Red Rock Resorts, Inc. (RRR) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Red Rock Resorts, Inc. (RRR) Consumer Business Overview

Red Rock Resorts, Inc. focuses on the Las Vegas regional gaming market, operating a portfolio of casino and entertainment properties. With a significant presence in the local market and management of tribal casinos, the company differentiates itself through its focus on local clientele and strategic property development.

What Is the Investment Thesis for RRR?

Red Rock Resorts presents a compelling investment case based on its strong position in the Las Vegas regional gaming market. The company's focus on local clientele provides a stable revenue base, while its strategic property development and management of tribal casinos offer growth opportunities. With a P/E ratio of 17.6 and a dividend yield of 5.54%, the company demonstrates profitability and shareholder returns. Key catalysts include the expansion of its gaming facilities and the potential for increased revenue from its Native American Management segment. However, investors may want to evaluate the risks associated with economic cycles and competition within the gaming industry.

Based on FMP financials and quantitative analysis

RRR Key Highlights

• Market capitalization of $3.81B, reflecting investor confidence in the company's market position.
• P/E ratio of 17.6, indicating a reasonable valuation relative to earnings.
• Profit margin of 9.2%, showcasing the company's ability to generate profits from its operations.
• Gross margin of 57.1%, demonstrating efficient cost management in its gaming and entertainment services.
• Dividend yield of 5.54%, offering an attractive income stream for investors.

Who Are RRR's Competitors?

RRR is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are RRR's Key Strengths?

• Strong market position in Las Vegas regional gaming.
• Experienced management team.
• Diversified revenue streams.
• High dividend yield.

What Are RRR's Weaknesses?

• Dependence on the Las Vegas economy.
• Exposure to regulatory risks.
• Limited geographic diversification.
• Competition from larger casino operators.

What Could Drive RRR Stock Higher?

• Potential expansion of existing gaming facilities in Las Vegas.
• Management of Graton Resort & Casino in Northern California provides a steady revenue stream.
• Focus on local Las Vegas market insulates from fluctuations in tourism.

What Are the Key Risks for RRR?

• Financial-distress signal — its Altman Z-Score of 1.55 sits in the distress zone (elevated bankruptcy risk).
• Economic downturns in the Las Vegas region could negatively impact gaming revenue.
• Increased competition from other casino operators could erode market share.
• Changes in gaming regulations could increase operating costs.
• Dependence on local Las Vegas market limits geographic diversification.

What Are the Growth Opportunities for RRR?

• Expansion of Gaming Facilities: Red Rock Resorts has the opportunity to expand its existing gaming facilities in the Las Vegas regional market. This includes adding more slot machines, table games, and hotel rooms to cater to the growing demand from local residents. The Las Vegas local gaming market is estimated to be worth several billion dollars annually, providing ample room for growth. Timeline: Ongoing.
• Development of New Properties: The company can pursue the development of new casino and entertainment properties in underserved areas of the Las Vegas regional market. This would allow Red Rock Resorts to capture a larger share of the local gaming market and diversify its revenue streams. The timeline for developing new properties is typically 2-3 years.
• Expansion of Native American Management Segment: Red Rock Resorts has the opportunity to expand its Native American Management segment by securing new management contracts with tribal casinos in other states. This would provide a recurring revenue stream and diversify the company's geographic footprint. The market for Native American gaming management is estimated to be worth hundreds of millions of dollars annually. Timeline: Ongoing.
• Enhancement of Customer Loyalty Programs: The company can enhance its customer loyalty programs to increase customer retention and drive repeat business. This includes offering personalized rewards, exclusive events, and targeted marketing campaigns. Customer loyalty programs are essential for maintaining a competitive edge in the gaming industry. Timeline: Ongoing.
• Integration of Online Gaming Platforms: Red Rock Resorts can explore the integration of online gaming platforms to reach a wider audience and capitalize on the growing popularity of online gambling. This would require navigating regulatory hurdles and investing in technology infrastructure. The online gaming market is estimated to be worth billions of dollars globally. Timeline: 2027-2028.

What Opportunities Does RRR Have?

• Expansion of gaming facilities.
• Development of new properties.
• Growth of Native American Management segment.
• Integration of online gaming platforms.

