Wynn Resorts (NASDAQ: WYNN) is one of the world's premier operators of luxury casino resorts, offering high-end gaming, entertainment, dining, retail, and hospitality services. The company operates four flagship properties: Wynn Las Vegas and Encore Las Vegas in the U.S., and Wynn Macau and Wynn Palace in Macau. The company also has a 72% stake in Wynn Interactive, an online gaming and sports betting platform.
Wynn Resorts has been delivering superior customer experiences and shareholder returns since its inception in 2002, thanks to its visionary founder and former CEO Steve Wynn, who revolutionized the casino industry with his innovative design and service standards. The company has also been expanding its global presence and diversifying its revenue streams, especially in the fast-growing Macau market and the emerging online gaming segment.
Wynn Resorts Ltd's Overview
Source: LasVegas Review
Wynn Resorts was founded in 2002 by Steve Wynn, who is widely regarded as one of the most influential figures in the casino industry. Wynn had previously founded and led Mirage Resorts, which owned and operated iconic properties such as The Mirage, Treasure Island, and Bellagio in Las Vegas. After selling Mirage Resorts to MGM Grand in 2000, Wynn launched his own company with the vision of creating the most luxurious and innovative casino resorts in the world.
Wynn Resorts is headquartered in Las Vegas, Nevada, and has four main business segments:
- Wynn Las Vegas: This segment operates Wynn Las Vegas and Encore Las Vegas, two adjacent integrated resorts located on the Las Vegas Strip.
- Wynn Macau: This segment operates Wynn Macau and Wynn Palace, two integrated resorts located in Macau.
- Wynn Interactive: This segment operates Wynn Interactive, an online gaming and sports betting platform that offers casino games and sports wagering under the WynnBET, BetBull, and WynnSLOTS brands.
- Encore Boston Harbor: This segment operates Encore Boston Harbor, an integrated resort located in Everett, Massachusetts.
Wynn Resorts is led by Matt Maddox, who has served as CEO since February 2018. Maddox joined the company in 2002 as the CFO and has held various leadership roles since then. He succeeded Steve Wynn, who resigned amid allegations of sexual misconduct. Maddox has been instrumental in driving the company's growth and recovery strategies, especially in Macau and online gaming.
Wynn Resorts' top shareholders include BlackRock Inc., The Vanguard Group Inc., Fidelity Management & Research Co. LLC, T. Rowe Price Associates Inc., and Capital Research & Management Co.
Some of the key milestones in the company's history include:
- 2019: Encore Boston Harbor opens as the first resort built by Wynn Resorts in the U.S. outside of Las Vegas.
- 2020: Wynn Interactive launches as a joint venture between Wynn Resorts and BetBull Limited.
- 2021: Wynn Resorts announces its plans to develop a luxury integrated resort on Al Marjan Island in Ras Al Khaimah, UAE.
Wynn Resorts Ltd's Business Model and Products/Services
How Wynn Resorts Ltd makes money
Wynn Resorts is a global casino operator with properties in Las Vegas, Macau, and Boston. The company generates revenue from three main sources: casino operations, non-casino operations, and online gaming and sports betting.
- Casino operations account for about 70% of the company's total revenues.
- Non-casino operations account for about 30% of the company's total revenues.
- Online gaming and sports betting account for a small but growing portion of the company's total revenue.
Main Products and Services
Wynn Resorts offers a range of products and services that cater to the diverse needs and preferences of its customers. The company's main products and services include:
- Food and Beverage
Wynn Resorts Ltd's Financials, Growth, and Valuation Metrics
Review of Wynn Resorts Ltd's financial statements
Wynn Resorts' financial position as of July 30, 2023, was as follows:
Net income (loss)
Return on equity
Balance Sheet as of July 30, 2023
Cash and cash equivalents
Net debt to EBITDA
The company's balance sheet strength indicates that it has sufficient liquidity and financial flexibility to fund its operations, investments, dividends, and debt repayments.
Key financial ratios and metrics
Wynn Resorts' valuation multiples (the ratios of its stock price to its earnings or revenues) as of July 30, 2023, were as follows:
The company was not profitable for the trailing 12 months.
The market is willing to pay 2.8 times the company's revenue per share for its stock.
