Sands China (SCHYY) AI Stock Analysis

• Market Cap: $19.63B
• Dividend Yield: 1.13%
• Average Volume (3M): 3.15K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.60
• Revenue Growth: 6.34%
• EPS Growth: 51.00%
• Country: US
• Employees: 27,064
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 1.29
• Shares Outstanding: 809,337,950
• 10 Day Avg. Volume: 8,296
• 30 Day Avg. Volume: 3,151
• PEG Ratio: 0.36
• Price to Book (P/B): 19.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.14
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 6.37
• Enterprise Value/Ebitda: 2.28
• 1Y Price Target: $21.50
• Price Target Upside: -11.38% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: $25.00 ▲(3.05%Upside)

Sands China is on a promising recovery trajectory with strong financial performance, though high leverage is a risk. Technical indicators show bullish momentum but suggest caution due to overbought signals. Valuation is fair, offering moderate returns.

Sands China Business Overview & Revenue Model

Company Description

Sands China Ltd. (SCHYY) is a leading developer, owner, and operator of multi-use integrated resorts and casinos in Macao, a special administrative region of China. As a subsidiary of Las Vegas Sands Corp., the company plays a significant role in Macao's tourism and entertainment sector, offering a wide range of gaming, hospitality, and retail services. Their properties include iconic venues such as The Venetian Macao, The Plaza Macao, and The Parisian Macao, which feature luxury accommodations, extensive gaming facilities, convention and exhibition space, entertainment shows, and a variety of dining options.

How the Company Makes Money

Sands China generates revenue primarily through its gaming operations, which include casino games such as baccarat, poker, and slot machines. The majority of its income comes from the gaming segment, which targets both high-stakes VIP gamblers and mass-market players. Additionally, the company earns money through its hotel accommodations, retail mall rentals, food and beverage sales, and entertainment offerings. Sands China's integrated resort model leverages non-gaming amenities to enhance the customer experience and drive further revenue from its various entertainment, dining, and retail options. The company also benefits from its strategic location in Macao, a global gambling hub, and its ability to attract international tourists, particularly from mainland China.

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	4.12B	1.60B	2.87B	1.69B
Gross Profit	4.18B	2.09B	1.04B	1.78B	1.02B
EBITDA	2.15B	2.05B	-427.00M	61.00M	-544.00M
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	10.19B	7.96B	7.07B
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	2.08B	-696.00M	-492.00M	-1.85B
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: 24.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 24.26 is above the 20-day moving average (MA) of 22.07, above the 50-day MA of 20.63, and above the 200-day MA of 22.50, indicating a bullish trend. The MACD of 1.25 indicates Negative momentum. The RSI at 74.04 is Negative, neither overbought nor oversold. The STOCH value of 91.21 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	72 Outperform	$35.23B	27.79	39.21%	2.00%	-0.09%	-13.07%
MGM	71 Outperform	$10.27B	16.71	21.38%	―	2.76%	-14.31%
WYNN	69 Neutral	$11.61B	30.30	-51.73%	0.90%	-0.08%	-48.66%
SCHYY	68 Neutral	$19.63B	18.39	203.31%	1.13%	6.34%	51.00%
CZR	64 Neutral	$6.20B	―	-5.56%	―	-1.25%	-130.83%
Sector *	62 Neutral	$16.79B	10.79	-7.01%	3.04%	1.73%	-25.15%
MLCO	58 Neutral	$3.66B	62.39	25.40%	―	14.07%	―