Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Las Vegas Sands Corp. (NYSE: LVS) is a global developer and operator of destination properties (Integrated Resorts). The Integrated Resorts features accommodations, gaming, entertainment and retail malls, convention and exhibition facilities, celebrity chef restaurants, and other amenities. Its properties also cater to high-end players by providing them with luxury amenities and premium service levels. Its other amenities include luxury accommodations, restaurants, lounges, invitation-only clubs, and private gaming salons.

Kalkine’s Diversified Opportunities Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

Stock Performance:

• The stock has corrected by 14.24% in the last three months as well as a correction of 6.92% in past six months.
• The stock is in its lower band of its 52-week range of USD 61.25 and 52-week low price of USD 43.77. Post the announcement of Q1FY24 results the stock has corrected by approx. 8.47% with the current price near an important support zone of USD 43.00-USD 45.00.
• The price is currently trading below both its long-term (200-day) SMA and its short-term (50-day) SMA , with the current RSI of 40.34.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Top 10 shareholders:

The top 10 shareholders together form ~68.25% of the total shareholding, signifying concentrated shareholding. Chafetz (Irwin) and Sheldon G. Adelson 2007 Remainder Trust are the biggest shareholders, holding the maximum stake in the company at ~22.00% and ~11.77%, respectively.

1.4 Key Metrics:

Revenue and Gross Profit Analysis (2019-2023):

From 2019 to 2023, Las Vegas Sands (LVS) experienced notable fluctuations in revenue and gross profit. In 2019, the company reported a revenue of USD 12,127 million and a gross profit of USD 6,028 million. However, the COVID-19 pandemic in 2020 led to a significant decline, with revenue dropping to USD 2,940 million and gross profit to USD 821 million. As the global situation improved, LVS began a gradual recovery in 2021, with revenue increasing to USD 4,234 million and gross profit to USD 1,608 million. This positive trend continued in 2022, though at a slower pace, with revenues slightly decreasing to USD 4,110 million but gross profit marginally improving to USD 1,650 million. By 2023, the company had nearly regained its pre-pandemic performance, with revenue surging to USD 10,372 million and gross profit reaching USD 5,167 million.

Margin Analysis (Q1 FY24):

In Q1 FY24, LVS demonstrated superior performance across all key margin metrics compared to the industry median. The company achieved a gross margin of 50.6%, slightly above the industry median of 50.1%, indicating efficient management of production costs relative to revenue. LVS's EBITDA margin stood at 35.5%, significantly surpassing the industry median of 18.3%, reflecting strong operational efficiency and cost management. The operating margin was reported at 24.2%, double the industry median of 12.1%, showcasing effective control over operating expenses. With a pretax margin of 20.3%, LVS outperformed the industry median of 8.7%, indicating robust profitability before taxes. Furthermore, the net margin of 19.7% was considerably higher than the industry median of 5.6%, underscoring the company's overall profitability and efficiency in converting revenue into actual profit. Overall, LVS’s financial performance, particularly in Q1 FY24, highlights its strong recovery from the pandemic-induced downturn and effective management strategies, positioning it favorably within the industry.

Section 2: Business Updates and Corporate Business Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

2.2 Insights of Q1FY24:

Section 3: Key Risks & Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

Stock Performance:

• The stock has corrected by 14.24% in the last three months as well as a correction of 6.92% in past six months.
• The stock is in its lower band of its 52-week range of USD 61.25 and 52-week low price of USD 43.77. Post the announcement of Q1FY24 results the stock has corrected by approx. 8.47% with the current price near an important support zone of USD 43.00-USD 45.00.
• The price is currently trading below both its long-term (200-day) SMA and its short-term (50-day) SMA , with the current RSI of 40.34.

4.2 Fundamental Valuation

Valuation Methodology: EV/Sales Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is May 22, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.