Wynn Resorts Ltd (NASDAQ: WYNN)

Sector: Consumer Cyclical Industry: Resorts & Casinos CIK: 0001174922
Market Cap 20.12 Bn
P/B -31.92
P/E 2,860.00
P/S 4.09
ROIC (Qtr) 6.07
Div Yield % 0.44
Rev 1y % (Qtr) 8.29
Total Debt (Qtr) 12.20 Bn
Debt/Equity (Qtr) -32.96
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About

Wynn Resorts, Limited (WYNN), a prominent player in the hospitality and gaming industry, is renowned for its design, development, and operation of luxury integrated resorts. With a diverse range of amenities, the company's resorts offer luxury hotel rooms, high-end retail spaces, dining and entertainment options, meeting and convention facilities, and gaming services. Wynn Resorts operates in three primary segments: Macau Operations, Las Vegas Operations, and Encore Boston Harbor. The company's Macau Operations segment manages two integrated resorts...

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Investment thesis

Bull case

  • Healthy cash reserves of 1.58B provide 336.43x coverage of short-term debt 4.71M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 1.35B provides strong 15.79x coverage of stock compensation 85.72M, indicating sustainable incentive practices.
  • Cash position of 1.58B provides exceptional 15.09x coverage of minority interest expenses 104.88M, indicating strong liquidity.
  • Robust tangible asset base of 12.57B provides 11.52x coverage of working capital 1.09B, indicating strong operational backing.
  • Operating cash flow of 1.35B fully covers other non-current liabilities 310.36M by 4.36x, showing strong long-term stability.

Bear case

  • Operating cash flow of 1.35B barely covers its investment activities of (1.41B), with a coverage ratio of -0.96, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 1.35B provides thin coverage of dividend payments of (176.38M) with a -7.67 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 1.58B provide limited coverage of acquisition spending of (344.56M), which is -4.59x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 352.66M relative to inventory of 87.85M (4.01 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of 1.18B show weak coverage of depreciation charges of 612.44M, with a 1.92 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Resorts & Casinos
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 LVS Las Vegas Sands Corp 39.82 Bn 24.48 3.06 15.78 Bn
2 WYNN Wynn Resorts Ltd 20.12 Bn 2,860.00 4.09 12.20 Bn
3 MGM MGM Resorts International 9.16 Bn 44.51 0.52 31.26 Bn
4 BYD Boyd Gaming Corp 8.33 Bn -92.47 2.92 2.46 Bn
5 MTN Vail Resorts Inc 4.91 Bn 196.79 4.35 3.38 Bn
6 HGV Hilton Grand Vacations Inc. 4.44 Bn 83.82 0.89 7.28 Bn
7 CZR Caesars Entertainment, Inc. 3.93 Bn -7.83 0.34 24.88 Bn
8 RRR Red Rock Resorts, Inc. 3.66 Bn 20.78 2.12 3.41 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.35 1.18
EV to Cash from Ops. EV/CFO 48.72 39.36
EV to Debt EV to Debt 2.46 32.02
EV to EBIT EV/EBIT 40.53 44.55
EV to EBITDA EV/EBITDA 26.15 19.91
EV to Free Cash Flow [EV/FCF] EV/FCF 110.12 -82.04
EV to Market Cap EV to Market Cap 1.49 4.40
EV to Revenue EV/Rev 6.12 4.33
Price to Book Value [P/B] P/B -31.92 3.49
Price to Earnings [P/E] P/E 2,860.00 199.09
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.86 2.40
Dividend Payout Ratio % Div Payout % (Qtr) 21.20 38.73
Dividend per Basic Share Div per Share (Qtr) 1.00 1.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 13.97 21.58
Interest Coverage Int. cover (Qtr) 1.86 -1.90
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -50.93 7.02
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -57.32 3.69
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 6.21
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -52.83 -15.96
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.85 -13.29
EBIT Growth (1y) % EBIT 1y % (Qtr) -2.48 -1.32
EBT Growth (1y) % EBT 1y % (Qtr) 9.36 -10.90
EPS Growth (1y) % EPS 1y % (Qtr) -44.47 9.03
FCF Growth (1y) % FCF 1y % (Qtr) -24.81 81.04
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -3.57 4.33
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.56 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.09 0.11
Cash Ratio Cash Ratio (Qtr) 1.10 0.59
Current Ratio Curr Ratio (Qtr) 1.76 0.90
Debt to Equity Ratio Debt/Equity (Qtr) -32.96 4.57
Interest Cover Ratio Int Coverage (Qtr) 1.86 -1.90
Times Interest Earned Times Interest Earned (Qtr) 1.86 -1.90
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 25.20 18.45
EBIT Margin % EBIT Margin % (Qtr) 16.58 11.71
EBT Margin % EBT Margin % (Qtr) 7.67 4.06
Gross Margin % Gross Margin % (Qtr) 42.30 47.91
Net Profit Margin % Net Margin % (Qtr) 7.10 2.46