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Las Vegas Sands (LVS)
NYSE:LVS
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Las Vegas Sands
(NYSE:LVS)73Outperform
Positive Factors
Earnings
Macau property level EBITDA came in better than expected, surpassing recent investor expectations.
Financial Performance
The company repurchased approximately $450 million of stock during the quarter, which, along with dividends, equates to about 8% of the market cap, indicating a stable capital return profile.
Negative Factors
Market Share
Weaker hold in Macau and slightly lower mass market share led to results that did not meet expectations.
Las Vegas Sands (LVS) vs. S&P 500 (SPY)
Market Cap
$32.52B
Dividend Yield1.88%
Average Volume (3M)6.26M
Price to Earnings (P/E)23.2
Beta (1Y)0.81
Revenue Growth8.93%
EPS Growth22.50%
CountryUS
Employees40,300
SectorConsumer Cyclical
Sector Strength53
IndustryHotels, Lodging & Leisure
Share Statistics
EPS (TTM)1.96
Shares Outstanding715,934,700
10 Day Avg. Volume4,604,466
30 Day Avg. Volume6,264,115
Financial Highlights & Ratios
PEG Ratio1.03
Price to Book (P/B)N/A
Price to Sales (P/S)2.88
Price to Cash Flow (P/CF)8.90
P/FCF Ratio7.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$60.33Price Target Upside31.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Las Vegas Sands Business Overview & Revenue Model
Company DescriptionFounded in 2004, Nevada-based Las Vegas Sands Corp. is a leading global developer of destination properties that feature accommodations, gaming, entertainment and retail, convention and exhibition facilities, celebrity chef restaurants and other amenities. It operates integrated resorts in Asia and the United States.
How the Company Makes MoneyLas Vegas Sands generates revenue through several key streams, primarily driven by its casino gaming operations, which include table games and slot machines catering to both high-rollers and mass market players. In addition to gaming, LVS earns substantial income from its hospitality services, encompassing hotel room bookings, food and beverage sales, and retail operations within its integrated resorts. The company also benefits from hosting conventions, meetings, and exhibitions, which attract business travelers and contribute to occupancy rates and spending in other resort areas. Strategic partnerships and joint ventures, particularly in its Asian markets, as well as its focus on maximizing non-gaming revenue through entertainment and retail offerings, significantly bolster its financial performance.
Las Vegas Sands Financial Statement Overview
Summary
Las Vegas Sands has experienced substantial revenue growth and returned to profitability, with a robust gross profit margin. However, high leverage and declining free cash flow growth rate pose potential risks.Income Statement
Las Vegas Sands has demonstrated a strong recovery trend with a significant increase in revenue from $4.11 billion in 2022 to $11.30 billion in 2023, resulting in a revenue growth rate of 10.5% year-over-year. The gross profit margin is robust at 100%, indicating effective cost management, and the net profit margin has improved to 19.2% from previous losses, highlighting a return to profitability. However, the EBIT margin of 21.3% and EBITDA margin of 22.5% suggest room for further operational efficiency improvements.82
Very Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 4.77, indicating significant leverage which could pose financial risks. The return on equity stands at a healthy 75.2%, reflecting strong profitability relative to shareholder equity. However, the equity ratio is just 14.0%, suggesting a relatively low proportion of assets financed by equity, which could indicate potential solvency concerns.65
Positive
Cash Flow
Las Vegas Sands experienced a positive cash flow turnaround, with an operating cash flow of $3.20 billion and a substantial free cash flow of $1.64 billion. The free cash flow to net income ratio is 0.76, showing efficient conversion of profits into cash. Despite these strengths, the free cash flow growth rate is negative at -16.9%, indicating a decline from the previous year, which could affect future liquidity.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 11.30B | 10.37B | 4.11B | 4.23B | 2.94B | Gross Profit |
| 5.52B | 5.17B | 2.58B | 2.83B | 1.63B | EBIT |
| 2.40B | 2.31B | -783.00M | -662.00M | -1.32B | EBITDA |
| 4.05B | 3.92B | 351.00M | 188.00M | -356.00M | Net Income Common Stockholders |
| 1.45B | 1.22B | -1.07B | -1.15B | -1.44B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.77B | 5.11B | 6.31B | 1.85B | 2.08B | Total Assets |
| 20.67B | 21.78B | 22.04B | 20.06B | 20.81B | Total Debt |
| 13.75B | 14.03B | 15.96B | 14.78B | 13.99B | Net Debt |
| 9.98B | 8.92B | 9.65B | 12.93B | 11.91B | Total Liabilities |
| 17.51B | 17.67B | 18.38B | 17.81B | 17.27B | Stockholders Equity |
| 2.88B | 4.12B | 3.88B | 2.00B | 2.97B |
| Cash Flow | Free Cash Flow | |||
| 1.64B | 1.97B | -1.45B | -813.00M | -2.54B | Operating Cash Flow |
| 3.20B | 3.23B | -795.00M | 15.00M | -1.31B | Investing Cash Flow |
| -1.57B | -1.25B | 4.16B | -895.00M | -1.33B | Financing Cash Flow |
| -3.06B | -3.19B | 1.12B | 684.00M | 560.00M |
Las Vegas Sands Technical Analysis
Positive
46.05
Price Trends
45.79
Positive
48.64
Negative
45.44
Positive
Market Momentum
<0.01
Negative
57.05
Neutral
54.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LVS, the sentiment is Positive. The current price of 46.05 is above the 20-day moving average (MA) of 43.68, above the 50-day MA of 45.79, and above the 200-day MA of 45.44, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.05 is Neutral, neither overbought nor oversold. The STOCH value of 54.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LVS.
