Wynn Resorts Intrinsic Value – WYNN RESORTS Reports Record Third Quarter Earnings for FY2023
December 17, 2023
🌥️Earnings Overview
For the third quarter of FY2023 ending on September 30, 2023, WYNN RESORTS ($NASDAQ:WYNN) reported a total revenue of USD 1671.9 million, an increase of 87.9% from the same quarter last year. However, reported net income was USD -116.7 million, a decrease from the -142.9 million from the year prior.
Stock Price
The stock opened at $93.7 and closed at $90.6, down by 2.4% from its last closing price of 92.9. Despite the slight dip in stock price, Wynn Resorts reported strong numbers throughout the quarter. The repurchase program is intended to drive shareholder value and further reduce the company’s debt. The strong third quarter results were driven by growth in both the Macau and Las Vegas markets.
Overall, the results from the third quarter indicate that Wynn Resorts is on track to have a strong financial year in FY2023. With the debt reduction and share repurchase program, the company is preparing for continued success in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Wynn Resorts. More…
| Total Revenues | Net Income | Net Margin |
| 5.7k | 33.25 | 0.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Wynn Resorts. More…
| Operations | Investing | Financing |
| 888.32 | 454.27 | -560.97 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Wynn Resorts. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.34k | 15.05k | -7.28 |
Key Ratios Snapshot
Some of the financial key ratios for Wynn Resorts are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.0% | 11.0% | 12.8% |
| FCF Margin | ROE | ROA |
| 7.5% | -62.7% | 3.4% |
Analysis – Wynn Resorts Intrinsic Value
At GoodWhale, we analyzed the fundamentals of WYNN RESORTS and calculated its intrinsic value to be around $147.1. This value was arrived at through our proprietary Valuation Line. Currently, WYNN RESORTS stock is trading at $90.6, meaning it is undervalued by 38.4%. This is a great opportunity for investors looking to purchase stock in WYNN RESORTS. More…
Peers
Wynn Resorts Ltd, MGM China Holdings Ltd, Caesars Entertainment Inc, and MGM Resorts International are all in competition with each other. They are all fighting for market share in the gambling industry. Wynn Resorts Ltd is the largest company, followed by MGM China Holdings Ltd, Caesars Entertainment Inc, and MGM Resorts International.
– MGM China Holdings Ltd ($SEHK:02282)
MGM China Holdings Ltd is a gaming and hospitality company that owns and operates the MGM Macau resort in China. The company has a market cap of 12.01B as of 2022 and a Return on Equity of -41969.86%. MGM China Holdings Ltd is a subsidiary of MGM Resorts International.
– Caesars Entertainment Inc ($NASDAQ:CZR)
Caesars Entertainment Inc is a gaming and hospitality company that owns and operates casinos, resorts, and golf courses. The company has a market cap of 9.38 billion as of 2022 and a return on equity of 15.25%. Caesars Entertainment is one of the largest gaming companies in the world and operates casinos in Las Vegas, Atlantic City, Macau, and other locations. The company also owns and operates the World Series of Poker and the Caesars Palace hotel and casino in Las Vegas.
– MGM Resorts International ($NYSE:MGM)
MGM Resorts International is one of the largest casino and hotel companies in the world. The company owns and operates a number of iconic properties, including the Bellagio, MGM Grand, and Mandalay Bay. MGM also has a significant presence in the online gaming space through its subsidiary, MGM Interactive. The company’s market cap as of 2022 is 13.98 billion, and its return on equity is 53.54%.
Summary
WYNN RESORTS reported a strong third quarter FY2023 with total revenues increasing by 87.9% to USD 1671.9 million and net income decreasing from -142.9 million to -116.7 million compared to the same quarter last year. Investors should consider the strong revenue growth as a positive sign and may be encouraged by the lower net income, as it reflects WYNN RESORTS’ commitment to cost cutting and efficiency. However, investors should also be mindful of the risks associated with investing in a large resort and casino chain as the current uncertain economic environment could cause further losses for the company in the near future.
