RED ROCK RESORTS INC-CLASS A (RRR) Stock Fundamental Analysis
USA - NASDAQ:RRR - US75700L1089 - Common Stock
53.31 USD
-0.48 (-0.89%)
53.31 USD
0 (0%)
Overall RRR gets a fundamental rating of 5 out of 10. We evaluated RRR against 132 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. RRR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year RRR was profitable.
RRR had a positive operating cash flow in the past year.
Of the past 5 years RRR 4 years were profitable.
RRR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RRR has a Return On Assets of 4.38%. This is in the better half of the industry: RRR outperforms 62.41% of its industry peers.
RRR has a Return On Equity of 86.87%. This is amongst the best in the industry. RRR outperforms 95.49% of its industry peers.
RRR's Return On Invested Capital of 14.49% is amongst the best of the industry. RRR outperforms 81.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RRR is above the industry average of 10.72%.
| 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
Looking at the Profit Margin, with a value of 8.89%, RRR is in the better half of the industry, outperforming 70.68% of the companies in the same industry.
RRR's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 30.47%, RRR belongs to the best of the industry, outperforming 96.99% of the companies in the same industry.
In the last couple of years the Operating Margin of RRR has grown nicely.
Looking at the Gross Margin, with a value of 61.90%, RRR is in the better half of the industry, outperforming 75.19% 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
RRR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, RRR has more shares outstanding
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
An Altman-Z score of 1.93 indicates that RRR is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.93, RRR perfoms like the industry average, outperforming 55.64% of the companies in the same industry.
The Debt to FCF ratio of RRR is 11.51, which is on the high side as it means it would take RRR, 11.51 years of fcf income to pay off all of its debts.
RRR has a Debt to FCF ratio (11.51) which is comparable to the rest of the industry.
A Debt/Equity ratio of 16.47 is on the high side and indicates that RRR has dependencies on debt financing.
RRR's Debt to Equity ratio of 16.47 is on the low side compared to the rest of the industry. RRR is outperformed by 66.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 16.47 | ||
| Debt/FCF | 11.51 | ||
| Altman-Z | 1.93 |
ROIC/WACC1.74
WACC8.32%
2.3 Liquidity
A Current Ratio of 0.89 indicates that RRR may have some problems paying its short term obligations.
RRR's Current ratio of 0.89 is in line compared to the rest of the industry. RRR outperforms 49.62% of its industry peers.
RRR has a Quick Ratio of 0.89. 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 0.84, RRR is in line with its industry, outperforming 50.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.02% over the past year.
RRR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -25.80% yearly.
RRR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.47%.
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)8.02%
EPS 3Y-25.8%
EPS 5YN/A
EPS Q2Q%83.78%
Revenue 1Y (TTM)12.47%
Revenue growth 3Y6.22%
Revenue growth 5Y0.87%
Sales Q2Q%1.61%
3.2 Future
The Earnings Per Share is expected to grow by 8.13% on average over the next years. This is quite good.
RRR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.40% yearly.
EPS Next Y8.09%
EPS Next 2Y10.51%
EPS Next 3Y8.13%
EPS Next 5YN/A
Revenue Next Year3.69%
Revenue Next 2Y3.47%
Revenue Next 3Y3.4%
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 18.84, the valuation of RRR can be described as rather expensive.
67.67% of the companies in the same industry are more expensive than RRR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.11. RRR is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 20.59, which indicates a rather expensive current valuation of RRR.
RRR's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.55. RRR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.84 | ||
| Fwd PE | 20.59 |
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 75.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.02 | ||
| EV/EBITDA | 11.13 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RRR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.33
PEG (5Y)N/A
EPS Next 2Y10.51%
EPS Next 3Y8.13%
5. Dividend
5.1 Amount
RRR has a Yearly Dividend Yield of 1.93%.
RRR's Dividend Yield is a higher than the industry average which is at 4.12.
Compared to an average S&P500 Dividend Yield of 2.37, RRR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
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 2Y10.51%
EPS Next 3Y8.13%
53.31
-0.48 (-0.89%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners86.3%
Inst Owner Change-2.92%
Ins Owners1.83%
Ins Owner Change0.23%
Market Cap5.62B
Revenue(TTM)1.94B
Net Income(TTM)176.69M
Analysts75.29
Price Target65.88 (23.58%)
Short Float %5.72%
Short Ratio4.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
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)1.57%
PT rev (3m)15.33%
EPS NQ rev (1m)12.37%
EPS NQ rev (3m)19.16%
EPS NY rev (1m)4.49%
EPS NY rev (3m)21.41%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)1.03%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)3.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.84 | ||
| Fwd PE | 20.59 | ||
| P/S | 2.83 | ||
| P/FCF | 19.02 | ||
| P/OCF | 9.97 | ||
| P/B | 27.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.13 |
EPS(TTM)2.83
EY5.31%
EPS(NY)2.59
Fwd EY4.86%
FCF(TTM)2.8
FCFY5.26%
OCF(TTM)5.35
OCFY10.03%
SpS18.84
BVpS1.93
TBVpS-0.69
PEG (NY)2.33
PEG (5Y)N/A
Graham Number11.08
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%
ROICexgc growth 3Y-9.38%
ROICexgc 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 | 1.93 |
F-Score7
WACC8.32%
ROIC/WACC1.74
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)8.02%
EPS 3Y-25.8%
EPS 5YN/A
EPS Q2Q%83.78%
EPS Next Y8.09%
EPS Next 2Y10.51%
EPS Next 3Y8.13%
EPS Next 5YN/A
Revenue 1Y (TTM)12.47%
Revenue growth 3Y6.22%
Revenue growth 5Y0.87%
Sales Q2Q%1.61%
Revenue Next Year3.69%
Revenue Next 2Y3.47%
Revenue Next 3Y3.4%
Revenue Next 5YN/A
EBIT growth 1Y1.49%
EBIT growth 3Y0.87%
EBIT growth 5Y16.49%
EBIT Next Year45.29%
EBIT Next 3Y16.41%
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%
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.
Can you provide the valuation status for RED ROCK RESORTS INC-CLASS A?
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 earnings growth outlook for RED ROCK RESORTS INC-CLASS A?
The Earnings per Share (EPS) of RED ROCK RESORTS INC-CLASS A (RRR) is expected to grow by 8.09% in the next year.
How sustainable is the dividend of RED ROCK RESORTS INC-CLASS A (RRR) stock?
The dividend rating of RED ROCK RESORTS INC-CLASS A (RRR) is 4 / 10 and the dividend payout ratio is 67.94%.