Las Vegas Sands Risk Analysis
Las Vegas Sands disclosed 35 risk factors in its most recent earnings report. Las Vegas Sands reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Las Vegas Sands Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $6.22B | 12.01 | 36.54% | 0.91% | 5.13% | 2.04% | |
73 Outperform | $32.52B | 23.15 | 50.14% | 1.88% | 8.93% | 22.50% | |
68 Neutral | $9.27B | 20.01 | -51.73% | 1.15% | 9.13% | -30.00% | |
65 Neutral | $9.31B | 13.64 | 24.69% | ― | 6.66% | -24.59% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
49 Neutral | $6.67B | ― | -6.35% | ― | -2.45% | -135.17% | |
48 Neutral | $3.02B | ― | -10.88% | ― | 3.38% | 38.18% |
* Consumer Cyclical Sector Average
Performance Comparison
LVS
Las Vegas Sands
46.05
-3.56
-7.18%
BYD
Boyd Gaming
73.30
10.95
17.56%
MGM
MGM Resorts
32.83
-9.20
-21.89%
PENN
Penn National Gaming
20.09
2.38
13.44%
WYNN
Wynn Resorts
90.67
-7.35
-7.50%
CZR
Caesars Entertainment
30.37
-10.62
-25.91%
Las Vegas Sands Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: 6.65% | Next Earnings Date: Apr 16, 2025
Earnings Call Sentiment Neutral
The earnings call highlights significant growth in the Macao and Singapore markets and strategic investments in property expansions. However, there were notable challenges with EBITDA impacts in Macao and a decrease in turnover rents.Highlights
Growth in Macao Market
Gaming revenue in Macao grew by 6% in Q4 2024 compared to Q4 2023, with mass gaming revenue increasing by 5%.
Strong Performance in Singapore
Marina Bay Sands reported $537 million in adjusted property EBITDA, showing a 28% growth compared to the previous year.
Londoner Grand Expansion
The Londoner Grand Casino opened its doors in late September with 315 suites, and the full complement of 1,500 suites and rooms is expected by May 2025.
Capital Return to Shareholders
Repurchased $450 million of LVS stock and increased the annual dividend to $1 per share for 2025.
Lowlights
Macao EBITDA Impacted
Macao EBITDA was negatively impacted by lower than expected hold in the rolling program, with a $22 million shortfall.
Decrease in Macao Turnover Rents
Turnover rents in Macao were $27 million lower in Q4 2024 compared to the same period in 2023.
Impact of Room Inventory Reduction
Margins at the Londoner were impacted due to a 20% reduction in available room inventory.
Company Guidance
During the Sands Fourth Quarter 2024 Earnings Call, the company provided detailed guidance and metrics regarding its performance and future expectations. In Macao, gaming revenue grew 6% year-over-year in Q4, with mass gaming revenue up by 5%. The company anticipates that Macao's gross gaming revenue will exceed $30 billion in 2025, driven by high-quality assets and increased room inventory, including the upcoming completion of the Londoner with 1,500 suites and 905 rooms by May 2025. Macao's EBITDA for the quarter was $571 million, with a potential $22 million increase if not for lower-than-expected hold in the rolling segment. The EBITDA margin for Macao properties, excluding the Londoner, was 35.1%. In Singapore, Marina Bay Sands reported $537 million in adjusted property EBITDA, with mass gaming revenue reaching $746 million, reflecting substantial growth from previous years. The company's capital investment programs are expected to bolster growth, with the completion of a $1.75 billion investment by mid-2025. Additionally, Sands repurchased $450 million of LVS stock and $250 million of Sands China stock, while increasing the annual dividend to $1 per share for 2025. The guidance emphasized the company's strategic focus on high-quality tourism and market-leading assets to drive long-term growth and shareholder returns.Las Vegas Sands Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Las Vegas Sands Completes Financial Restructuring in 2025
Positive
Mar 3, 2025
On February 28, 2025, Marina Bay Sands Pte. Ltd., a subsidiary of Las Vegas Sands Corp., completed financial restructuring by settling all outstanding loans and commitments under the 2025 Singapore Credit Facility Agreement. This move effectively discharged all obligations under the previous facility agreement, potentially enhancing the company’s financial flexibility and market positioning.
Private Placements and FinancingBusiness Operations and Strategy
Las Vegas Sands Secures $8.98 Billion Credit Facility
Positive
Feb 24, 2025
On February 21, 2025, Marina Bay Sands Pte. Ltd., a subsidiary of Las Vegas Sands Corp., entered into a significant financial agreement with DBS Bank Ltd. and other lenders. The 2025 Singapore Credit Facility Agreement includes a term loan, a revolving credit facility, and a delayed draw term loan facility, totaling approximately $8.98 billion. This agreement is intended to refinance existing debt, support general corporate purposes, and finance the Marina Bay Sands integrated resort expansion project. The facilities are secured by a first-priority security interest in most of the borrower’s assets, and the agreement includes customary covenants and conditions. This strategic financial move is expected to bolster Marina Bay Sands’ operational capabilities and enhance its market position in the competitive Singaporean hospitality and gaming sector.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.