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Las Vegas Sands Corp LVS

Morningstar Rating
$44.07 −0.17 (0.38%)
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Company Report

Sands' Near-Term Macao Investments Support Its Long-Term Regulatory Intangible Advantage

We expect Las Vegas Sands' Macao resorts (54% of 2023 EBITDA) will continue to see strong revenue growth in 2024 after China's removal of covid-19 restrictions in January of 2023. We also think Las Vegas Sands and the Macao gaming enclave are well positioned for long-term growth. Not only does Sands hold a dominant mass and nongaming position on the attractive Cotai Strip in Macao, but we think it will reinvest back into its assets within the region, strengthening the brand locally. To this point, Sands has recently completed $2.2 billion worth of investments in converting one of its Cotai properties to a London-based theme and upgrading its rooms at its Four Seasons resort. Futher, it will be investing another $1.2 billion in 2024 to renovate rooms at its Conrad and Sheraton locations and upgrade its Cotai arena facility. Meanwhile, Sands' position in the profitable Singapore gaming market (46% of 2023 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 toward the end of 2028, solidifying our view of the firm's long-term growth.

Price vs Fair Value

LVS is trading at a 350% premium.
Price
$44.24
Fair Value
$62.00
Uncertainty
High
1-Star Price
$17.92
5-Star Price
$16.80
Economic Moat
Bdfjch
Capital Allocation
Qhbbfsydq

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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News

Trading Information

Previous Close Price
$44.24
Day Range
$43.8044.31
52-Week Range
$42.9961.25
Bid/Ask
$43.80 / $44.28
Market Cap
$32.83 Bil
Volume/Avg
3.8 Mil / 5.2 Mil

Key Statistics

Price/Earnings (Normalized)
18.94
Price/Sales
3.00
Dividend Yield (Trailing)
1.81%
Dividend Yield (Forward)
1.81%
Total Yield
3.35%

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. We expect Sands to open a fourth tower in Singapore toward the end of 2028. Its Venetian and Palazzo Las Vegas assets in the U.S. were sold to Apollo and VICI in 2022. 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
38,700

Competitors

Valuation

Metric
LVS
WYNN
MGM
Price/Earnings (Normalized)
18.9416.9913.45
Price/Book Value
8.323.71
Price/Sales
3.001.480.84
Price/Cash Flow
10.187.055.27
Price/Earnings
LVS
WYNN
MGM

Financial Strength

Metric
LVS
WYNN
MGM
Quick Ratio
1.261.351.23
Current Ratio
1.311.431.51
Interest Coverage
2.821.413.66
Quick Ratio
LVS
WYNN
MGM

Profitability

Metric
LVS
WYNN
MGM
Return on Assets (Normalized)
8.04%8.85%3.03%
Return on Equity (Normalized)
42.17%31.53%
Return on Invested Capital (Normalized)
11.69%13.75%4.74%
Return on Assets
LVS
WYNN
MGM
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Resorts & Casinos Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Galaxy Entertainment Group Ltd ADR
GXYYY
Bgwltm$21.3 Bil
Galaxy Entertainment Group Ltd
GXYEF
Lhnzxg$21.3 Bil
Sands China Ltd Shs Unitary 144A/Reg S
SCHYF
Njysh$18.9 Bil
Sands China Ltd ADR
SCHYY
Wfnmhh$18.9 Bil
MGM Resorts International
MGM
RrrmynrlgBcvk$12.8 Bil
Wynn Resorts Ltd
WYNN
GmbzvprmgTrmnjc$10.4 Bil
Caesars Entertainment Inc
CZR
HqgghtxjxYnzfj$8.3 Bil
Melco Resorts and Entertainment Ltd ADR
MLCO
YyppfhrNcgyjgd$3.4 Bil
PENN Entertainment Inc
PENN
ZznsqrtlCqdv$2.8 Bil

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