RED ROCK RESORTS INC-CLASS A (RRR)
US75700L1089 - Common Stock
Overall RRR gets a fundamental rating of 4 out of 10. We evaluated RRR against 135 industry peers in the Hotels, Restaurants & Leisure industry. RRR scores excellent on profitability, but there are concerns on its financial health. RRR does not seem to be growing, but still is valued expensively.
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.
In multiple years RRR reported negative net income over the last 5 years.
In the past 5 years RRR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RRR (4.45%) is better than 61.65% of its industry peers.
RRR has a better Return On Equity (104.24%) than 99.25% of its industry peers.
The Return On Invested Capital of RRR (14.62%) is better than 86.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RRR is significantly above the industry average of 10.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 104.24% | ||
| ROIC | 14.62% |
ROA(3y)6.1%
ROA(5y)2.84%
ROE(3y)326.66%
ROE(5y)187.33%
ROIC(3y)16.34%
ROIC(5y)11.68%
1.3 Margins
RRR's Profit Margin of 10.21% is fine compared to the rest of the industry. RRR outperforms 72.18% of its industry peers.
In the last couple of years the Profit Margin of RRR has grown nicely.
Looking at the Operating Margin, with a value of 34.26%, RRR belongs to the top of the industry, outperforming 96.99% of the companies in the same industry.
RRR's Operating Margin has improved in the last couple of years.
RRR has a Gross Margin of 63.67%. This is in the better half of the industry: RRR outperforms 73.68% of its industry peers.
RRR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.26% | ||
| PM (TTM) | 10.21% | ||
| GM | 63.67% |
OM growth 3Y47.94%
OM growth 5Y7.19%
PM growth 3YN/A
PM growth 5Y1.73%
GM growth 3Y3.39%
GM growth 5Y3.83%
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.
The number of shares outstanding for RRR has been increased compared to 1 year ago.
RRR has less shares outstanding than it did 5 years ago.
RRR has a better debt/assets ratio than last year.
2.2 Solvency
RRR has an Altman-Z score of 1.80. This is a bad value and indicates that RRR is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.80, RRR perfoms like the industry average, outperforming 56.39% of the companies in the same industry.
A Debt/Equity ratio of 19.56 is on the high side and indicates that RRR has dependencies on debt financing.
RRR has a worse Debt to Equity ratio (19.56) than 66.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 19.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.8 |
ROIC/WACC1.69
WACC8.66%
2.3 Liquidity
RRR has a Current Ratio of 0.81. 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 Current ratio, with a value of 0.81, RRR is in line with its industry, outperforming 43.61% of the companies in the same industry.
RRR has a Quick Ratio of 0.81. 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 Quick ratio (0.76) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
RRR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.67%.
Measured over the past years, RRR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.51% on average per year.
RRR shows a small growth in Revenue. In the last year, the Revenue has grown by 3.63%.
The Revenue has been growing slightly by 0.51% on average over the past years.
EPS 1Y (TTM)-1.67%
EPS 3YN/A
EPS 5Y19.51%
EPS growth Q2Q-36.24%
Revenue 1Y (TTM)3.63%
Revenue growth 3Y13.4%
Revenue growth 5Y0.51%
Revenue growth Q2Q8.75%
3.2 Future
RRR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.43% yearly.
RRR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.75% yearly.
EPS Next Y-12.73%
EPS Next 2Y-0.69%
EPS Next 3Y-4.43%
EPS Next 5YN/A
Revenue Next Year14.14%
Revenue Next 2Y8.8%
Revenue Next 3Y6.75%
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 decreasing.
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 17.64, which indicates a rather expensive current valuation of RRR.
Compared to the rest of the industry, the Price/Earnings ratio of RRR indicates a somewhat cheap valuation: RRR is cheaper than 73.68% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.91, RRR is valued a bit cheaper.
A Price/Forward Earnings ratio of 20.21 indicates a rather expensive valuation of RRR.
The rest of the industry has a similar Price/Forward Earnings ratio as RRR.
RRR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.64 | ||
| Fwd PE | 20.21 |
4.2 Price Multiples
RRR's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.72 |
4.3 Compensation for Growth
The excellent profitability rating of RRR may justify a higher PE ratio.
A cheap valuation may be justified as RRR's earnings are expected to decrease with -4.43% in the coming years.
PEG (NY)N/A
PEG (5Y)0.9
EPS Next 2Y-0.69%
EPS Next 3Y-4.43%
5. Dividend
5.1 Amount
RRR has a Yearly Dividend Yield of 1.98%.
RRR's Dividend Yield is rather good when compared to the industry average which is at 2.78. RRR pays more dividend than 81.20% of the companies in the same industry.
RRR's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
5.2 History
The dividend of RRR is nicely growing with an annual growth rate of 18.70%!
RRR has been paying a dividend for over 5 years, so it has already some track record.
The dividend of RRR decreased recently.
Dividend Growth(5Y)18.7%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
33.29% of the earnings are spent on dividend by RRR. This is a low number and sustainable payout ratio.
DP33.29%
EPS Next 2Y-0.69%
EPS Next 3Y-4.43%
RED ROCK RESORTS INC-CLASS A
NASDAQ:RRR (5/15/2024, 7:06:38 PM)
After market: 52.03 0 (0%)52.03
+1.79 (+3.56%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.47B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.64 | ||
| Fwd PE | 20.21 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.45% | ||
| ROE | 104.24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 34.26% | ||
| PM (TTM) | 10.21% | ||
| GM | 63.67% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 19.56 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-1.67%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-12.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.63%
Revenue growth 3Y13.4%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y