts due to its attractive valuation, with the core business trading at four times 2024 adjusted EBITDA compared to a historical range of 8-12x. Management is aggressively buying back shares, which is expected to boost EPS, and future growth opportunities from BetMGM profitability and the Japan casino are not yet priced into the stock.

“The market just doesn't value this company very highly right now and that's really the opportunity for investors.”

The analyst recommends MGM Resorts, citing its protected revenue streams from limited supply in Las Vegas and Macau, where it owns significant assets. He points to growth optionality in online gaming and a new casino in Japan opening in 2030. Additionally, the company's aggressive share buyback program, with a 15% buyback yield, is seen as a strong value driver.

“management is basically using all of the cash that they're generating for the business because they already have excess cash on the balance sheet they have very little debt very manageable level of debt so they're using the ex excess cash that's being generated by the business to buy back shares they're buying back about 15% of their shares outstanding.”

The YouTuber is buying MGM Resorts due to its extremely low valuation, trading at only 3.5 times adjusted property EBITDA, which implies the business is getting worse, contrary to actual numbers. He highlights significant share buybacks (15% annually) reducing shares outstanding, and future growth drivers like the digital gaming business (BetMGM), the Japan casino, and potential UAE expansion, which he believes are not currently priced into the stock. The company also benefits from a strong moat around its Las Vegas properties.

“this is a company that I think has a ton of tail wins a very very sticky business and the valuation is just too good to pass up right now.”

The YouTuber sees MGM Resorts as an attractive investment due to its ownership of significant assets like half of the Las Vegas Strip and casinos in Macau, with a new profitable resort in Japan opening in 2030. The company is trading at a cheap valuation (4-5x EV/EBITDA) and is actively buying back 10-15% of its shares annually, in a market with limited new competition, suggesting long-term profitability and asymmetric potential.

“MGM owns about half of the Las Vegas Strip but it also has two casinos in maau and is building a casino in Japan that could be one of the most profitable resorts in the world.”

The analyst argues that MGM Resorts is a strong buy despite a recent stock decline, as the market is misinterpreting Q3 earnings. He highlights strong non-gaming revenue growth, aggressive share buybacks, and significant future upside from online gambling optionality and a new casino in Japan, all contributing to a current valuation of approximately six times adjusted EBITDA.

“So I think this is a phenomenal value for investors at the worst management is just going to continue buying back stock that should give you appreciation long term of 15 to 20% and there's plenty of upside from there.”

The YouTuber sees significant value in MGM Resorts due to its strong strategic positioning in Las Vegas, regional US markets, and Macau, with a new resort in Japan expected by 2030. He notes the lack of new supply in key markets and expects continued growth in entertainment spending. The stock trades at a P/E of 15 and an EV/EBITDA of under 9, with aggressive stock buybacks expected to drive EPS growth of 10-15% annually.

“I think MGM great risk reward balance for investors right now.”

The analyst argues MGM Resorts is an 'insanely cheap stock' with a wide moat, trading at an attractive Enterprise Value to adjusted EBITDA multiple of 7.5. He highlights strong revenue growth in Macau and Las Vegas, significant share buybacks, and future catalysts like the Japan casino opening in 2030 and potential profitability from iGaming. The company is returning cash to shareholders at a rapid rate, which could boost EPS by over 15% in the next decade.

“I think this is just one of the cheapest stocks on the market today like I said wide mode around the business this is now a cash flow business they're returning that money to shareholders at a really rapid rate so if you haven't looked at MGM Resorts in a while I think it's one to check out.”

The YouTuber owns shares of MGM Resorts, noting that while their BetMGM online business has struggled, the company benefits from a symbiotic relationship between its physical casinos and online gaming. This integration allows for lower customer acquisition costs and provides states with an incentive not to over-tax the online component due to the physical presence and economic benefits.

“this is why I own shares of MGM Resorts now they don't have a ton of value in their bet MGM business and they have struggled to make that business profitable but there is at least a tie between the physical business and the physical casinos that they have and the online gaming that they have.”

The YouTuber argues that MGM Resorts is significantly undervalued, trading at a 4.9x Enterprise Value to EBITDA multiple compared to a historical average of over 10x for gaming companies. He highlights strong Q2 financial results, aggressive share buybacks, the long-term potential of the Japan resort opening in 2030, and management's projection of mid-teens free cash flow per share growth through 2028. He believes the market's 13% sell-off post-earnings was an overreaction.