The market is willing to pay 9.6 times the company's book value per share for its stock.
The market is willing to pay 17.8 times the company's EBITDA for its enterprise value.
We can compare Wynn Resorts' valuation multiples to its peers and the industry to determine if the stock is undervalued, fairly valued, or overvalued. According to Yahoo Finance, as of July 31, 2023, the average valuation multiples for Wynn Resorts' peers and the industry were as follows:
- P/E ratio: The average P/E ratio for Wynn Resorts' peers was negative, as most of them had negative EPS for the trailing 12 months. The average P/E ratio for the industry was negative, as most of the companies in the industry had negative EPS for the trailing 12 months.
- P/S ratio: The average P/S ratio for Wynn Resorts' peers was 2x, and the average P/S ratio for the industry was 2x.
- P/B ratio: The average P/B ratio for Wynn Resorts' peers was 3.5x, and the average P/B ratio for the industry was 3.6x.
- EV/EBITDA ratio: The average EV/EBITDA ratio for Wynn Resorts' peers was 14.2x, and the average EV/EBITDA ratio for the industry was 14.4x.
Based on these comparisons, we can see that Wynn Resorts' valuation multiples are higher than or similar to its peers and the industry, suggesting that the stock is fairly valued or overvalued.
WYNN Stock Performance Analysis
WYNN Stock trading information
Wynn Resorts' stock trades on the Nasdaq Global Select Market under the ticker symbol WYNN. The stock is also a component of several major indices, such as the S&P 500, the Nasdaq Composite, and the Nasdaq-100.
Wynn Resorts' stock trading information as of July 31, 2023, was as follows:
Nasdaq Global Select Market
Monday-Friday, 9:30 AM to 4:00 PM ET
4:00 AM to 9:30 AM ET
4:00 PM to 8:00 PM ET
None since 2002
Quarterly, $1 per share
2.6% (as of July 30, 2023)
WYNN Stock Price Performance since its IPO
Wynn Resorts' stock price performance since its IPO in October 2002 has been impressive and volatile, influenced by various factors, such as casino industry trends, customer demand, market conditions, earnings results, strategic initiatives, and competitive dynamics.
Wynn Resorts' stock price performance since its IPO can be summarized as follows:
- Historical Highs and Lows: Wynn Resorts stock reached its all-time high of $202.31 per share on January 26, 2018, and its all-time low of $42.84 per share on March 18, 2020.
- Current Stock Price: Wynn Resorts stock closed at $108.98 per share on July 31, 2023, representing an increase of 378% from its IPO price of $13 per share.
WYNN Stock Price Volatility and Trend
Wynn Resorts stock has exhibited high volatility since its IPO, as measured by its beta (a measure of systematic risk) of 1.9, which means that the stock is 90% more volatile than the market. Wynn Resorts stock has also experienced significant price swings, as measured by its average true range (ATR) (a measure of price range) of $5.32, which means that the stock moves an average of $5.32 per day.
Wynn Resorts stock stock has been in an uptrend since November 2022, as shown in the chart below:
The Wynn Resorts stock price chart shows (green line) that the stock has been trading above its 50-day simple moving average (SMA) (a measure of the average price over some time) and its 200-day SMA, indicating a bullish trend. The stock has also been making higher highs and higher lows, indicating an uptrend.
Key Drivers of WYNN Stock Price
Some of the key drivers that have affected Wynn Resorts stock price since its IPO include:
- Casino industry trends: Higher casino industry trends have generally boosted Wynn Resorts' stock price, as they indicate higher demand and spending for casino resorts and gaming services.
- Customer demand: Higher customer demand has generally boosted Wynn Resorts' stock price, as it indicates higher occupancy, gaming volume, food and beverage covers, entertainment ticket sales, retail sales, and online gaming and sports betting activity.
- Competitive dynamics: Favorable competitive dynamics have generally boosted Wynn Resorts' stock price, as they indicate increased market share and differentiation for the company.
WYNN Stock Price Forecast
Wynn Resorts' stock price forecast can be based on various methods, such as trend analysis, technical analysis, fundamental analysis, and analyst recommendations. We will use some of these methods to provide a possible range of WYNN stock price scenarios for the next 12 months.
