RED ROCK RESORTS INC-CLASS A (RRR) Stock Fundamental Analysis
NASDAQ:RRR - US75700L1089 - Common Stock
62.43 USD
+0.56 (+0.91%)
62.43 USD
0 (0%)
Taking everything into account, RRR scores 4 out of 10 in our fundamental rating. RRR was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. RRR has an excellent profitability rating, but there are concerns on its financial health. RRR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RRR was profitable.
In the past year RRR had a positive cash flow from operations.
RRR had positive earnings in 4 of the past 5 years.
RRR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.38%, RRR is doing good in the industry, outperforming 61.94% of the companies in the same industry.
RRR has a better Return On Equity (86.87%) than 96.27% of its industry peers.
The Return On Invested Capital of RRR (14.49%) is better than 82.09% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RRR is in line with the industry average of 16.00%.
| 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
With a decent Profit Margin value of 8.89%, RRR is doing good in the industry, outperforming 70.90% of the companies in the same industry.
RRR's Profit Margin has declined in the last couple of years.
The Operating Margin of RRR (30.47%) is better than 97.01% of its industry peers.
RRR's Operating Margin has improved in the last couple of years.
RRR has a Gross Margin of 61.90%. This is in the better half of the industry: RRR outperforms 74.63% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RRR is still creating some value.
Compared to 1 year ago, RRR has more shares outstanding
Compared to 5 years ago, RRR has less shares outstanding
The debt/assets ratio for RRR has remained at the same level compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.08 indicates that RRR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of RRR (2.08) is comparable to the rest of the industry.
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.
RRR's Debt to FCF ratio of 11.51 is in line compared to the rest of the industry. RRR outperforms 54.48% of its industry peers.
A Debt/Equity ratio of 16.47 is on the high side and indicates that RRR has dependencies on debt financing.
RRR has a Debt to Equity ratio of 16.47. This is in the lower half of the industry: RRR underperforms 67.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 16.47 | ||
| Debt/FCF | 11.51 | ||
| Altman-Z | 2.08 |
ROIC/WACC1.56
WACC9.29%
2.3 Liquidity
A Current Ratio of 0.89 indicates that RRR may have some problems paying 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 for RRR have decreased strongly by -11.58% in the last 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.
Looking at the last year, RRR shows a small growth in Revenue. The Revenue has grown by 7.47% in the last 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)-11.58%
EPS 3Y-25.8%
EPS 5YN/A
EPS Q2Q%53.23%
Revenue 1Y (TTM)7.47%
Revenue growth 3Y6.22%
Revenue growth 5Y0.87%
Sales Q2Q%8.2%
3.2 Future
The Earnings Per Share is expected to grow by 8.39% on average over the next years. This is quite good.
Based on estimates for the next years, RRR will show a small growth in Revenue. The Revenue will grow by 3.21% on average per year.
EPS Next Y7.42%
EPS Next 2Y6.77%
EPS Next 3Y8.39%
EPS Next 5YN/A
Revenue Next Year3.43%
Revenue Next 2Y3.42%
Revenue Next 3Y3.21%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 24.77 indicates a rather expensive valuation of RRR.
Based on the Price/Earnings ratio, RRR is valued a bit cheaper than the industry average as 62.69% of the companies are valued more expensively.
RRR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.90, which is the current average of the S&P500 Index.
RRR is valuated quite expensively with a Price/Forward Earnings ratio of 25.83.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RRR is on the same level as its industry peers.
RRR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.77 | ||
| Fwd PE | 25.83 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RRR.
RRR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RRR is cheaper than 74.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.28 | ||
| EV/EBITDA | 12.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of RRR may justify a higher PE ratio.
PEG (NY)3.34
PEG (5Y)N/A
EPS Next 2Y6.77%
EPS Next 3Y8.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.59%, RRR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.09, RRR pays a bit more dividend than its industry peers.
RRR's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
5.2 History
The dividend of RRR is nicely growing with an annual growth rate of 36.35%!
RRR has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of RRR decreased recently.
Dividend Growth(5Y)36.35%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
RRR pays out 67.94% of its income as dividend. 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 2Y6.77%
EPS Next 3Y8.39%
62.43
+0.56 (+0.91%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners86.31%
Inst Owner Change-1.63%
Ins Owners1.72%
Ins Owner Change0.14%
Market Cap6.59B
Analysts75.29
Price Target64.6 (3.48%)
Short Float %4.41%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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)13.1%
PT rev (3m)25.13%
EPS NQ rev (1m)6.93%
EPS NQ rev (3m)16.9%
EPS NY rev (1m)20.66%
EPS NY rev (3m)29.54%
Revenue NQ rev (1m)0.58%
Revenue NQ rev (3m)1.41%
Revenue NY rev (1m)2.9%
Revenue NY rev (3m)2.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.77 | ||
| Fwd PE | 25.83 | ||
| P/S | 3.31 | ||
| P/FCF | 22.28 | ||
| P/OCF | 11.68 | ||
| P/B | 32.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.34 |
EPS(TTM)2.52
EY4.04%
EPS(NY)2.42
Fwd EY3.87%
FCF(TTM)2.8
FCFY4.49%
OCF(TTM)5.35
OCFY8.56%
SpS18.84
BVpS1.93
TBVpS-0.69
PEG (NY)3.34
PEG (5Y)N/A
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%
ROICexcg growth 3Y-9.38%
ROICexcg 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 | 2.08 |
F-Score7
WACC9.29%
ROIC/WACC1.56
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)-11.58%
EPS 3Y-25.8%
EPS 5YN/A
EPS Q2Q%53.23%
EPS Next Y7.42%
EPS Next 2Y6.77%
EPS Next 3Y8.39%
EPS Next 5YN/A
Revenue 1Y (TTM)7.47%
Revenue growth 3Y6.22%
Revenue growth 5Y0.87%
Sales Q2Q%8.2%
Revenue Next Year3.43%
Revenue Next 2Y3.42%
Revenue Next 3Y3.21%
Revenue Next 5YN/A
EBIT growth 1Y1.49%
EBIT growth 3Y0.87%
EBIT growth 5Y16.49%
EBIT Next Year44.98%
EBIT Next 3Y15.47%
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%