RED ROCK RESORTS INC-CLASS A (RRR) Stock Fundamental Analysis
NASDAQ:RRR - Nasdaq - US75700L1089 - Common Stock - Currency: USD
Overall RRR gets a fundamental rating of 5 out of 10. We evaluated RRR against 133 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 is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RRR was profitable.
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
The Return On Assets of RRR (3.82%) is comparable to the rest of the industry.
RRR has a better Return On Equity (63.13%) than 96.99% of its industry peers.
RRR's Return On Invested Capital of 13.56% is amongst the best of the industry. RRR outperforms 80.45% 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 13.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 63.13% | ||
| ROIC | 13.56% |
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
Looking at the Profit Margin, with a value of 8.01%, RRR is in the better half of the industry, outperforming 64.66% of the companies in the same industry.
RRR's Profit Margin has declined in the last couple of years.
RRR has a better Operating Margin (29.58%) than 96.24% of its industry peers.
In the last couple of years the Operating Margin of RRR has grown nicely.
RRR's Gross Margin of 61.55% is fine compared to the rest of the industry. RRR outperforms 75.19% of its industry peers.
In the last couple of years the Gross Margin of RRR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.58% | ||
| PM (TTM) | 8.01% | ||
| GM | 61.55% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RRR is still creating some value.
RRR has more shares outstanding than it did 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 1.96 indicates that RRR is not a great score, but indicates only limited risk for bankruptcy at the moment.
RRR has a Altman-Z score of 1.96. This is comparable to the rest of the industry: RRR outperforms 57.14% of its industry peers.
RRR has a debt to FCF ratio of 12.16. This is a negative value and a sign of low solvency as RRR would need 12.16 years to pay back of all of its debts.
RRR has a Debt to FCF ratio (12.16) which is in line with its industry peers.
A Debt/Equity ratio of 13.53 is on the high side and indicates that RRR has dependencies on debt financing.
RRR has a worse Debt to Equity ratio (13.53) than 66.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.53 | ||
| Debt/FCF | 12.17 | ||
| Altman-Z | 1.96 |
ROIC/WACC1.46
WACC9.29%
2.3 Liquidity
A Current Ratio of 0.92 indicates that RRR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.92, RRR is in line with its industry, outperforming 50.38% of the companies in the same industry.
RRR has a Quick Ratio of 0.92. 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 (0.87) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for RRR have decreased strongly by -23.96% in the last 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 quite strong growth in Revenue. The Revenue has grown by 9.48% in the last year.
Measured over the past years, RRR shows a small growth in Revenue. The Revenue has been growing by 0.87% on average per year.
EPS 1Y (TTM)-23.96%
EPS 3Y-25.8%
EPS 5YN/A
EPS Q2Q%10.29%
Revenue 1Y (TTM)9.48%
Revenue growth 3Y6.22%
Revenue growth 5Y0.87%
Sales Q2Q%1.83%
3.2 Future
RRR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.86% yearly.
The Revenue is expected to grow by 1.79% on average over the next years.
EPS Next Y-18.2%
EPS Next 2Y-3.99%
EPS Next 3Y3.86%
EPS Next 5YN/A
Revenue Next Year0.41%
Revenue Next 2Y1.55%
Revenue Next 3Y1.79%
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
Based on the Price/Earnings ratio of 25.63, the valuation of RRR can be described as expensive.
61.65% 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 27.30, RRR is valued at the same level.
The Price/Forward Earnings ratio is 28.72, which means the current valuation is very expensive for RRR.
RRR's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of RRR to the average of the S&P500 Index (21.76), we can say RRR is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.63 | ||
| Fwd PE | 28.72 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RRR indicates a somewhat cheap valuation: RRR is cheaper than 73.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.34 | ||
| EV/EBITDA | 12.16 |
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-3.99%
EPS Next 3Y3.86%
5. Dividend
5.1 Amount
RRR has a Yearly Dividend Yield of 1.83%.
Compared to an average industry Dividend Yield of 3.53, RRR pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.37, RRR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
5.2 History
On average, the dividend of RRR grows each year by 36.35%, which is quite nice.
