MGM Resorts InternationalLTS:0JWC +0.45%79 Operating Margin % is 6.88% as of Mar. 2026, which is 29% below its 10-year median of 9.75. GuruFocus rates LTS:0JWC with a GF Score™ of 79/100 and a GF Value™ of $46.95 (Fairly Valued). The stock has 10 warning signs investors should review. Among 844 Travel & Leisure companies, MGM Resorts International ranks worse than 53.55% on this metric.
MGM Resorts International (LTS:0JWC) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
MGM Resorts International Operating Margin % Related Terms
MGM Resorts International Operating 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.
MGM Resorts International Operating Margin % Chart
LTS:0JWC vs WYNN, BYD, CZR: Operating Margin % Comparison
For the Resorts & Casinos subindustry, MGM Resorts International's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, MGM Resorts International's Operating Margin % distribution charts can be found below:
* The bar in red indicates where MGM Resorts International's Operating Margin % falls into.
MGM Resorts International Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
MGM Resorts International's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (LTS:0JWC) has a Operating Margin % of 6.88% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on MGM Resorts International and its competitors. This is 29% below median its historical median of 9.75. According to the industry distribution chart, MGM Resorts International ranks #452 out of 844 companies in the Travel & Leisure industry, placing it in the top 53.6%.
Is MGM Resorts International's Operating Margin % too high?
MGM Resorts International's current Operating Margin % of 6.88% is 29% below median its 10-year median of 9.75. The Travel & Leisure industry median Operating Margin % is 8.14. MGM Resorts International's value of 6.88% is 15.4% below this industry median. Based on the distribution chart, MGM Resorts International ranks #452 out of 844 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, MGM Resorts International has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does MGM Resorts International's Operating Margin % compare to WYNN and BYD?
According to the Travel & Leisure industry distribution chart, MGM Resorts International ranks #452 out of 844 companies for Operating Margin %. This places MGM Resorts International in the lower half of its industry. The industry median Operating Margin % is 8.14. MGM Resorts International's value of 6.88% is 15.4% below this benchmark. While the company's 10-year median is 9.75 vs. the industry median of 8.14, 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 Operating Margin % for a Travel & Leisure company?
The median Operating Margin % among Travel & Leisure companies is 8.14, based on 844 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MGM Resorts International's current Operating Margin % of 6.88% is 15.4% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on MGM Resorts International and its competitors. For the Travel & Leisure industry, the median Operating Margin % is 8.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MGM Resorts International's current Operating Margin % is 6.88%, which is 29% below median its own 10-year median of 9.75. 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 (LTS:0JWC) is currently considered Fairly Valued. The stock's GF Value™ is $46.95, compared to a current price of $47.11 — trading 0.3% above its estimated fair value. The current Operating Margin % is 6.88%, which is 29% below median its 10-year median of 9.75 and 15.4% below the Travel & Leisure industry median of 8.14. MGM Resorts International's overall GF Score™ is 79/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For MGM Resorts International (LTS:0JWC), the current Operating Margin % is 6.88% 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 (LTS:0JWC) Overvalued in 2026?
Based on GuruFocus' analysis, MGM Resorts International stock appears to be overvalued.
The current stock price of $47.11 is trading 0.3% above its estimated GF Value™ of $46.95.
GuruFocus considers MGM Resorts International to be Fairly Valued.
Key valuation signals for LTS:0JWC:
Operating Margin %: 6.88% (29% below median its 10-year median of 9.75)
GF Value™: $46.95 vs. price of $47.11 (0.3% above fair value)
Industry Position: 15.4% below the Travel & Leisure median (#452 of 844)
No single metric tells the full story. See the LTS:0JWC 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.
79GF Score
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