MGM Resorts InternationalFRA:MGG +2.48%78 Gross Margin % is 44.68% as of Mar. 2026, which is 3% above its 10-year median of 43.53. GuruFocus rates FRA:MGG with a GF Score™ of 78/100 and a GF Value™ of €40.64 (Fairly Valued). The stock has 10 warning signs investors should review. Among 793 Travel & Leisure companies, MGM Resorts International ranks better than 50.19% on this metric.
MGM Resorts International (FRA:MGG) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
MGM Resorts International had a gross margin of 44.68% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
MGM Resorts International Gross Margin % Related Terms
MGM Resorts International Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:MGG vs WYNN, BYD, CZR: Gross Margin % Comparison
For the Resorts & Casinos subindustry, MGM Resorts International's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
MGM Resorts International Gross Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, MGM Resorts International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where MGM Resorts International's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
MGM Resorts International (FRA:MGG) has a Gross Margin % of 44.68% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on MGM Resorts International and its competitors. This is near median its historical median of 43.53. Over the past decade, MGM Resorts International's Gross Margin % has ranged from 33.11 to 49.32. According to the industry distribution chart, MGM Resorts International ranks #395 out of 793 companies in the Travel & Leisure industry, placing it in the top 49.8%.
Is MGM Resorts International's Gross Margin % too high?
MGM Resorts International's current Gross Margin % of 44.68% is near median its 10-year median of 43.53. Over the past 10 years, this metric has ranged from a low of 33.11 to a high of 49.32. The Travel & Leisure industry median Gross Margin % is 43.92. MGM Resorts International's value of 44.68% is 1.7% above this industry median. Based on the distribution chart, MGM Resorts International ranks #395 out of 793 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, MGM Resorts International has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does MGM Resorts International's Gross Margin % compare to WYNN and BYD?
According to the Travel & Leisure industry distribution chart, MGM Resorts International ranks #395 out of 793 companies for Gross Margin %. This puts MGM Resorts International in the upper half of its industry. The industry median Gross Margin % is 43.92. MGM Resorts International's value of 44.68% is 1.7% above this benchmark. Historically, MGM Resorts International's own Gross Margin % has ranged from 33.11 to 49.32 over the past decade. While the company's 10-year median is 43.53 vs. the industry median of 43.92, MGM Resorts International has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Travel & Leisure company?
The median Gross Margin % among Travel & Leisure companies is 43.92, based on 793 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MGM Resorts International's current Gross Margin % of 44.68% is 1.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on MGM Resorts International and its competitors. For the Travel & Leisure industry, the median Gross Margin % is 43.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MGM Resorts International's current Gross Margin % is 44.68%, which is near median its own 10-year median of 43.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MGM Resorts International stock overvalued right now?
Based on GuruFocus' analysis, MGM Resorts International (FRA:MGG) is currently considered Fairly Valued. The stock's GF Value™ is €40.64, compared to a current price of €42.60 — trading 4.8% above its estimated fair value. The current Gross Margin % is 44.68%, which is near median its 10-year median of 43.53 and 1.7% above the Travel & Leisure industry median of 43.92. MGM Resorts International's overall GF Score™ is 78/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For MGM Resorts International (FRA:MGG), the current Gross Margin % is 44.68% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is MGM Resorts International (FRA:MGG) Overvalued in 2026?
Based on GuruFocus' analysis, MGM Resorts International stock appears to be overvalued.
The current stock price of €42.60 is trading 4.8% above its estimated GF Value™ of €40.64.
GuruFocus considers MGM Resorts International to be Fairly Valued.
Key valuation signals for FRA:MGG:
Gross Margin %: 44.68% (near median its 10-year median of 43.53)
GF Value™: €40.64 vs. price of €42.60 (4.8% above fair value)
Industry Position: 1.7% above the Travel & Leisure median (#395 of 793)
No single metric tells the full story. See the FRA:MGG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MGM Resorts is the largest resort operator on the Las Vegas Strip with 37,000 guest rooms and suites, representing about one fourth of all units in the market. The company's Vegas properties include MGM Grand, Mandalay Bay, Park MGM, Luxor, New York-New York, and Bellagio. The Strip contributed approximately 56% of total EBITDAR in 2025. MGM also owns US regional assets, which represented a low 20s share of 2025 EBITDAR (MGM's Macao EBITDAR was 23% of the total in 2025). MGM's US sports and i-gaming operations are currently a high-single-digit percentage of its total revenue. The company also operates the 56%-owned MGM China casinos with a second property that opened on the Cotai Strip in early 2018. We estimate MGM will open a resort in Japan in 2030.
78GF Score
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