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

3.4%

1928

2.7%

HK Hospitality

0.9%

HK Market


1 Year Return

8.4%

1928

15.8%

HK Hospitality

0.6%

HK Market

Return vs Industry: 1928 underperformed the Hong Kong Hospitality industry which returned 15.8% over the past year.

Return vs Market: 1928 exceeded the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

1928IndustryMarket
7 Day3.4%2.7%0.9%
30 Day-1.3%0.4%0.4%
90 Day-8.9%-6.8%-5.5%
1 Year14.6%8.4%19.5%15.8%4.2%0.6%
3 Year24.4%6.4%23.2%11.6%15.5%3.9%
5 Year8.4%-18.8%-9.3%-23.8%19.9%-0.1%

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?

47.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 1928 (HK$36.65) is trading below our estimate of fair value (HK$70.34)

Significantly Undervalued: 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 (19.2x) compared to the Hospitality industry average (12.1x).

PE vs Market: 1928 is poor value based on its PE Ratio (19.2x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 1928 is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: 1928 is overvalued based on its PB Ratio (10.9x) 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 23 analysts?

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1928's forecast earnings growth (10.7% per year) is above the savings rate (2%).

Earnings vs Market: 1928's earnings (10.7% per year) are forecast to grow slower than the Hong Kong market (11.4% per year).

High Growth Earnings: 1928's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1928's revenue (7.5% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 1928's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 1928's Return on Equity is forecast to be very high in 3 years time (50.8%).


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

Earnings Trend: 1928's earnings have declined by -5.6% per year over the past 5 years.

Accelerating Growth: 1928's earnings growth over the past year (3.1%) exceeds its 5-year average (-5.6% per year).

Earnings vs Industry: 1928 earnings growth over the past year (3.1%) exceeded the Hospitality industry -5.3%.


Return on Equity

High ROE: Whilst 1928's Return on Equity (56.8%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: 1928 has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: 1928 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Sands China's financial position?


Financial Position Analysis

Short Term Liabilities: 1928's short term assets ($2.2B) exceeds its short term liabilities ($1.9B)

Long Term Liabilities: 1928's short term assets (2.2B) do not cover its long term liabilities (5.8B)


Debt to Equity History and Analysis

Debt Level: 1928's debt to equity ratio (158.3%) is considered high

Reducing Debt: 1928's debt to equity ratio has increased from 59.3% to 158.3% over the past 5 years.

Debt Coverage: 1928's debt is well covered by operating cash flow (52.2%).

Interest Coverage: 1928's interest payments on its debt are well covered by EBIT (9.6x coverage).


Balance Sheet

Inventory Level: 1928 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1928's 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?

5.43%

Current Dividend Yield


Dividend Yield vs Market

company5.4%marketbottom25%2.3%markettop25%6.3%industryaverage2.9%forecastin3Years5.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1928's dividend (5.43%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1928's dividend (5.43%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 1928 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1928's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.3%), 1928's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1928's dividends in 3 years are forecast to be covered by earnings (74.5% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Sheldon Adelson (85yo)

4.6yrs

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 ...


Management Age and Tenure

3.9yrs

Average Tenure

50yo

Average Age

Experienced Management: 1928's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

5.9yrs

Average Tenure

66yo

Average Age

Experienced Board: 1928's board of directors are considered experienced (5.9 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.


Ownership Breakdown


Management Team

  • Sheldon Adelson (85yo)

    Chairman & CEO

    • Tenure: 4.6yrs
  • Wilfred Wong (66yo)

    President

    • Tenure: 3.8yrs
    • Compensation: US$4.62m
  • David Sylvester (55yo)

    Executive Vice President of Global Retail

    • Tenure: 0yrs
  • Dylan Williams (43yo)

    Company Secretary

    • Tenure: 4.5yrs
  • Grant Chum (43yo)

    Chief of Staff

    • Tenure: 3.6yrs
  • Dave Sun (45yo)

    CFO & Senior VP

    • Tenure: 2.5yrs

Board Members

  • Rachel Chiang (51yo)

    Independent Non-Executive Director

    • Tenure: 10yrs
    • Compensation: US$150.00k
  • Steve Strasser (70yo)

    Independent Non Executive Director

    • Tenure: 6.4yrs
    • Compensation: US$180.00k
  • Rob Goldstein (63yo)

    Non-Executive Director

    • Tenure: 4.6yrs
  • Sheldon Adelson (85yo)

    Chairman & CEO

    • Tenure: 4.6yrs
  • Victor Hoog Antink (66yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: US$180.00k
  • Wilfred Wong (66yo)

    President

    • Tenure: 3.8yrs
    • Compensation: US$4.62m
  • Charles Forman (72yo)

    Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: US$150.00k
  • Kenneth Patrick Chung (62yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • 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$296.398b
  • 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 Analysis2019/10/20 12:43
End of Day Share Price2019/10/18 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.