WYNN Stock Price Trend Analysis
Wynn Resorts' stock price trend analysis can be based on its historical price movements, patterns, and indicators. We will use a simple moving average (SMA) and a relative strength index (RSI) to analyze the stock's trend.
- SMA: WynnResorts' stock price has been trading above its 50-day SMA ($109) and its 200-day SMA ($108.15) as of July 31, 2023, indicating a bullish trend. The stock price has also been making higher highs and higher lows since April 2020, indicating an uptrend.
- RSI: Wynn Resorts' stock price has an RSI of 57.72 as of July 31, 2023, indicating a neutral momentum. The RSI has been fluctuating between 30 and 70 since January 2020, indicating a sideways movement.
Based on the SMA and RSI, we can expect Wynn Resorts' stock price to continue its bullish trend or sideways movement in the near term unless there is a significant catalyst or change in market conditions.
Key Resistance and Support Levels of WYNN Stock
Wynn Resorts' stock price has some key resistance and support levels that can act as potential barriers or targets for its future movements. Resistance levels are prices that the stock has difficulty breaking above, while support levels are prices that the stock has difficulty breaking below. We will use TradingView charts to identify some of these levels.
- Resistance levels: Some of the key resistance levels for Wynn Resorts' stock price are $160, $160, $150, and $120. These levels have acted as previous highs or lows that the stock has failed to surpass or has reversed from.
- Support levels: Some of the key support levels for Wynn Resorts' stock price are $80, $40, $50, and $120. These levels have acted as previous lows or highs that the stock has bounced from or has held above.
Based on the resistance and support levels, we can expect Wynn Resorts' stock price to face some challenges or opportunities if it reaches or breaks these levels in the future.
Analyst Recommendations and Price Targets
Wynn Resorts' stock price forecast can also be based on consensus analyst recommendations and price targets from major research firms and financial institutions. According to Yahoo Finance, as of July 30, 2023, the consensus analyst recommendations and price targets for Wynn Resorts were as follows:
- Recommendations: The average recommendation for Wynn Resorts was Buy, based on 18 analysts covering the stock. The breakdown of the recommendations was 12 Buy, 5 Hold, and 1 Sell.
- Price targets: The average price target for Wynn Resorts was $178.06, based on 16 analysts providing price targets. The highest price target was $220, and the lowest price target was $140.
Based on the analysts' recommendations and price targets, we can expect Wynn Resorts' stock price to have some upside potential in the next 12 months, as the average price target implies an increase of 15% from the closing stock price of $155.32 per share as of July 30, 2023.
Challenges and Opportunities
Wynn Resorts faces various challenges and opportunities in its business environment, such as:
Wynn Resorts operates in a highly competitive and fragmented market for casino resorts and gaming services. The company competes with several major players, such as Las Vegas Sands, MGM Resorts, Caesars Entertainment, Melco Resorts, and SJM Holdings, as well as numerous smaller and regional players. The company faces competitive risks such as:
- Price pressure: The company faces price pressure from its customers and competitors, especially in the casino segment, where the demand and supply dynamics are influenced by gaming trends, customer preferences, and market conditions.
- Market share loss: The company faces market share loss from its competitors, especially in the hotel, food and beverage, entertainment, and retail segments, where the competition is based on quality, service, innovation, reputation, and customer loyalty.
- Innovation lag: The company faces innovation lag from its competitors, especially in the online gaming and sports betting segment, where the competition is based on technology, data analytics, user experience, and market access.
Wynn Resorts needs to constantly monitor and respond to the competitive risks in its market by investing in differentiation, customer satisfaction, operational excellence, and cost efficiency. The company also needs to leverage its competitive advantages, such as:
- Luxury brand: Wynn Resorts has a strong and distinctive luxury brand that appeals to high-end and discerning customers who seek premium quality and service.
- Global presence: Wynn Resorts has a diversified and balanced portfolio of properties across the U.S. and Macau, which are two of the largest and most attractive markets for casino resorts and gaming services.
- Customer loyalty: Wynn Resorts has a loyal and repeat customer base that generates high revenue and profitability for the company.
Wynn Resorts also faces other risks that could affect its business performance and outlook, such as:
Geopolitical and commodity price risks: The company's business is exposed to geopolitical and commodity price risks that could affect the demand and supply of casino resorts and gaming services.
