Company name Las Vegas Sands Corp.
Stock ticker LVS
Live stock price [stckqut]LVS[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $105.28
Target stock price (averages with growth) $141.23
Target stock price (averages with no growth) $142.86
Target stock price (manual assumptions) $84.97

The following company description is from Google Finance: http://www.google.com/finance?q=lvs

Las Vegas Sands Corp. is a developer of destination properties (integrated resorts) that feature accommodations, gaming, entertainment and retail, convention and exhibition facilities, celebrity chef restaurants and other amenities. The Company owns and operates integrated resorts in Asia and the United States. The Company also offers players club loyalty programs at its properties, which provide access to rewards, privileges and members-only events. The Company’s properties in the United States include The Venetian Resort Hotel Casino (The Venetian Las Vegas) and The Palazzo Resort Hotel Casino (The Palazzo), Five-Diamond luxury resorts on the Las Vegas Strip, as well as the Sands Expo and Convention Center (the Sands Expo Center) in Las Vegas, Nevada and the Sands Casino Resort Bethlehem (the Sands Bethlehem) in Bethlehem, Pennsylvania. The Company’s principal operating and developmental activities occur in three geographic areas: Macao, Singapore and the United States.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Las Vegas Sands Corp.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Las Vegas Sands Corp. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(access_s2member_level1)]

In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $68.11
  • Growth: 0.15
  • Current EPS (TTM): $3.24
  • P/E: 21
  • Future EPS Calc: $6.51
  • Future Stock Price Calc: $136.85
  • Target stock price: $84.97

I hope that this makes you a better investor. [/s2If]

Glenn Curtis of Investopedia recently suggested that it was time to leave the casino stocks. In his article he discusses 4 companies:

  1. Las Vegas Sands Corp.
  2. MGM Mirage
  3. Boyd Gaming Corporation
  4. Wynn Resorts, Limited

I haven’t done a stock analysis post on these four companies but I did a quick check on each one. Frankly, none of them pass the test as a decent company. I would never suggest that anyone invest in these companies in their present condition. They just aren’t that well run to justify an investment compared to other companies on the Good list!

A few of Glenn’s comments (more here):

The space was in the spotlight earlier this month, thanks in large part to upbeat revenue numbers from Macau during December. Macau has become a hot destination in recent years and is located in China. But if you think all this means I’m bullish on some of the bigger casino names, you’re mistaken. In fact, I think many stocks in this space are ripe for a fall.

Why My Reels Aren’t Spinning
Many of the big names have had a huge run since the spring of 2009. For example, MGM Mirage has seen its stock rise from the low single digits, under $2 per share in the spring, to currently trading at around $11.50. Las Vegas Sands has seen its stock rise from under $1.40 per share to its present position, hovering around the $18 mark. But again, I think the run is severely overdone.

My No.1 concern is that I don’t see many average people traveling, or even pondering expensive vacations in the months to come. And I’m not convinced that placing money into a slot machine or laying it on a hand of poker or “21” will sound too attractive to many, particularly until the job market shows some real life. In essence, the macro picture doesn’t seem to match the rise in the escalating stock prices.

You can lose your shirt at the casino or investing in them!