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
38.64% of the earnings are spent on dividend by RRR. This is a low number and sustainable payout ratio.
The dividend of RRR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP38.64%
EPS Next 2Y-3.99%
EPS Next 3Y3.86%
56.13
-1.19 (-2.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners86.04%
Inst Owner Change0%
Ins Owners1.72%
Ins Owner Change1.31%
Market Cap5.95B
Analysts74.12
Price Target52.7 (-6.11%)
Short Float %4.93%
Short Ratio3.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend1.13
Dividend Growth(5Y)36.35%
DP38.64%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)15.17%
Min EPS beat(2)-1.23%
Max EPS beat(2)31.57%
EPS beat(4)1
Avg EPS beat(4)-1.04%
Min EPS beat(4)-30.16%
Max EPS beat(4)31.57%
EPS beat(8)5
Avg EPS beat(8)13.42%
EPS beat(12)7
Avg EPS beat(12)19.62%
EPS beat(16)11
Avg EPS beat(16)36.85%
Revenue beat(2)0
Avg Revenue beat(2)-0.43%
Min Revenue beat(2)-0.77%
Max Revenue beat(2)-0.09%
Revenue beat(4)2
Avg Revenue beat(4)0.13%
Min Revenue beat(4)-0.77%
Max Revenue beat(4)1%
Revenue beat(8)3
Avg Revenue beat(8)0.12%
Revenue beat(12)6
Avg Revenue beat(12)0.76%
Revenue beat(16)8
Avg Revenue beat(16)1.34%
PT rev (1m)2.08%
PT rev (3m)-8.05%
EPS NQ rev (1m)-3.39%
EPS NQ rev (3m)-5.23%
EPS NY rev (1m)-1.35%
EPS NY rev (3m)-3.27%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)-1.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.63 | ||
| Fwd PE | 28.72 | ||
| P/S | 3.06 | ||
| P/FCF | 21.34 | ||
| P/OCF | 10.86 | ||
| P/B | 24.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.16 |
EPS(TTM)2.19
EY3.9%
EPS(NY)1.95
Fwd EY3.48%
FCF(TTM)2.63
FCFY4.69%
OCF(TTM)5.17
OCFY9.2%
SpS18.36
BVpS2.33
TBVpS-0.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 63.13% | ||
| ROCE | 15.28% | ||
| ROIC | 13.56% | ||
| ROICexc | 14.12% | ||
| ROICexgc | 15.19% | ||
| OM | 29.58% | ||
| PM (TTM) | 8.01% | ||
| GM | 61.55% | ||
| FCFM | 14.32% |
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-Score6
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.53 | ||
| Debt/FCF | 12.17 | ||
| Debt/EBITDA | 4.36 | ||
| Cap/Depr | 141.15% | ||
| Cap/Sales | 13.81% | ||
| Interest Coverage | 2.59 | ||
| Cash Conversion | 71.48% | ||
| Profit Quality | 178.91% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.96 |
F-Score6
WACC9.29%
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)-23.96%
EPS 3Y-25.8%
EPS 5YN/A
EPS Q2Q%10.29%
EPS Next Y-18.2%
EPS Next 2Y-3.99%
EPS Next 3Y3.86%
EPS Next 5YN/A
Revenue 1Y (TTM)9.48%
Revenue growth 3Y6.22%
Revenue growth 5Y0.87%
Sales Q2Q%1.83%
Revenue Next Year0.41%
Revenue Next 2Y1.55%
Revenue Next 3Y1.79%
Revenue Next 5YN/A
EBIT growth 1Y-2.59%
EBIT growth 3Y0.87%
EBIT growth 5Y16.49%
EBIT Next Year37.59%
EBIT Next 3Y13.73%
EBIT Next 5YN/A
FCF growth 1Y259.63%
FCF growth 3Y-22.89%
FCF growth 5YN/A
OCF growth 1Y4.35%
OCF growth 3Y-3.49%
OCF growth 5Y11.61%