61.57 USD
+0.3 (+0.49%)
61.58 USD
+0.01 (+0.02%)
Overall RRR gets a fundamental rating of 5 out of 10. We evaluated RRR against 132 industry peers in the Hotels, Restaurants & Leisure industry. RRR scores excellent on profitability, but 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
- RRR had positive earnings in the past year.
- 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
- With a decent Return On Assets value of 4.64%, RRR is doing good in the industry, outperforming 65.15% of the companies in the same industry.
- RRR has a better Return On Equity (86.51%) than 93.94% of its industry peers.
- RRR has a Return On Invested Capital of 14.52%. This is amongst the best in the industry. RRR outperforms 82.58% 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 10.36%.
| 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 has a better Profit Margin (9.52%) than 71.97% 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 96.97% of its industry peers.
- In the last couple of years the Operating Margin of RRR has grown nicely.
- The Gross Margin of RRR (62.23%) is better than 77.27% of its industry peers.
- 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
- 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
- RRR has an Altman-Z score of 2.04. 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.
- Looking at the Altman-Z score, with a value of 2.04, RRR is in line with its industry, outperforming 59.85% of the companies in the same industry.
- RRR has a debt to FCF ratio of 10.24. This is a negative value and a sign of low solvency as RRR would need 10.24 years to pay back of all of its debts.
- RRR's Debt to FCF ratio of 10.24 is in line compared to the rest of the industry. RRR outperforms 59.09% of its industry peers.
- RRR has a Debt/Equity ratio of 15.23. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of RRR (15.23) is worse than 68.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 15.23 | ||
| Debt/FCF | 10.24 | ||
| Altman-Z | 2.04 |
ROIC/WACC1.75
WACC8.28%
2.3 Liquidity
- RRR has a Current Ratio of 0.75. 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 worse Current ratio (0.75) than 60.61% of its industry peers.
- RRR has a Quick Ratio of 0.75. This is a bad value and indicates that RRR is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of RRR (0.70) is worse than 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
- RRR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.02%, which is quite good.
- 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.
- The Revenue has been growing slightly by 4.69% in the past year.
- The Revenue has been growing slightly by 0.87% on average over the past years.
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
- Based on estimates for the next years, RRR will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.69% on average per year.
- The Revenue is expected to grow by 3.62% on average over the next years.
EPS Next Y19.83%
EPS Next 2Y15.21%
EPS Next 3Y13.69%
EPS Next 5YN/A
Revenue Next Year3.48%
Revenue Next 2Y3.45%
Revenue Next 3Y3.62%
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.
- 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
- Based on the Price/Earnings ratio of 21.76, the valuation of RRR can be described as rather expensive.
- Based on the Price/Earnings ratio, RRR is valued a bit cheaper than the industry average as 65.15% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, RRR is valued a bit cheaper.
- A Price/Forward Earnings ratio of 21.88 indicates a rather 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 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.76 | ||
| Fwd PE | 21.88 |
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 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.6 | ||
| EV/EBITDA | 12.17 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- RRR has a very decent profitability rating, which may justify a higher PE ratio.
- RRR's earnings are expected to grow with 13.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.1
PEG (5Y)N/A
EPS Next 2Y15.21%
EPS Next 3Y13.69%
5. Dividend
5.1 Amount
- RRR has a Yearly Dividend Yield of 1.69%.
- RRR's Dividend Yield is a higher than the industry average which is at 1.21.
- Compared to an average S&P500 Dividend Yield of 1.82, RRR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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 63.27% of its income as dividend. This is not a sustainable payout ratio.
- RRR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP63.27%
EPS Next 2Y15.21%
EPS Next 3Y13.69%
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 19.83% in the next year.