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Las Vegas Sands Corp LVS

Morningstar Rating
$45.34 −2.32 (4.87%)
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Company Report

Macau and Singapore Demand Remain Strong Amid a Tremulous Macro Environment

Las Vegas Sands' Macao resorts (66% of 2019 EBITDA) is seeing strong revenue growth in 2023 after China's removal of COVID-19 restrictions in early January. We continue to think Las Vegas Sands and the Macau gaming enclave are also well positioned for long-term growth. Not only does Sands hold a dominant mass and nongaming position on the attractive Cotai Strip, but we think it will reinvest proceeds from the $6.25 billion sale of its Vegas assets (closed in early 2022) in its Asian assets, strengthening the brand locally. Meanwhile, Sands' position in the profitable Singapore gaming market (34% of 2019 EBITDA), where a duopoly remains in place through 2030, is buoyed by the company expanding its presence with the renovation of its existing towers in 2023-25 and eventual development of a fourth tower, which we think can open in 2029, solidifying our view of the firm's long-term growth.

Price vs Fair Value

LVS is trading at a 24% discount.
Price
$45.34
Fair Value
$49.00
Uncertainty
High
1-Star Price
$14.00
5-Star Price
$25.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Sands is well positioned to exploit growth opportunities in the attractive Asia casino market with a dominant position in Singapore (around mid-60s EBITDA share) and China (around mid-30s EBITDA share).

Bears

The Chinese government has full control over labor, table allocations, and travel visas and is regulating VIP play at casinos, which can result in volatile periods of growth for the region.

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Trading Information

Previous Close Price
$47.66
Day Range
$45.0246.52
52-Week Range
$43.7765.58
Bid/Ask
$45.00 / $46.09
Market Cap
$34.66 Bil
Volume/Avg
400 / 5.0 Mil

Key Statistics

Price/Earnings (Normalized)
41.22
Price/Sales
4.05
Dividend Yield
0.88%
Dividend Yield (Forward)
0.88%
Total Yield
0.88%

Company Profile

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, Londoner Macao, Four Seasons Hotel Macao, and Parisian Macao, as well as the Marina Bay Sands resort in Singapore. Its Venetian and Palazzo Las Vegas assets in the U.S. were sold to Apollo and VICI for $6.25 billion in 2022. We expect Sands to open a fourth tower in Singapore in 2029. With the sale of its Vegas assets, the company generates all its EBITDA from Asia, with its casino operations generating the majority of sales.
Sector
Consumer Cyclical
Industry
Resorts & Casinos
Stock Style Box
Mid Growth
Total Number of Employees
35,700

Competitors

Valuation

Metric
LVS
WYNN
MGM
Price/Earnings (Normalized)
41.22100.82278.95
Price/Book Value
7.613.39
Price/Sales
4.051.660.95
Price/Cash Flow
28.3411.256.71
Price/Earnings
LVS
WYNN
MGM

Financial Strength

Metric
LVS
WYNN
MGM
Quick Ratio
1.452.531.45
Current Ratio
1.502.661.78
Interest Coverage
1.740.783.28
Quick Ratio
LVS
WYNN
MGM

Profitability

Metric
LVS
WYNN
MGM
Return on Assets (Normalized)
3.83%0.83%−3.62%
Return on Equity (Normalized)
20.44%−35.08%
Return on Invested Capital (Normalized)
6.57%4.92%−3.21%
Return on Assets
LVS
WYNN
MGM

Resorts & Casinos Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
GXYYY
Galaxy Entertainment Group Ltd ADRPwcmvjb$22.6 Bil
GXYEF
Galaxy Entertainment Group LtdSdvxd$22.6 Bil
SCHYF
Sands China Ltd Shs Unitary 144A/Reg SMfnwqy$19.8 Bil
SCHYY
Sands China Ltd ADRNmncjm$19.8 Bil
MGM
MGM Resorts InternationalXsfjk$13.5 Bil
CZR
Caesars Entertainment IncWxzz$9.7 Bil
WYNN
Wynn Resorts LtdVpfkhzb$9.5 Bil
PENN
PENN Entertainment IncPmltx$3.8 Bil
MLCO
Melco Resorts and Entertainment Ltd ADRWsxbnp$3.1 Bil