SEHK:1928

Stock Analysis Report

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Executive Summary

Sands China Ltd., an investment holding company, develops, owns, and operates integrated resorts and casinos in Macao. More Details


Snowflake Analysis

Exceptional growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Sands China's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1928 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 1928's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-3.2%

1928

-3.1%

HK Hospitality

1.1%

HK Market


1 Year Return

-10.5%

1928

5.4%

HK Hospitality

8.2%

HK Market

Return vs Industry: 1928 underperformed the Hong Kong Hospitality industry which returned 5.4% over the past year.

Return vs Market: 1928 underperformed the Hong Kong Market which returned 8.2% over the past year.


Shareholder returns

1928IndustryMarket
7 Day-3.2%-3.1%1.1%
30 Day15.9%9.9%7.2%
90 Day-2.5%0.1%5.2%
1 Year-8.1%-10.5%7.2%5.4%12.6%8.2%
3 Year-2.7%-14.1%-8.7%-15.4%0.4%-10.0%
5 Year60.4%24.2%39.6%20.7%30.6%8.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sands China undervalued compared to its fair value and its price relative to the market?

24.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1928 (HK$33.1) is trading below our estimate of fair value (HK$44.03)

Significantly Below Fair Value: 1928 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1928 is poor value based on its PE Ratio (138.2x) compared to the HK Hospitality industry average (33.5x).

PE vs Market: 1928 is poor value based on its PE Ratio (138.2x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: 1928 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 1928 is overvalued based on its PB Ratio (12.7x) compared to the HK Hospitality industry average (0.9x).


Next Steps

Future Growth

How is Sands China forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

79.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1928's forecast earnings growth (79.5% per year) is above the savings rate (1.6%).

Earnings vs Market: 1928's earnings (79.5% per year) are forecast to grow faster than the Hong Kong market (21.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1928's revenue (37.8% per year) is forecast to grow faster than the Hong Kong market (13.6% per year).

High Growth Revenue: 1928's revenue (37.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1928's Return on Equity is forecast to be very high in 3 years time (54.1%).


Next Steps

Past Performance

How has Sands China performed over the past 5 years?

0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1928 has a large one-off loss of $105.0M impacting its June 30 2020 financial results.

Growing Profit Margin: 1928's current net profit margins (4.8%) are lower than last year (22.1%).


Past Earnings Growth Analysis

Earnings Trend: 1928's earnings have grown by 0.4% per year over the past 5 years.

Accelerating Growth: 1928's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1928 had negative earnings growth (-87.3%) over the past year, making it difficult to compare to the Hospitality industry average (-64.9%).


Return on Equity

High ROE: 1928's Return on Equity (9.2%) is considered low.


Next Steps

Financial Health

How is Sands China's financial position?


Financial Position Analysis

Short Term Liabilities: 1928's short term assets ($2.0B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: 1928's short term assets ($2.0B) do not cover its long term liabilities ($7.2B).


Debt to Equity History and Analysis

Debt Level: 1928's debt to equity ratio (253.8%) is considered high.

Reducing Debt: 1928's debt to equity ratio has increased from 64.5% to 253.8% over the past 5 years.

Debt Coverage: 1928's debt is not well covered by operating cash flow (9.8%).

Interest Coverage: 1928's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Sands China current dividend yield, its reliability and sustainability?

3.58%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1928's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1928's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1928's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1928's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1928 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1928's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Sheldon Adelson (86 yo)

5.67yrs

Tenure

Mr. Sheldon Gary Adelson is Founder and has been the Chief Executive Officer of Sands China Ltd., since March 6, 2015. Mr. Adelson has been the Chief Executive Officer of Las Vegas Sands Corp. since August...


Leadership Team

NamePositionTenureCompensationOwnership
Sheldon Adelson
Chairman & CEO5.67yrsno datano data
Ying Wai Wong
President & Executive Director4.83yrsUS$4.59mno data
Minqi Sun
CFO & Senior VP3.58yrsno datano data
Kwan Chum
Chief Operating Officer0.75yrno datano data
Dylan Williams
General Counsel & Company Secretary0.75yrno datano data
David Sylvester
Executive Vice President of Global Retailno datano datano data

3.6yrs

Average Tenure

51yo

Average Age

Experienced Management: 1928's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sheldon Adelson
Chairman & CEO5.67yrsno datano data
Ying Wai Wong
President & Executive Director4.83yrsUS$4.59mno data
Yun Chiang
Independent Non-Executive Director11.08yrsUS$150.00kno data
Steven Strasser
Independent Non-Executive Director7.5yrsUS$180.00kno data
Robert Goldstein
Non-Executive Director5.67yrsno datano data
Victor Hoog Antink
Independent Non-Executive Director7.92yrsUS$180.00kno data
Charles Forman
Non-Executive Director6.5yrsUS$150.00kno data
Kenneth Patrick Chung
Independent Non-Executive Director4.33yrsUS$150.00kno data

7.0yrs

Average Tenure

67yo

Average Age

Experienced Board: 1928's board of directors are considered experienced (7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Sands China Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sands China Ltd.
  • Ticker: 1928
  • Exchange: SEHK
  • Founded: 2009
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: HK$268.584b
  • Shares outstanding: 8.09b
  • Website: https://www.sandschina.com

Number of Employees


Location

  • Sands China Ltd.
  • The Venetian Macao-Resort-Hotel
  • Executive Offices
  • Taipa
  • Macau

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1928SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2009
599ADB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2009
SCHY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2009
1928SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2009
1928SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2009
SCHY.YOTCPK (Pink Sheets LLC)UNSPONSORE ADRUSUSDMay 2010

Biography

Sands China Ltd., an investment holding company, develops, owns, and operates integrated resorts and casinos in Macao. It owns and operates The Venetian Macao-Resort-Hotel, the Sands Cotai Central resort, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 10:18
End of Day Share Price2020/11/27 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.