Company Overview
Wynn Resorts, Limited functions as an integrated resort operator that designs, develops, and operates luxury destinations across four distinct geographic segments, including Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor. These integrated resorts encompass a comprehensive ecosystem of casino spaces, private gaming salons, sky casinos, luxury hotel towers, and premium suites designed to cater to high-net-worth clientele. The company operates within the Consumer Cyclical sector, specifically under the Resorts & Casinos industry, positioning it as a direct beneficiary of discretionary consumer spending and tourism trends. With a market capitalization of $10.12B and an annual revenue of $7.14B, the entity demonstrates significant scale supported by a workforce of 28,500 employees. These valuation and revenue figures indicate that the company maintains a substantial footprint in the global leisure and hospitality landscape, allowing it to leverage its brand equity across multiple international markets while managing complex operational assets.
Financial Health
The company reported a total revenue of $7.14B over the trailing twelve months, generating a net income of $327.33M and an EBITDA of $1.75B during the same period. The substantial disparity between the $7.14B revenue figure and the $327.33M net income reveals a cost structure where approximately 95.4% of top-line revenue is consumed by operating expenses, taxes, and interest, leaving a relatively narrow net profit pool. Despite the lower net income, the EBITDA of $1.75B highlights a robust underlying cash generation capability from core operations before financing costs and non-cash items. Free cash flow for the period stood at $414.48M, which signifies the company retains significant liquidity after capital expenditures, providing financial flexibility for debt servicing, potential share repurchases, or strategic investments in property enhancements. The gross margin stands at 68.2%, reflecting the high-margin nature of gaming and hospitality services, while the operating margin of 15.7% and profit margin of 4.6% illustrate the pressure of overhead costs and the final profitability compression on every dollar of sales. On the balance sheet, total cash holdings of $2.07B are outweighed by total debt of $12.29B, indicating a highly leveraged capital structure typical for capital-intensive hospitality real estate. Although the debt-to-equity ratio is listed as N/A due to the negative book value context, the reliance on debt financing is evident when comparing liquid assets against long-term obligations. Short-term liquidity is supported by a current ratio of 1.63, suggesting the company holds sufficient current assets to cover its current liabilities without immediate distress. Return on Equity is not available for calculation given the negative equity position, while Return on Assets sits at 5.5%, indicating that management generates a modest return on the total asset base employed in the business.
Valuation Assessment
The trailing twelve-month P/E ratio is 30.91, whereas the forward P/E ratio is 16.34, implying that the market currently prices in a significant expected improvement in earnings performance relative to current annual results. The price-to-book ratio is -36.11, which indicates a negative book value situation rather than a traditional market premium, reflecting accounting adjustments or accumulated losses that reduce shareholders' equity below par. Valuation metrics such as the price-to-sales ratio of 1.42 and the EV/EBITDA of 11.09 offer alternative perspectives that suggest the company is valued at roughly 1.4 times its sales and 11 times its earnings before interest, taxes, depreciation, and amortization. Historical price volatility is framed by a 52-week high of $134.72 and a 52-week low of $65.25, providing the trading range within which the stock has fluctuated over the past year. The stock's sensitivity to market movements is quantified by a beta of 1.03, meaning the stock's price volatility is slightly higher than the broader market average, moving 3% more than the benchmark in both up and down markets.
Growth & Income
Year-over-year revenue growth was 1.5%, while earnings growth declined by -59.3%, indicating that profitability is lagging significantly behind top-line sales expansion, likely due to one-time costs, restructuring charges, or margin compression in specific segments. The company offers a dividend yield of 1.0% with a payout ratio of 31.9%, suggesting that current dividend distributions are funded by a portion of earnings but require careful monitoring given the recent sharp decline in net income. The sustainability of the dividend is contingent upon the stabilization of earnings growth, as the payout ratio must eventually align with more normalized profit levels to avoid cutting the dividend. Overall, the growth and income profile presents a mixed picture characterized by flat revenue expansion, sharply contracted earnings, and a modest dividend yield that serves as a return component but does not compensate for the lack of capital appreciation or strong earnings momentum.