LVS - Embedded Expectations Analysis - 2021 06 01
Las Vegas Sands Corp. (LVS:USA) currently trades at a premium relative toUAFRS-based (Uniform) assets, with a 2.9x Uniform P/B. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about rent concessions, online gaming opportunities, and their Macau business
Specifically, management may have concerns about the sustainability of bookings in Macau as well as the challenges from the lack of foreign visitation. Also, they may lack confidence in their ability to project incremental EBITDA from Marina Bay Sands and recover mall and casino performance to pre-pandemic levels once visitation returns. In addition, they may have concerns about the impact of digital currency in the market and they may be downplaying concerns about rent concession corrections. Moreover, management may also lack confidence in their ability to continue providing good quality products, capitalize on the opportunities in online sports betting, and sustain their dividends
Las Vegas Sands is a developer of destination properties (Integrated Resorts) that feature accommodations, gaming, entertainment and retail malls, convention and exhibition facilities, restaurants and other amenities. The company owns and operates Integrated Resorts in Asia and the United States. Through its ownership of Sands China Ltd., the company owns and operates properties including The Venetian Macao Resort Hotel, Sands Cotai Central, The Parisian Macao, The Plaza Macao and Four Seasons Hotel Macao, Cotai Strip, and the Sands Macao. In Singapore, the company owns and operates the Marina Bay Sands. The company's Las Vegas Operating Properties includes The Venetian Resort Las Vegas and the Sands Expo Center.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.