MGMCAUTIOUS

Gross Margin

44.7%

Updated 366h ago

Sector Performance

50th percentile

MGM

44.7%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

MGM's gross margin of 44.7% means that for every dollar of revenue, the company keeps about 44.7 cents after accounting for the direct costs of providing its services, such as casino operations and hotel expenses.

This figure sits just above the sector median of 43.9%, placing MGM in the 51st percentile among its peers—essentially in the middle of the pack. The year-over-year change is not available, but quarter-over-quarter the margin fell by 1.8% from the prior quarter's 45.5%, indicating a recent decline. The combination of a near-median margin with a quarterly drop suggests limited competitive advantage and a recent weakening in cost control, which adds a layer of risk to the stock's outlook. This metric supports the overall CAUTIOUS verdict, as the margin level is unremarkable and the downward quarterly trend points to potential operational headwinds that warrant caution.

Frequently Asked Questions

What does the Gross Margin tell investors about MGM?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are MGM's closest peers by Gross Margin?

The closest peers by Gross Margin include: EXPD (14.0%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.