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

Fundamentals

Moderate growth potential second-rate dividend payer.


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


Market Performance


7 Day Return

3.6%

NasdaqGS:RRR

2.7%

US Hospitality

1.3%

US Market


1 Year Return

-20.6%

NasdaqGS:RRR

0.2%

US Hospitality

2.0%

US Market

RRR underperformed the Hospitality industry which returned 0.1% over the past year.

RRR underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

RRRIndustryMarket
7 Day3.6%2.7%1.3%
30 Day20.1%6.7%3.9%
90 Day-1.9%3.2%3.4%
1 Year-19.2%-20.6%2.6%0.2%4.2%2.0%
3 Year7.9%2.8%49.0%39.1%47.2%37.6%
5 Yearn/a42.7%27.4%60.5%42.9%

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 based on future cash flows and its price relative to the stock market?

29%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Red Rock Resorts's share price is below the future cash flow value, and at a moderate discount (> 20%).

Red Rock Resorts's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Red Rock Resorts is overvalued based on earnings compared to the US Hospitality industry average.

Red Rock Resorts is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Red Rock Resorts is poor value based on expected growth next year.


Price Based on Value of Assets

Red Rock Resorts is overvalued based on assets compared to the US Hospitality industry average.


Next Steps

Future Growth

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

42.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Red Rock Resorts's revenue is expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).

Red Rock Resorts's earnings are expected to grow significantly at over 20% yearly.

Red Rock Resorts's revenue growth is positive but not above the United States of America market average.

Red Rock Resorts's earnings growth is expected to exceed the United States of America market average.

Red Rock Resorts's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Red Rock Resorts is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

27.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Red Rock Resorts has delivered over 20% year on year earnings growth in the past 5 years.

Red Rock Resorts's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Red Rock Resorts's 1-year earnings growth is negative, it can't be compared to the US Hospitality industry average.


Return on Equity

Red Rock Resorts has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Red Rock Resorts used its assets less efficiently than the US Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Red Rock Resorts's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Red Rock Resorts's financial position?


Financial Position Analysis

Red Rock Resorts's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Red Rock Resorts's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Red Rock Resorts's level of debt (367%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (328.3% vs 367% today).

Debt is not well covered by operating cash flow (9.9%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.4x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

1.87%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Red Rock Resorts's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Red Rock Resorts's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Whilst dividend payments have been stable, Red Rock Resorts has been paying a dividend for less than 10 years.

Red Rock Resorts has only been paying a dividend for 3 years, and since then there has been no growth.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).


Next Steps

Management

What is the CEO of Red Rock Resorts's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Frank Fertitta (57yo)

3.9yrs

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

Frank's remuneration is lower than average for companies of similar size in United States of America.

Frank's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.3yrs

Average Tenure

57yo

Average Age

The tenure for the Red Rock Resorts management team is about average.


Board Age and Tenure

4.0yrs

Average Tenure

57yo

Average Age

The tenure for the Red Rock Resorts board of directors is about average.


Insider Trading

More shares have been bought than sold by Red Rock Resorts individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$8,569,27627 Aug 19
Frank Fertitta
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares444,119
Max PriceUS$19.30
BuyUS$2,142,32427 Aug 19
Lorenzo Fertitta
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares111,030
Max PriceUS$19.30
BuyUS$196,00023 Aug 19
Frank Fertitta
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares10,000
Max PriceUS$19.60
BuyUS$49,00023 Aug 19
Lorenzo Fertitta
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares2,500
Max PriceUS$19.60
BuyUS$1,949,00420 Aug 19
Frank Fertitta
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares105,320
Max PriceUS$19.58
BuyUS$487,25120 Aug 19
Lorenzo Fertitta
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares26,330
Max PriceUS$19.58
BuyUS$20,998,18619 Aug 19
Frank Fertitta
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares1,124,350
Max PriceUS$18.97
BuyUS$20,987,95819 Aug 19
Lorenzo Fertitta
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares1,124,017
Max PriceUS$18.97
BuyUS$3,484,40416 Aug 19
Lorenzo Fertitta
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares186,800
Max PriceUS$18.84
BuyUS$871,10116 Aug 19
Frank Fertitta
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares46,700
Max PriceUS$18.84
BuyUS$11,377,67012 Aug 19
Lorenzo Fertitta
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares608,000
Max PriceUS$18.97
BuyUS$2,844,41712 Aug 19
Frank Fertitta
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares152,000
Max PriceUS$18.97
BuyUS$14,199,70112 Aug 19
Lorenzo Fertitta
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares760,000
Max PriceUS$18.97
BuyUS$14,222,08712 Aug 19
Frank Fertitta
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares760,000
Max PriceUS$18.97
SellUS$835,58407 Mar 19
Joseph Hasson
EntityIndividual
Role
Consultant
Consultant
Shares31,628
Max PriceUS$26.67
SellUS$1,159,72406 Mar 19
Joseph Hasson
EntityIndividual
Role
Consultant
Consultant
Shares42,293
Max PriceUS$27.86

Ownership Breakdown


Management Team

  • Frank Fertitta (57yo)

    Chairman & CEO

    • Tenure: 3.9yrs
    • Compensation: US$1.96m
  • Richard Haskins (55yo)

    President

    • Tenure: 3.9yrs
    • Compensation: US$6.50m
  • Steve Cootey (50yo)

    Executive VP

    • Tenure: 2.3yrs
    • Compensation: US$3.08m
  • Joe Hasson (63yo)

    Consultant

    • Tenure: 0.6yrs
    • Compensation: US$3.01m
  • Dan Foley

    Vice President of Finance & Investor Relations

    • Tenure: 0yrs
  • Marc Falcone (46yo)

    Consultant

    • Tenure: 2.3yrs
    • Compensation: US$1.94m
  • Daniel Roy (59yo)

    Consultant

    • Tenure: 2.3yrs
    • Compensation: US$1.82m
  • Lori Nelson

    Vice President of Corporate Communications

    • Tenure: 0yrs
  • Jeffrey Welch (57yo)

    Executive VP & Chief Legal Officer

    • Tenure: 2.3yrs
    • Compensation: US$3.03m
  • Robert Finch (59yo)

    Executive VP & COO

    • Tenure: 0.6yrs

Board Members

  • Frank Fertitta (57yo)

    Chairman & CEO

    • Tenure: 3.9yrs
    • Compensation: US$1.96m
  • Lorenzo Fertitta (50yo)

    Vice Chairman of the Board

    • Tenure: 2.7yrs
    • Compensation: US$125.00k
  • James Nave (75yo)

    Lead Independent Director

    • Tenure: 4yrs
    • Compensation: US$335.02k
  • Bob Lewis (73yo)

    Director

    • Tenure: 4yrs
    • Compensation: US$305.02k
  • Rob Cashell (53yo)

    Director

    • Tenure: 4yrs
    • Compensation: US$302.52k

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: 1976
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Implied Market Cap: US$2.622b
  • Market Cap: US$1.567b
  • Shares outstanding: 116.52m
  • 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 segmen ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 00:25
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.