RRR

Red Rock Resorts, Inc.

Fundamental data last updated:September 25, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Gambling, Resorts & Casinos

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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.

 


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VALUATION

P/E

18.06

Market Cap ($M USD)

$3.39B

Forward P/E

18.86

PEG

-4.44

PRICE TO SALES

1.68

PRICE TO BOOK

23.56

EV / EBITDA

4.14

5-Year Average P/E

Free Cash Flow Yield

17.64%

DCF Value

$7.78

Graham Number

$13.29

Price to FCF

5.67

EV to FCF

5.56

Earnings Yield

5.54%

FCF Yield

17.64%

DIVIDEND

Yield

3.50%

Annual Payout

$2.02

Payout Ratio

31.88%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$3.20

Next Year EPS Growth Estimate

$3.06

Next Year Revenue Growth Estimate

$2.28B

Return on Equity (ROE)

96.22%

FREE CASH FLOW

Operating Margin

29.03%

Debt-to-Equity

0.28

Piotroski F-Score

7

Altman Z-Score

1.48

Return on Invested Capital (ROIC)

15.13%

Current Ratio

0.81

Quick Ratio

0.76

Net Debt to EBITDA

-0.08

Interest Coverage

2.93

Gross Profit margin

57.12%

FCF PER SHARE

$10.28

REVENUE PER SHARE

$34.72

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Gainseekers Quantitative Analysis

Summary

Red Rock Resorts, Inc. presents a perplexing valuation scenario. Despite a robust Return on Equity of 96.22%, the stock’s market price has been trading significantly above its DCF Value and Graham Number, suggesting potential overvaluation. The Forward P/E of 17.73 and an Earnings Yield of 5.87% indicate moderate growth expectations, yet the Altman Z-score of 1.46 raises red flags about financial distress. The market seems to be pricing in a level of perfection that may not align with the underlying fundamentals, especially given the company’s high Price/Book ratio of 22.22. Investors should tread carefully, as the stock’s valuation metrics suggest a disconnect between price and intrinsic value.

AI Exposure / Tech Reliance

In the gambling and resorts industry, Red Rock Resorts is moderately positioned to adapt to AI and tech shifts. The sector's reliance on customer experience and operational efficiency could benefit from AI-driven insights and automation. However, the company's traditional business model may require significant adaptation to fully leverage these technologies.

The Bull Case

For the value or GARP investor, Red Rock Resorts offers compelling reasons to consider a position. The company boasts a strong ROIC of 15.13%, indicating efficient capital allocation. A Piotroski F-Score of 7 suggests solid financial health, while a Free Cash Flow Yield of 18.57% underscores its ability to generate cash. With an operating margin of 29.03%, the company demonstrates significant pricing power, making it an attractive option for those seeking robust returns in the consumer cyclical sector.

The Bear Case

Despite some strengths, Red Rock Resorts faces notable structural risks. The Price/Book ratio of 22.22 and Price/Sales of 1.59 suggest the stock is priced aggressively relative to its assets and revenue. The Altman Z-score of 1.46 indicates potential financial distress, and the current ratio of 0.81 raises liquidity concerns. Additionally, the stock's proximity to its 52-week high, with a distance of only 26.63%, suggests it may be technically overextended, posing a risk for investors seeking value.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$71.00

Institutional Ownership %

1-Year Beta

1.35

Insider Buying % (6 Mo)

Distance to 52-Week High

19.40%

Distance to 52-Week Low

17.68%

EARNINGS SURPRISE %

35.19%

50-DAY SMA

$55.09

200-DAY SMA

$58.96

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.