Stock analysis/share presentation ⬇️
Today we are talking about the company Wynn Resorts: $WYNN (-0.5%)
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It's a very different stock for a change, one that probably splits opinions in two. Would love to hear your thoughts on it later.
What is Wynn Resorts anyway: 🤔
Wynn Resorts, Limited is one of America's leading promoters and operators of hotel-casinos. At the end of 2020, the group owned 4 hotel-casinos under the names Wynn Las Vegas, Wynn Macau, Wynn Palace and Encore Boston Harbor.
How is the revenue distributed at Wynn Resorts.
Net revenue is divided among the various activities as follows:
- Casino operations (59%)
- Restaurant and bar operations (15.7%)
- Hotel operations (14.7%)
- Other (10.6%)
The geographic breakdown of net revenues is as follows: United States (53.2%) and Macau (46.8%).
When was the company founded? 🤔
The company was founded in 2002 by Stephen Alan Wynn, Elaine P. Wynn and Kazuo Okada and is headquartered in Las Vegas.
Market capitalization: 🏦
The company has a current market capitalization of around 11.6 billion euros.
Dividend yield:
The company currently no longer pays a dividend. The last dividend was paid to shareholders in March 2020.
Strengths of the share: 📈
- The average price target of analysts following the stock has been revised upwards significantly in the last four months.
- The analysts are very optimistic about the outlook for sales and have raised their expectations for business development accordingly.
Weaknesses of the share: 📉
- The company does not pay its shareholders a dividend
- The group's earnings releases have often disappointed in the past - moreover, with relatively large gaps to analysts' estimates.
Now a bit more specific about the business model: 🧐
The company's sales can be divided into four main segments.
Casinos: This segment is about the revenue collected from the numerous casinos. This segment accounts for the majority of the company's revenues. Wynn Resorts currently operates four hotel-casinos under the names Wynn Las Vegas, Wynn Macau, Wynn Palace and Encore Boston Harbor.
The Wynn Macau and Wynn Palace hotels are located in Macau. The Wynn Las Vegas operates on the Strip in Las Vegas. The Encore Boston Harbor is located in Everett, Massachusetts. Slot machines generate the largest revenues in this segment.
Restaurants and Bars: In addition to the casinos, many restaurants, bars and nightclubs are located in or around the hotels. The company can generate further revenues from these.
Hotels: This segment is about the revenues generated by hotel bookings. Wynn Resorts offers around 8,135 hotel rooms and suites in the USA. All hotels include one of the casinos mentioned above.
Entertainment, Retail: This segment primarily includes the operation of recreational facilities (nightclubs, wedding chapels, spas, etc.) and the various shopping outlets. In addition to selling Ferraris, customers can also purchase clothing from Chanel, Graff, Manolo Blahnik, Louis Vuitton.
In addition, extensive meeting facilities are available.
Wynn Resorts uses its hotels, restaurants, bars and retail stores mainly to attract customers to its casinos. After all, that's where most of the revenue is generated.
Subsidiary Wynn Interactive operates the WynnBET digital and interactive sports betting app in New Jersey, Colorado, Michigan, Virginia, Indiana, Arizona, Tennessee, Louisiana and New York. Sports betting is becoming increasingly popular in the US. Through its subsidiary, Wynn has a foot in the door.
In Las Vegas, the company benefits from the fact that many major sporting events, such as boxing matches or Formula 1 races, take place there. Las Vegas has also recently become home to the NFL team Las Vegas Raiders. All this attracts people from all over the world to Sin City and the Wynn Las Vegas casino.
Wynn Resorts management: 🙋🏽♂️
Craig Billings has served as chief executive officer of Wynn Resorts since January 2022. He earned his Bachelor of Business Administration in Finance from the University of Nevada-Las Vegas. In addition, Billings holds an M.B.A. (Master of Business Administration) from Columbia Business School.
He began his career with the well-known accounting firm Deloitte as an auditor. Billings then worked at Goldman Sachs in the investment banking division. From May 2011 to June 2012, he was CEO of gaming company ZEN Entertainment.
In 2012, he moved to Aristocrat Technologies Australia. The company is also active in the gaming industry and is a publisher of smartphone games, among other things. Prior to joining Wynn Resorts in 2017, he served in various leadership roles for gaming company NYX Gaming Group.
He began his career at Wynn Resorts in March 2017. There, he held the position of CFO . After Matthew Maddox announced in November 2021 that he would step down as CEO, Craig Billings was appointed CEO of Wynn Resorts effective February 1, 2022.
What is the goal of the company: 🏁
Wynn Resorts mission is to provide an unforgettable experience for its guests. Excellent service, fun and luxury are at the forefront. The company offers an all-in-one package with its restaurants, bars, shopping, entertainment and hotels.
Even though the hotels are very luxurious, the company believes that it is not buildings that make people happy, but people that make other people happy. With this spirit, the company wants to focus on the customer.
How does the stock look chart-wise? (US dollars converted into euros) 📈📉
Recently, the share ran the 116€ mark, which counted as resistance. This resistance also held. Thereupon, the share ran a small support at just under 98€ which has held for the time being. It could well be that the share now takes momentum and breaks through the 116 € mark sustainably and continues to rise. If this is not the case and the share goes below the support zone, the next starting point would be first 93 €. There is already an important support. If we assume that this is also broken through, then the share would have a lot of room to the downside for the time being. If the share does not find a bottom there for the time being, the next support zone would be just under €75.
Your opinion: 📝
Now I would like to hear your opinion on this stock in the comments.
What do you think of Wynn Resorts and did you already know this company? 🧐
Do you guys maybe already have this stock in your portfolio? 🤔
Feel free to let me know in the comments.
This is of course not investment advice but just my own opinion that I want to share with you! ⁉️
