Red Rock Resorts (RRR) AI Stock Analysis

• Market Cap: $5.68B
• Dividend Yield: 1.92%
• Average Volume (3M): 684.01K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 1.20
• Revenue Growth: 9.48%
• EPS Growth: -11.92%
• Country: US
• Employees: 9,300
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.43
• Shares Outstanding: 60,092,342
• 10 Day Avg. Volume: 658,749
• 30 Day Avg. Volume: 684,010
• PEG Ratio: 0.21
• Price to Book (P/B): 53.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -123.39
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 4.36
• Enterprise Value/Ebitda: 1.73
• 1Y Price Target: $51.00
• Price Target Upside: -4.67% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 72 Outperform
• Price Target: $58.00 ▲(8.41%Upside)

Red Rock Resorts exhibits robust financial performance and strong earnings call highlights, suggesting a solid business outlook. The technical indicators support a bullish trend, although the high leverage ratio poses some risk. The valuation is on the higher side, which could deter some investors, but the positive earnings call and technical momentum are significant strengths.

Positive Factors

Earnings

Red Rock Resorts reported better than expected EBITDA of $202m, generating margins of 41%.

Market Outlook

The market likely views the 1Q EBITDA projection of around $216m as a conservative estimate.

Negative Factors

Comparative Performance

There is caution regarding the first half of '25 as Red Rock Resorts laps the opening of Durango, which could create harder comparisons.

Local Market Health

Questions remain about the underlying health of the core LV Locals market, despite better results.

Red Rock Resorts Business Overview & Revenue Model

Company Description

Red Rock Resorts, Inc., through its interest in Station Holdco and Station LLC, develops and operates casino and entertainment properties in the United States. It operates through two segments, Las Vegas Operations and Native American Management. The company owns and operates 9 gaming and entertainment facilities, and 10 smaller casinos in the Las Vegas regional market. In addition, it manages Graton Resort & Casino in northern California. As of December 31, 2021, it operated approximately 13,894 slot machines, 240 table games, and 3,081 hotel rooms in the Las Vegas market. 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. was incorporated in 1976 and is based in Las Vegas, Nevada.

How the Company Makes Money

Red Rock Resorts generates revenue through multiple streams, primarily from its casino operations, which include slot machines, table games, and sports betting. Additionally, the company earns income from hotel accommodations, food and beverage sales, and entertainment offerings at its properties. A significant portion of its revenue comes from the local Las Vegas market, where it positions itself as a leading provider of gaming and hospitality experiences. Red Rock Resorts also benefits from strategic partnerships and marketing agreements that enhance its customer base and brand visibility. These diversified revenue streams and its focus on operational efficiency contribute to the company's financial performance.

Red Rock Resorts Financial Statement Overview

Summary

Red Rock Resorts shows strong revenue growth and operational margins, indicative of effective cost control and business strategy. However, the high leverage ratio is a concern, potentially impacting financial flexibility and increasing risk. Cash flows are robust, supporting liquidity and investment capacity. The company should focus on reducing leverage to enhance financial stability while maintaining its strong operational performance.

Income Statement

The income statement reveals a stable revenue growth, with a TTM revenue increase of 0.46% compared to the previous annual figure. Gross profit margin remains solid at approximately 61.5% in TTM, indicating efficient cost management. The net profit margin is slightly lower at 8.0% due to high operational costs. Positive EBIT and EBITDA margins of 29.1% and 39.0% respectively, suggest robust operational performance. However, the net income shows a decline from previous periods, signaling potential profitability challenges.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 13.76, reflecting significant leverage which poses financial risk. Stockholders' equity is rising but remains relatively low compared to total assets, resulting in an equity ratio of 6.0%. The return on equity is strong at 63.1%, driven by both operational profit and high leverage. Despite the high debt, the company seems to manage its liabilities effectively, but there is a need for cautious debt management to maintain financial stability.

Cash Flow

Cash flow analysis indicates a healthy operating cash flow with a TTM operating cash flow to net income ratio of 3.51, suggesting efficient conversion of income into cash. Free cash flow has improved, with a 11.89% growth rate, reflecting better capital expenditure management. However, the free cash flow to net income ratio is 1.79, showing some room for improvement in cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.95B	1.94B	1.72B	1.66B	1.62B	1.18B
Gross Profit	1.20B	1.19B	1.10B	1.08B	1.07B	681.15M
EBITDA	759.00M	744.12M	694.32M	722.03M	546.54M	300.79M
Net Income	155.97M	154.05M	176.00M	205.46M	241.85M	-150.40M
Balance Sheet
Total Assets	4.09B	4.05B	3.95B	3.35B	3.14B	3.74B
Cash, Cash Equivalents and Short-Term Investments	150.63M	164.38M	137.59M	117.29M	275.28M	121.18M
Total Debt	3.40B	3.41B	3.33B	2.99B	2.86B	2.90B
Total Liabilities	3.72B	3.74B	3.71B	3.31B	3.09B	3.14B
Stockholders Equity	247.07M	215.07M	168.84M	43.78M	59.49M	352.60M
Cash Flow
Free Cash Flow	279.04M	249.42M	-207.29M	-19.12M	544.02M	154.29M
Operating Cash Flow	548.03M	548.26M	494.34M	542.22M	609.96M	212.79M
Investing Cash Flow	-314.33M	-321.79M	-653.85M	-442.14M	586.26M	-69.56M
Financing Cash Flow	-212.77M	-199.67M	179.81M	-290.05M	-1.01B	-150.44M

Red Rock Resorts Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 53.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RRR, the sentiment is Positive. The current price of 53.5 is above the 20-day moving average (MA) of 50.16, above the 50-day MA of 46.73, and above the 200-day MA of 47.08, indicating a bullish trend. The MACD of 1.55 indicates Negative momentum. The RSI at 71.27 is Negative, neither overbought nor oversold. The STOCH value of 88.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RRR.

Red Rock Resorts Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYD	78 Outperform	$6.55B	13.14	35.62%	0.92%	6.06%	10.05%
RRR	72 Outperform	$5.68B	23.54	81.59%	1.92%	9.48%	-11.92%
MGM	71 Outperform	$9.35B	15.40	21.38%	―	2.76%	-14.31%
WYNN	69 Neutral	$9.90B	25.84	-51.73%	1.07%	-0.08%	-48.66%
Sector *	61 Neutral	C$5.19B	11.12	18.94%	3.83%	5.08%	6.52%
PENN	61 Neutral	$2.75B	―	-2.81%	―	5.51%	92.46%
CZR	60 Neutral	$6.00B	―	-5.56%	―	-1.25%	-130.83%

Red Rock Resorts Corporate Events

Red Rock Resorts Holds Annual Stockholders Meeting

Red Rock Resorts held its Annual Meeting of Stockholders on June 5, 2025, where shareholders voted on several key proposals. All nominated directors were elected, the ‘say-on-pay’ proposal was approved on an advisory basis, and the ratification of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was confirmed.

The most recent analyst rating on (RRR) stock is a Hold with a $51.00 price target. To see the full list of analyst forecasts on Red Rock Resorts stock, see the RRR Stock Forecast page.