The main point of investing for the long term is to make money. But more than that, you probably want to see it rise more than the market average. But MGM Resorts International (NYSE:MGM) has fallen short of that second goal, with a share price rise of 62% over five years, which is below the market return. Meanwhile, the last twelve months saw the share price rise 2.2%.

With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the five years of share price growth, MGM Resorts International moved from a loss to profitability. That would generally be considered a positive, so we'd expect the share price to be up.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

It is of course excellent to see how MGM Resorts International has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at MGM Resorts International's financial health with this free report on its balance sheet.

What About The Total Shareholder Return (TSR)?

We've already covered MGM Resorts International's share price action, but we should also mention its total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Its history of dividend payouts mean that MGM Resorts International's TSR of 66% over the last 5 years is better than the share price return.

A Different Perspective

MGM Resorts International shareholders are up 2.2% for the year. But that was short of the market average. On the bright side, the longer term returns (running at about 11% a year, over half a decade) look better. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that MGM Resorts International is showing 5 warning signs in our investment analysis , and 1 of those is a bit concerning...

But note: MGM Resorts International may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.