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1. Company Snapshot

1.a. Company Description

Wynn Resorts, Limited designs, develops, and operates integrated resorts.Its Wynn Palace segment operates 424,000 square feet of casino space with 323 table games, 1,035 slot machines, private gaming salons, and sky casinos; a luxury hotel tower with 1,706 guest rooms, suites, and villas, including a health club, spa, salon, and pool; 14 food and beverage outlets; 107,000 square feet of retail space; 37,000 square feet of meeting and convention space; and performance lake and floral art displays.Its Wynn Macau segment operates 252,000 square feet of casino space with 331 table games, 818 slot machines, private gaming salons, sky casinos, and a poker room; two luxury hotel towers with 1,010 guest rooms and suites that include two health clubs, two spas, a salon, and a pool; 14 food and beverage outlets; 59,000 square feet of retail space; 31,000 square feet of meeting and convention space; and Chinese zodiac-inspired ceiling attractions.


Its Las Vegas Operations segment operates 194,000 square feet of casino space with 223 table games, 1,751 slot machines, private gaming salons, a sky casino, a poker room, and a race and sports book; two luxury hotel towers with 4,748 guest rooms, suites, and villas, including swimming pools, private cabanas, two full service spas and salons, and a wedding chapel; 32 food and beverage outlets; 513,000 square feet of meeting and convention space; 155,000 square feet of retail space; and two theaters, three nightclubs and a beach club.Its Encore Boston Harbor segment operates 211,000 square feet of casino space with 184 table games, 2,766 slot machines, gaming areas, and a poker room; a luxury hotel tower with 671 guest rooms and suites, including a spa and salon; 15 food and beverage outlets and a nightclub; 10,000 square feet of retail space; 71,000 square feet of meeting and convention space; and a waterfront park, floral displays, and water shuttle service.The company was founded in 2002 and is based in Las Vegas, Nevada.

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1.b. Last Insights on WYNN

Wynn Resorts' recent performance was negatively impacted by a disappointing earnings release, with quarterly earnings of $1.17 per share missing the Zacks Consensus Estimate of $1.33 per share. The company's profitability remained under pressure, despite steady demand in Macau and Las Vegas, and continued progress on development projects. Additionally, the institutional investor Hodges Capital Management Inc. reduced its position in Wynn Resorts by 73.4% during the quarter, selling 73,550 shares.

1.c. Company Highlights

2. Wynn Resorts' Q4 Earnings: A Strong Performance Amidst Renovation Headwinds

Wynn Resorts reported a robust Q4 with revenues of $688.1 million, $210.2 million, and $967.7 million in Las Vegas, Boston, and Macau, respectively. The company's adjusted property EBITDA margins stood at 35%, 27.1%, and 28% in the respective markets. However, the actual EPS of $1.17 fell short of estimates of $1.33. The company's strong liquidity position, with global cash and revolver availability of $4.7 billion, is a positive note. As Julie Cameron-Doe mentioned, "We have a strong liquidity position with global cash and revolver availability of $4.7 billion as of December 31."

Publication Date: Feb -17

📋 Highlights
  • Wynn Las Vegas Q4 EBITDA:: Generated $241M EBITDA, with an operating revenue of $688.1M and 35% margin.
  • Macau EBITDA Despite Challenges:: Delivered $271M EBITDA despite unusually low hold rates in VIP and mass segments.
  • Encore Tower Renovation Impact:: Projected 80,000 room nights lost in 2026, starting mid-May 2026, over 12-month renovation period.
  • Liquidity and Leverage:: $4.7B global cash and revolver availability, with a 4.4x net leverage ratio.
  • VIP Growth in Macau:: Significant VIP volume increase but low hold rates, with normalized Q4 margins estimated at ~30%.

Segment-wise Performance

Wynn Las Vegas delivered a strong quarter, with EBITDA of $241 million, driven by a targeted strategy and investments in its VIP hosting teams and player development. The company's Macau operations also performed well, with EBITDA of $271 million, despite unusually low hold rates in VIP and mass segments. The Boston operations generated $57 million in EBITDAR.

Outlook and Guidance

Looking ahead to 2026, Wynn Resorts expects a slight headwind due to the Encore Tower remodel, which will result in the loss of around 80,000 room nights. However, the company is optimistic about its ability to recapture some of the lost revenue through rate increases. Craig Billings noted, "We'll try to pick up some of that in rate, but the group business is doing really, really well, and we feel good about our ability to continue to price rooms."

Valuation and Growth Prospects

Analysts estimate next year's revenue growth at 3.8%. With a P/E Ratio of 35.66 and EV/EBITDA of 12.86, the company's valuation appears to be relatively high. However, the Dividend Yield of 0.88% and Free Cash Flow Yield of 3.26% are positive indicators. The company's ROIC of 7.93% and ROE of -93.76% are also worth noting.

Strategic Initiatives

Wynn Resorts is investing in technology and AI to improve customer experience and efficiency. The company is also opening a new Chairman's Club space in Macau, which is expected to set a new standard for premium gaming space. Additionally, the company is planning to take advantage of the World Cup to attract international customers.

3. NewsRoom

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Bragg Gaming Group (NASDAQ:BRAG) and Wynn Resorts (NASDAQ:WYNN) Critical Analysis

Mar -04

Source: defenseworld.net

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Wynn Resorts says hackers acquired employee data

Feb -24

Source: reuters.com

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Preferred Hotels & Resorts Welcomes Wynn Al Marjan Island to its Esteemed Legend Collection

Feb -24

Source: globenewswire.com

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Wynn Resorts: Premium Positioning Powers A Multi-Year Growth Story

Feb -19

Source: seekingalpha.com

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Wynn Resorts, Limited $WYNN Shares Sold by Hodges Capital Management Inc.

