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Stock Analysis & ValuationWynn Resorts, Limited (WYR.DE)

Professional Stock Screener
Previous Close
90.40
Sector Valuation Confidence Level
Moderate
Valuation methodValue, Upside, %
Artificial intelligence (AI)88.00-3
Intrinsic value (DCF)75.41-17
Graham-Dodd Method1.30-99
Graham Formula66.90-26

Strategic Investment Analysis

Company Overview

Wynn Resorts, Limited (WYR.DE) is a premier global developer and operator of luxury destination casino resorts, headquartered in Las Vegas, Nevada. The company operates high-end integrated resorts in key gaming markets, including Macau (Wynn Macau and Wynn Palace) and Las Vegas (Wynn Las Vegas and Encore). Wynn Resorts is renowned for its ultra-luxury offerings, world-class entertainment, and fine dining, catering to affluent customers. The company is expanding its footprint with Wynn Boston Harbor in Massachusetts, reinforcing its position in the U.S. gaming market. Operating in the highly competitive Gambling, Resorts & Casinos sector, Wynn Resorts differentiates itself through superior service, brand prestige, and strategic locations. With a market capitalization of over €8 billion, Wynn Resorts remains a significant player in the global gaming industry, leveraging its strong brand equity and operational excellence.

Investment Summary

Wynn Resorts presents a compelling investment case due to its strong brand positioning in luxury gaming and hospitality, particularly in Macau and Las Vegas. The company's diversified revenue streams from gaming, entertainment, and dining provide stability. However, high leverage (total debt of ~€12.2 billion) and exposure to cyclical consumer spending pose risks. The resumption of travel post-pandemic and Macau's recovery are tailwinds, but regulatory risks in China and competition remain concerns. The stock's beta of 1.32 indicates higher volatility compared to the market. Investors may find value in Wynn's premium offerings and expansion projects, but should weigh these against macroeconomic and sector-specific risks.

Competitive Analysis

Wynn Resorts competes in the luxury segment of the global casino and resort industry, distinguishing itself through high-end amenities, superior customer service, and prime locations. Its Macau operations benefit from exclusivity in one of the world's largest gaming markets, though regulatory scrutiny in China remains a challenge. In Las Vegas, Wynn competes with other high-profile resorts but maintains an edge with its upscale clientele and premium experiences. The company's competitive advantages include brand prestige, operational efficiency, and a loyal customer base. However, its heavy reliance on Macau (~60% of revenue) exposes it to geopolitical and regulatory risks. Competitors like Las Vegas Sands and MGM Resorts offer similar luxury experiences but with more diversified portfolios. Wynn's ongoing expansion into new markets (e.g., Boston Harbor) could mitigate concentration risks. Capital allocation and debt management will be critical in maintaining its competitive position.

Major Competitors

  • Las Vegas Sands Corp. (LVS): Las Vegas Sands is a major competitor with a strong presence in Macau and Singapore (Marina Bay Sands). It focuses on mass-market and premium segments, offering scale and diversification. However, it lacks a Las Vegas presence after selling its properties, unlike Wynn. Sands has a robust balance sheet but faces similar regulatory risks in Asia.
  • MGM Resorts International (MGM): MGM Resorts dominates the Las Vegas Strip with a broad portfolio, including Bellagio and MGM Grand. It has a stronger U.S. regional presence than Wynn but lacks Wynn's ultra-luxury focus. MGM's BetMGM joint venture gives it an edge in U.S. sports betting, a segment Wynn has less exposure to.
  • Melco Resorts & Entertainment (MLCO): Melco is a key player in Macau, operating City of Dreams and Studio City. It competes directly with Wynn in the premium market but has a weaker presence outside Macau. Melco's reliance on VIP gaming makes it more vulnerable to Macau's regulatory changes compared to Wynn's diversified revenue streams.
  • Caesars Entertainment (CZR): Caesars is a Las Vegas heavyweight with a vast domestic network but lacks Wynn's luxury positioning. Its acquisition by Eldorado Resorts expanded its regional footprint, but it struggles with high debt. Caesars' sports betting (Caesars Sportsbook) and digital offerings provide growth avenues Wynn hasn't prioritized.
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