RED ROCK RESORTS INC-CLASS A (RRR)
US75700L1089 - Common Stock
Overall RRR gets a fundamental rating of 5 out of 10. We evaluated RRR against 133 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
In the past year RRR was profitable.
RRR had a positive operating cash flow in the past year.
In multiple years RRR reported negative net income over the last 5 years.
RRR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RRR (4.10%) is better than 63.08% of its industry peers.
The Return On Equity of RRR (93.29%) is better than 99.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.04%, RRR belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RRR is significantly above the industry average of 10.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.1% | ||
| ROE | 93.29% | ||
| ROIC | 14.04% |
ROA(3y)6.1%
ROA(5y)2.84%
ROE(3y)326.66%
ROE(5y)187.33%
ROIC(3y)16.34%
ROIC(5y)11.68%
1.3 Margins
Looking at the Profit Margin, with a value of 8.59%, RRR is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Profit Margin of RRR has grown nicely.
RRR has a Operating Margin of 30.81%. This is amongst the best in the industry. RRR outperforms 95.38% of its industry peers.
RRR's Operating Margin has improved in the last couple of years.
RRR has a better Gross Margin (62.13%) than 73.85% of its industry peers.
RRR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.81% | ||
| PM (TTM) | 8.59% | ||
| GM | 62.13% |
OM growth 3Y47.94%
OM growth 5Y7.19%
PM growth 3YN/A
PM growth 5Y1.73%
GM growth 3Y3.39%
GM growth 5Y3.83%
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
RRR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.77, we must say that RRR is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.77, RRR perfoms like the industry average, outperforming 53.08% of the companies in the same industry.
RRR has a debt to FCF ratio of 34.42. This is a negative value and a sign of low solvency as RRR would need 34.42 years to pay back of all of its debts.
RRR's Debt to FCF ratio of 34.42 is in line compared to the rest of the industry. RRR outperforms 40.77% of its industry peers.
A Debt/Equity ratio of 19.50 is on the high side and indicates that RRR has dependencies on debt financing.
RRR has a Debt to Equity ratio of 19.50. This is in the lower half of the industry: RRR underperforms 68.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 19.5 | ||
| Debt/FCF | 34.42 | ||
| Altman-Z | 1.77 |
ROIC/WACC1.73
WACC8.1%
2.3 Liquidity
RRR has a Current Ratio of 1.02. This is a normal value and indicates that RRR is financially healthy and should not expect problems in meeting its short term obligations.
RRR has a Current ratio (1.02) which is in line with its industry peers.
RRR has a Quick Ratio of 1.02. 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 Quick ratio (0.96) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
RRR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.93%.
The Earnings Per Share has been growing by 19.51% on average over the past years. This is quite good.
The Revenue has grown by 13.00% in the past year. This is quite good.
Measured over the past years, RRR shows a small growth in Revenue. The Revenue has been growing by 0.51% on average per year.
EPS 1Y (TTM)-24.93%
EPS 3YN/A
EPS 5Y19.51%
EPS Q2Q%-38.33%
Revenue 1Y (TTM)13%
Revenue growth 3Y13.4%
Revenue growth 5Y0.51%
Sales Q2Q%13.7%
3.2 Future
The Earnings Per Share is expected to decrease by -11.44% on average over the next years. This is quite bad
RRR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.44% yearly.
EPS Next Y-50.84%
EPS Next 2Y-15.46%
EPS Next 3Y-11.44%
EPS Next 5YN/A
Revenue Next Year13.85%
Revenue Next 2Y7.19%
Revenue Next 3Y6.47%
Revenue Next 5Y4.44%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 17.14 indicates a rather expensive valuation of RRR.
76.92% of the companies in the same industry are more expensive than RRR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.41, RRR is valued a bit cheaper.
A Price/Forward Earnings ratio of 21.30 indicates a rather expensive valuation of RRR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RRR indicates a somewhat cheap valuation: RRR is cheaper than 62.31% of the companies listed in the same industry.
RRR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.14 | ||
| Fwd PE | 21.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RRR indicates a somewhat cheap valuation: RRR is cheaper than 62.31% of the companies listed in the same industry.
RRR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.45 | ||
| EV/EBITDA | 10.58 |
4.3 Compensation for Growth
RRR has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as RRR's earnings are expected to decrease with -11.44% in the coming years.
PEG (NY)N/A
PEG (5Y)0.88
EPS Next 2Y-15.46%
EPS Next 3Y-11.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.24%, RRR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.93, RRR pays a better dividend. On top of this RRR pays more dividend than 81.54% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, RRR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
On average, the dividend of RRR grows each year by 18.70%, which is quite nice.
RRR has been paying a dividend for over 5 years, so it has already some track record.
The dividend of RRR decreased recently.
Dividend Growth(5Y)18.7%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
72.18% of the earnings are spent on dividend by RRR. This is not a sustainable payout ratio.
