RED ROCK RESORTS INC-CLASS A (RRR) Stock Fundamental Analysis
USA - NASDAQ:RRR - US75700L1089 - Common Stock
57.83 USD
+2.6 (+4.71%)
57.8 USD
-0.03 (-0.05%)
We assign a fundamental rating of 5 out of 10 to RRR. RRR was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. RRR scores excellent on profitability, but there are concerns on its financial health. RRR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
RRR had positive earnings in the past year.
RRR had a positive operating cash flow in the past year.
Of the past 5 years RRR 4 years were profitable.
Each year in the past 5 years RRR had a positive operating cash flow.
1.2 Ratios
RRR has a better Return On Assets (4.38%) than 62.12% of its industry peers.
RRR's Return On Equity of 86.87% is amongst the best of the industry. RRR outperforms 95.45% of its industry peers.
The Return On Invested Capital of RRR (14.49%) is better than 81.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RRR is above the industry average of 10.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 86.87% | ||
| ROIC | 14.49% |
ROA(3y)4.8%
ROA(5y)3.62%
ROE(3y)215.02%
ROE(5y)201.79%
ROIC(3y)15.17%
ROIC(5y)13.12%
1.3 Margins
The Profit Margin of RRR (8.89%) is better than 70.45% of its industry peers.
In the last couple of years the Profit Margin of RRR has declined.
The Operating Margin of RRR (30.47%) is better than 96.97% of its industry peers.
RRR's Operating Margin has improved in the last couple of years.
RRR's Gross Margin of 61.90% is fine compared to the rest of the industry. RRR outperforms 75.76% of its industry peers.
RRR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.47% | ||
| PM (TTM) | 8.89% | ||
| GM | 61.9% |
OM growth 3Y-5.04%
OM growth 5Y15.48%
PM growth 3Y-19%
PM growth 5YN/A
GM growth 3Y-2.19%
GM growth 5Y4.76%
2. Health
2.1 Basic Checks
RRR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, RRR has more shares outstanding
RRR has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, RRR has about the same debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.96 indicates that RRR is not a great score, but indicates only limited risk for bankruptcy at the moment.
RRR has a Altman-Z score (1.96) which is in line with its industry peers.
RRR has a debt to FCF ratio of 11.51. This is a negative value and a sign of low solvency as RRR would need 11.51 years to pay back of all of its debts.
The Debt to FCF ratio of RRR (11.51) is comparable to the rest of the industry.
A Debt/Equity ratio of 16.47 is on the high side and indicates that RRR has dependencies on debt financing.
RRR's Debt to Equity ratio of 16.47 is on the low side compared to the rest of the industry. RRR is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 16.47 | ||
| Debt/FCF | 11.51 | ||
| Altman-Z | 1.96 |
ROIC/WACC1.77
WACC8.2%
2.3 Liquidity
RRR has a Current Ratio of 0.89. This is a bad value and indicates that RRR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of RRR (0.89) is comparable to the rest of the industry.
RRR has a Quick Ratio of 0.89. This is a bad value and indicates that RRR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of RRR (0.84) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.02% over the past year.
RRR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -25.80% yearly.
The Revenue has been growing slightly by 4.69% in the past year.
Measured over the past years, RRR shows a small growth in Revenue. The Revenue has been growing by 0.87% on average per year.
EPS 1Y (TTM)8.02%
EPS 3Y-25.8%
EPS 5YN/A
EPS Q2Q%83.78%
Revenue 1Y (TTM)4.69%
Revenue growth 3Y6.22%
Revenue growth 5Y0.87%
Sales Q2Q%1.61%
3.2 Future
Based on estimates for the next years, RRR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.16% on average per year.
Based on estimates for the next years, RRR will show a small growth in Revenue. The Revenue will grow by 3.62% on average per year.
EPS Next Y10.44%
EPS Next 2Y10.8%
EPS Next 3Y9.16%
EPS Next 5YN/A
Revenue Next Year3.43%
Revenue Next 2Y3.35%
Revenue Next 3Y3.62%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RRR is valuated rather expensively with a Price/Earnings ratio of 20.43.
Compared to the rest of the industry, the Price/Earnings ratio of RRR indicates a somewhat cheap valuation: RRR is cheaper than 65.91% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.83, RRR is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 22.22, the valuation of RRR can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as RRR.
RRR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.43 | ||
| Fwd PE | 22.22 |
4.2 Price Multiples
RRR's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RRR indicates a somewhat cheap valuation: RRR is cheaper than 71.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.63 | ||
| EV/EBITDA | 11.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RRR does not grow enough to justify the current Price/Earnings ratio.
RRR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.96
PEG (5Y)N/A
EPS Next 2Y10.8%
EPS Next 3Y9.16%
5. Dividend
5.1 Amount
RRR has a Yearly Dividend Yield of 1.91%. Purely for dividend investing, there may be better candidates out there.
RRR's Dividend Yield is a higher than the industry average which is at 4.33.
Compared to the average S&P500 Dividend Yield of 2.39, RRR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
On average, the dividend of RRR grows each year by 36.35%, which is quite nice.
RRR has been paying a dividend for at least 10 years, so it has a reliable track record.
RRR has decreased its dividend recently.
Dividend Growth(5Y)36.35%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
67.94% of the earnings are spent on dividend by RRR. This is not a sustainable payout ratio.