“given the valuation of the stock I think this is a phenomenal Buy in the market and the stock market has gotten the reaction to this quarterly report wrong”

The analyst favors MGM over Caesars due to its exposure to Macau, which is a significant cash flow generator for the gaming industry. MGM also has a clear strategy of returning value to shareholders through stock buybacks, which Caesars has not been doing. This provides a clearer path for investor value.

“as an investor I'm definitely I'm definitely leaning towards a company like MGM you have a little bit clearer path on what their path forward is”

The YouTuber argues that MGM Resorts is a cash flow machine with limited expansion opportunities, leading them to aggressively buy back stock. This has significantly reduced shares outstanding, and the company trades at an attractive price-to-free-cash-flow multiple of about eight times, making it a favorable long-term investment.

“This is just a cash flow machine so I think this is going to continue one of the reasons that this is one of my favorite stocks right now”

The analyst views MGM as an attractive investment due to its strong cash flow generation and reasonable valuation. He calculates an Enterprise Value to adjusted property EBITDA multiple of just over 5x, which he considers attractive. The company is also returning cash to shareholders through buybacks and has limited capital expenditure needs, making it a 'cash extraction business'.

“I still think this industry can be very profitable for investors long term if you're just willing to buy and hold and ride that cash machine but what do you think about Casino stocks any questions that you have leave those in the comments section below be happy to cover anything I can don't forget to subscribe to This creator thanks for watching everybody see you here next time”

Travis Hoium argues that MGM Resorts is a value stock with long-term growth potential. He highlights strong cash flow generation, a healthy balance sheet with low net debt, and aggressive share buybacks reducing shares outstanding by 40% over time. Additionally, the upcoming Japan casino project is seen as a significant future growth driver, potentially becoming one of the most profitable casinos globally.

“one of the stocks that I think provides tremendous value for investors today along with long-term growth is MGM Resorts”

The analyst sees MGM Resorts as a strong cash flow business trading at a reasonable valuation. Post-pandemic, Las Vegas Strip and regional casino revenues have surpassed pre-pandemic levels, and Macau is recovering. MGM is using its substantial cash flow ($5.3 billion adjusted EBITDA) to buy back stock. The upcoming $10 billion casino in Japan provides a significant growth avenue, making it an attractive value play.

“I love where MGM is positioned I love the price that we're getting for investors and this is now not a business that's really high risk like it was during the90s and 2000s this is now a cash flow business we should judge MGM Resorts on it cash flow High how quickly it's buying back stock is it paying a dividend and from that perspective I think this is a incredibly good value for investors”

The YouTuber reports that Michael Burry sold out of MGM Resorts entirely, despite its significant presence in Macau and the recovery of gambling revenue post-COVID restrictions. Burry likely concluded there was insufficient value remaining in the stock, even with improving fundamentals.

“he obviously saw that there was not enough value left in the stock despite the fact that revenue and earnings are starting to improve in that region”

The analyst recommends MGM Resorts, highlighting its strong cash flow generation from saturated markets like Las Vegas and Macau, where supply is limited. He sees long-term upside from the Japan casino project and notes the company is aggressively buying back stock, trading at a low 4-5x EBITDA when accounting for its Macau and BetMGM stakes. He views it as a solid long-term play in the gambling business.

“I love the position of MGM Resorts and I think if you take a long-term view there's a great potential for this stock”

The analyst owns MGM Resorts and believes it is a better investment than Las Vegas Sands. MGM is expected to outperform in Macau due to its focus on high-end gamblers, which require fewer visitors but generate higher revenue. The company also has a much lower valuation multiple compared to LVS and is actively buying back stock, in addition to its online gambling business.

“I don't own shares of Las Vegas SS at this point but I do own shares of MGM Resorts they're a company that has also been buying back stock at a really rapid rate but I think their multiple is much much lower when you look at their Stakes not only in China but also with the online gambling business”

The YouTuber recommends MGM Resorts as a better investment than DraftKings due to its existing profitable core casino business, which provides stable cash flow. He highlights the optionality of its online gaming segment (BetMGM) which recently achieved profitability, and future growth from international expansion in Macau and Japan. He also notes that MGM is currently less expensive than DraftKings despite its proven profitability.

“I think if you're interested in DraftKings the better bet the safer bet is going to be MGM Resorts you're getting actually a pretty good value on the stock you get exposure to bet MGM and their International online gaming business and you get that Core Business that's among the best and most profitable gaming businesses in the world”

The analyst recommends MGM Resorts due to its strong revenue growth and record free cash flow, trading at a price-to-free cash flow under 10. He believes Macau's gaming market has not fully recovered and could overshoot pre-pandemic levels, similar to Las Vegas. Additionally, aggressive share buybacks and future growth from a new resort in Japan are expected to drive shareholder value.

