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Wynn Resorts (WYNN)
NASDAQ:WYNN
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Wynn Resorts
(NASDAQ:WYNN)68Neutral
Positive Factors
Al Marjan Island Development
Street confidence in Al Marjan Island is growing, with construction progressing on schedule and Wynn receiving a casino license for the property.
Share Repurchase
Management stated it intends to repurchase shares which is further supportive.
Negative Factors
Macau Market Share
In Macau, Wynn's market share was flat or slightly down, which could be seen as a concern despite improvements in promotional efficiency.
Wynn Resorts (WYNN) vs. S&P 500 (SPY)
Market Cap
$9.27B
Dividend Yield1.15%
Average Volume (3M)2.91M
Price to Earnings (P/E)20.0
Beta (1Y)0.84
Revenue Growth9.13%
EPS Growth-30.00%
CountryUS
Employees28,000
SectorConsumer Cyclical
Sector Strength53
IndustryHotels, Lodging & Leisure
Share Statistics
EPS (TTM)4.27
Shares Outstanding106,401,375
10 Day Avg. Volume2,344,688
30 Day Avg. Volume2,914,069
Financial Highlights & Ratios
PEG Ratio0.00339
Price to Book (P/B)N/A
Price to Sales (P/S)1.33
Price to Cash Flow (P/CF)4.90
P/FCF Ratio3.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$114.00Price Target Upside25.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
Wynn Resorts Business Overview & Revenue Model
Company DescriptionWynn Resorts (WYNN) is a leading global developer and operator of luxury resorts and casinos. With its headquarters in Las Vegas, Nevada, the company is renowned for its high-end properties, which include hotels, casinos, restaurants, and entertainment venues. Wynn Resorts operates several prestigious facilities, including Wynn Las Vegas, Encore Boston Harbor, and Wynn Macau, catering to affluent clientele seeking premium experiences in hospitality, gaming, and leisure.
How the Company Makes MoneyWynn Resorts primarily generates revenue through its integrated resorts and casinos, which offer a combination of gaming, hospitality, and entertainment services. The company's key revenue streams include casino operations, which contribute the largest portion of its income through table games, slot machines, and other gaming activities. Additionally, Wynn Resorts earns substantial revenue from its hotel accommodations, food and beverage services, retail outlets, and entertainment offerings. The company leverages its prime locations and luxurious brand image to attract high-net-worth individuals and tourists. Strategic partnerships and collaborations with other luxury brands and entertainment providers further enhance its revenue potential. Furthermore, Wynn Resorts benefits from its operations in Macau, a highly lucrative gaming market, which significantly boosts its financial performance.
Wynn Resorts Financial Statement Overview
Summary
Wynn Resorts shows strong revenue growth and operational efficiency gains, but negative equity and high leverage raise concerns of financial stability. Cash flow management is improving but requires monitoring.Income Statement
Wynn Resorts has demonstrated strong revenue growth with a significant increase from $3.76 billion in 2021 to $7.13 billion in 2024, reflecting a positive recovery trajectory. The gross profit margin improved to 100% in 2024, indicating efficient cost management. However, net income has seen fluctuations, with a decrease in profitability from 2023 to 2024, causing a decline in the net profit margin. The EBIT and EBITDA margins have improved over the years, showcasing operational efficiency gains.70
Positive
Balance Sheet
The balance sheet shows a concerning negative stockholders' equity, which has deteriorated over the years, raising risks around financial stability. The debt-to-equity ratio is undefined due to negative equity, indicating high leverage. Although the company has a strong asset base, the equity ratio is negative, emphasizing potential risks in the company's financial structure.55
Neutral
Cash Flow
Wynn Resorts has improved its free cash flow from negative in 2020 to a positive $1.43 billion in 2024, reflecting strong cash generation from operations. The operating cash flow to net income ratio is robust, indicating that operating cash flows are substantial relative to net income. However, free cash flow growth has been inconsistent over the years, requiring careful management to sustain positive cash flow.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 7.13B | 6.53B | 3.76B | 3.76B | 2.10B | Gross Profit |
| 7.13B | 2.82B | 1.25B | 1.21B | 352.64M | EBIT |
| 1.13B | 840.17M | -247.10M | -415.25M | -1.16B | EBITDA |
| 1.99B | 1.72B | 643.17M | 310.01M | -480.30M | Net Income Common Stockholders |
| 501.08M | 729.99M | -709.37M | -1.01B | -2.33B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.43B | 3.72B | 3.65B | 2.52B | 3.48B | Total Assets |
| 12.98B | 14.00B | 13.42B | 12.53B | 13.87B | Total Debt |
| 12.17B | 13.42B | 13.73B | 12.05B | 13.19B | Net Debt |
| 9.74B | 10.54B | 10.08B | 9.53B | 9.71B | Total Liabilities |
| 13.95B | 15.10B | 15.06B | 13.37B | 14.61B | Stockholders Equity |
| -968.60M | -251.38M | -750.84M | -214.42M | -352.00M |
| Cash Flow | Free Cash Flow | |||
| 1.43B | 740.70M | -423.78M | -569.28M | -1.36B | Operating Cash Flow |
| 1.43B | 1.25B | -71.27M | -222.59M | -1.07B | Investing Cash Flow |
| -83.56M | -1.34B | 1.35B | -342.42M | -265.76M | Financing Cash Flow |
| -1.79B | -719.21M | -719.21M | -388.00M | 2.46B |
Wynn Resorts Technical Analysis
Positive
90.67
Price Trends
85.44
Positive
89.71
Positive
87.20
Positive
Market Momentum
1.37
Negative
57.64
Neutral
32.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WYNN, the sentiment is Positive. The current price of 90.67 is above the 20-day moving average (MA) of 86.40, above the 50-day MA of 85.44, and above the 200-day MA of 87.20, indicating a bullish trend. The MACD of 1.37 indicates Negative momentum. The RSI at 57.64 is Neutral, neither overbought nor oversold. The STOCH value of 32.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WYNN.
