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Las Vegas Sands Corp LVS

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Morningstar’s Analysis

Valuation
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Las Vegas Sands' Near-Term Pandemic Headwinds Present Attractive Entry Point for Investors

Dan Wasiolek Senior Equity Analyst

Analyst Note

| Dan Wasiolek |

While the pandemic continues to challenge Las Vegas Sands’ near-term demand in Macao (70% of estimated 2023 EBITDA) and Singapore (30%), our long-term constructive stance on these regions and the company’s competitive positioning is intact. In this vein, we think Sands operates the leading resorts and locations in the supply-capped and demand-abundant regions of Macao and Singapore. And once travel is permitted, we expect the company’s casinos to see a quick demand rebound, followed by healthy long-term growth (high-single-digit annual sales lift in Macao during 2024-30). We don’t expect a material change to our $61 fair value estimate, and we view shares trading around a 20% discount as attractive.

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Company Profile

Business Description

Las Vegas Sands is the world's largest operator of fully integrated resorts, featuring casino, hotel, entertainment, food and beverage, retail, and convention center operations. The company owns the Venetian Macao, Sands Macao, Sands Cotai Central Londoner, Four Seasons Hotel Macao, and Parisian in Macao, the Marina Bay Sands resort in Singapore, and the Venetian and Palazzo Las Vegas in the U.S. (which it plans to sell to Apollo and VICI for $6.25 billion). We expect Sands to open a fourth tower in Singapore in 2025. After the sale of its Vegas assets, the company will generate all its EBITDA from Asia, with its casino operations generating around 80% of sales.

Contact
3355 Las Vegas Boulevard South
Las Vegas, NV, 89109
T +1 702 414-1000
Sector Consumer Cyclical
Industry Resorts & Casinos
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Distressed
Employees 46,000

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