SEHK:1928

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Proven track record with mediocre balance sheet.


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


Market Performance


7 Day Return

4.9%

SEHK:1928

7.7%

HK Hospitality

3.3%

HK Market


1 Year Return

-3.5%

SEHK:1928

-9.3%

HK Hospitality

-12.3%

HK Market

1928 outperformed the Hospitality industry which returned -9.3% over the past year.

1928 outperformed the Market in Hong Kong which returned -12.3% over the past year.


Share holder returns

1928IndustryMarket
7 Day4.9%7.7%3.3%
30 Day-10.4%-7.1%-8.0%
90 Day-1.5%1.9%-5.5%
1 Year2.0%-3.5%-6.1%-9.3%-9.2%-12.3%
3 Year39.8%19.6%34.5%22.0%11.5%0.8%
5 Year-6.2%-29.8%-20.0%-32.7%6.7%-10.5%

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 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

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

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


Price Based on Earnings

Sands China is overvalued based on earnings compared to the HK Hospitality industry average.

Sands China is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Sands China is poor value based on expected growth next year.


Price Based on Value of Assets

Sands China is overvalued based on assets compared to the HK Hospitality industry average.


Next Steps

Future Growth

How is Sands China expected to perform in the next 1 to 3 years based on estimates from 24 analysts?

12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sands China's revenue is expected to grow by 8.6% yearly, however this is not considered high growth (20% yearly).

Sands China's earnings are expected to grow by 12% yearly, however this is not considered high growth (20% yearly).

Sands China's revenue growth is positive but not above the Hong Kong market average.

Sands China's earnings growth is positive but not above the Hong Kong market average.

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


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Sands China performed over the past 5 years?

-5.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

Sands China's 1-year earnings growth exceeds its 5-year average (3.1% vs -5.6%)

Sands China's earnings growth has exceeded the HK Hospitality industry average in the past year (3.1% vs -5.1%).


Return on Equity

Whilst Sands China 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

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Sands China's financial position?


Financial Position Analysis

Sands China is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Sands China's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Sands China's level of debt (158.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (59.3% vs 158.3% today).

Debt is well covered by operating cash flow (52.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.4x debt.


Next Steps

Dividend

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

5.74%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Sands China's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.27%).

Sands China's dividend is below the markets top 25% of dividend payers in Hong Kong (6.12%).

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

Dividend payments have increased, but Sands China only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.4x coverage).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Sheldon Adelson (85yo)

4.4yrs

Tenure

0

Mr. Sheldon Gary Adelson 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 2004. He is th ...


CEO Compensation Analysis

Sheldon's remuneration is lower than average for companies of similar size in Hong Kong.

Insufficient data for Sheldon to compare compensation growth.


Management Age and Tenure

3.8yrs

Average Tenure

50yo

Average Age

The tenure for the Sands China management team is about average.


Board Age and Tenure

5.8yrs

Average Tenure

66yo

Average Age

The tenure for the Sands China board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Sheldon Adelson (85yo)

    Chairman & CEO

    • Tenure: 4.4yrs
  • Wilfred Wong (66yo)

    President

    • Tenure: 3.6yrs
    • Compensation: US$4.62m
  • David Sylvester (55yo)

    Executive Vice President of Global Retail

    • Tenure: 0.0yrs
  • Dylan Williams (43yo)

    Company Secretary

    • Tenure: 4.3yrs
  • Grant Chum (43yo)

    Chief of Staff

    • Tenure: 3.4yrs
  • Dave Sun (45yo)

    CFO & Senior VP

    • Tenure: 2.3yrs

Board Members

  • Rachel Chiang (51yo)

    Independent Non-Executive Director

    • Tenure: 9.8yrs
    • Compensation: US$150.00k
  • Steve Strasser (70yo)

    Independent Non Executive Director

    • Tenure: 6.3yrs
    • Compensation: US$180.00k
  • Rob Goldstein (63yo)

    Non-Executive Director

    • Tenure: 4.4yrs
  • Sheldon Adelson (85yo)

    Chairman & CEO

    • Tenure: 4.4yrs
  • Victor Hoog Antink (66yo)

    Independent Non-Executive Director

    • Tenure: 6.7yrs
    • Compensation: US$180.00k
  • Wilfred Wong (66yo)

    President

    • Tenure: 3.6yrs
    • Compensation: US$4.62m
  • Charles Forman (72yo)

    Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: US$150.00k
  • Kenneth Patrick Chung (62yo)

    Independent Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: US$150.00k

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$295.170b
  • Shares outstanding: 8.09b
  • Website: https://www.sandschinaltd.com

Number of Employees


Location

  • Sands China Ltd.
  • The Venetian Macao-Resort-Hotel
  • Executive Offices, L2
  • 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 Analysis2019/08/22 12:49
End of Day Share Price2019/08/22 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.