Wynn Resorts Risk Analysis
Wynn Resorts disclosed 40 risk factors in its most recent earnings report. Wynn Resorts 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
Wynn Resorts Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
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% | |
43 Neutral | $2.37B | 57.71 | 25.40% | ― | 50.42% | 74.83% |
* Consumer Cyclical Sector Average
Performance Comparison
WYNN
Wynn Resorts
90.67
-7.35
-7.50%
LVS
Las Vegas Sands
46.05
-3.56
-7.18%
MLCO
Melco Resorts & Entertainment
5.94
-1.45
-19.62%
MGM
MGM Resorts
32.83
-9.20
-21.89%
PENN
Penn National Gaming
20.09
2.38
13.44%
CZR
Caesars Entertainment
30.37
-10.62
-25.91%
Wynn Resorts Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: 12.98% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
Wynn Resorts reported a strong year with record-breaking EBITDA and growth across various segments. The expansion in Las Vegas, Boston, and the UAE are promising, but there are some challenges in Macau and non-gaming revenue segments. Overall, the company's performance and future prospects are positive, though not without certain headwinds.Highlights
Record Year of Adjusted Property EBITDA
Wynn Resorts reported yet another record year of adjusted property EBITDA, including an annual record in Las Vegas.
Strong Performance in Las Vegas
Las Vegas saw a 13% increase in slot handle and meaningful growth in gaming market share. Non-gaming business was also strong despite tough year-over-year comparisons.
Encouraging Performance in Boston
Encore Boston reported a 6% increase in slot handle, setting a new all-time property record for slot revenue.
UAE Development Progress
Construction on Wynn Almarjan Island in the UAE is progressing rapidly, with a $2.4 billion financing package secured.
Healthy Liquidity and Share Repurchases
Wynn Resorts has strong liquidity with $3.5 billion in cash and revolver availability and repurchased $386 million worth of shares in 2024.
Lowlights
Decline in Macau EBITDA
Macau generated $293 million of EBITDA during the fourth quarter, down about 1% year over year.
Super Bowl Absence Impact
The absence of hosting the Super Bowl in Las Vegas in 2025 is expected to create a $25 million EBITDA headwind for Q1.
Challenges in Non-Gaming Revenue
Non-gaming revenue in Boston faced challenges due to tough year-over-year comparisons and union-related payroll increases.
Company Guidance
During the fourth quarter of 2024 earnings call, Wynn Resorts announced several key financial metrics and strategic initiatives. The company reported a record year for adjusted property EBITDA, with a notable annual record in Las Vegas. They highlighted a $200 million stock repurchase in Q4, followed by an additional $150 million in Q1, citing the undervaluation of their assets as a driving factor. In Las Vegas, table games drop was flat, but slot handle increased by 13%, and non-gaming revenue remained strong despite tough year-over-year comparisons. The Encore Tower in Las Vegas is set for renovation, and new food and beverage offerings are planned. In Boston, slot handle grew by 6%, setting a new property record, while Macau generated $293 million in EBITDA for Q4, down 1% year-over-year but up 11% sequentially. The company's ambitious project in the UAE, Wynn Al Marjan, is progressing, with construction reaching the 35th floor, and is expected to significantly contribute to EBITDA upon its 2027 opening. Liquidity remains robust, with $3.5 billion in global cash and revolver availability.Wynn Resorts Corporate Events
Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Wynn Resorts Reports Q4 2024 Financial Results
Neutral
Feb 13, 2025
Wynn Resorts announced a quarterly cash dividend and reported its financial results for the fourth quarter and full year of 2024. The company’s operating revenues remained flat at $1.84 billion for Q4 2024 compared to the previous year, while net income saw a significant drop from $729.2 million in Q4 2023 to $277.0 million in Q4 2024 due to a previous tax benefit. Despite challenges, the company achieved a full-year record in Adjusted Property EBITDAR and continued its development efforts in the UAE, along with a $200 million stock repurchase, reflecting a commitment to shareholder returns.
Private Placements and FinancingBusiness Operations and Strategy
Wynn Resorts Secures $2.4 Billion for UAE Expansion
Positive
Feb 6, 2025
Wynn Resorts announced on February 6, 2025, that its joint venture subsidiary, Wynn Al Marjan Island FZ-LLC, secured a $2.4 billion loan facility to finance the development of the Wynn Al Marjan Island resort in the UAE. This financing, representing the largest hospitality transaction in UAE history, will support the construction of the first integrated resort in the region, set to open in 2027, offering luxury amenities and entertainment options, and marking a significant milestone in the company’s expansion plans.
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.