The Dividend Rate of RRR has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP72.18%
EPS Next 2Y-15.46%
EPS Next 3Y-11.44%
RED ROCK RESORTS INC-CLASS A
NASDAQ:RRR (1/3/2025, 8:00:29 PM)
After market: 44.91 0 (0%)44.91
+0.19 (+0.42%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners83.84%
Inst Owner Change2.16%
Ins Owners1.34%
Ins Owner Change0%
Market Cap4.74B
Analysts74.44
Price Target59.96 (33.51%)
Short Float %3.92%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Dividend Growth(5Y)18.7%
DP72.18%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-17.24%
Min EPS beat(2)-30.16%
Max EPS beat(2)-4.33%
EPS beat(4)2
Avg EPS beat(4)12.45%
Min EPS beat(4)-30.16%
Max EPS beat(4)82.61%
EPS beat(8)6
Avg EPS beat(8)33.47%
EPS beat(12)8
Avg EPS beat(12)30.19%
EPS beat(16)12
Avg EPS beat(16)64.59%
Revenue beat(2)2
Avg Revenue beat(2)0.68%
Min Revenue beat(2)0.37%
Max Revenue beat(2)1%
Revenue beat(4)3
Avg Revenue beat(4)1.11%
Min Revenue beat(4)-1.14%
Max Revenue beat(4)4.21%
Revenue beat(8)4
Avg Revenue beat(8)0.74%
Revenue beat(12)7
Avg Revenue beat(12)0.83%
Revenue beat(16)9
Avg Revenue beat(16)1.57%
PT rev (1m)-2.02%
PT rev (3m)-9.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-26.24%
EPS NY rev (1m)0%
EPS NY rev (3m)-30.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.14 | ||
| Fwd PE | 21.3 | ||
| P/S | 2.49 | ||
| P/FCF | 47.45 | ||
| P/OCF | 8.49 | ||
| P/B | 27.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.58 |
EPS(TTM)2.62
EY5.83%
EPS(NY)2.11
Fwd EY4.7%
FCF(TTM)0.95
FCFY2.11%
OCF(TTM)5.29
OCFY11.78%
SpS18.05
BVpS1.66
TBVpS-0.96
PEG (NY)N/A
PEG (5Y)0.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.1% | ||
| ROE | 93.29% | ||
| ROCE | 15.73% | ||
| ROIC | 14.04% | ||
| ROICexc | 14.49% | ||
| ROICexgc | 15.7% | ||
| OM | 30.81% | ||
| PM (TTM) | 8.59% | ||
| GM | 62.13% | ||
| FCFM | 5.24% |
ROA(3y)6.1%
ROA(5y)2.84%
ROE(3y)326.66%
ROE(5y)187.33%
ROIC(3y)16.34%
ROIC(5y)11.68%
ROICexc(3y)17.35%
ROICexc(5y)12.35%
ROICexgc(3y)19.18%
ROICexgc(5y)13.63%
ROCE(3y)18.31%
ROCE(5y)13.09%
ROICexcg growth 3Y66.58%
ROICexcg growth 5Y8.13%
ROICexc growth 3Y66.97%
ROICexc growth 5Y8.31%
OM growth 3Y47.94%
OM growth 5Y7.19%
PM growth 3YN/A
PM growth 5Y1.73%
GM growth 3Y3.39%
GM growth 5Y3.83%
F-Score6
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 19.5 | ||
| Debt/FCF | 34.42 | ||
| Debt/EBITDA | 4.49 | ||
| Cap/Depr | 262.16% | ||
| Cap/Sales | 24.08% | ||
| Interest Coverage | 2.76 | ||
| Cash Conversion | 73.32% | ||
| Profit Quality | 61.05% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.77 |
F-Score6
WACC8.1%
ROIC/WACC1.73
Cap/Depr(3y)336.1%
Cap/Depr(5y)243.67%
Cap/Sales(3y)26.17%
Cap/Sales(5y)21.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-24.93%
EPS 3YN/A
EPS 5Y19.51%
EPS Q2Q%-38.33%
EPS Next Y-50.84%
EPS Next 2Y-15.46%
EPS Next 3Y-11.44%
EPS Next 5YN/A
Revenue 1Y (TTM)13%
Revenue growth 3Y13.4%
Revenue growth 5Y0.51%
Sales Q2Q%13.7%
Revenue Next Year13.85%
Revenue Next 2Y7.19%
Revenue Next 3Y6.47%
Revenue Next 5Y4.44%
EBIT growth 1Y-0.35%
EBIT growth 3Y67.76%
EBIT growth 5Y7.74%
EBIT Next Year48.6%
EBIT Next 3Y17.32%
EBIT Next 5Y11.67%
FCF growth 1Y-32.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1.5%
OCF growth 3Y32.44%
OCF growth 5Y7.4%