The dividend of RRR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP67.94%
EPS Next 2Y10.8%
EPS Next 3Y9.16%
57.83
+2.6 (+4.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners86.3%
Inst Owner Change-2.92%
Ins Owners1.83%
Ins Owner Change0.23%
Market Cap6.10B
Revenue(TTM)2.00B
Net Income(TTM)176.69M
Analysts75.29
Price Target65.88 (13.92%)
Short Float %5.72%
Short Ratio4.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend1.13
Dividend Growth(5Y)36.35%
DP67.94%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)65.77%
Min EPS beat(2)31.57%
Max EPS beat(2)99.96%
EPS beat(4)2
Avg EPS beat(4)25.04%
Min EPS beat(4)-30.16%
Max EPS beat(4)99.96%
EPS beat(8)5
Avg EPS beat(8)25.64%
EPS beat(12)8
Avg EPS beat(12)32.7%
EPS beat(16)11
Avg EPS beat(16)31.56%
Revenue beat(2)1
Avg Revenue beat(2)3.26%
Min Revenue beat(2)-0.77%
Max Revenue beat(2)7.3%
Revenue beat(4)2
Avg Revenue beat(4)1.7%
Min Revenue beat(4)-0.77%
Max Revenue beat(4)7.3%
Revenue beat(8)4
Avg Revenue beat(8)1.26%
Revenue beat(12)6
Avg Revenue beat(12)1.09%
Revenue beat(16)8
Avg Revenue beat(16)0.95%
PT rev (1m)1.57%
PT rev (3m)15.33%
EPS NQ rev (1m)12.37%
EPS NQ rev (3m)19.16%
EPS NY rev (1m)4.49%
EPS NY rev (3m)21.41%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)3.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.43 | ||
| Fwd PE | 22.22 | ||
| P/S | 3.07 | ||
| P/FCF | 20.63 | ||
| P/OCF | 10.82 | ||
| P/B | 29.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.39 |
EPS(TTM)2.83
EY4.89%
EPS(NY)2.6
Fwd EY4.5%
FCF(TTM)2.8
FCFY4.85%
OCF(TTM)5.35
OCFY9.24%
SpS18.84
BVpS1.93
TBVpS-0.69
PEG (NY)1.96
PEG (5Y)N/A
Graham Number11.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 86.87% | ||
| ROCE | 16.33% | ||
| ROIC | 14.49% | ||
| ROICexc | 15.08% | ||
| ROICexgc | 16.34% | ||
| OM | 30.47% | ||
| PM (TTM) | 8.89% | ||
| GM | 61.9% | ||
| FCFM | 14.87% |
ROA(3y)4.8%
ROA(5y)3.62%
ROE(3y)215.02%
ROE(5y)201.79%
ROIC(3y)15.17%
ROIC(5y)13.12%
ROICexc(3y)15.81%
ROICexc(5y)13.87%
ROICexgc(3y)17.28%
ROICexgc(5y)15.26%
ROCE(3y)17.1%
ROCE(5y)14.79%
ROICexgc growth 3Y-9.38%
ROICexgc growth 5Y17.38%
ROICexc growth 3Y-8.43%
ROICexc growth 5Y17.48%
OM growth 3Y-5.04%
OM growth 5Y15.48%
PM growth 3Y-19%
PM growth 5YN/A
GM growth 3Y-2.19%
GM growth 5Y4.76%
F-Score7
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 16.47 | ||
| Debt/FCF | 11.51 | ||
| Debt/EBITDA | 4.2 | ||
| Cap/Depr | 139.83% | ||
| Cap/Sales | 13.5% | ||
| Interest Coverage | 2.74 | ||
| Cash Conversion | 70.7% | ||
| Profit Quality | 167.33% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 1.96 |
F-Score7
WACC8.2%
ROIC/WACC1.77
Cap/Depr(3y)375.42%
Cap/Depr(5y)238.66%
Cap/Sales(3y)29.95%
Cap/Sales(5y)19.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.02%
EPS 3Y-25.8%
EPS 5YN/A
EPS Q2Q%83.78%
EPS Next Y10.44%
EPS Next 2Y10.8%
EPS Next 3Y9.16%
EPS Next 5YN/A
Revenue 1Y (TTM)4.69%
Revenue growth 3Y6.22%
Revenue growth 5Y0.87%
Sales Q2Q%1.61%
Revenue Next Year3.43%
Revenue Next 2Y3.35%
Revenue Next 3Y3.62%
Revenue Next 5YN/A
EBIT growth 1Y1.49%
EBIT growth 3Y0.87%
EBIT growth 5Y16.49%
EBIT Next Year45.29%
EBIT Next 3Y16.41%
EBIT Next 5YN/A
FCF growth 1Y187.11%
FCF growth 3Y-22.89%
FCF growth 5YN/A
OCF growth 1Y12.85%
OCF growth 3Y-3.49%
OCF growth 5Y11.61%
RED ROCK RESORTS INC-CLASS A / RRR FAQ
Can you provide the ChartMill fundamental rating for RED ROCK RESORTS INC-CLASS A?
ChartMill assigns a fundamental rating of 5 / 10 to RRR.
Can you provide the valuation status for RED ROCK RESORTS INC-CLASS A?
ChartMill assigns a valuation rating of 4 / 10 to RED ROCK RESORTS INC-CLASS A (RRR). This can be considered as Fairly Valued.
How profitable is RED ROCK RESORTS INC-CLASS A (RRR) stock?
RED ROCK RESORTS INC-CLASS A (RRR) has a profitability rating of 7 / 10.
What is the earnings growth outlook for RED ROCK RESORTS INC-CLASS A?
The Earnings per Share (EPS) of RED ROCK RESORTS INC-CLASS A (RRR) is expected to grow by 10.44% in the next year.
How sustainable is the dividend of RED ROCK RESORTS INC-CLASS A (RRR) stock?
The dividend rating of RED ROCK RESORTS INC-CLASS A (RRR) is 4 / 10 and the dividend payout ratio is 67.94%.