Feb -18

Source: defenseworld.net

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WYNN RESORTS AND CHEF'S TABLE ANNOUNCE GLOBAL PARTNERSHIP WITH CULINARY PROGRAMMING DEBUTING THIS FALL

Feb -17

Source: prnewswire.com

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Cibc World Market Inc. Purchases 26,692 Shares of Wynn Resorts, Limited $WYNN

Feb -15

Source: defenseworld.net

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Wynn Resorts Q4 Earnings Miss Estimates, Revenues Up Y/Y

Feb -13

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.30%)

6. Segments

Casino

Expected Growth: 5%

Wynn Resorts' 5% growth driven by increasing gaming revenue from Macau and Las Vegas, rising hotel occupancy rates, and growing demand for luxury entertainment. Additionally, strategic expansion into new markets, such as online gaming and sports betting, contributes to growth. Effective cost management and investments in digital transformation also support profitability.

Rooms

Expected Growth: 3%

Wynn Resorts' 3% growth in rooms is driven by increasing demand for luxury accommodations, particularly in Macau and Las Vegas. The company's focus on premium amenities, high-end gaming experiences, and strategic partnerships also contribute to growth. Additionally, Wynn's expansion into new markets, such as Boston and online gaming, provides further opportunities for room growth.

Food and Beverage

Expected Growth: 4%

Wynn Resorts' Food and Beverage segment growth is driven by increasing visitation and spend per visitor at its luxury resorts, particularly in Macau. Strong demand for premium dining experiences, expansion of F&B outlets, and effective yield management also contribute to growth. Additionally, the company's focus on enhancing customer experience through innovative culinary offerings and exceptional service further supports revenue growth.

Entertainment, Retail and Other

Expected Growth: 3%

{'Entertainment': 'Increased visitation and higher spend per visitor driven by new attractions and events, as well as a growing VIP gaming segment.', 'Retail': 'Expansion of luxury retail offerings and increased foot traffic driven by a growing tourist base and enhanced shopping experiences.', 'Other': 'Growth in hotel and food and beverage revenue driven by increased occupancy rates and higher average daily rates.'}

7. Detailed Products

Luxury Hotel Rooms

Wynn Resorts offers luxurious hotel rooms and suites with upscale amenities and services.

Casino Gaming

Wynn Resorts operates casinos with a wide range of games, including slots, table games, and poker.

Fine Dining Restaurants

Wynn Resorts features upscale restaurants with celebrity-chef partnerships and exceptional cuisine.

Nightlife and Entertainment

Wynn Resorts offers trendy bars, lounges, and nightclubs with live music and DJs.

Spas and Wellness

Wynn Resorts provides luxurious spa facilities and wellness programs for relaxation and rejuvenation.

Meetings and Conventions

Wynn Resorts offers extensive meeting and convention spaces with state-of-the-art amenities.

Wedding and Social Events

Wynn Resorts provides luxurious venues and services for weddings, galas, and other social events.

8. Wynn Resorts, Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Wynn Resorts, Limited faces moderate threat from substitutes, as customers have various alternatives for entertainment and leisure activities.

Bargaining Power Of Customers

Wynn Resorts, Limited has a high bargaining power of customers, as customers have many options for gaming and hospitality services, and can easily switch to competitors.

Bargaining Power Of Suppliers

Wynn Resorts, Limited has a low bargaining power of suppliers, as the company has a strong brand and can negotiate favorable terms with suppliers.

Threat Of New Entrants

Wynn Resorts, Limited faces a low threat of new entrants, as the gaming and hospitality industry has high barriers to entry, including regulatory hurdles and significant capital requirements.

Intensity Of Rivalry

Wynn Resorts, Limited operates in a highly competitive industry, with intense rivalry among established players, leading to high marketing and promotional expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 102.18%
Debt Cost 3.95%
Equity Weight -2.18%
Equity Cost 13.48%
WACC 3.74%
Leverage -4678.55%

11. Quality Control: Wynn Resorts, Limited passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Vail Resorts

A-Score: 5.6/10

Value: 4.0

Growth: 5.9

Quality: 6.4

Yield: 8.0

Momentum: 3.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Wynn Resorts

A-Score: 5.2/10

Value: 5.6

Growth: 6.1

Quality: 4.7

Yield: 1.0

Momentum: 8.0

Volatility: 5.7

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Churchill Downs

A-Score: 4.7/10

Value: 4.3

Growth: 8.9

Quality: 5.5

Yield: 0.0

Momentum: 1.5

Volatility: 7.7

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Marriott Vacations Worldwide

A-Score: 4.6/10

Value: 7.4

Growth: 5.7

Quality: 4.0

Yield: 6.0

Momentum: 1.0

Volatility: 3.3

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MGM Resorts

A-Score: 4.0/10

Value: 4.2

Growth: 7.6

Quality: 2.6

Yield: 0.0

Momentum: 4.0

Volatility: 5.7

1-Year Total Return ->

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Hilton Grand Vacations

A-Score: 3.8/10

Value: 3.6

Growth: 5.6

Quality: 3.2

Yield: 0.0

Momentum: 5.0

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

103.33$

Current Price

103.33$

Potential

-0.00%

Expected Cash-Flows