DB:RRK

Stock Analysis Report

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Executive Summary

Red Rock Resorts, Inc., through its interest in Station Holdco and Station LLC, engages in casino entertainment, and gaming and entertainment businesses in the United States.


Snowflake Analysis

Slightly overvalued with concerning outlook.


Similar Companies

Share Price & News

How has Red Rock Resorts's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RRK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.6%

RRK

2.6%

DE Hospitality

2.7%

DE Market


1 Year Return

-49.5%

RRK

-35.7%

DE Hospitality

0.2%

DE Market

Return vs Industry: RRK underperformed the German Hospitality industry which returned -35.7% over the past year.

Return vs Market: RRK underperformed the German Market which returned 0.2% over the past year.


Shareholder returns

RRKIndustryMarket
7 Day-1.6%2.6%2.7%
30 Day-21.3%-8.2%3.7%
90 Day37.0%25.5%28.3%
1 Year-48.7%-49.5%-33.2%-35.7%2.3%0.2%
3 Year-51.5%-53.5%-48.0%-54.9%4.0%-4.5%
5 Yearn/a-45.4%-56.9%14.9%-0.3%

Price Volatility Vs. Market

How volatile is Red Rock Resorts's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Red Rock Resorts undervalued compared to its fair value and its price relative to the market?

45.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RRK (€9.45) is trading below our estimate of fair value (€17.21)

Significantly Below Fair Value: RRK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RRK is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.

PE vs Market: RRK is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RRK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RRK is overvalued based on its PB Ratio (2.2x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

How is Red Rock Resorts forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

117.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RRK is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: RRK is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: RRK is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: RRK's revenue (14.6% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: RRK's revenue (14.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RRK is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Red Rock Resorts performed over the past 5 years?

-8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RRK is currently unprofitable.

Growing Profit Margin: RRK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RRK is unprofitable, and losses have increased over the past 5 years at a rate of -8.5% per year.

Accelerating Growth: Unable to compare RRK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RRK is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-12.3%).


Return on Equity

High ROE: RRK has a negative Return on Equity (-34.43%), as it is currently unprofitable.


Next Steps

Financial Health

How is Red Rock Resorts's financial position?


Financial Position Analysis

Short Term Liabilities: RRK's short term assets ($1.2B) exceed its short term liabilities ($252.5M).

Long Term Liabilities: RRK's short term assets ($1.2B) do not cover its long term liabilities ($4.1B).


Debt to Equity History and Analysis

Debt Level: RRK's debt to equity ratio (676.3%) is considered high.

Reducing Debt: RRK's debt to equity ratio has increased from 334.6% to 676.3% over the past 5 years.

Debt Coverage: RRK's debt is not well covered by operating cash flow (7.7%).

Interest Coverage: RRK is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Red Rock Resorts's current dividend yield, its reliability and sustainability?

1.70%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RRK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RRK's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RRK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RRK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RRK is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RRK's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Frank Fertitta (58yo)

4.75yrs

Tenure

US$1,954,803

Compensation

Mr. Frank J. Fertitta, III, has been Chief Executive Officer and Manager of Station Casinos LLC since January 2011 and June 2011 respectively. Mr. Fertitta has been Chief Executive Officer of Fertitta Ente ...


CEO Compensation Analysis

Compensation vs Market: Frank's total compensation ($USD1.95M) is about average for companies of similar size in the German market ($USD1.51M).

Compensation vs Earnings: Frank's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Frank Fertitta
Chairman & CEO4.75yrsUS$1.95m2.45% $27.5m
Richard Haskins
President4.75yrsUS$12.14m2.08% $23.3m
Stephen Cootey
Executive VP3.17yrsUS$6.13m0.46% $5.1m
Robert Finch
Executive VP & COO1.42yrsUS$4.37m0.28% $3.1m
Jeffrey Welch
Executive VP & Chief Legal Officer3.08yrsUS$5.72m0.38% $4.2m
Daniel Foley
Vice President of Finance & Investor Relationsno datano datano data
Rodney Atamian
Executive Vice President of Development & Strategyno datano datano data
Marc Falcone
Consultant3.17yrsUS$1.94mno data
Daniel Roy
Consultant3.17yrsUS$1.82mno data

3.2yrs

Average Tenure

58yo

Average Age

Experienced Management: RRK's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Frank Fertitta
Chairman & CEO4.75yrsUS$1.95m2.45% $27.5m
Lorenzo Fertitta
Vice Chairman of the Board3.5yrsUS$125.00k2.45% $27.5m
James Nave
Lead Independent Director4.83yrsUS$425.01k0.046% $518.4k
Robert Lewis
Independent Director4.83yrsUS$395.01k0.046% $518.4k
Robert Cashell
Independent Director4.83yrsUS$392.51k0.046% $518.4k

4.8yrs

Average Tenure

58yo

Average Age

Experienced Board: RRK's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Red Rock Resorts, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Red Rock Resorts, Inc.
  • Ticker: RRK
  • Exchange: DB
  • Founded:
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Implied Market Cap: US$1.259b
  • Market Cap: US$676.415m
  • Listing Market Cap: US$1.120b
  • Shares outstanding: 116.66m
  • Website: https://www.redrockresorts.com

Number of Employees


Location

  • Red Rock Resorts, Inc.
  • 1505 South Pavilion Center Drive
  • Las Vegas
  • Nevada
  • 89135
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RRRNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDApr 2016
RRKDB (Deutsche Boerse AG)YesClass A Common StockDEEURApr 2016

Biography

Red Rock Resorts, Inc., through its interest in Station Holdco and Station LLC, engages in casino entertainment, and gaming and entertainment businesses in the United States. It operates through two segments, Las Vegas Operations and Native American Management. The company develops, manages, and operates casino entertainment properties; and owns and operates 10 gaming and entertainment facilities, and 10 smaller casinos in the Las Vegas regional market. In addition, it manages Graton Resort & Casino in northern California. It operates approximately 20,400 slot machines, 375 table games, and 5,000 hotel rooms. The company was formerly known as Station Casinos Corp. and changed its name to Red Rock Resorts, Inc. in January 2016. Red Rock Resorts, Inc. is based in Las Vegas, Nevada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/03 21:59
End of Day Share Price2020/07/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.