NEW YORK (TheStreet) --Shares of Las Vegas Sands (LVS) are down by 0.86% to $44 on Wednesday afternoon, despite a report from the Nevada Gaming Control Board that showed casino revenue in the state grew in November when compared to the same period last year.
Nevada's non-restricted gaming licensees reported a total "gaming win" of $944.3 million for last month, a 7.8% rise from the same month in 2014.
More specifically, casino revenue on the Las Vegas Strip was up by 5.4% year-over-year, downtown Las Vegas saw a 25% hike and Reno saw a 3.3% rally in casino revenue.
Las Vegas Sands is a developer of destination properties that offers accommodations, gaming, entertainment and retail, convention and exhibition facilities, celebrity chef restaurants and other amenities. The company operates in three locations, the U.S., Singapore and Macau.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate LAS VEGAS SANDS CORP as a Buy with a ratings score of B-. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 48.19% is the gross profit margin for LAS VEGAS SANDS CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.94% is above that of the industry average.
- LVS, with its decline in revenue, underperformed when compared the industry average of 1.2%. Since the same quarter one year prior, revenues fell by 18.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- LAS VEGAS SANDS CORP's earnings per share declined by 21.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, LAS VEGAS SANDS CORP increased its bottom line by earning $3.51 versus $2.79 in the prior year. For the next year, the market is expecting a contraction of 26.6% in earnings ($2.58 versus $3.51).
- The debt-to-equity ratio of 1.32 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, LVS's quick ratio is somewhat strong at 1.34, demonstrating the ability to handle short-term liquidity needs.
- You can view the full analysis from the report here: LVS