NasdaqGS:WYNN

Stock Analysis Report

Executive Summary

Wynn Resorts, Limited owns and operates destination casino resorts.

Snowflake

Fundamentals

Undervalued with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

9.0%

WYNN

2.5%

US Hospitality

2.3%

US Market


1 Year Return

-3.8%

WYNN

1.6%

US Hospitality

5.6%

US Market

Return vs Industry: WYNN underperformed the US Hospitality industry which returned 1.6% over the past year.

Return vs Market: WYNN underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

WYNNIndustryMarket
7 Day9.0%2.5%2.3%
30 Day-2.4%-5.3%-1.0%
90 Day-15.7%-4.8%-0.7%
1 Year-0.7%-3.8%4.1%1.6%7.9%5.6%
3 Year27.2%19.2%41.7%32.4%45.6%36.3%
5 Year-29.5%-37.6%41.4%25.7%65.8%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Wynn Resorts undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: WYNN ($113.83) is trading below our estimate of fair value ($235.9)

Significantly Undervalued: WYNN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WYNN is good value based on its PE Ratio (14.9x) compared to the Hospitality industry average (22.5x).

PE vs Market: WYNN is good value based on its PE Ratio (14.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: WYNN is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: WYNN is overvalued based on its PB Ratio (5.9x) compared to the US Hospitality industry average (2.1x).


Next Steps

Future Growth

How is Wynn Resorts forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

23.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WYNN's forecast earnings growth (23.3% per year) is above the savings rate (2.7%).

Earnings vs Market: WYNN's earnings (23.3% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: WYNN's revenue (7.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: WYNN's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: WYNN's Return on Equity is forecast to be high in 3 years time (33.9%)


Next Steps

Past Performance

How has Wynn Resorts performed over the past 5 years?

5.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

Accelerating Growth: WYNN's earnings growth over the past year (56.9%) exceeds its 5-year average (5.1% per year).

Earnings vs Industry: WYNN earnings growth over the past year (56.9%) exceeded the Hospitality industry -13.9%.


Return on Equity

High ROE: Whilst WYNN's Return on Equity (56.04%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Wynn Resorts's financial position?


Financial Position Analysis

Short Term Liabilities: WYNN's short term assets ($2.0B) do not cover its short term liabilities ($2.0B)

Long Term Liabilities: WYNN's short term assets (2.0B) do not cover its long term liabilities (9.3B)


Debt to Equity History and Analysis

Debt Level: WYNN's debt to equity ratio (494.7%) is considered high

Reducing Debt: WYNN's debt to equity ratio has reduced from 2536.8% to 494.7% over the past 5 years.

Debt Coverage: WYNN's debt is not well covered by operating cash flow (15.5%).

Interest Coverage: WYNN's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: WYNN's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

3.51%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%1.5%markettop25%3.8%industryaverage2.9%forecastin3Years3.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WYNN's dividend (3.51%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: WYNN's dividend (3.51%) is low compared to the top 25% of dividend payers in the US market (3.76%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.8%), WYNN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WYNN's dividends in 3 years are forecast to be covered by earnings (55% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Matt Maddox (43yo)

1.7yrs

Tenure

US$17,129,183

Compensation

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 ...


CEO Compensation Analysis

Compensation vs. Market: Matt has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Matt's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.3yrs

Average Tenure

52yo

Average Age

Experienced Management: WYNN's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

63.5yo

Average Age

Experienced Board: WYNN's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: WYNN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$93,74429 Aug 19
Patricia Mulroy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares900
Max PriceUS$104.16
SellUS$50,15915 Mar 19
Patricia Mulroy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares425
Max PriceUS$118.02
BuyUS$1,009,45915 Nov 18
Philip Satre
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares9,800
Max PriceUS$103.01

Ownership Breakdown


Management Team

  • Matt Maddox (43yo)

    CEO & Director

    • Tenure: 1.7yrs
    • Compensation: US$17.13m
  • Ian Coughlan (60yo)

    President of Wynn Macau Limited

    • Tenure: 3.1yrs
  • Linda Chen (52yo)

    President of Wynn International Marketing

    • Tenure: 4.8yrs
    • Compensation: US$4.33m
  • Craig Billings (46yo)

    President

    • Tenure: 0.4yrs
    • Compensation: US$7.50m
  • Scott Moore

    Chief Marketing Officer

    • Tenure: 0.8yrs
  • Robert Amerine

    Vice President – Corporate Finance

    • Tenure: 0yrs
  • Erik Hansen

    Chief Sustainability Officer

    • Tenure: 1.3yrs
  • Ellen Whittemore (62yo)

    Executive VP

    • Tenure: 1.3yrs
    • Compensation: US$2.29m
  • Michael Weaver

    Chief Communications Officer

    • Tenure: 0.8yrs
  • Rose Huddleston

    Senior Vice President of Human Resources for North America

    • Tenure: 0yrs

Board Members

  • Phil Satre (68yo)

    Non-Executive Chairman

    • Tenure: 0.9yrs
    • Compensation: US$425.47k
  • Betsy Atkins (66yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$728.08k
  • Rich Byrne (58yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$338.56k
  • Wendy Webb (61yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$723.94k
  • Matt Maddox (43yo)

    CEO & Director

    • Tenure: 1.7yrs
    • Compensation: US$17.13m
  • Jay Johnson (72yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$470.66k
  • Pat Mulroy (66yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$549.73k
  • Linda Chen (52yo)

    President of Wynn International Marketing

    • Tenure: 4.8yrs
    • Compensation: US$4.33m
  • Sandy Randt (73yo)

    Director

    • Tenure: 4yrs
    • Compensation: US$364.65k
  • Dee Dee Myers (57yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$735.57k

Company Information

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


Key Information

  • Name: Wynn Resorts, Limited
  • Ticker: WYNN
  • Exchange: NasdaqGS
  • Founded: 2002
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: US$12.190b
  • Shares outstanding: 107.09m
  • Website: https://www.wynnresorts.com

Number of Employees


Location

  • Wynn Resorts, Limited
  • 3131 Las Vegas Boulevard South
  • Las Vegas
  • Nevada
  • 89109
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WYNNNasdaqGS (Nasdaq Global Select)YesCommon Stock 0.01USUSDOct 2002
WYNN *BMV (Bolsa Mexicana de Valores)YesCommon Stock 0.01MXMXNOct 2002
WYRDB (Deutsche Boerse AG)YesCommon Stock 0.01DEEUROct 2002
WYNNSWX (SIX Swiss Exchange)YesCommon Stock 0.01CHCHFOct 2002
0QYKLSE (London Stock Exchange)YesCommon Stock 0.01GBUSDOct 2002

Biography

Wynn Resorts, Limited owns and operates destination casino resorts. As of February 20, 2019, the company’s Wynn Palace segment had approximately 424,000 square feet of casino space, which offered 320 table ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:43
End of Day Share Price2019/10/16 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.