MGM Resorts InternationalFRA:MGG +2.48%78 Interest Coverage is 3.04 as of Mar. 2026, which is 33% above its 10-year median of 2.29. 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 609 Travel & Leisure companies, MGM Resorts International ranks worse than 68.14% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. MGM Resorts International's
Operating Income
for the
three
months ended in Mar. 2026 was €265 Mil. MGM Resorts International's Interest Expense for the
three
months ended in Mar. 2026 was €-87 Mil.
MGM Resorts International's interest coverage for the quarter that ended in Mar. 2026 was 3.04.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. MGM Resorts International interest coverage is 2.98, which is low.
The historical rank and industry rank for MGM Resorts International's Interest Coverage or its related term are showing as below:
FRA:MGG'
s Interest Coverage Range Over the Past 10 Years
Min: 0.71 Med: 2.29 Max: 3.77
Current: 2.98
FRA:MGG's Interest Coverage is ranked worse than 68.14% of 609
companies
in the Travel & Leisure industry
Industry Median: 5.35
vs FRA:MGG: 2.98
MGM Resorts International (FRA:MGG) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
MGM Resorts International Interest Coverage Related Terms
MGM Resorts International Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:MGG vs WYNN, BYD, CZR: Interest Coverage Comparison
For the Resorts & Casinos subindustry, MGM Resorts International's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, MGM Resorts International's Interest Coverage distribution charts can be found below:
* The bar in red indicates where MGM Resorts International's Interest Coverage falls into.
MGM Resorts International Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
MGM Resorts International (FRA:MGG) has a Interest Coverage of 3.04 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on MGM Resorts International and its competitors. This is 33% above median its historical median of 2.29. Over the past decade, MGM Resorts International's Interest Coverage has ranged from 0.71 to 3.77. According to the industry distribution chart, MGM Resorts International ranks #415 out of 609 companies in the Travel & Leisure industry, placing it in the top 68.1%.
Is MGM Resorts International's Interest Coverage too high?
MGM Resorts International's current Interest Coverage of 3.04 is 33% above median its 10-year median of 2.29. Over the past 10 years, this metric has ranged from a low of 0.71 to a high of 3.77. The Travel & Leisure industry median Interest Coverage is 5.35. MGM Resorts International's value of 3.04 is 43.2% below this industry median. Based on the distribution chart, MGM Resorts International ranks #415 out of 609 companies in the Travel & Leisure industry, which is below 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 Interest Coverage compare to WYNN and BYD?
According to the Travel & Leisure industry distribution chart, MGM Resorts International ranks #415 out of 609 companies for Interest Coverage. This places MGM Resorts International in the lower half of its industry. The industry median Interest Coverage is 5.35. MGM Resorts International's value of 3.04 is 43.2% below this benchmark. Historically, MGM Resorts International's own Interest Coverage has ranged from 0.71 to 3.77 over the past decade. While the company's 10-year median is 2.29 vs. the industry median of 5.35, MGM Resorts International has consistently been below 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 Interest Coverage for a Travel & Leisure company?
The median Interest Coverage among Travel & Leisure companies is 5.35, based on 609 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MGM Resorts International's current Interest Coverage of 3.04 is 43.2% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on MGM Resorts International and its competitors. For the Travel & Leisure industry, the median Interest Coverage is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MGM Resorts International's current Interest Coverage is 3.04, which is 33% above median its own 10-year median of 2.29. 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 Interest Coverage is 3.04, which is 33% above median its 10-year median of 2.29 and 43.2% below the Travel & Leisure industry median of 5.35. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For MGM Resorts International (FRA:MGG), the current Interest Coverage is 3.04 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:
Interest Coverage: 3.04 (33% above median its 10-year median of 2.29)
GF Value™: €40.64 vs. price of €42.60 (4.8% above fair value)
Industry Position: 43.2% below the Travel & Leisure median (#415 of 609)
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
Get the complete analysis for FRA:MGG
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