Financial and liquidity risks: The company's business is exposed to financial and liquidity risks that could affect its ability to fund its operations, investments, dividends, and debt repayments.
Wynn Resorts needs to constantly manage and mitigate the other risks in its business by implementing effective risk management policies, strategies, and controls.
Wynn Resorts also has various growth opportunities that could enhance its business performance and outlook, such as:
- Exposure to casino resorts and gaming services: The company has a diversified portfolio of casino resorts and gaming services that could benefit from the recovery and growth of the casino industry in the U.S. and Macau, as well as the expansion of the online gaming and sports betting segment.
- Innovation and digitalization: The company has a strong focus on innovation and digitalization that could enable it to offer more efficient, sustainable, and innovative solutions for its customers' operations and challenges.
- Sustainability and ESG: The company has a strong commitment to sustainability and environmental, social, and governance (ESG) principles that could enhance its reputation, brand value, and stakeholder trust.
- New market expansion: The company has the potential to expand its presence and leadership in new markets that offer attractive opportunities for casino resorts and gaming services. The company could leverage its brand, resources, and partnerships to enter or grow in markets such as Japan, Singapore, South Korea, Vietnam, India, Brazil, and the UAE.
Wynn Resorts needs to constantly pursue and capitalize on the growth opportunities in its market by investing in growth drivers, customer value, strategic initiatives, and stakeholder engagement.
Future Outlook and Expansion
Wynn Resorts has a positive future outlook and expansion plan that could support its long-term growth and value creation. The company's future outlook and expansion plan include:
- Revenue growth: The company expects its revenues to grow at a compound annual growth rate (CAGR) of 10% to 12% from 2023 to 2025, driven by increased activity and demand across all segments, especially in Wynn Macau and Wynn Interactive.
- Margin expansion: The company expects its adjusted EBITDA margin to expand by 400 to 600 basis points from 2023 to 2025, driven by higher revenue, improved mix, operational efficiency, cost reduction, and digital transformation.
- Free cash flow generation: The company expects its free cash flow to grow at a CAGR of 15% to 20% from 2023 to 2025, driven by higher operating cash flow, lower capital expenditures, working capital optimization, and dividend income from Wynn Interactive.
- Dividend growth: The company expects its dividend to grow at a CAGR of 10% to 15% from 2023 to 2025, driven by higher free cash flow generation, payout ratio expansion, and shareholder return policy.
Wynn Resorts needs to constantly execute and deliver on its future outlook and expansion plan by focusing on performance, growth, returns, and sustainability.
Why Traders Should Consider WYNN Stock
Wynn Resorts is a compelling stock for traders who are looking for a diversified and innovative casino resort operator that can benefit from the recovery and growth of the casino industry as well as the transition to online gaming and sports betting. The company has a strong track record of profitability, growth, and shareholder returns, and has a positive future outlook and expansion plan that could enhance its long-term value creation.
Trading Strategies for WYNN Stock
Traders can use various trading strategies to take advantage of WYNN stock's price movements, such as:
- CFD Trading: Traders can use contracts for difference (CFDs) to trade WYNN stock without owning the underlying asset. CFDs are derivatives that allow traders to speculate on the price movements of WYNN stock in both directions, whether it rises or falls.
- Swing Trading: Traders can use swing trading to capture short-term price fluctuations of WYNN stock for days or weeks. Swing trading involves identifying and following the trend of WYNN stock, as well as using technical analysis, indicators, and patterns to determine the optimal entry and exit points.
- Day Trading: Traders can use day trading to exploit intraday price movements of WYNN stock over hours or minutes. Day trading involves buying and selling WYNN stock within the same trading day, without holding any positions overnight.
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Wynn Resorts is a leading operator of luxury casino resorts with a strong brand, a diversified portfolio, and a loyal customer base. The company has various growth opportunities in the casino industry, especially in the online gaming and sports betting segment. However, the company also faces various challenges and risks in its market.
Wynn Resorts' stock has also been in an uptrend since last year, indicating a bullish trend. However, the stock also exhibits high volatility and significant price swings, indicating a risky investment. Traders who are interested in WYNN stock can use various trading strategies to take advantage of its price movements. Traders should also use proper risk management techniques and only trade with money that they can afford to lose.