Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B . The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 1.9%. Since the same quarter one year prior, revenues rose by 10.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, LAS VEGAS SANDS CORP's return on equity exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has increased to $750.87 million or 13.22% when compared to the same quarter last year. In addition, LAS VEGAS SANDS CORP has also vastly surpassed the industry average cash flow growth rate of -76.18%.
- LAS VEGAS SANDS CORP's earnings per share declined by 35.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, LAS VEGAS SANDS CORP increased its bottom line by earning $1.56 versus $0.50 in the prior year. This year, the market expects an improvement in earnings ($2.35 versus $1.56).
- 44.80% is the gross profit margin for LAS VEGAS SANDS CORP which we consider to be strong. Regardless of LVS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 9.30% trails the industry average.
Las Vegas Sands Corp., together with its subsidiaries, owns, develops, and operates various integrated resort properties primarily in the United States, Macau, and Singapore. Las Vegas Sands has a market cap of $37.83 billion and is part of the services sector and leisure industry. The company has a P/E ratio of 26.6, above the S&P 500 P/E ratio of 17.7. Shares are up 7.6% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.
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