RED ROCK RESORTS INC-CLASS A (RRR) Stock Fundamental Analysis
NASDAQ:RRR - Nasdaq - US75700L1089 - Common Stock - Currency: USD
RRR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. RRR scores excellent on profitability, but there are 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.
RRR had a positive operating cash flow in the past year.
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
With a Return On Assets value of 3.81%, RRR perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
With an excellent Return On Equity value of 71.63%, RRR belongs to the best of the industry, outperforming 97.04% of the companies in the same industry.
RRR has a Return On Invested Capital of 13.72%. This is amongst the best in the industry. RRR outperforms 81.48% of its industry peers.
RRR had an Average Return On Invested Capital over the past 3 years of 15.17%. This is in line with the industry average of 16.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.81% | ||
| ROE | 71.63% | ||
| ROIC | 13.72% |
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 7.94%. This is in the better half of the industry: RRR outperforms 65.19% of its industry peers.
RRR's Profit Margin has declined in the last couple of years.
RRR has a better Operating Margin (29.67%) than 94.81% of its industry peers.
RRR's Operating Margin has improved in the last couple of years.
The Gross Margin of RRR (61.62%) is better than 74.07% of its industry peers.
RRR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.67% | ||
| PM (TTM) | 7.94% | ||
| GM | 61.62% |
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.
Compared to 1 year ago, RRR has more shares outstanding
RRR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for RRR has remained at the same level compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.80, we must say that RRR is in the distress zone and has some risk of bankruptcy.
RRR has a Altman-Z score (1.80) which is comparable to the rest of the industry.
RRR has a debt to FCF ratio of 13.66. This is a negative value and a sign of low solvency as RRR would need 13.66 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.66, RRR is in line with its industry, outperforming 51.11% of the companies in the same industry.
RRR has a Debt/Equity ratio of 15.60. This is a high value indicating a heavy dependency on external financing.
RRR has a Debt to Equity ratio of 15.60. This is in the lower half of the industry: RRR underperforms 65.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 15.6 | ||
| Debt/FCF | 13.66 | ||
| Altman-Z | 1.8 |
ROIC/WACC1.46
WACC9.41%
2.3 Liquidity
A Current Ratio of 0.91 indicates that RRR may have some problems paying its short term obligations.
RRR's Current ratio of 0.91 is in line compared to the rest of the industry. RRR outperforms 53.33% of its industry peers.
A Quick Ratio of 0.86 indicates that RRR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.86, RRR is in line with its industry, outperforming 51.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
RRR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.14%.
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 quite strong growth in Revenue. The Revenue has grown by 12.47% in the last year.
The Revenue has been growing slightly by 0.87% on average over the past years.
EPS 1Y (TTM)-28.14%
EPS 3Y-25.8%
EPS 5YN/A
EPS Q2Q%-52.63%
Revenue 1Y (TTM)12.47%
Revenue growth 3Y6.22%
Revenue growth 5Y0.87%
Sales Q2Q%7.13%
3.2 Future
The Earnings Per Share is expected to grow by 1.68% on average over the next years.
The Revenue is expected to grow by 2.45% on average over the next years.
EPS Next Y-12.78%
EPS Next 2Y-0.71%
EPS Next 3Y1.68%
EPS Next 5YN/A
Revenue Next Year1.18%
Revenue Next 2Y2.63%
Revenue Next 3Y2.45%
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 22.17, the valuation of RRR can be described as rather expensive.
65.19% 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 29.71. RRR is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 25.41, RRR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RRR is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of RRR to the average of the S&P500 Index (22.34), we can say RRR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.17 | ||
| Fwd PE | 25.41 |
4.2 Price Multiples
RRR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RRR is cheaper than 64.44% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RRR is valued a bit cheaper than 75.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.9 | ||
| EV/EBITDA | 10.89 |
4.3 Compensation for Growth
The decent profitability rating of RRR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.71%
EPS Next 3Y1.68%
5. Dividend
5.1 Amount
RRR has a Yearly Dividend Yield of 2.01%. Purely for dividend investing, there may be better candidates out there.
RRR's Dividend Yield is a higher than the industry average which is at 3.23.
