But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.
Must-know: Las Vegas Sands’ future prospects
Japan is thinking about opening its market to casinos in the near future. Legalizing casinos in Japan is a long-term catalyst for the casino industry. Las Vegas Sands (LVS) has a huge potential for growth in Japan. The growth in Japan could be as big as the growth in Macao.
The 2014 estimated EV to EBITDA multiple for Las Vegas Sands (LVS) is 11x . This shows that LVS is undervalued compared to to Wynn Resorts (WYNN) at 13.1x and Melco Crown Entertainment (MPEL) at 12.1x. LVS is overvalued compared to Boyd Gaming (BYD) at 9.2x.
As an investor, you should know if Las Vegas Sands’ (LVS) management is committed to the future. Management runs the company. Does management own shares? Adelson Sheldon, the chairman and CEO of LVS, holds ~49% of the company. This shows that management is confident in the company’s business.
Las Vegas Sands (LVS) continues to return capital to its shareholders. The capital is being returned through recurring dividends and stock buybacks. The company returned over $1.7 billion of capital to shareholders in 2013. LVS is generating a significant amount of free cash flow (or FCF). This is strengthening the company’s financial position.
Las Vegas Sands (LVS) maintained its ability to cover short-term obligations. It maintained its obligations despite investing in growth opportunities. Also, it wasn’t severely impacted by the economic downturn. However, its current ratio and quick ratio have declined compared to 2011.
LVS increased its revenue and adjusted property EBITDA since 2009. It had a compound annual growth rate (or CAGR) of 31.8% and 44.7% respectively. LVS’s trailing 12 months (or TTM) revenue and adjusted property EBITDA stand at $14.86 billion and $5.28 billion, respectively. It has a margin of 35.5%.
LVS generates significantly high gaming revenues from Macao—compared to the Las Vegas Strip or Singapore. Macao’s gaming revenues are approximately seven times higher than the Las Vegas Strip’s revenues. In 2013, the Las Vegas Strip’s gaming revenues were $6.5 billion. The gaming revenues were $45.2 billion in Macao.
The strengths, weaknesses, opportunities, and threats (or SWOT) analysis is a useful tool for decision-making in businesses and organizations. It helps companies identify the positive and negative factors inside and outside an organization.
Las Vegas Sands (LVS) earns revenue through casinos, hotels, food and beverages, and convention or retail operations. The company’s main revenue driver is casino revenue. It’s generated from slot machines and table games. Casino revenue represents ~79% of the total revenues.
Las Vegas Sands (LVS) has a strong presence in Macao. It accounts for ~65% of LVS’s revenues. The U.S. and Singapore account for 15% and 20%, respectively. Macao is a top tourist destination. It attracts gamers from China. Macao is the only place in China where gambling is legal.
Sheldon Adelson established Las Vegas Sands (LVS) in 1988. It’s based in Nevada. Las Vegas Sands develops, owns, and operates integrated resorts in the U.S., Macao, and Singapore. LVS has ~2,570 table games and 13,130 slot machines worldwide. The company was listed in the New York Stock Exchange in 2004.
As of September 13, 2014, Panera Bread Company’s (PNRA) year-to-date (or YTD) return was -15.14%—compared to returns of 9.9% on the S&P 500 Index and 1.37% for the restaurant industry.
Panera Bread Company (PNRA) reported its earnings on July 29 after the market closed. On July 30, its shares began trading at $148.82. This was up 2% from the previous day’s close of $146.62. The day’s high and low were $154.8 and $148.27, respectively.
Food costs significantly increased, which reduced Panera Bread Company’s (PNRA) profit margins. Management expects these cost pressures to continue into the second half of the year and expects about 1.25% in food inflation for the year.
Panera Bread Company (PNRA) had a challenging second quarter that was affected by several factors, like high commodity costs, weaker same-store sales, and slow growth in the catering business. This affects the company and its share value.
Panera Bread Company (PNRA) reported a net income of $49.2 million. Net income declined 3.6% compared to $51 million a year ago. In this part of the series, we’ll analyze what affected the company’s net income.
As Panera Bread Company’s (PNRA) revenues increase, it also needs to manage its costs effectively in order to reap healthy operating margins. Let’s look at the company’s major costs of operation.
Same-store sales show changes in revenues from a company’s existing locations over a period. But, besides increasing revenues from existing locations, a company can open new restaurants to increase its revenues, like Panera Bread Company (PNRA) did.
Panera Bread Company (PNRA) reported a year-over-year revenue growth of 7% to $631 million from $589 million despite disappointing same-store sales. Let’s look at why this was the case.
People can have many reasons to visit a restaurant. But one of the most critical reasons is the menu. With customers’ constantly changing tastes and preferences, a restaurant needs to innovate and be in sync with its demographic.