Buy or Sell Las Vegas Sands Stock?

We believe there are only a couple of things to fear in LVS stock given its overall Strong operating performance and financial condition. This is aligned with the stock’s High valuation because of which we think it is Fairly Priced.

Below is our assessment:

If you seek an upside with less volatility than a single stock, consider the High Quality Portfolio (HQ) – HQ has outperformed its benchmark – a combination of S&P 500, Russell, and S&P midcap index, and achieved returns exceeding 105% since its inception.

Let’s get into details of each of the assessed factors but before that, for quick background: With $40 Bil in market cap, Las Vegas Sands develops, owns, and operates integrated resorts, hotels, casinos, and convention centers in Asia and the United States, including flagship properties on the Las Vegas Strip.

[1] Valuation Looks High

This table highlights how LVS is valued vs broader market. For more details see: LVS Valuation Ratios

[2] Growth Is Very Strong

• Las Vegas Sands has seen its top line grow at an average rate of 51.6% over the last 3 years
• Its revenues have grown 8.4% from $11 Bil to $12 Bil in the last 12 months
• Also, its quarterly revenues grew 24.2% to $3.3 Bil in the most recent quarter from $2.7 Bil a year ago.

This table highlights how LVS is growing vs broader market. For more details see: LVS Revenue Comparison

[3] Profitability Appears Strong

• LVS last 12 month operating income was $2.8 Bil representing operating margin of 23.0%
• With cash flow margin of 22.3%, it generated nearly $2.7 Bil in operating cash flow over this period
• For the same period, LVS generated nearly $1.6 Bil in net income, suggesting net margin of about 12.7%

This table highlights how LVS profitability vs broader market. For more details see: LVS Operating Income Comparison

[4] Financial Stability Looks Strong

• LVS Debt was $16 Bil at the end of the most recent quarter, while its current Market Cap is $40 Bil. This implies Debt-to-Equity Ratio of 39.2%
• LVS Cash (including cash equivalents) makes up $3.4 Bil of $22 Bil in total Assets. This yields a Cash-to-Assets Ratio of 15.6%

[5] Downturn Resilience Is Very Weak

LVS has fared much worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• LVS stock fell 54.5% from a high of $66.20 on 15 March 2021 to $30.14 on 12 May 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 11 November 2025
• Since then, the stock increased to a high of $69.49 on 1 December 2025 , and currently trades at $58.95

 
2020 Covid Pandemic

• LVS stock fell 49.1% from a high of $74.06 on 17 January 2020 to $37.68 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• The stock is yet to recover to its pre-Crisis high

 
2008 Global Financial Crisis

• LVS stock fell 99.0% from a high of $144.56 on 2 October 2007 to $1.42 on 9 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• The stock is yet to recover to its pre-Crisis high

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read LVS Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.