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 A-. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, impressive record of earnings per share growth, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 3.0%. Since the same quarter one year prior, revenues rose by 20.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- LAS VEGAS SANDS CORP has improved earnings per share by 35.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LAS VEGAS SANDS CORP increased its bottom line by earning $1.85 versus $1.56 in the prior year. This year, the market expects an improvement in earnings ($2.70 versus $1.85).
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. 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 $884.92 million or 20.67% 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 -79.45%.
- 44.40% 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 14.13% trails the industry average.
Las Vegas Sands Corp. develops, owns, and operates integrated resorts in Asia and the United States. Las Vegas Sands has a market cap of $47.1 billion and is part of the services sector and leisure industry. The company has a P/E ratio of 31.00, above the S&P 500 P/E ratio of 18.00. Shares are up 21.7% year to date as of the close of trading on Monday.
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--Written by a member of TheStreet Ratings Staff.
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