VICI Properties (VICI) AI Stock Analysis

• Market Cap: $31.67B
• Dividend Yield: 5.88%
• Average Volume (3M): 9.00M
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.31
• Revenue Growth: 4.85%
• EPS Growth: 2.71%
• Country: US
• Employees: 27
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.82
• Shares Outstanding: 1,066,369,800
• 10 Day Avg. Volume: 8,858,718
• 30 Day Avg. Volume: 9,001,883
• PEG Ratio: 3.54
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 7.94
• P/FCF Ratio: 12.88
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 13.37
• Enterprise Value/Gross Profit: 13.46
• Enterprise Value/Ebitda: 14.38
• 1Y Price Target: $36.67
• Price Target Upside: 23.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 81 Outperform
• Price Target: $37.00 ▲(24.58% Upside)

VICI Properties scores well due to its strong financial performance, attractive valuation, and positive earnings guidance. The company's robust cash flow and strategic investments support its growth prospects. However, technical indicators suggest a lack of strong momentum, and temporary challenges in the Las Vegas market require monitoring.

Positive Factors

Revenue Growth

Significant revenue growth and high net profit margins indicate strong market demand and operational efficiency, supporting long-term financial stability.

Strategic Partnerships

Strategic partnerships and investments enhance VICI's portfolio diversity and growth potential, strengthening its competitive position in the gaming and hospitality sectors.

Cash Flow Generation

Robust cash flow generation supports VICI's ability to invest in growth opportunities and maintain financial flexibility, ensuring long-term sustainability.

Negative Factors

Increasing Debt Levels

Rising debt levels may strain financial resources and limit flexibility, potentially impacting VICI's ability to fund future growth and manage economic downturns.

Gross Profit Margin Decline

A declining gross profit margin may indicate rising costs or pricing pressures, which could erode profitability and impact long-term financial performance.

Las Vegas Market Challenges

Challenges in the Las Vegas market could affect VICI's revenue streams from this key location, potentially impacting overall financial performance if prolonged.

VICI Properties Business Overview & Revenue Model

Company Description

VICI Properties is an experiential real estate investment trust that owns one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations, including the world-renowned Caesars Palace. VICI Properties' national, geographically diverse portfolio consists of 29 gaming facilities comprising over 48 million square feet and features approximately 19,200 hotel rooms and more than 200 restaurants, bars and nightclubs. Its properties are leased to industry leading gaming and hospitality operators, including Caesars Entertainment, Inc., Century Casinos Inc., Hard Rock International, JACK Entertainment and Penn National Gaming, Inc. VICI Properties also owns four championship golf courses and 34 acres of undeveloped land adjacent to the Las Vegas Strip. VICI Properties' strategy is to create the nation's highest quality and most productive experiential real estate portfolio.

How the Company Makes Money

VICI Properties generates revenue primarily through long-term leases with gaming and entertainment operators. The company typically acquires properties and then leases them back to the operators, allowing them to maintain operational control while providing VICI with consistent rental income. The leases are structured to include fixed annual rent increases, providing a hedge against inflation and ensuring predictable revenue streams. Additionally, VICI benefits from the strategic partnerships and relationships it has established with prominent gaming operators, which enhances its ability to secure favorable lease terms and increases occupancy rates. The company's revenue model is further bolstered by its focus on high-traffic locations and its efforts to diversify its property holdings across various markets and types of entertainment facilities.

VICI Properties Financial Statement Overview

Summary

VICI Properties exhibits strong financial health with robust profitability, a solid balance sheet, and excellent cash flow generation. Significant revenue and cash flow growth support financial stability and potential expansion, though increasing debt levels and a slight decline in gross profit margin warrant monitoring.

Income Statement

VICI Properties demonstrates strong profitability with a high net profit margin of 70.20% and consistent revenue growth, particularly a significant 114.2% increase in the TTM period. The EBIT and EBITDA margins are robust, indicating effective cost management. However, the gross profit margin has decreased in the TTM period compared to previous years, which could be a point of concern if it continues.

Balance Sheet

The company maintains a healthy balance sheet with a moderate debt-to-equity ratio of 0.66, indicating a balanced approach to leveraging. The return on equity is solid at 10.37%, reflecting efficient use of equity capital. The equity ratio is stable, suggesting a strong capital structure. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

VICI Properties shows strong cash flow performance with a high operating cash flow to net income ratio of 11.14 in the TTM period, indicating excellent cash generation relative to net income. The free cash flow growth rate is impressive at 89.1%, supporting future investments and debt servicing. The free cash flow to net income ratio is nearly 1, showing efficient conversion of earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.93B	3.85B	3.61B	2.60B	1.51B	1.23B
Gross Profit	3.90B	3.82B	3.58B	2.58B	1.49B	1.19B
EBITDA	3.65B	3.56B	3.37B	1.68B	1.42B	1.21B
Net Income	2.76B	2.68B	2.51B	1.12B	1.01B	891.67M
Balance Sheet
Total Assets	46.05B	45.37B	44.06B	37.58B	17.60B	17.06B
Cash, Cash Equivalents and Short-Term Investments	232.98M	524.62M	522.57M	426.27M	739.61M	335.97M
Total Debt	17.84B	17.65B	17.63B	14.57B	4.99B	7.07B
Total Liabilities	18.61B	18.42B	18.40B	15.29B	5.41B	7.57B
Stockholders Equity	27.02B	26.54B	25.26B	21.93B	12.11B	9.42B
Cash Flow
Free Cash Flow	2.45B	2.37B	2.18B	1.94B	893.85M	880.87M
Operating Cash Flow	2.45B	2.38B	2.18B	1.94B	896.35M	883.64M
Investing Cash Flow	-1.22B	-922.78M	-2.90B	-9.30B	41.45M	-4.55B
Financing Cash Flow	-1.35B	-1.46B	1.03B	6.83B	-514.18M	2.88B

VICI Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VICI, the sentiment is Negative. The current price of 29.7 is below the 20-day moving average (MA) of 31.26, below the 50-day MA of 32.06, and below the 200-day MA of 31.25, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 26.40 is Positive, neither overbought nor oversold. The STOCH value of 16.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VICI.

VICI Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VICI	―	$31.67B	11.61	10.45%	5.88%	4.85%	2.71%
EPRT	―	$6.00B	24.66	6.84%	3.94%	24.60%	8.05%
WPC	―	$14.48B	43.44	4.36%	5.40%	5.59%	-34.75%
UE	―	$2.61B	24.40	8.46%	3.75%	6.09%	-65.94%
BNL	―	$3.39B	36.12	3.32%	6.26%	2.74%	-37.41%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
GNL	―	$1.67B	―	-11.87%	11.18%	-11.06%	29.36%