“MGM still isn't really at full strength... I think it's very possible that we will see Macau overshoot just like we did in Las Vegas.”

Hoium views MGM Resorts as a strong buy due to the current robust gaming market, with demand exceeding pre-pandemic levels, especially in Las Vegas as a convention hub. He notes the recovery of Macau operations and the future upside from a Japan casino. The company's aggressive share buybacks and low valuation (4-5x EBITDA for the core business) make it attractive.

“This is the best environment we have ever seen for the gaming business and it doesn't seem like it's going to be slowing down anytime soon.”

Travis Hoium argues that MGM Resorts is the single best value stock due to its strong operating leverage in Las Vegas, the ongoing recovery in Macau, and future growth projects like the Japan casino. He highlights the company's strategic real estate sales, debt reduction, and aggressive stock buybacks at a low valuation (around 10x free cash flow), suggesting the market is not fully pricing in its growth potential and financial strength.

“I think a stock that is hidden in plain sight right now is MGM Resorts.”

The analyst believes MGM Resorts is a good value due to its strong cash flow generation from Las Vegas and Macau operations. Management is committed to returning capital to shareholders through significant share buybacks, which is attractive given the company's low valuation multiple of 4.9 times EBITDA. The analyst views the recent stock drop due to regional casino weakness as an overreaction, as these segments are less critical to long-term growth than the core Las Vegas and Macau markets.

“I'm more than happy for MGM Resorts to just be a company that's generating a ton of cash riding the growth in the regions that it's in Las Vegas and maau soon to be Japan and then just use that excess cash to continue to buy back stock.”

Travis Hoium argues that MGM Resorts is an overlooked and undervalued stock. He highlights its strong free cash flow generation, driven by the recovery of the Las Vegas Strip and the anticipated rebound in Macau's gaming revenue, which is now opening up after pandemic restrictions. The company's improved balance sheet and future growth potential from a new casino in Japan further support his bullish outlook.

“one of the companies that I think is being dramatically overlooked by the market right now is MGM Resorts”

The analyst sees MGM Resorts as a cash flow machine, benefiting from the recovery of the Las Vegas Strip and anticipated upside in Macau as China reopens. He also highlights the future potential of its Japan casino project. The company's low price-to-free-cash-flow ratio and stock buybacks make it an attractive investment.

“MGM has a market cap of just $15 billion right now price to free cash flow is just 10 they continue to buy back stock I just love the position that MGM Resorts is in right now.”

The analyst recommends MGM Resorts, citing its leadership in entertainment destinations like Las Vegas and Macau, and future expansion into Japan. He emphasizes the company's shift into a cash generation phase after selling real estate and its strong free cash flow, which can be used for buybacks, dividends, or further investment.

“MGM Resorts I think the Tailwinds are the entertainment business and having a huge presence in the hubs and then both the hotel rooms and Convention space as well as those monetization options like clubs like restaurants and like that casino floor L that is a phenomenal business to have long term and that's why it is one of my top stocks for this year”

MGM Resorts has transformed into a cash flow business by selling off real estate, creating operating leverage where revenue growth outpaces rent expenses. The company generated $1.2 billion in free cash flow over the past year, and this is expected to improve as Macau continues its post-pandemic recovery. MGM is actively buying back shares, which should add value for shareholders.

“I just love the operating trends for MGM I think this is a great cash flow business not like not yet a dividend paying business but they are using a lot of that money to reduce their share count and that should add value to shareholders over time”

Hoium suggests buying MGM Resorts, highlighting its significant cash flow generation from US resorts ($2.6 billion after rent) and recovering MGM China operations. He notes the company's low market cap relative to its cash flow, which enables substantial stock buybacks, and anticipates continued tailwinds from increased travel to destination cities like Las Vegas and Macau.

“the general trend for MGM Resorts is that people are spending more and more money to go to Destin ation to meet up with friends family co-workers”

The analyst recommends MGM Resorts due to its aggressive share buyback program, which has significantly reduced shares outstanding. The company is generating over a billion dollars in cash flow annually, has a strong balance sheet, and is benefiting from record revenues in Las Vegas and a recovering Macau market. Future growth is expected from its stake in a new Japan casino and online gaming opportunities.

