61.04 USD
-0.46 (-0.75%)
We assign a fundamental rating of 5 out of 10 to RRR. RRR was compared to 133 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 correct valuation and a medium 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 4.64%, RRR is doing good in the industry, outperforming 65.41% of the companies in the same industry.
- RRR has a Return On Equity of 86.51%. This is amongst the best in the industry. RRR outperforms 93.23% of its industry peers.
- RRR has a better Return On Invested Capital (14.52%) than 82.71% of its industry peers.
- RRR had an Average Return On Invested Capital over the past 3 years of 15.17%. This is above the industry average of 10.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.64% | ||
| ROE | 86.51% | ||
| ROIC | 14.52% |
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 9.52% is fine compared to the rest of the industry. RRR outperforms 72.18% of its industry peers.
- RRR's Profit Margin has declined in the last couple of years.
- RRR's Operating Margin of 30.65% is amongst the best of the industry. RRR outperforms 96.99% of its industry peers.
- RRR's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 62.23%, RRR is doing good in the industry, outperforming 77.44% of the companies in the same industry.
- RRR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.65% | ||
| PM (TTM) | 9.52% | ||
| GM | 62.23% |
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) just above the Cost of Capital (WACC), RRR is creating some value.
- RRR has more shares outstanding than it did 1 year ago.
- RRR has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, RRR has about the same debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.04 indicates that RRR is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of RRR (2.04) is comparable to the rest of the industry.
- The Debt to FCF ratio of RRR is 10.24, which is on the high side as it means it would take RRR, 10.24 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of RRR (10.24) is comparable to the rest of the industry.
- A Debt/Equity ratio of 15.23 is on the high side and indicates that RRR has dependencies on debt financing.
- RRR has a worse Debt to Equity ratio (15.23) than 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 15.23 | ||
| Debt/FCF | 10.24 | ||
| Altman-Z | 2.04 |
ROIC/WACC1.71
WACC8.48%
2.3 Liquidity
- A Current Ratio of 0.75 indicates that RRR may have some problems paying its short term obligations.
- RRR has a Current ratio of 0.75. This is in the lower half of the industry: RRR underperforms 60.15% of its industry peers.
- A Quick Ratio of 0.70 indicates that RRR may have some problems paying its short term obligations.
- With a Quick ratio value of 0.70, RRR is not doing good in the industry: 60.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.02% over the past 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.
- Looking at the last year, RRR shows a small growth in Revenue. The Revenue has grown by 4.69% 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)8.02%
EPS 3Y-25.8%
EPS 5YN/A
EPS Q2Q%83.78%
Revenue 1Y (TTM)4.69%
Revenue growth 3Y6.22%
Revenue growth 5Y0.87%
Sales Q2Q%1.61%
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 12.59% yearly.
- RRR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.61% yearly.
EPS Next Y20.54%
EPS Next 2Y13.8%
EPS Next 3Y12.59%
EPS Next 5YN/A
Revenue Next Year3.48%
Revenue Next 2Y3.45%
Revenue Next 3Y3.61%
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
- Based on the Price/Earnings ratio of 21.57, the valuation of RRR can be described as rather expensive.
- Based on the Price/Earnings ratio, RRR is valued a bit cheaper than 66.17% of the companies in the same industry.
- RRR is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 22.23, RRR is valued on the expensive side.
- RRR's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of RRR to the average of the S&P500 Index (24.32), we can say RRR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.57 | ||
| Fwd PE | 22.23 |
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.
- Based on the Price/Free Cash Flow ratio, RRR is valued a bit cheaper than the industry average as 73.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.43 | ||
| EV/EBITDA | 12.16 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of RRR may justify a higher PE ratio.
- A more expensive valuation may be justified as RRR's earnings are expected to grow with 12.59% in the coming years.
PEG (NY)1.05
PEG (5Y)N/A
EPS Next 2Y13.8%
EPS Next 3Y12.59%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.64%, RRR has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.19, RRR pays a bit more dividend than its industry peers.
- RRR's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| 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 paid a dividend for at least 10 years, which is 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 63.27% 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.
DP63.27%
EPS Next 2Y13.8%
EPS Next 3Y12.59%
RED ROCK RESORTS INC-CLASS A / RRR FAQ
Can you provide the ChartMill fundamental rating for RED ROCK RESORTS INC-CLASS A?
ChartMill assigns a fundamental rating of 5 / 10 to RRR.
What is the valuation status of RED ROCK RESORTS INC-CLASS A (RRR) stock?
ChartMill assigns a valuation rating of 4 / 10 to RED ROCK RESORTS INC-CLASS A (RRR). This can be considered as Fairly Valued.
How profitable is RED ROCK RESORTS INC-CLASS A (RRR) stock?
RED ROCK RESORTS INC-CLASS A (RRR) has a profitability rating of 7 / 10.
What is the financial health of RED ROCK RESORTS INC-CLASS A (RRR) stock?
The financial health rating of RED ROCK RESORTS INC-CLASS A (RRR) is 2 / 10.
Can you provide the expected EPS growth for RRR stock?
The Earnings per Share (EPS) of RED ROCK RESORTS INC-CLASS A (RRR) is expected to grow by 20.54% in the next year.