Red Rock Resorts (RRR) AI Stock Analysis

• Market Cap: $6.68B
• Dividend Yield: 3.16%
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.90
• 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: 59,969,560
• 10 Day Avg. Volume: 873,491
• 30 Day Avg. Volume: 1,095,058
• 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: 1.45
• Enterprise Value/Revenue: 4.84
• Enterprise Value/Gross Profit: 7.78
• Enterprise Value/Ebitda: 11.98
• 1Y Price Target: $64.27
• Price Target Upside: 1.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 2.72
• Revenue Forecast (FY): $2.00B

• Rating: 71 Outperform
• Price Target: $62.00 ▼(-2.49% Downside)

Red Rock Resorts shows strong financial performance and strategic growth initiatives, supported by robust cash flow and shareholder returns. However, technical indicators suggest caution, and high debt levels and construction disruptions present risks. The balanced valuation and positive earnings call sentiment contribute to a favorable outlook.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust business expansion and market demand, supporting long-term financial stability and competitive positioning.

Cash Flow Management

Strong cash generation capabilities enhance financial flexibility, enabling strategic investments and shareholder returns, supporting sustainable growth.

Shareholder Returns

Consistent shareholder returns through dividends and buybacks reflect management's confidence in long-term growth and commitment to enhancing shareholder value.

Negative Factors

Construction Disruptions

Construction disruptions may impact short-term operational efficiency and financial performance, posing challenges to maintaining consistent service levels.

High Debt Levels

High leverage can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities and manage economic downturns.

Equity Ratio Concerns

A low equity ratio may indicate financial vulnerability, limiting the company's ability to absorb economic shocks and invest in long-term growth initiatives.

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 a diverse range of streams primarily from its gaming operations, which include slot machines, table games, and sports betting. Additionally, the company earns income from its hotel accommodations, food and beverage services, and entertainment venues within its properties. The company attracts a steady flow of customers through loyalty programs and targeted marketing strategies aimed at both local residents and visitors. Moreover, strategic partnerships with various vendors enhance the overall customer experience and contribute to revenue growth, while a focus on operational efficiency helps optimize profit margins.

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 is a positive development, enhancing financial stability. 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	1.24B	1.19B	1.10B	1.08B	1.07B	681.15M
EBITDA	806.81M	744.12M	694.32M	693.14M	546.54M	356.50M
Net Income	190.00M	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	3.41B	3.44B	3.33B	3.02B	2.88B	2.93B
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	299.35M	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	-386.82M	-199.67M	179.81M	-290.05M	-1.01B	-150.44M

Red Rock Resorts Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 63.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 63.58 is above the 20-day moving average (MA) of 59.28, above the 50-day MA of 57.74, and above the 200-day MA of 52.74, indicating a bullish trend. The MACD of 1.68 indicates Negative momentum. The RSI at 68.74 is Neutral, neither overbought nor oversold. The STOCH value of 86.43 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
CHDN	73 Outperform	$8.00B	20.91	37.56%	0.38%	7.97%	-0.14%
RRR	71 Outperform	$6.68B	22.36	96.16%	3.16%	4.69%	15.18%
BYD	71 Outperform	$6.75B	3.78	87.17%	0.83%	5.91%	336.91%
MGM	63 Neutral	$10.20B	235.72	2.25%	―	0.05%	-94.07%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VAC	58 Neutral	$2.00B	12.90	7.08%	5.46%	4.18%	-13.89%
PENN	47 Neutral	$1.93B	-2.33	-35.97%	―	8.24%	-77.54%

Red Rock Resorts Corporate Events

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.