RED ROCK RESORTS INC-CLASS A (RRR) Stock Fundamental Analysis
USA - NASDAQ:RRR - US75700L1089 - Common Stock
60.63 USD
+0.92 (+1.54%)
60.63 USD
0 (0%)
Taking everything into account, RRR scores 4 out of 10 in our fundamental rating. 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. 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.
Of the past 5 years RRR 4 years were profitable.
In the past 5 years RRR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RRR (4.38%) is better than 61.65% of its industry peers.
RRR has a better Return On Equity (86.87%) than 96.24% of its industry peers.
The Return On Invested Capital of RRR (14.49%) is better than 81.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RRR is in line with the industry average of 15.68%.
| 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
RRR has a Profit Margin of 8.89%. This is in the better half of the industry: RRR outperforms 70.68% of its industry peers.
RRR's Profit Margin has declined in the last couple of years.
RRR's Operating Margin of 30.47% 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.
Looking at the Gross Margin, with a value of 61.90%, RRR is in the better half of the industry, outperforming 74.44% of the companies in the same industry.
In the last couple of years the Gross Margin of RRR has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RRR is creating some 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.
Compared to 1 year ago, RRR has about the same debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.05 indicates that RRR is not a great score, but indicates only limited risk for bankruptcy at the moment.
RRR has a Altman-Z score (2.05) which is comparable to the rest of the 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.
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.
Looking at the Debt to Equity ratio, with a value of 16.47, RRR is doing worse than 66.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 16.47 | ||
| Debt/FCF | 11.51 | ||
| Altman-Z | 2.05 |
ROIC/WACC1.58
WACC9.19%
2.3 Liquidity
A Current Ratio of 0.89 indicates that RRR may have some problems paying its short term obligations.
The Current ratio of RRR (0.89) 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 (0.84) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The earnings per share for RRR have decreased strongly by -11.58% in the last year.
The earnings per share for RRR have been decreasing by -25.80% on average. This is quite bad
The Revenue has been growing slightly by 7.47% in the past 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)-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
The Earnings Per Share is expected to grow by 8.39% on average over the next years. This is quite good.
Based on estimates for the next years, RRR will show a small growth in Revenue. The Revenue will grow by 3.29% on average per year.
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
Based on the Price/Earnings ratio of 24.06, the valuation of RRR can be described as rather expensive.
63.91% 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 27.20. RRR is around the same levels.
A Price/Forward Earnings ratio of 25.09 indicates a quite expensive valuation of RRR.
The rest of the industry has a similar Price/Forward Earnings ratio as RRR.
When comparing the Price/Forward Earnings ratio of RRR to the average of the S&P500 Index (22.70), we can say RRR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.06 | ||
| Fwd PE | 25.09 |
4.2 Price Multiples
RRR's Enterprise Value to EBITDA is on the same level as the industry average.
RRR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RRR is cheaper than 75.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.63 | ||
| EV/EBITDA | 12.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RRR does not grow enough to justify the current Price/Earnings ratio.
RRR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.24
PEG (5Y)N/A
EPS Next 2Y6.77%
EPS Next 3Y8.39%
5. Dividend
5.1 Amount
RRR has a Yearly Dividend Yield of 1.62%.
RRR's Dividend Yield is a higher than the industry average which is at 3.93.
Compared to the average S&P500 Dividend Yield of 2.38, RRR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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.
The dividend of RRR decreased recently.
Dividend Growth(5Y)36.35%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
67.94% of the earnings are spent on dividend by RRR. 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%
60.63
+0.92 (+1.54%)
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 Change0.17%
Market Cap6.40B
Analysts75.29
Price Target64.86 (6.98%)
Short Float %4.3%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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)26.12%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)13.07%
EPS NY rev (1m)20.66%
EPS NY rev (3m)29.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.43%
Revenue NY rev (1m)2.9%
Revenue NY rev (3m)3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.06 | ||
| Fwd PE | 25.09 | ||
| P/S | 3.22 | ||
| P/FCF | 21.63 | ||
| P/OCF | 11.34 | ||
| P/B | 31.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.1 |
EPS(TTM)2.52
EY4.16%
EPS(NY)2.42
Fwd EY3.99%
FCF(TTM)2.8
FCFY4.62%
OCF(TTM)5.35
OCFY8.82%
SpS18.84
BVpS1.93
TBVpS-0.69
PEG (NY)3.24
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 | 2.05 |
F-Score7
WACC9.19%
ROIC/WACC1.58
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%