RED ROCK RESORTS INC-CLASS A (RRR) Stock Fundamental Analysis
NASDAQ:RRR - Nasdaq - US75700L1089 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to RRR. RRR was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. While RRR has a great profitability rating, there are quite some concerns on its financial health. RRR has a decent growth rate and is not valued too expensively.
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.
RRR had positive earnings in 4 of the past 5 years.
In the past 5 years RRR always reported a positive cash flow from operatings.
1.2 Ratios
RRR's Return On Assets of 3.82% is fine compared to the rest of the industry. RRR outperforms 62.22% of its industry peers.
Looking at the Return On Equity, with a value of 63.13%, RRR belongs to the top of the industry, outperforming 97.04% of the companies in the same industry.
RRR's Return On Invested Capital of 13.56% is amongst the best of the industry. RRR outperforms 80.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RRR is in line with the industry average of 14.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 63.13% | ||
| ROIC | 13.56% |
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
RRR's Profit Margin of 8.01% is fine compared to the rest of the industry. RRR outperforms 64.44% of its industry peers.
In the last couple of years the Profit Margin of RRR has declined.
Looking at the Operating Margin, with a value of 29.58%, RRR belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
RRR's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 61.55%, RRR is doing good in the industry, outperforming 73.33% of the companies in the same industry.
In the last couple of years the Gross Margin of RRR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.58% | ||
| PM (TTM) | 8.01% | ||
| GM | 61.55% |
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.
RRR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for RRR has been reduced compared to 5 years ago.
Compared to 1 year ago, RRR has about the same debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.79, we must say that RRR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.79, RRR is in line with its industry, outperforming 57.04% of the companies in the same industry.
The Debt to FCF ratio of RRR is 12.16, which is on the high side as it means it would take RRR, 12.16 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 12.16, RRR is in line with its industry, outperforming 54.07% of the companies in the same industry.
A Debt/Equity ratio of 13.53 is on the high side and indicates that RRR has dependencies on debt financing.
The Debt to Equity ratio of RRR (13.53) is worse than 65.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.53 | ||
| Debt/FCF | 12.17 | ||
| Altman-Z | 1.79 |
ROIC/WACC1.47
WACC9.25%
2.3 Liquidity
A Current Ratio of 0.92 indicates that RRR may have some problems paying its short term obligations.
The Current ratio of RRR (0.92) is comparable to the rest of the industry.
RRR has a Quick Ratio of 0.92. This is a bad value and indicates that RRR is not financially healthy enough and could expect problems in meeting its short term obligations.
RRR's Quick ratio of 0.87 is in line compared to the rest of the industry. RRR outperforms 51.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
RRR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.96%.
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 quite strong growth in Revenue. The Revenue has grown by 9.48% in the last year.
RRR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.87% yearly.
EPS 1Y (TTM)-23.96%
EPS 3Y-25.8%
EPS 5YN/A
EPS Q2Q%10.29%
Revenue 1Y (TTM)9.48%
Revenue growth 3Y6.22%
Revenue growth 5Y0.87%
Sales Q2Q%1.83%
3.2 Future
The Earnings Per Share is expected to grow by 5.23% on average over the next years.
RRR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.76% yearly.
EPS Next Y-17.08%
EPS Next 2Y-3.58%
EPS Next 3Y5.23%
EPS Next 5YN/A
Revenue Next Year0.77%
Revenue Next 2Y1.68%
Revenue Next 3Y1.76%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.19, which indicates a rather expensive current valuation of RRR.
65.93% of the companies in the same industry are more expensive than RRR, based on the Price/Earnings ratio.
RRR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.68, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 23.55, RRR is valued on the expensive side.
RRR's Price/Forward Earnings ratio is in line with the industry average.
RRR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.19 | ||
| Fwd PE | 23.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RRR is valued a bit cheaper than the industry average as 60.74% of the companies are valued more expensively.
RRR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RRR is cheaper than 74.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.64 | ||
| EV/EBITDA | 10.75 |
4.3 Compensation for Growth
The decent profitability rating of RRR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.58%
EPS Next 3Y5.23%
5. Dividend
5.1 Amount
RRR has a Yearly Dividend Yield of 2.12%.
