61.675 USD
+0.4 (+0.66%)
RRR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year RRR was profitable.
- RRR had a positive operating cash flow in the past year.
- RRR had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years RRR had a positive operating cash flow.
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 Return On Equity of 86.51%. This is amongst the best in the industry. RRR outperforms 93.18% of its industry peers.
- With an excellent Return On Invested Capital value of 14.52%, RRR belongs to the best of the industry, outperforming 82.58% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for RRR 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 Profit Margin of 9.52%. This is in the better half of the industry: RRR outperforms 71.97% of its industry peers.
- RRR's Profit Margin has declined in the last couple of years.
- RRR has a Operating Margin of 30.65%. This is amongst the best in the industry. RRR outperforms 96.97% of its industry peers.
- In the last couple of years the Operating Margin of RRR has grown nicely.
- RRR has a better Gross Margin (62.23%) than 77.27% of its industry peers.
- In the last couple of years the Gross Margin of RRR has grown nicely.
| 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) well above the Cost of Capital (WACC), RRR is creating value.
- The number of shares outstanding for RRR has been increased compared to 1 year ago.
- Compared to 5 years ago, RRR has less shares outstanding
- The debt/assets ratio for RRR has remained at the same level compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.03 indicates that RRR is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.03, RRR is in line with its industry, outperforming 59.09% of the companies in the same 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.
- RRR has a Debt to FCF ratio (10.24) which is comparable to the rest of the industry.
- RRR has a Debt/Equity ratio of 15.23. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 15.23, RRR is not doing good in the industry: 68.94% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 15.23 | ||
| Debt/FCF | 10.24 | ||
| Altman-Z | 2.03 |
ROIC/WACC1.75
WACC8.28%
2.3 Liquidity
- A Current Ratio of 0.75 indicates that RRR may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.75, RRR is doing worse than 60.61% of the companies in the same industry.
- 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
- The Earnings Per Share has grown by an nice 8.02% over the past year.
- The earnings per share for RRR have been decreasing by -25.80% on average. This is quite bad
- Looking at the last year, RRR shows a small growth in Revenue. The Revenue has grown by 4.69% in the last 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.
- Based on estimates for the next years, RRR will show a small growth in Revenue. The Revenue will grow by 3.62% on average per year.
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
- The EPS growth rate is accelerating: in the next years the growth will be better 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
- RRR is valuated rather expensively with a Price/Earnings ratio of 21.79.
- 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.
- RRR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 21.92, which indicates a rather expensive current 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 | 21.79 | ||
| Fwd PE | 21.92 |
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.
- 73.48% of the companies in the same industry are more expensive than RRR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.63 | ||
| EV/EBITDA | 12.13 |
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.
- 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
- With a Yearly Dividend Yield of 1.69%, RRR has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.21, RRR pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, RRR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
- The dividend of RRR is nicely growing with an annual growth rate of 36.35%!
- 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.
- The dividend of RRR is growing, but the earnings are growing slower. 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.