RED ROCK RESORTS INC-CLASS A (RRR) Stock Fundamental Analysis
NASDAQ:RRR - Nasdaq - US75700L1089 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to RRR. RRR was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. While RRR belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, RRR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
RRR had positive earnings in the past year.
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
RRR has a Return On Assets of 3.82%. This is comparable to the rest of the industry: RRR outperforms 59.70% of its industry peers.
RRR has a Return On Equity of 63.13%. This is amongst the best in the industry. RRR outperforms 97.01% of its industry peers.
RRR's Return On Invested Capital of 13.56% is amongst the best of the industry. RRR outperforms 80.60% 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 14.01%.
| 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
With a decent Profit Margin value of 8.01%, RRR is doing good in the industry, outperforming 64.18% of the companies in the same industry.
RRR's Profit Margin has declined in the last couple of years.
RRR's Operating Margin of 29.58% is amongst the best of the industry. RRR outperforms 96.27% of its industry peers.
In the last couple of years the Operating Margin of RRR has grown nicely.
The Gross Margin of RRR (61.55%) is better than 74.63% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RRR is creating value.
The number of shares outstanding for RRR has been increased compared to 1 year ago.
Compared to 5 years ago, RRR has less shares outstanding
RRR has about the same debt/assets ratio as last year.
2.2 Solvency
RRR has an Altman-Z score of 1.85. This is not the best score and indicates that RRR is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.85, RRR is in line with its industry, outperforming 55.97% of the companies in the same industry.
RRR has a debt to FCF ratio of 12.16. This is a negative value and a sign of low solvency as RRR would need 12.16 years to pay back of all of its debts.
RRR's Debt to FCF ratio of 12.16 is in line compared to the rest of the industry. RRR outperforms 55.97% of its industry peers.
RRR has a Debt/Equity ratio of 13.53. This is a high value indicating a heavy dependency on external financing.
RRR has a worse Debt to Equity ratio (13.53) than 67.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.53 | ||
| Debt/FCF | 12.17 | ||
| Altman-Z | 1.85 |
ROIC/WACC1.71
WACC7.95%
2.3 Liquidity
RRR has a Current 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 has a Current ratio of 0.92. This is comparable to the rest of the industry: RRR outperforms 50.00% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.87, RRR is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for RRR have decreased strongly by -23.96% in the last year.
Measured over the past years, RRR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -25.80% on average per year.
RRR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.48%.
The Revenue has been growing slightly by 0.87% on average over the past years.
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
Based on estimates for the next years, RRR will show a small growth in Earnings Per Share. The EPS will grow by 5.23% on average per year.
Based on estimates for the next years, RRR will show a small growth in Revenue. The Revenue will grow by 1.83% on average per year.
EPS Next Y-17.08%
EPS Next 2Y-3.58%
EPS Next 3Y5.23%
EPS Next 5YN/A
Revenue Next Year0.41%
Revenue Next 2Y1.63%
Revenue Next 3Y1.83%
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
RRR is valuated rather expensively with a Price/Earnings ratio of 23.24.
64.18% of the companies in the same industry are more expensive than RRR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of RRR to the average of the S&P500 Index (26.32), we can say RRR is valued inline with the index average.
RRR is valuated quite expensively with a Price/Forward Earnings ratio of 25.82.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RRR is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, RRR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.24 | ||
| Fwd PE | 25.82 |
4.2 Price Multiples
RRR's Enterprise Value to EBITDA ratio is in line with the industry average.
RRR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RRR is cheaper than 76.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.35 | ||
| EV/EBITDA | 11.22 |
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
With a Yearly Dividend Yield of 2.05%, RRR has a reasonable but not impressive dividend return.
RRR's Dividend Yield is a higher than the industry average which is at 3.59.
RRR's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
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
RRR pays out 38.64% of its income as dividend. This is a 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 (6/18/2025, 3:53:08 PM)
50.89
+0.38 (+0.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners86.04%
Inst Owner Change2.99%
Ins Owners1.72%
Ins Owner Change1.31%
Market Cap5.40B
Analysts72.5
Price Target51.43 (1.06%)
Short Float %4.96%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
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)15.17%
Min EPS beat(2)-1.23%
Max EPS beat(2)31.57%
EPS beat(4)1
Avg EPS beat(4)-1.04%
Min EPS beat(4)-30.16%
Max EPS beat(4)31.57%
EPS beat(8)5
Avg EPS beat(8)13.42%
EPS beat(12)7
Avg EPS beat(12)19.62%
EPS beat(16)11
Avg EPS beat(16)36.85%
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)-0.39%
PT rev (3m)-10.77%
EPS NQ rev (1m)11.35%
EPS NQ rev (3m)-1.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.93%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-1.73%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.24 | ||
| Fwd PE | 25.82 | ||
| P/S | 2.77 | ||
| P/FCF | 19.35 | ||
| P/OCF | 9.85 | ||
| P/B | 21.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.22 |
EPS(TTM)2.19
EY4.3%
EPS(NY)1.97
Fwd EY3.87%
FCF(TTM)2.63
FCFY5.17%
OCF(TTM)5.17
OCFY10.15%
SpS18.36
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 | 1.85 |
F-Score6
WACC7.95%
ROIC/WACC1.71
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 Year0.41%
Revenue Next 2Y1.63%
Revenue Next 3Y1.83%
Revenue Next 5YN/A
EBIT growth 1Y-2.59%
EBIT growth 3Y0.87%
EBIT growth 5Y16.49%
EBIT Next Year37.59%
EBIT Next 3Y13.73%
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%