Compared to an average industry Dividend Yield of 3.55, RRR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, RRR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
5.2 History
The dividend of RRR is nicely growing with an annual growth rate of 36.35%!
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
38.64% of the earnings are spent on dividend by RRR. This is a low number and sustainable payout ratio.
RRR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.64%
EPS Next 2Y-3.58%
EPS Next 3Y5.23%
NASDAQ:RRR (5/19/2025, 9:30:00 AM)
46.41
-0.69 (-1.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners85.64%
Inst Owner Change2.97%
Ins Owners1.34%
Ins Owner Change1.31%
Market Cap4.92B
Analysts71.76
Price Target51.63 (11.25%)
Short Float %5.37%
Short Ratio4.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
Yearly Dividend1.13
Dividend Growth(5Y)36.35%
DP38.64%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)21.88%
Min EPS beat(2)-1.23%
Max EPS beat(2)44.99%
EPS beat(4)1
Avg EPS beat(4)2.32%
Min EPS beat(4)-30.16%
Max EPS beat(4)44.99%
EPS beat(8)5
Avg EPS beat(8)15.1%
EPS beat(12)7
Avg EPS beat(12)20.74%
EPS beat(16)11
Avg EPS beat(16)37.68%
Revenue beat(2)0
Avg Revenue beat(2)-0.43%
Min Revenue beat(2)-0.77%
Max Revenue beat(2)-0.09%
Revenue beat(4)2
Avg Revenue beat(4)0.13%
Min Revenue beat(4)-0.77%
Max Revenue beat(4)1%
Revenue beat(8)3
Avg Revenue beat(8)0.12%
Revenue beat(12)6
Avg Revenue beat(12)0.76%
Revenue beat(16)8
Avg Revenue beat(16)1.34%
PT rev (1m)-9.92%
PT rev (3m)-9.27%
EPS NQ rev (1m)-14.04%
EPS NQ rev (3m)-14.61%
EPS NY rev (1m)-1.76%
EPS NY rev (3m)-4.22%
Revenue NQ rev (1m)-1.41%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.19 | ||
| Fwd PE | 23.55 | ||
| P/S | 2.53 | ||
| P/FCF | 17.64 | ||
| P/OCF | 8.98 | ||
| P/B | 19.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.75 |
EPS(TTM)2.19
EY4.72%
EPS(NY)1.97
Fwd EY4.25%
FCF(TTM)2.63
FCFY5.67%
OCF(TTM)5.17
OCFY11.14%
SpS18.37
BVpS2.33
TBVpS-0.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 63.13% | ||
| ROCE | 15.28% | ||
| ROIC | 13.56% | ||
| ROICexc | 14.12% | ||
| ROICexgc | 15.19% | ||
| OM | 29.58% | ||
| PM (TTM) | 8.01% | ||
| GM | 61.55% | ||
| FCFM | 14.32% |
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-Score6
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.53 | ||
| Debt/FCF | 12.17 | ||
| Debt/EBITDA | 4.36 | ||
| Cap/Depr | 141.15% | ||
| Cap/Sales | 13.81% | ||
| Interest Coverage | 2.59 | ||
| Cash Conversion | 71.48% | ||
| Profit Quality | 178.91% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.79 |
F-Score6
WACC9.25%
ROIC/WACC1.47
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)-23.96%
EPS 3Y-25.8%
EPS 5YN/A
EPS Q2Q%10.29%
EPS Next Y-17.08%
EPS Next 2Y-3.58%
EPS Next 3Y5.23%
EPS Next 5YN/A
Revenue 1Y (TTM)9.48%
Revenue growth 3Y6.22%
Revenue growth 5Y0.87%
Sales Q2Q%1.83%
Revenue Next Year0.77%
Revenue Next 2Y1.68%
Revenue Next 3Y1.76%
Revenue Next 5YN/A
EBIT growth 1Y-2.59%
EBIT growth 3Y0.87%
EBIT growth 5Y16.49%
EBIT Next Year38.65%
EBIT Next 3Y15.14%
EBIT Next 5YN/A
FCF growth 1Y259.63%
FCF growth 3Y-22.89%
FCF growth 5YN/A
OCF growth 1Y4.35%
OCF growth 3Y-3.49%
OCF growth 5Y11.61%