MGM Growth Properties LLC [NYSE:MGP]: Analyst Rating and Earnings
Experts stock market traders frequently make a point to check what top Wall Street analysts say regarding a potential buy. Regarding MGM Growth Properties LLC [MGP] currently, the latest Wall Street ratings we can see is from the fiscal quarter that’s going to end in December. On average, stock market experts give MGP an Outperform rating. The average 12-month price forecast for this stock is $32.15, with the high estimate being $37.00, the low estimate being $28.00 and the median estimate amounting to $32.00. This is compared to its latest closing price of $28.71.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for MGM Growth Properties LLC [MGP] is sitting at 2.15. This is compared to 1 month ago, when its average rating was 2.15.
For the quarter ending in Sep-18 MGM Growth Properties LLC [MGP] generated $0.28 billion in sales. That’s 0.82% lower than the average estimate of $0.28 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Stay on the lookout for the next publication of this organization’s financial results for the quarter, which will be made public on Tue 19 Feb (In 37 Days).
Fundamental Analysis of MGM Growth Properties LLC [MGP]
Now let’s turn to look at profitability: with a current Operating Margin for MGM Growth Properties LLC [MGP] sitting at +22.02 and its Gross Margin at +49.93, this company’s Net Margin is now 6.10%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 1.75, and its Return on Invested Capital has reached 6.30%. Its Return on Equity is 2.82, and its Return on Assets is 0.42. These metrics suggest that this MGM Growth Properties LLC does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, MGM Growth Properties LLC [MGP] has generated a Total Debt to Total Equity ratio of 242.18. Similarly, its Total Debt to Total Capital is 70.78, while its Total Debt to Total Assets stands at 38.01. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 240.12, and its Long-Term Debt to Total Capital is 70.17. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 13.04 and its Total Debt to EBITDA Value is 6.41. The Enterprise Value to Sales for this firm is now 6.01, and its Total Debt to Enterprise Value stands at 0.40. MGM Growth Properties LLC [MGP] has a Price to Book Ratio of 1.27, a Price to Cash Flow Ratio of 3.74 and P/E Ratio of 35.87. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Similarly, this company’s Receivables Turnover is 96.39 and its Total Asset Turnover is 0.08.
Let’s now turn our attention to trading performance: MGM Growth Properties LLC [MGP] has 256.07M shares outstanding, amounting to a total market cap of $7.29B. Its stock price has been found in the range of 25.31 to 31.61. At its current price, it has moved by -9.93% from its 52-week high, and it has moved 12.49% from its 52-week low.
This stock’s Beta value is currently , which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 56.85. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is MGM Growth Properties LLC [MGP] a Reliable Buy?
MGM Growth Properties LLC [MGP] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.