NasdaqGS:RRR

Stock Analysis Report

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

Reasonable growth potential and fair value.


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: RRR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-24.9%

RRR

-15.8%

US Hospitality

-2.8%

US Market


1 Year Return

-72.8%

RRR

-52.8%

US Hospitality

-15.9%

US Market

Return vs Industry: RRR underperformed the US Hospitality industry which returned -52.8% over the past year.

Return vs Market: RRR underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

RRRIndustryMarket
7 Day-24.9%-15.8%-2.8%
30 Day-52.5%-40.8%-18.8%
90 Day-68.5%-55.9%-24.0%
1 Year-72.2%-72.8%-51.5%-52.8%-14.2%-15.9%
3 Year-64.7%-66.5%-40.9%-44.9%9.9%2.8%
5 Yearn/a-37.8%-44.7%27.2%13.3%

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

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RRR ($7.46) is trading below our estimate of fair value ($16.3)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RRR is good value based on its PB Ratio (1x) compared to the US Hospitality industry average (1.2x).


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?

57.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RRR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: RRR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RRR's is expected to become profitable in the next 3 years.

Revenue vs Market: RRR's revenue (0.8% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: RRR's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RRR's Return on Equity is forecast to be high in 3 years time (20.3%)


Next Steps

Past Performance

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

11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RRR is currently unprofitable.

Growing Profit Margin: RRR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RRR is unprofitable, but has reduced losses over the past 5 years at a rate of 11.2% per year.

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

Earnings vs Industry: RRR is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (1.6%).


Return on Equity

High ROE: RRR has a negative Return on Equity (-0.86%), as it is currently unprofitable.


Next Steps

Financial Health

How is Red Rock Resorts's financial position?


Financial Position Analysis

Short Term Liabilities: RRR's short term assets ($281.6M) exceed its short term liabilities ($276.0M).

Long Term Liabilities: RRR's short term assets ($281.6M) do not cover its long term liabilities ($3.1B).


Debt to Equity History and Analysis

Debt Level: RRR's debt to equity ratio (388.3%) is considered high.

Reducing Debt: RRR's debt to equity ratio has increased from 334.7% to 388.3% over the past 5 years.


Balance Sheet

Inventory Level: RRR has a high level of physical assets or inventory.

Debt Coverage by Assets: RRR's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: RRR has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: RRR has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

5.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RRR's dividend (5.36%) is higher than the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: RRR's dividend (5.36%) is low compared to the top 25% of dividend payers in the US market (5.82%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, RRR has been paying a dividend for less than 10 years.

Growing Dividend: RRR has only been paying a dividend for 4 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: RRR is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: RRR's dividends in 3 years are forecast to be well covered by earnings (44.5% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Frank Fertitta (57yo)

4.5s

Tenure

US$1,957,906

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 ($USD1.96M) is below average for companies of similar size in the US market ($USD3.29M).

Compensation vs Earnings: Frank's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Frank Fertitta
Chairman & CEO4.5yrsUS$1.96m2.47% $21.5m
Richard Haskins
President4.5yrsUS$6.50m0.76% $6.6m
Stephen Cootey
Executive VP2.92yrsUS$3.08m0.32% $2.8m
Jeffrey Welch
Executive VP & Chief Legal Officer2.83yrsUS$3.03m0.24% $2.1m
Robert Finch
Executive VP & COO1.17yrsno data0.045% $389.9k
Daniel Foley
Vice President of Finance & Investor Relationsno datano datano data
Marc Falcone
Consultant2.92yrsUS$1.94mno data
Daniel Roy
Consultant2.92yrsUS$1.82mno data

2.9yrs

Average Tenure

57yo

Average Age

Experienced Management: RRR's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Frank Fertitta
Chairman & CEO4.5yrsUS$1.96m2.47% $21.5m
Lorenzo Fertitta
Vice Chairman of the Board3.25yrsUS$125.00k2.47% $21.4m
James Nave
Lead Independent Director4.58yrsUS$335.02k0.047% $406.8k
Robert Lewis
Independent Director4.58yrsUS$305.02k0.047% $406.8k
Robert Cashell
Independent Director4.58yrsUS$302.52k0.047% $406.8k

4.6yrs

Average Tenure

57yo

Average Age

Experienced Board: RRR's board of directors are considered experienced (4.6 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: RRR
  • Exchange: NasdaqGS
  • Founded:
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Implied Market Cap: US$869.689m
  • Market Cap: US$520.357m
  • Shares outstanding: 116.58m
  • 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 Analysis2020/04/05 06:03
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.