61.27 USD
-0.23 (-0.37%)
61.27 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 has a great profitability rating, there are quite some concerns on its financial health. RRR has a correct valuation and a medium growth rate.
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
- RRR has a better Return On Assets (4.64%) than 65.41% of its industry peers.
- With an excellent Return On Equity value of 86.51%, RRR belongs to the best of the industry, outperforming 93.23% of the companies in the same industry.
- RRR has a better Return On Invested Capital (14.52%) than 82.71% of its industry peers.
- 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 72.18% of its industry peers.
- RRR's Profit Margin has declined in the last couple of years.
- RRR has a better Operating Margin (30.65%) than 96.99% of its industry peers.
- RRR's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 62.23%, RRR is doing good in the industry, outperforming 77.44% 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 | 30.65% | ||
| 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 just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for RRR has been increased compared to 1 year ago.
- The number of shares outstanding for RRR has been reduced compared to 5 years ago.
- RRR has about the same debt/assets ratio as last year.
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.
- RRR has a Altman-Z score (2.03) which is comparable to the rest of the 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.
- Looking at the Debt to FCF ratio, with a value of 10.24, RRR is in line with its industry, outperforming 59.40% of the companies in the same industry.
- A Debt/Equity ratio of 15.23 is on the high side and indicates that RRR has dependencies on debt financing.
- The Debt to Equity ratio of RRR (15.23) is worse than 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 15.23 | ||
| Debt/FCF | 10.24 | ||
| Altman-Z | 2.03 |
ROIC/WACC1.71
WACC8.48%
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.
- The Current ratio of RRR (0.75) is worse than 60.15% 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 60.15% 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.
- 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 a small growth in Revenue. In the last year, the Revenue has grown by 4.69%.
- RRR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.87% yearly.
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
- 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 21.65, the valuation of RRR can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of RRR indicates a somewhat cheap valuation: RRR is cheaper than 64.66% of the companies listed in the same industry.
- RRR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 21.77, 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, RRR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.65 | ||
| Fwd PE | 21.77 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as RRR.
- Based on the Price/Free Cash Flow ratio, RRR is valued a bit cheaper than the industry average as 73.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.5 | ||
| 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)1.09
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
- 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.