Sands China (SCHYY) AI Stock Analysis

• Market Cap: $21.07B
• Dividend Yield: 2.25%
• Average Volume (3M): 458.00
• Price to Earnings (P/E): 23.0
• Beta (1Y): 0.56
• Revenue Growth: -2.90%
• EPS Growth: -13.46%
• Country: US
• Employees: 27,064
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.51
• Shares Outstanding: 809,337,950
• 10 Day Avg. Volume: 1,011
• 30 Day Avg. Volume: 458
• PEG Ratio: 0.40
• Price to Book (P/B): 21.14
• Price to Sales (P/S): 3.08
• P/FCF Ratio: 18.01
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 3.24
• Enterprise Value/Gross Profit: 5.49
• Enterprise Value/Ebitda: 10.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: $27.00 ▲(2.23% Upside)

Sands China shows a strong financial recovery with significant revenue and profit growth, which is the most significant factor in its score. However, high leverage remains a risk. Technical analysis indicates potential short-term weakness, and the valuation suggests the stock is fairly valued. The absence of earnings call and corporate events data limits additional insights.

Sands China Business Overview & Revenue Model

Company Description

Sands China Ltd. is a leading developer and operator of integrated resorts in Macao, specializing in a diverse range of entertainment and hospitality offerings. The company operates several iconic properties, including The Venetian Macao, Sands Macao, and The Parisian Macao, which combine luxury accommodations, gaming, dining, retail, and entertainment options. As a subsidiary of Las Vegas Sands Corp., Sands China plays a pivotal role in the growth of the tourism and gaming industries in Macao, catering to both international visitors and local residents.

How the Company Makes Money

Sands China generates revenue primarily through its gaming operations, which include table games and slot machines, making up the bulk of its earnings. The company also benefits from its non-gaming revenue streams, which include hotel accommodations, food and beverage sales, retail shopping, and entertainment experiences. Additionally, Sands China's integrated resort model allows for cross-promotion of its various offerings, enhancing guest experiences and encouraging longer stays. Significant partnerships with global brands and entertainment providers further bolster its revenue potential. Market conditions in Macao, such as tourism trends and regulatory changes, also play a crucial role in shaping the company's financial performance.

Sands China Financial Statement Overview

Summary

Sands China demonstrates a strong recovery with significant revenue growth, improved profit margins, and robust cash flow metrics. However, high financial leverage remains a risk, necessitating careful management to maintain financial stability.

Income Statement

Sands China shows strong recovery in its income statement, with significant revenue growth from $4.12 billion in 2023 to $7.08 billion in 2024, indicating a 71.76% increase. Gross profit margin improved to 59.0% from 50.6% in 2023. Net profit margin also increased to 14.76% in 2024, compared to 16.78% in 2019, before the pandemic impacts. EBIT and EBITDA margins are strong at 19.29% and 30.31% respectively, showcasing improved operational efficiency and profitability. These metrics reflect a robust recovery trajectory.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 7.91 in 2024, indicating significant leverage. However, the company's equity has turned positive to $1.03 billion from a negative position in 2023. Return on Equity (ROE) is high at 101.46%, indicating efficient use of equity, but this is due to the small equity base. The equity ratio remains low at 9.23%, signaling potential risks from financial leverage. Despite the high leverage, the positive equity turnaround suggests improving financial health.

Cash Flow

Operating cash flow remains strong at $2.07 billion in 2024, with a healthy operating cash flow to net income ratio of 1.98. Free cash flow is positive at $1.21 billion, although it saw a decrease from $2.08 billion in 2023, reflecting increased capital expenditures. The free cash flow to net income ratio stands at 1.16, indicating solid cash generation relative to earnings. Overall, cash flow metrics suggest robust liquidity and operating efficiency, despite fluctuations in free cash flow growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.08B	6.53B	1.60B	2.87B	1.69B
Gross Profit	4.18B	5.24B	487.00M	1.73B	549.00M
EBITDA	2.15B	2.02B	-427.00M	25.00M	-574.00M
Net Income	1.04B	692.00M	-1.58B	-1.05B	-1.52B
Balance Sheet
Total Assets	11.17B	10.26B	10.56B	10.09B	10.55B
Cash, Cash Equivalents and Short-Term Investments	1.97B	1.36B	790.00M	678.00M	861.00M
Total Debt	8.16B	8.33B	10.20B	7.95B	7.04B
Total Liabilities	10.14B	10.26B	11.26B	9.21B	8.62B
Stockholders Equity	1.03B	-4.00M	-700.00M	888.00M	1.93B
Cash Flow
Free Cash Flow	1.21B	2.09B	-676.00M	-476.00M	-1.83B
Operating Cash Flow	2.07B	2.29B	-473.00M	88.00M	-816.00M
Investing Cash Flow	-810.00M	-180.00M	-325.00M	-634.00M	-1.02B
Financing Cash Flow	-658.00M	-2.45B	1.82B	366.00M	231.00M

Sands China Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.41
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCHYY, the sentiment is Positive. The current price of 26.41 is above the 20-day moving average (MA) of 25.34, above the 50-day MA of 26.12, and above the 200-day MA of 22.44, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.19 is Neutral, neither overbought nor oversold. The STOCH value of 87.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SCHYY.

Sands China Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LVS	―	$40.13B	26.78	62.28%	1.88%	8.37%	10.20%
SCHYY	―	$21.07B	23.02	111.19%	2.25%	-2.90%	-13.46%
RRR	―	$5.62B	18.87	―	3.42%	4.69%	15.18%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MGM	―	$8.76B	201.07	2.25%	―	0.89%	-31.56%
WYNN	―	$12.37B	35.10	―	0.83%	-1.94%	-53.90%
MLCO	―	$3.20B	60.07	―	―	12.22%	―

Sands China Corporate Events

Sands China Reports Decline in First Half 2025 Earnings

Sands China Ltd., a prominent player in the integrated resort industry, operates several luxury resorts and casinos in Macao, offering a blend of gaming, hotel, and retail experiences. In its latest earnings report for the first half of 2025, Sands China reported a decrease in key financial metrics, with adjusted property EBITDA falling by 5.9% to $1.10 billion and total net revenues declining by 1.7% to $3.49 billion. The company attributed these declines primarily to decreased casino revenues amid heightened competition in the Macao gaming market. Despite these challenges, Sands China completed significant development projects, including the conversion of the Sheraton Grand Macao into the Londoner Grand, enhancing its luxury offerings. Looking ahead, Sands China remains optimistic, supported by increased visitation to Macao and a strategic focus on non-gaming investments, positioning the company for future growth in the evolving market landscape.