“The pace of BuyBacks from MGM is really impressive in 2017 the company had 575 million shares outstanding that is down to 350 million shares outstanding right now and cash flow from the business is over a billion dollars per year.”

The analyst argues MGM Resorts is a 'screaming buy' due to its attractive valuation, strong cash flow generation from its Las Vegas and regional operations, and the significant recovery and market share gains in Macau. He also highlights the potential long-term upside from the planned Osaka, Japan casino and aggressive share buybacks, noting the company's low debt and enterprise value to EBITDA multiple of 5x.

“one that I think fits that is MGM Resorts now Casino investing isn't for everybody but if you are interested in this industry I think there's a lot of Tailwinds and this is just a money making machine”

Travis Hoium likes MGM Resorts due to its strong cash flow generation, particularly from the recovering Macau market and the operating leverage gained from fixed rent costs on its real estate assets. He notes that the current enterprise value to EBITDA multiple is reasonable for the casino industry, and inflation could be a tailwind as revenue growth outpaces fixed costs. The long-term outlook is positive with potential from the Japan casino market.

“I still like MGM Resort stock”

The analyst argues that MGM is a better investment than Caesars due to its stronger operational positioning, particularly in Las Vegas and its exposure to the Macau market, which is seeing significant growth. MGM also has less debt and potential for expansion into Japan, making it a lower-risk, higher-reward option.

“I think that MGM is a much better bet, a much better investment. The recent results show exactly why.”

The analyst includes MGM Resorts as a potential investment to gain exposure to the recovering Asian gambling market, despite it having less exposure than other operators. They suggest buying a basket of these companies to benefit from the overall industry tailwind as the region reopens.

“Melco Resorts, Wind Resorts are the three that have kind of the most exposure and then MGM Resorts is the other one that has the least exposure...”

The analyst recommends MGM Resorts as a recovery play, expecting a substantial increase in Macau's gambling revenue due to the end of China's zero-COVID policy. They draw parallels to the post-lockdown boom in Las Vegas, suggesting that a similar surge in demand from Chinese consumers will drive significant growth for MGM in the coming years.

“I think Macau's going to have a really good year, it might not be in 2023 but it might be in 2024.”

The YouTuber suggests MGM Resorts as a potential dividend growth stock. Although its current dividend is very small, its payout ratio is extremely low, and cash flow has returned to above pre-pandemic levels, especially with record gambling revenue in Las Vegas. This financial strength positions MGM to significantly increase its dividend in the future.

“As their free cash flow has increased over the last year I think this is going to be a dividend growth stock because of their ability to pay a higher dividend.”

The analyst believes MGM's dividend will grow significantly despite its current low yield, as the business is recovering strongly from the pandemic with record Las Vegas revenue. With limited avenues for reinvestment and a strong cash flow, the company is likely to increase its dividend payouts in the future.

“what I like about MGM is their business is recovering extremely quickly from the pandemic I don't know if you knew this but Las Vegas is reporting record gambling Revenue in 2022 that's record all time”

The analyst views MGM as a value stock with a simple investment case. He highlights strong revenue and EBITDA growth in Las Vegas, a constrained supply environment in both Las Vegas and Macau, and the company's transition into a cash flow business. Despite current challenges in Macau due to COVID policies, he believes the long-term outlook is positive.

“I think this is really a value stock and the investment case is pretty simple here las vegas and macau have gone through two decades of supply expansion now we're at the point where actually demand is expanding and supply is pretty constrained.”

The YouTuber recommends MGM Resorts, citing strong demand for services in the hospitality sector. He believes the company will perform well if it can maintain stable operating margins, indicating continued consumer spending on travel and entertainment despite broader economic slowdowns.

“Darden Restaurants is another restaurant provider you've got MGM Resorts as well as Marriott now I want to highlight some of the stocks I'm watching this week big earnings week again this week we've got Marriott International ticker Mar as well as restaurant Brands that's ticker qsr both reporting earnings on Tuesday it's both in that theme of the of the strong hiring demand I think the demand for services is going to continue for both of these for all of these those Darden Restaurants the restaurant brands qsr which is Tim Horton there in Canada and Burger King a lot of the fast food joints so again that hiring and Food Services travel related companies has just continued to surprise higher with with consumers consumers still spending for those services.”

The YouTuber highlights that MGM Resorts is expected to be up 95% over the next year according to analysts, driven by a projected resurgence in gambling and travel. He considers this high analyst target a vote of confidence in the company's business model and fundamentals, suggesting it offers good long-term return potential.

“MGM Resorts expected to be up 95% over the next year.”