61.36 USD
+0.96 (+1.59%)
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 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.
- 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's Return On Equity of 86.51% is amongst the best of the industry. RRR outperforms 93.94% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 14.52%, RRR belongs to the top 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 10.37%.
| 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
- The Profit Margin of RRR (9.52%) is better than 71.97% of its industry peers.
- RRR's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 30.65%, RRR belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
- In the last couple of years the Operating Margin of RRR has grown nicely.
- RRR's Gross Margin of 62.23% is fine compared to the rest of the industry. RRR outperforms 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RRR is creating value.
- Compared to 1 year ago, RRR has more shares outstanding
- RRR has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, RRR has about the same debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.02 indicates that RRR is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.02, RRR perfoms like the industry average, outperforming 59.85% 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.
- Looking at the Debt to FCF ratio, with a value of 10.24, RRR is in line with its industry, outperforming 59.09% of the companies in the same industry.
- RRR has a Debt/Equity ratio of 15.23. This is a high value indicating a heavy dependency on external financing.
- RRR's Debt to Equity ratio of 15.23 is on the low side compared to the rest of the industry. RRR is outperformed by 68.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 15.23 | ||
| Debt/FCF | 10.24 | ||
| Altman-Z | 2.02 |
ROIC/WACC1.76
WACC8.27%
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 Current ratio of 0.75. This is in the lower half of the industry: RRR underperforms 60.61% of its industry peers.
- A Quick Ratio of 0.70 indicates that RRR may have some problems paying its short term obligations.
- RRR's Quick ratio of 0.70 is on the low side compared to the rest of the industry. RRR is outperformed by 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.
- RRR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -25.80% yearly.
- The Revenue has been growing slightly by 4.69% in the past year.
- 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.
- 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.
- 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
- With a Price/Earnings ratio of 21.68, RRR is valued on the expensive side.
- RRR's Price/Earnings ratio is a bit cheaper when compared to the industry. RRR is cheaper than 65.15% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.82. RRR is valued slightly cheaper when compared to this.
- RRR is valuated rather expensively with a Price/Forward Earnings ratio of 21.80.
- RRR's Price/Forward Earnings ratio is in line with the industry average.
- RRR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.68 | ||
| Fwd PE | 21.8 |
4.2 Price Multiples
- RRR's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, RRR is valued a bit cheaper than 73.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.53 | ||
| EV/EBITDA | 12.01 |
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)1.09
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%.
- Compared to an average industry Dividend Yield of 1.21, RRR pays a bit more dividend than its industry peers.
- RRR's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| 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
- 63.27% of the earnings are spent on dividend by RRR. 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.