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

Second-rate dividend payer and slightly overvalued.


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

Stable Share Price: 1128 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.6%

1128

-5.0%

HK Hospitality

-4.2%

HK Market


1 Year Return

3.4%

1128

16.3%

HK Hospitality

-2.6%

HK Market

Return vs Industry: 1128 underperformed the Hong Kong Hospitality industry which returned 16.3% over the past year.

Return vs Market: 1128 exceeded the Hong Kong Market which returned -2.6% over the past year.


Shareholder returns

1128IndustryMarket
7 Day-2.6%-5.0%-4.2%
30 Day7.7%0.3%-0.9%
90 Day0.7%3.9%1.7%
1 Year9.3%3.4%20.1%16.3%0.9%-2.6%
3 Year55.6%32.8%17.3%6.4%19.6%7.6%
5 Year-14.4%-34.8%-8.3%-22.9%18.6%-1.0%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1128 (HK$17.02) is trading below our estimate of fair value (HK$42.52)

Significantly Below Fair Value: 1128 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1128 is poor value based on its PE Ratio (14.6x) compared to the Hospitality industry average (12.6x).

PE vs Market: 1128 is poor value based on its PE Ratio (14.6x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 1128 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: 1128 is overvalued based on its PB Ratio (42.5x) compared to the HK Hospitality industry average (1x).


Next Steps

Future Growth

How is Wynn Macau forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1128's forecast earnings growth (11.2% per year) is above the savings rate (2%).

Earnings vs Market: 1128's earnings (11.2% per year) are forecast to grow slower than the Hong Kong market (11.4% per year).

High Growth Earnings: 1128's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1128's revenue (6.4% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 1128's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1128's Return on Equity is forecast to be very high in 3 years time (337%).


Next Steps

Past Performance

How has Wynn Macau performed over the past 5 years?

5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1128 has high quality earnings.

Growing Profit Margin: 1128's current net profit margins (13.5%) are lower than last year (15.2%).


Past Earnings Growth Analysis

Earnings Trend: 1128's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: 1128's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1128 had negative earnings growth (-17.9%) over the past year, making it difficult to compare to the Hospitality industry average (-4.3%).


Return on Equity

High ROE: Whilst 1128's Return on Equity (244.29%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Wynn Macau's financial position?


Financial Position Analysis

Short Term Liabilities: 1128's short term assets ($994.7M) do not cover its short term liabilities ($1.3B)

Long Term Liabilities: 1128's short term assets ($994.7M) do not cover its long term liabilities (3.8B)


Debt to Equity History and Analysis

Debt Level: 1128's debt to equity ratio (1396.9%) is considered high.

Reducing Debt: 1128's debt to equity ratio has increased from 224.6% to 1396.9% over the past 5 years.

Debt Coverage: 1128's debt is well covered by operating cash flow (37.2%).

Interest Coverage: 1128's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet

Inventory Level: 1128 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1128's 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?

5.27%

Current Dividend Yield


Dividend Yield vs Market

company5.3%marketbottom25%2.3%markettop25%6.4%industryaverage2.9%forecastin3Years6.6%

Current dividend yield vs market & industry

Notable Dividend: 1128's dividend (5.27%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 1128's dividend (5.27%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.38%).


Stability and Growth of Payments

Stable Dividend: 1128's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1128's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.5%), 1128's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1128's dividends in 3 years are forecast to be covered by earnings (87.2% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Matt Maddox (43yo)

1.8yrs

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

6.3yrs

Average Tenure

51yo

Average Age

Experienced Management: 1128's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

6.7yrs

Average Tenure

60yo

Average Age

Experienced Board: 1128's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$232,543,75817 Oct 19
Capital Research and Management Company
EntityCompany
Shares15,468,580
Max PriceUS$15.03
BuyUS$60,053,01104 Jun 19
Capital Research and Management Company
EntityCompany
Shares3,605,575
Max PriceUS$16.66
SellUS$2,035,20030 Apr 19
Kin-Fung Lam
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares96,000
Max PriceUS$21.20
SellUS$1,067,50030 Apr 19
Kin-Fung Lam
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares50,000
Max PriceUS$21.35
SellUS$3,192,00030 Apr 19
Kin-Fung Lam
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares150,000
Max PriceUS$21.28
SellUS$1,067,50030 Apr 19
Kin-Fung Lam
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares50,000
Max PriceUS$21.35

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Matt Maddox (43yo)

    CEO & Executive Director

    • Tenure: 1.8yrs
  • Ian Coughlan (60yo)

    President & Executive Director

    • Tenure: 10.2yrs
    • Compensation: US$60.18m
  • Linda Chen (52yo)

    Vice Chairman & COO

    • Tenure: 1.6yrs
    • Compensation: US$44.71m
  • Wendy Ho (49yo)

    Company Secretary

    • Tenure: 6.8yrs
  • Jay Schall (46yo)

    Executive VP & General Counsel

    • Tenure: 0yrs
  • Katharine Liu

    Director of Communications

    • Tenure: 0yrs
  • Frederic Luvisutto (47yo)

    Chief Operating Officer of Wynn Palace

    • Tenure: 5.8yrs
  • Michael Harvey (69yo)

    President of Wynn Design & Development Asia

    • Tenure: 8.6yrs
  • Frank Xiao (51yo)

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

    • Tenure: 7.1yrs
  • Mo Mok (57yo)

    Senior Vice President of Human Resources

    • Tenure: 2.8yrs

Board Members

  • Nick Sallnow-Smith (69yo)

    Independent Non-Executive Director

    • Tenure: 10.2yrs
    • Compensation: US$2.48m
  • Matt Maddox (43yo)

    CEO & Executive Director

    • Tenure: 1.8yrs
  • Allan Zeman (71yo)

    Non-Executive Chairman

    • Tenure: 1.8yrs
    • Compensation: US$2.23m
  • Bruce Rockowitz (60yo)

    Independent Non-Executive Director

    • Tenure: 10.2yrs
    • Compensation: US$2.23m
  • Jeffrey Lam (68yo)

    Independent Non-Executive Director

    • Tenure: 10.2yrs
    • Compensation: US$2.20m
  • Ian Coughlan (60yo)

    President & Executive Director

    • Tenure: 10.2yrs
    • Compensation: US$60.18m
  • Linda Chen (52yo)

    Vice Chairman & COO

    • Tenure: 1.6yrs
    • Compensation: US$44.71m
  • Craig Billings (46yo)

    Non-Executive Director

    • Tenure: 1.3yrs
  • Leah Dawn Ye (61yo)

    Independent Non-Executive Director

    • Tenure: 0.6yrs

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$88.442b
  • 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 Analysis2019/11/17 12:52
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
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.