Red Rock Resorts (RRR) AI Stock Analysis

• Market Cap: $5.82B
• Dividend Yield: 3.42%
• Average Volume (3M): 657.50K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.94
• Revenue Growth: 4.69%
• EPS Growth: 15.18%
• Country: US
• Employees: 9,300
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.41
• Shares Outstanding: 59,505,817
• 10 Day Avg. Volume: 853,543
• 30 Day Avg. Volume: 657,497
• PEG Ratio: -1.25
• Price to Book (P/B): 12.69
• Price to Sales (P/S): 1.41
• P/FCF Ratio: 10.94
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 4.84
• Enterprise Value/Gross Profit: 8.10
• Enterprise Value/Ebitda: 11.98
• 1Y Price Target: $66.00
• Price Target Upside: 14.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 1.81
• Revenue Forecast (FY): $2.00B

• Rating: 71 Outperform
• Price Target: $61.00 ▲(5.48% Upside)

Red Rock Resorts' strong financial performance and positive earnings call are significant strengths, driving the overall score. The company's robust cash flow and strategic expansions support its growth prospects. However, technical indicators suggest a bearish trend, and high debt levels remain a concern.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust business expansion, enhancing market position and supporting long-term financial health.

Cash Flow Management

Strong cash generation capabilities ensure financial flexibility and support strategic investments and shareholder returns.

Strategic Expansions

Strategic expansions in key properties enhance competitive positioning and drive long-term growth in the Las Vegas market.

Negative Factors

Debt Levels

High debt levels can strain financial resources and limit flexibility, posing risks to long-term stability and growth potential.

Construction Disruptions

Construction disruptions could impact operational efficiency and financial performance in the short to medium term, affecting customer experience.

Equity Ratio Concerns

A low equity ratio indicates potential financial instability, which could affect the company's ability to withstand economic downturns.

Red Rock Resorts Business Overview & Revenue Model

Company Description

Red Rock Resorts, Inc. is a leading gaming and hospitality company based in Las Vegas, Nevada. It operates a portfolio of resorts and casinos, primarily focusing on the local and regional markets. The company manages several properties, including the Red Rock Casino Resort & Spa, Green Valley Ranch Resort, and several others under the Station Casinos brand. Red Rock Resorts offers a range of services including gaming, hotel accommodations, dining, and entertainment, catering to both tourists and local residents.

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 financial performance with significant revenue growth and improved profitability. The reduction in leverage enhances financial stability, and cash flow metrics are robust, indicating effective cash management. However, the company should monitor its equity ratio and gross profit margin to ensure continued financial health.

Income Statement

Red Rock Resorts shows strong revenue growth with a 38% increase in TTM, indicating robust business expansion. The gross profit margin remains healthy at 59.78%, although slightly lower than previous years. Net profit margin improved to 11.92% in TTM, reflecting enhanced profitability. EBIT and EBITDA margins are solid, suggesting efficient operations. However, the slight decline in gross profit margin could be a point of concern if it continues.

Balance Sheet

The company's debt-to-equity ratio has significantly improved to 0.43 in TTM, reflecting a substantial reduction in leverage, which is a positive sign. Return on equity is exceptionally high at 107.49%, indicating strong profitability relative to shareholder equity. However, the equity ratio remains low, suggesting potential vulnerability to financial instability if not managed carefully.

Cash Flow

Free cash flow growth is impressive at 94.26% in TTM, showcasing strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 1.68, indicating efficient cash conversion. The free cash flow to net income ratio is also strong at 0.96, suggesting good cash flow relative to earnings. Overall, cash flow management appears robust, supporting the company's financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.00B	1.94B	1.72B	1.66B	1.62B	1.18B
Gross Profit	1.19B	1.19B	1.10B	1.08B	1.07B	681.15M
EBITDA	806.81M	744.12M	694.32M	693.14M	546.54M	300.79M
Net Income	237.86M	154.05M	176.00M	205.46M	241.85M	-150.40M
Balance Sheet
Total Assets	4.10B	4.05B	3.95B	3.35B	3.14B	3.74B
Cash, Cash Equivalents and Short-Term Investments	129.76M	164.38M	137.59M	117.29M	275.28M	121.18M
Total Debt	94.22M	3.44B	3.36B	2.99B	2.86B	2.90B
Total Liabilities	3.77B	3.74B	3.71B	3.31B	3.09B	3.14B
Stockholders Equity	219.61M	215.07M	168.84M	43.78M	59.49M	352.60M
Cash Flow
Free Cash Flow	574.32M	249.42M	-207.29M	-19.12M	544.02M	154.29M
Operating Cash Flow	601.18M	548.26M	494.34M	542.22M	609.96M	212.79M
Investing Cash Flow	-202.10M	-321.79M	-653.85M	-442.14M	586.26M	-69.56M
Financing Cash Flow	-65.55M	-199.67M	179.81M	-290.05M	-1.01B	-150.44M

Red Rock Resorts Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 57.83
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 57.83 is above the 20-day moving average (MA) of 57.12, below the 50-day MA of 59.19, and above the 200-day MA of 51.37, indicating a neutral trend. The MACD of -1.14 indicates Positive momentum. The RSI at 51.94 is Neutral, neither overbought nor oversold. The STOCH value of 50.26 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
CHDN	73 Outperform	$6.73B	17.60	37.56%	0.39%	7.97%	-0.14%
RRR	71 Outperform	$5.82B	19.56	96.16%	3.42%	4.69%	15.18%
BYD	71 Outperform	$6.27B	3.51	87.17%	0.87%	5.91%	336.91%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VAC	59 Neutral	$2.33B	15.03	7.08%	6.70%	4.18%	-13.89%
MGM	59 Neutral	$8.75B	199.12	2.25%	―	0.05%	-94.07%
PENN	45 Neutral	$2.14B	―	―	―	8.24%	-77.54%

Red Rock Resorts Corporate Events

Red Rock Resorts Reports Record Earnings and Expansion

Red Rock Resorts Inc. recently held its earnings call, revealing a strong financial performance characterized by record-setting revenue and EBITDA. The company’s strategic expansions and shareholder returns were highlighted as key drivers of success, despite challenges such as ongoing construction disruptions and high debt levels. The overall sentiment was positive, with achievements in revenue growth and expansion outweighing the concerns.

Red Rock Resorts Reports Strong Q3 2025 Earnings

Red Rock Resorts, Inc. is a prominent player in the gaming and hospitality industry, primarily operating through its subsidiary, Station Casinos, which serves as a leading provider of entertainment and gaming services in Las Vegas, Nevada. The company is known for its regional entertainment destinations that offer a variety of amenities including hotels, restaurants, and traditional casino gaming options.

Red Rock Resorts Q3 2025 Financial Results Highlight

Red Rock Resorts reported its financial results for the third quarter of 2025, showing a net revenue increase of 1.6% to $475.6 million and a significant net income rise of 38.8% to $76.9 million compared to the same period in 2024. The company also announced an extension and additional authorization for its share repurchase program, increasing the total repurchase authority to approximately $573 million, and declared a cash dividend of $0.26 per Class A common share, highlighting its robust financial position and commitment to returning value to shareholders.

The most recent analyst rating on (RRR) stock is a Hold with a $63.00 price target. To see the full list of analyst forecasts on Red Rock Resorts stock, see the RRR Stock Forecast page.