RED ROCK RESORTS INC-CLASS A (RRR) Stock Fundamental Analysis
USA - NASDAQ:RRR - US75700L1089 - Common Stock
61 USD
-0.58 (-0.94%)
61 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 scores excellent on profitability, but 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.
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
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's Return On Equity of 86.87% is amongst the best of the industry. RRR outperforms 96.27% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.49%, RRR belongs to the top of the industry, outperforming 82.09% of the companies in the same industry.
RRR had an Average Return On Invested Capital over the past 3 years of 15.17%. This is in line with the industry average of 15.67%.
| 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 70.90% of its industry peers.
In the last couple of years the Profit Margin of RRR has declined.
With an excellent Operating Margin value of 30.47%, RRR belongs to the best of the industry, outperforming 97.01% of the companies in the same industry.
In the last couple of years the Operating Margin of RRR has grown nicely.
With a decent Gross Margin value of 61.90%, RRR is doing good in the industry, outperforming 74.63% of the companies in the same industry.
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.
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
Compared to 1 year ago, RRR has about the same debt to assets ratio.
2.2 Solvency
RRR has an Altman-Z score of 2.06. 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.
With a Altman-Z score value of 2.06, RRR perfoms like the industry average, outperforming 55.22% of the companies in the same 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.
With a Debt to FCF ratio value of 11.51, RRR perfoms like the industry average, outperforming 53.73% of the companies in the same industry.
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 | 2.06 |
ROIC/WACC1.59
WACC9.12%
2.3 Liquidity
A Current Ratio of 0.89 indicates that RRR may have some problems paying its short term obligations.
RRR has a Current ratio (0.89) which is comparable to the rest of the industry.
A Quick Ratio of 0.84 indicates that RRR may have some problems paying its short term obligations.
RRR has a Quick ratio of 0.84. This is comparable to the rest of the industry: RRR outperforms 51.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
RRR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.58%.
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 a small growth in Revenue. In the last year, the Revenue has grown by 7.47%.
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
RRR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.39% yearly.
The Revenue is expected to grow by 3.29% on average over the next years.
EPS Next Y7.42%
EPS Next 2Y6.77%
EPS Next 3Y8.39%
EPS Next 5YN/A
Revenue Next Year3.43%
Revenue Next 2Y3.47%
Revenue Next 3Y3.29%
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
The Price/Earnings ratio is 24.21, which indicates a rather expensive current valuation of RRR.
Based on the Price/Earnings ratio, RRR is valued a bit cheaper than 63.43% of the companies in the same industry.
RRR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 25.24 indicates a quite expensive valuation of RRR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RRR is on the same level as its industry peers.
RRR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.21 | ||
| Fwd PE | 25.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RRR is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RRR indicates a somewhat cheap valuation: RRR is cheaper than 71.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.77 | ||
| EV/EBITDA | 12.15 |
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)3.26
PEG (5Y)N/A
EPS Next 2Y6.77%
EPS Next 3Y8.39%
5. Dividend
5.1 Amount
RRR has a Yearly Dividend Yield of 1.64%.
Compared to an average industry Dividend Yield of 6.79, RRR pays a bit more dividend than its industry peers.
RRR's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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 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%
61
-0.58 (-0.94%)
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 Change0.23%
Market Cap6.43B
Analysts75.29
Price Target64.86 (6.33%)
Short Float %4.3%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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)0.93%
PT rev (3m)23.06%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)13.07%
EPS NY rev (1m)0%
EPS NY rev (3m)31.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.21 | ||
| Fwd PE | 25.24 | ||
| P/S | 3.24 | ||
| P/FCF | 21.77 | ||
| P/OCF | 11.41 | ||
| P/B | 31.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.15 |
EPS(TTM)2.52
EY4.13%
EPS(NY)2.42
Fwd EY3.96%
FCF(TTM)2.8
FCFY4.59%
OCF(TTM)5.35
OCFY8.76%
SpS18.84
BVpS1.93
TBVpS-0.69
PEG (NY)3.26
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 | 2.06 |
F-Score7
WACC9.12%
ROIC/WACC1.59
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 2Y3.47%
Revenue Next 3Y3.29%
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%