Red Rock Resorts, Inc.
Red Rock Resorts, Inc. Fundamental Analysis
Red Rock Resorts, Inc. (RRR) shows moderate financial fundamentals with a PE ratio of 18.74, profit margin of 9.35%, and ROE of 85.64%. The company generates $2.0B in annual revenue with strong year-over-year growth of 12.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 75.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze RRR's fundamental strength across five key dimensions:
Efficiency Score
WeakRRR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRRR trades at attractive valuation levels.
Growth Score
ModerateRRR shows steady but slowing expansion.
Financial Health Score
ModerateRRR shows balanced financial health with some risks.
Profitability Score
ModerateRRR maintains healthy but balanced margins.
Key Financial Metrics
Is RRR Expensive or Cheap?
P/E Ratio
RRR trades at 18.74 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RRR's PEG of -20.18 indicates potential undervaluation.
Price to Book
The market values Red Rock Resorts, Inc. at 16.92 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.52 times EBITDA. This is generally considered low.
How Well Does RRR Make Money?
Net Profit Margin
For every $100 in sales, Red Rock Resorts, Inc. keeps $9.35 as profit after all expenses.
Operating Margin
Core operations generate 29.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $85.64 in profit for every $100 of shareholder equity.
ROA
Red Rock Resorts, Inc. generates $4.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Red Rock Resorts, Inc. generates strong operating cash flow of $614.88M, reflecting robust business health.
Free Cash Flow
Red Rock Resorts, Inc. generates strong free cash flow of $614.88M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.39 in free cash annually.
FCF Yield
RRR converts 17.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-20.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
16.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.86
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How RRR Stacks Against Its Sector Peers
| Metric | RRR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.74 | 24.85 | Better (Cheaper) |
| ROE | 85.64% | 1165.00% | Weak |
| Net Margin | 9.35% | 749.00% | Weak |
| Debt/Equity | 0.28 | 0.76 | Strong (Low Leverage) |
| Current Ratio | 0.79 | 9.23 | Weak Liquidity |
| ROA | 4.51% | 1271.00% | Weak |
RRR outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Red Rock Resorts, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
23.09%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
2794.96%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
104.07%
Industry Style: Cyclical, Growth, Discretionary
High Growth