SEHK:1128

Stock Analysis Report

Executive Summary

Wynn Macau, Limited develops, owns, and operates the Wynn Macau and Wynn Palace casino resorts in Macau.

Snowflake

Fundamentals

Proven track record second-rate dividend payer.


Similar Companies

Share Price & News

How has Wynn Macau's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

7.2%

SEHK:1128

-0.3%

HK Hospitality

-0.6%

HK Market


1 Year Return

-16.1%

SEHK:1128

-9.2%

HK Hospitality

-9.8%

HK Market

1128 underperformed the Hospitality industry which returned -9.2% over the past year.

1128 underperformed the Market in Hong Kong which returned -9.8% over the past year.


Share holder returns

1128IndustryMarket
7 Day7.2%-0.3%-0.6%
30 Day-11.7%-12.9%-9.6%
90 Day-1.1%-3.5%-7.5%
1 Year-10.4%-16.1%-5.8%-9.2%-6.5%-9.8%
3 Year59.6%40.1%28.1%16.1%12.8%1.6%
5 Year-28.4%-45.2%-24.6%-36.5%7.2%-10.6%

Price Volatility Vs. Market

How volatile is Wynn Macau's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wynn Macau undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Wynn Macau's share price is below the future cash flow value, and at a moderate discount (> 20%).

Wynn Macau's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Wynn Macau is overvalued based on earnings compared to the HK Hospitality industry average.

Wynn Macau is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Wynn Macau is poor value based on expected growth next year.


Price Based on Value of Assets

Wynn Macau is overvalued based on assets compared to the HK Hospitality industry average.


Next Steps

Future Growth

How is Wynn Macau expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Wynn Macau's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).

Wynn Macau's earnings are expected to grow by 10% yearly, however this is not considered high growth (20% yearly).

Wynn Macau's revenue growth is positive but not above the Hong Kong market average.

Wynn Macau's earnings growth is positive but not above the Hong Kong market average.

Wynn Macau's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Wynn Macau is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Wynn Macau performed over the past 5 years?

-0.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Wynn Macau's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Wynn Macau's 1-year earnings growth exceeds its 5-year average (17.3% vs -0.6%)

Wynn Macau's earnings growth has exceeded the HK Hospitality industry average in the past year (17.3% vs -5.1%).


Return on Equity

Whilst Wynn Macau made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

Wynn Macau used its assets more efficiently than the HK Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Wynn Macau has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Wynn Macau's financial position?


Financial Position Analysis

Wynn Macau's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Wynn Macau's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Wynn Macau's level of debt (1396.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (224.6% vs 1396.9% today).

Debt is well covered by operating cash flow (37.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

What is Wynn Macau's current dividend yield, its reliability and sustainability?

6.91%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Wynn Macau before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Wynn Macau's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.3%).

Wynn Macau's dividend is above the markets top 25% of dividend payers in Hong Kong (6.25%).

Wynn Macau has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Wynn Macau has only been paying a dividend for 9 years, and since then dividends per share have fallen.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (1x coverage).


Next Steps

Management

What is the CEO of Wynn Macau's salary, the management and board of directors tenure and is there insider trading?

6.0yrs

Average management tenure


CEO

Matt Maddox (43yo)

1.5yrs

Tenure

0

Mr. Matthew Ode Maddox, also known as Matt, has been Chief Executive Director and Executive Director at Wynn Macau, Ltd since February 7, 2018. Mr. Maddox has been Chief Executive Officer of Wynn Resorts L ...


Management Age and Tenure

6.0yrs

Average Tenure

51yo

Average Age

The average tenure for the Wynn Macau management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.4yrs

Average Tenure

60yo

Average Age

The tenure for the Wynn Macau board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyHK$60,053,01104 Jun 19
Capital Research and Management Company
EntityCompany
Shares3,605,575
Max PriceHK$16.66
SellHK$2,035,20030 Apr 19
Kin-Fung Lam
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares96,000
Max PriceHK$21.20
SellHK$1,067,50030 Apr 19
Kin-Fung Lam
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares50,000
Max PriceHK$21.35
SellHK$1,067,50030 Apr 19
Kin-Fung Lam
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares50,000
Max PriceHK$21.35
SellHK$3,192,00030 Apr 19
Kin-Fung Lam
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares150,000
Max PriceHK$21.28
BuyHK$70,297,70730 Oct 18
Capital Research and Management Company
EntityCompany
Shares4,274,560
Max PriceHK$16.45
BuyHK$157,536,13905 Sep 18
Capital Research and Management Company
EntityCompany
Shares7,223,910
Max PriceHK$21.81

Ownership Breakdown


Management Team

  • Matt Maddox (43yo)

    CEO & Executive Director

    • Tenure: 1.5yrs
  • Ian Coughlan (60yo)

    President & Executive Director

    • Tenure: 9.9yrs
    • Compensation: HK$60.18m
  • Linda Chen (52yo)

    Vice Chairman & COO

    • Tenure: 1.3yrs
    • Compensation: HK$44.71m
  • Wendy Ho (49yo)

    Company Secretary

    • Tenure: 6.5yrs
  • Jay Schall (46yo)

    Executive VP & General Counsel

    • Tenure: 0.0yrs
  • Katharine Liu

    Director of Communications

    • Tenure: 0.0yrs
  • Frederic Luvisutto (47yo)

    Chief Operating Officer of Wynn Palace

    • Tenure: 5.6yrs
  • Michael Harvey (69yo)

    President of Wynn Design & Development Asia

    • Tenure: 8.3yrs
  • Frank Xiao (51yo)

    President of Marketing - Wynn Resorts (Macau) S.A.

    • Tenure: 6.8yrs
  • Mo Mok (57yo)

    Senior Vice President of Human Resources

    • Tenure: 2.6yrs

Board Members

  • Nick Sallnow-Smith (69yo)

    Independent Non-Executive Director

    • Tenure: 9.9yrs
    • Compensation: HK$2.48m
  • Matt Maddox (43yo)

    CEO & Executive Director

    • Tenure: 1.5yrs
  • Allan Zeman (71yo)

    Non-Executive Chairman

    • Tenure: 1.5yrs
    • Compensation: HK$2.23m
  • Bruce Rockowitz (60yo)

    Independent Non-Executive Director

    • Tenure: 9.9yrs
    • Compensation: HK$2.23m
  • Jeffrey Lam (68yo)

    Independent Non-Executive Director

    • Tenure: 9.9yrs
    • Compensation: HK$2.20m
  • Ian Coughlan (60yo)

    President & Executive Director

    • Tenure: 9.9yrs
    • Compensation: HK$60.18m
  • Linda Chen (52yo)

    Vice Chairman & COO

    • Tenure: 1.3yrs
    • Compensation: HK$44.71m
  • Craig Billings (46yo)

    Non-Executive Director

    • Tenure: 1.0yrs
  • Leah Dawn Ye (61yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs

Company Information

Wynn Macau, Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wynn Macau, Limited
  • Ticker: 1128
  • Exchange: SEHK
  • Founded: 2009
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: HK$84.700b
  • Shares outstanding: 5.20b
  • Website: https://www.wynnmacaulimited.com

Number of Employees


Location

  • Wynn Macau, Limited
  • Rua Cidade de Sintra
  • NAPE
  • Macau
  • Macau

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1128SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2009
WYNM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2009
8WYDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2009
1128SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2009
1128SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2009
WYNM.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDMar 2010

Biography

Wynn Macau, Limited develops, owns, and operates the Wynn Macau and Wynn Palace casino resorts in Macau. The company’s Wynn Macau resort features approximately 273,000 square feet of casino space offering  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 12:50
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.