Red Rock Resorts (RRR) AI Stock Analysis

• Market Cap: $6.53B
• Dividend Yield: 3.23%
• Average Volume (3M): 845.67K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 1.03
• Revenue Growth: 7.47%
• EPS Growth: 2.58%
• Country: US
• Employees: 9,300
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.55
• Shares Outstanding: 59,505,817
• 10 Day Avg. Volume: 803,692
• 30 Day Avg. Volume: 845,670
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 4.47
• Enterprise Value/Gross Profit: 7.26
• Enterprise Value/Ebitda: 11.46
• 1Y Price Target: $63.33
• Price Target Upside: 1.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 72 Outperform
• Price Target: $67.00 ▲(7.32% Upside)

Red Rock Resorts' strong financial performance and record-breaking earnings report are major positive factors, supported by bullish technical indicators. However, high leverage poses a risk, and the stock is currently overbought. Strategic investments and robust cash flow generation provide a positive outlook, despite valuation concerns.

Positive Factors

Financial Performance

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

Market Outlook

The Super Bowl had a positive outcome for the sports book, contributing to a better outlook.

Valuation

The valuation for Red Rock Resorts has become more reasonable, making the Street's $800m estimate for '25 achievable.

Negative Factors

Comparison Challenges

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

Growth Challenges

Growth is muted in 2025 due to tougher comparisons and renovation disruptions.

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 primarily through its operations in the gaming and hospitality sectors. The main revenue streams include gaming revenues from slot machines and table games, hotel room bookings, dining services, and entertainment events. The company also benefits from loyalty programs and partnerships with other businesses that drive customer traffic to its properties. Significant local market presence ensures a steady stream of revenue, particularly from the residents of the Las Vegas area. Additionally, Red Rock Resorts engages in strategic partnerships and marketing initiatives that enhance its brand visibility and customer reach.

Red Rock Resorts Financial Statement Overview

Summary

Red Rock Resorts demonstrates 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.

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: 62.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 62.43 is above the 20-day moving average (MA) of 60.10, above the 50-day MA of 57.00, and above the 200-day MA of 48.48, indicating a bullish trend. The MACD of 1.70 indicates Negative momentum. The RSI at 63.61 is Neutral, neither overbought nor oversold. The STOCH value of 73.74 is Neutral, 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	76 Outperform	$6.88B	13.23	36.36%	0.82%	6.40%	26.09%
RRR	72 Outperform	$6.53B	23.56	97.52%	3.23%	7.47%	2.58%
MGM	65 Neutral	$10.80B	21.87	17.34%	―	0.89%	-31.56%
Sector *	61 Neutral	$17.87B	13.25	-4.92%	3.05%	1.25%	-14.67%
WYNN	60 Neutral	$13.18B	37.39	-51.73%	0.79%	-1.94%	-53.90%
PENN	57 Neutral	$2.95B	―	-2.50%	―	7.34%	93.83%
CZR	52 Neutral	$5.57B	―	-4.76%	―	-0.15%	28.05%

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.