WYNN

Wynn Resorts Ltd

Consumer


Presented:09/16/2015
Price:$73.78
Cap:$7.49B
Current Price:$99.22
Cap:$11.01B

Presented

Date09/16/2015
Price$73.78
Market Cap$7.49B
Ent Value$14.04B
P/E Ratio24.03x
Book ValueN/A
Div Yield3.53%
Shares O/S101.54M
Ave Daily Vol2,932,253
Short Int10.67%

Current

Price$99.22
Market Cap$11.01B
Wynn Resorts Ltd. develops, owns and operates destination casino resorts. The company operates through two segments: Las Vegas Operations and Macau Operations. The company provides hotel rooms and suites; table games; slot machines; a race and sports book; and a poker room of casino gaming space, including a sky casino and private gaming salons; casual and fine dining in food and beverage outlets; spas and salons; lounges; and boutiques. Wynn Resorts was founded by Stephen Alan Wynn and Kazuo Okada in June 2002 and is headquartered in Las Vegas, NV.

Publicly traded companies mentioned herein: Wynn Resorts Ltd (WYNN), Wynn Macao Ltd (1128 HK)

Highlights

Despite the steep declines witnessed year-to-date in shares of casino operators exposed to the Macau market, the presenter believes “there is still room to be short many of the companies out there.” In particular, Wynn Resorts (WYNN) stands out, and he noted that both WYNN and Wynn Macau shares are off ~50% year-to-date. He sees “the level of risk in Macau increasing,” but noted that valuation metrics have remained the same due to the belief that the challenges are cyclical in nature. In his view, the combination of China’s slowing economic growth and President Xi Jinping's corruption crackdown has caused headwinds that appear to be secular in nature. If his estimates are accurate, WYNN might only generate $4/ share of FCF in 2017, which is roughly half of what the Street is presently forecasting.

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Idea Discussion

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