MGMCAUTIOUS

Return on Equity (ROE)

13.5%

Updated 366h ago

Sector Performance

49th percentile

MGM

13.5%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how effectively a company generates profit from each dollar of shareholders’ equity — at 13.5%, MGM earned $0.135 for every $1 of equity over the past year.

This sits just below the sector median of 14.4%, placing MGM in the 47th percentile among its peers, meaning it performs slightly worse than the typical competitor. Trend data is not available: both the year-over-year and quarter-over-quarter changes are marked as N/A, so no direction can be inferred from recent history. Without a trend to gauge momentum, the single data point of 13.5% suggests the company is delivering moderate profitability but lacks a clear trajectory. This combination — a modest absolute return with no trend — implies a neutral risk profile; investors neither gain the comfort of improving performance nor face the warning of a decline. The metric does not directly contradict the overall CAUTIOUS verdict, as the below-median ROE and absence of trend data support a watchful stance rather than a confident bullish or bearish call.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about MGM?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are MGM's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.