Las Vegas Sands Corp. (LVS), Caesars Entertainment Corp (CZR), Wynn Resorts, Limited (WYNN): Cashing In on Macao’s Growth

MGM Resorts International (NYSE:MGM) is doing a little better in China. For the second quarter, MGM Resorts International (NYSE:MGM) China reported a revenue increase of 18% and record EBITDA of $205 million, a 10% sequential increase. Its Chinese operations are good for around half of the company’s consolidated revenue, and like The Sands, are growing faster than its domestic activities. Still, the company reported a loss overall, albeit slimmer than a year ago.

Valuations and the Bottom Line

The Sands currently trades at 27 times trailing earnings, which is around the midpoint of its average over the last five years. Wynn Resorts, Limited (NASDAQ:WYNN) trades at a similar multiple while Caesar’s trades in the negative. The Sands has a solid 25% return on equity, and its operating margin of around 23% is far above the industry average. Not unusual for casino operators, it has quite a bit of debt on the books at $9.49 billion, and around $2.51 billion in cash.

Las Vegas Sands Corp. (NYSE:LVS) seems to be one of the fastest growing casino operators at the moment. This is partly because the company has been doing a great of job of cashing in on its Macao operations. With high analyst expectations for 2013, and a new location planned in the area, one can assume that the company will be able to maintain this stellar performance. As the stock seems fairly valued at the moment, investors may want to wait for a pullback before getting in.

The article Cashing In on Macao’s Growth originally appeared on Fool.com and is written by Daniel James.

Daniel James has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.