RRR's Dividend Yield is comparable with the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
The dividend of RRR is nicely growing with an annual growth rate of 36.35%!
RRR has paid a dividend for at least 10 years, which is 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
RRR pays out 76.86% 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.
DP76.86%
EPS Next 2Y-0.71%
EPS Next 3Y1.68%
NASDAQ:RRR (3/6/2025, 2:35:03 PM)
46.99
-0.89 (-1.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners85.64%
Inst Owner Change0.07%
Ins Owners1.34%
Ins Owner Change1.4%
Market Cap4.96B
Analysts72.22
Price Target57.48 (22.32%)
Short Float %5.06%
Short Ratio4.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Yearly Dividend1.13
Dividend Growth(5Y)36.35%
DP76.86%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-15.7%
Min EPS beat(2)-30.16%
Max EPS beat(2)-1.23%
EPS beat(4)1
Avg EPS beat(4)-8.51%
Min EPS beat(4)-30.16%
Max EPS beat(4)1.66%
EPS beat(8)5
Avg EPS beat(8)14.59%
EPS beat(12)7
Avg EPS beat(12)18.31%
EPS beat(16)11
Avg EPS beat(16)62.82%
Revenue beat(2)1
Avg Revenue beat(2)0.14%
Min Revenue beat(2)-0.09%
Max Revenue beat(2)0.37%
Revenue beat(4)2
Avg Revenue beat(4)0.03%
Min Revenue beat(4)-1.14%
Max Revenue beat(4)1%
Revenue beat(8)4
Avg Revenue beat(8)0.75%
Revenue beat(12)6
Avg Revenue beat(12)0.64%
Revenue beat(16)9
Avg Revenue beat(16)1.61%
PT rev (1m)1.02%
PT rev (3m)-6.07%
EPS NQ rev (1m)-3.85%
EPS NQ rev (3m)-4.85%
EPS NY rev (1m)0.5%
EPS NY rev (3m)-20.3%
Revenue NQ rev (1m)0.9%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.17 | ||
| Fwd PE | 25.41 | ||
| P/S | 2.56 | ||
| P/FCF | 19.9 | ||
| P/OCF | 9.05 | ||
| P/B | 23.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.89 |
EPS(TTM)2.12
EY4.51%
EPS(NY)1.85
Fwd EY3.93%
FCF(TTM)2.36
FCFY5.03%
OCF(TTM)5.19
OCFY11.05%
SpS18.36
BVpS2.04
TBVpS-0.59
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.81% | ||
| ROE | 71.63% | ||
| ROCE | 15.47% | ||
| ROIC | 13.72% | ||
| ROICexc | 14.36% | ||
| ROICexgc | 15.57% | ||
| OM | 29.67% | ||
| PM (TTM) | 7.94% | ||
| GM | 61.62% | ||
| FCFM | 12.86% |
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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 15.6 | ||
| Debt/FCF | 13.66 | ||
| Debt/EBITDA | 4.4 | ||
| Cap/Depr | 159.71% | ||
| Cap/Sales | 15.41% | ||
| Interest Coverage | 2.74 | ||
| Cash Conversion | 71.9% | ||
| Profit Quality | 161.91% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 1.8 |
F-Score7
WACC9.41%
ROIC/WACC1.46
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)-28.14%
EPS 3Y-25.8%
EPS 5YN/A
EPS Q2Q%-52.63%
EPS Next Y-12.78%
EPS Next 2Y-0.71%
EPS Next 3Y1.68%
EPS Next 5YN/A
Revenue 1Y (TTM)12.47%
Revenue growth 3Y6.22%
Revenue growth 5Y0.87%
Sales Q2Q%7.13%
Revenue Next Year1.18%
Revenue Next 2Y2.63%
Revenue Next 3Y2.45%
Revenue Next 5YN/A
EBIT growth 1Y-2.59%
EBIT growth 3Y0.87%
EBIT growth 5Y16.49%
EBIT Next Year38.71%
EBIT Next 3Y13.05%
EBIT Next 5YN/A
FCF growth 1Y220.33%
FCF growth 3Y-22.89%
FCF growth 5YN/A
OCF growth 1Y10.91%
OCF growth 3Y-3.49%
OCF growth 5Y11.61%