What Threats Does RRR Face?

• Economic downturns.
• Increased competition.
• Changes in consumer preferences.
• Regulatory changes.

What Are RRR's Competitive Advantages?

• Strong presence in the Las Vegas regional market.
• Established brand recognition.
• Management expertise in Native American gaming.
• Loyal customer base.

What Does RRR Do?

Red Rock Resorts, Inc., originally incorporated as Station Casinos Corp. in 1976 and rebranded in 2016, is a developer and operator of casino and entertainment properties. The company's core business revolves around catering to the Las Vegas regional market, where it owns and operates nine gaming and entertainment facilities, alongside ten smaller casinos. These properties offer a range of gaming options, including approximately 13,894 slot machines and 240 table games, complemented by 3,081 hotel rooms as of December 31, 2021. Beyond its Las Vegas footprint, Red Rock Resorts manages the Graton Resort & Casino in northern California, extending its operational expertise to Native American gaming ventures. The company operates through two segments: Las Vegas Operations and Native American Management. Red Rock Resorts' strategy emphasizes providing a localized gaming and entertainment experience, differentiating itself from the larger, destination-focused casinos on the Las Vegas Strip.

What Products and Services Does RRR Offer?

• Develop and operate casino and entertainment properties.
• Offer a range of gaming options, including slot machines and table games.
• Provide hotel accommodations and dining options.
• Manage the Graton Resort & Casino in northern California.
• Cater to the Las Vegas regional market.
• Operate through two segments: Las Vegas Operations and Native American Management.

How Does RRR Make Money?

• Generate revenue from gaming operations, including slot machines and table games.
• Earn revenue from hotel accommodations and dining services.
• Receive management fees from the Graton Resort & Casino.
• Focus on the Las Vegas regional market and local clientele.

What Industry Does RRR Operate In?

Red Rock Resorts operates within the gambling, resorts, and casinos industry, a segment of the broader consumer cyclical sector. The industry is characterized by high competition, evolving consumer preferences, and regulatory complexities. Market trends include the increasing adoption of online gaming, the growing popularity of integrated resorts, and the rising demand for experiential entertainment. Red Rock Resorts differentiates itself by focusing on the Las Vegas regional market, catering to local residents rather than tourists, and managing Native American gaming facilities.

Who Are RRR's Key Customers?

• Las Vegas residents.
• Visitors to the Las Vegas area.
• Patrons of the Graton Resort & Casino.
• Tribal gaming entities.

Company Profile

Red Rock Resorts, Inc. operates in the Gambling, Resorts & Casinos industry within the Consumer Cyclical sector. It is headquartered in Las Vegas, US. The company is led by CEO Frank J. Fertitta. RRR has traded publicly since 2016.

How Red Rock Resorts, Inc. Is Valued

Red Rock Resorts, Inc. carries a market capitalization of $3.81B, placing it in the mid-cap category. Relative to its peer group, RRR's quantitative score of 89/100 is above the peer average of 55/100.

ROE 96%Key Financial Metrics

Return on equity for Red Rock Resorts, Inc. stands at 96.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 4.4%, showing how much profit it generates from its asset base. RRR trades at a trailing price-to-earnings ratio of 17.60, below the Consumer Cyclical sector average of ~37x. Its free cash flow yield is 15.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.81 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 5.0%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 7/9Financial Health

Red Rock Resorts, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 1.55 places it in the distress zone, a signal of elevated financial risk.

FY2026 estForward Outlook

Wall Street analysts project Red Rock Resorts, Inc. revenue of about $2.02B for fiscal 2026, with EPS near $2.78. The estimate reflects 12 contributing analysts.

Net buyingInsider Activity

Over the past six months, Red Rock Resorts, Inc. insiders filed 24 SEC Form 4 transactions — 10 sales and 14 purchases. On net that is roughly 1.1M shares acquired (about $45.7M) — insiders putting money in tends to read as conviction.

RRR Financials

RRR Latest News

RRR Analyst Consensus

RRR MoonshotScore

Latest Red Rock Resorts, Inc. Analysis

RRR Consumer Cyclical Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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