One-glance verdict
Within fair range
$32.11 our estimate vs market $49.15
Wall Street consensus: $72.22 (124.9% higher than our fair-value estimate)
53% above our estimate
Fundamentals snapshot
Red Rock Resorts, Inc.
RRR · NMS · Consumer Cyclical · Resorts & Casinos
Current price
$49.15
52-week range
$47.42 - $68.99
Market cap
$5.01B
Balance sheet
Distressed
3.05x Stretched
Net debt $3.50B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Returns 108.9% on equity, ahead of 80% of its peers.
- Reward Free cash flow was positive in 7/10 years.
- Risk Net debt grew 14.9% over 3 years.
- Risk Operating margin compressed from 35.7% to 26.7% over 3 years.
What this company does
Red Rock Resorts, Inc.
Red Rock Resorts, Inc. owns and operates casinos and entertainment venues, mainly in the Las Vegas area. Their money comes from people gambling, staying in their hotels, and enjoying their restaurants and shows. Understanding where their revenue comes from helps us see how well they are doing at attracting customers and keeping them spending money.
How the company got here
Red Rock Resorts, Inc. traces its roots back to 1976, starting with a small casino in Las Vegas. Over the decades, it grew through developing and acquiring gaming and entertainment properties, primarily focusing on the Las Vegas locals market. The company, formerly known as Station Casinos Corp., rebranded to Red Rock Resorts, Inc. in 2016. It has navigated significant industry changes, including a bankruptcy reorganization in 2009, and has established itself as a major player in the Las Vegas regional gaming scene, distinct from the Strip-focused resorts. A key part of its history involves acquiring gaming-entitled land, which provides a strategic advantage for future development.
What it actually does
Red Rock Resorts operates a collection of casino and entertainment properties, primarily serving the residents of the Las Vegas area. Think of it as a network of neighborhood casinos and larger resorts designed for locals, offering a mix of gaming, dining, and entertainment options. Unlike casinos on the Las Vegas Strip that heavily rely on tourists, Red Rock's focus is on repeat business from people who live in the surrounding communities. They also manage a casino for a Native American tribe in California, earning fees for their expertise.
Station Casinos
This is the core of Red Rock Resorts' business, operating a large portfolio of casinos and entertainment venues throughout the Las Vegas valley. These properties cater to the 'locals' market, meaning they are designed for people who live in the area rather than tourists. They offer a wide range of amenities, including slot machines, table games, restaurants, bars, movie theaters, and bingo halls. The success of this segment relies on attracting repeat customers through convenience, familiarity, and tailored offers. Station Casinos also includes the 'Wildfire' brand of smaller, more focused gaming properties.
Red Rock Casino Resort & Spa, Green Valley Ranch Resort, Spa & Casino, and Durango Casino & Resort
These are Red Rock Resorts' flagship properties, offering a more upscale experience compared to the neighborhood Station Casinos. They provide a comprehensive resort experience with gaming, hotel accommodations, multiple dining options, spas, and entertainment venues. These resorts attract a slightly more affluent local customer base looking for a premium gaming and leisure destination. The Durango Casino & Resort, a newer addition, is undergoing significant expansion to add more gaming, entertainment, and dining facilities, highlighting the company's investment in its premium offerings.
Management Services
Beyond operating its own properties, Red Rock Resorts also provides management services to other gaming facilities. Currently, this includes a partnership with a Native American tribe in California to manage their casino. In this segment, Red Rock earns fees for its expertise in developing and operating casinos, leveraging its extensive experience in the gaming industry. This is a smaller part of the overall business compared to its owned and operated properties.
What management is betting on now
Red Rock Resorts is heavily focused on expanding its presence and offerings within the Las Vegas locals market. This includes significant investments in developing and redeveloping its existing properties, such as the ongoing expansion of the Durango Casino & Resort and renovations at Sunset Station and Green Valley Ranch. The company is also strategically acquiring land for future casino development, anticipating continued population and economic growth in the Las Vegas area. Management believes this focus on the local demographic provides a stable and resilient business model, even when the broader Las Vegas Strip market experiences fluctuations.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$50.69M
FY2024 Q4
$121.36M
FY2025 Q1
$58.00M
FY2025 Q2
$80.26M
FY2025 Q3
$74.58M
FY2025 Q4
$77.67M
FY2026 Q1
$22.60M
FY2026 Q2
$18.16M
Revenue
$510.26M
Net income
$39.12M
Diluted EPS
0.67
Operating cash flow
$157.94M
Free cash flow
$18.16M
Fetching…
Sources
Revenue
$507.32M
Net income
$42.89M
Diluted EPS
0.73
Operating cash flow
$139.83M
Free cash flow
$22.60M
Fetching…
Sources
Revenue
$511.78M
Net income
$44.66M
Diluted EPS
0.74
Operating cash flow
$156.56M
Free cash flow
$77.67M
Fetching…
Sources
Revenue
$475.57M
Net income
$42.25M
Diluted EPS
0.68
Operating cash flow
$168.29M
Free cash flow
$74.58M
Fetching…
Sources
Revenue
$526.27M
Net income
$56.40M
Diluted EPS
0.95
Operating cash flow
$158.44M
Free cash flow
$80.26M
Fetching…
Sources
Revenue
$497.86M
Net income
$44.75M
Diluted EPS
0.75
Operating cash flow
$126.23M
Free cash flow
$58.00M
Fetching…
Sources
Revenue
$495.69M
Net income
$46.59M
Diluted EPS
0.78
Operating cash flow
$148.22M
Free cash flow
$121.36M
Fetching…
Sources
Revenue
$468.02M
Net income
$28.95M
Diluted EPS
0.48
Operating cash flow
$131.03M
Free cash flow
$50.69M
Fetching…
Sources
Is it cheap or expensive?
Fair value $32.11 vs current price $49.15
Wall Street consensus is the average analyst price target: $72.22 (124.9% higher than our fair-value estimate).
Our most-likely fair value is $32.11 a share — about 34.7% away from today's price of $49.15, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $3.5B. Interest coverage 3.1x.
Net debt
$3.50B
Interest coverage
3.05x
Red Rock Resorts, Inc.'s profit covers its interest bill about 3.1 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
RRR
BASELINE
Red Rock Resorts, Inc.
Total debt $3.64B Interest coverage 3.05x This is the baseline the peer rows are being compared against.
Total debt $3.29B Interest coverage 5.56x +82% vs RRR Carries about 1.8x more debt cushion than RRR.
Total debt $11.06B Interest coverage 0.67x -78% vs RRR Carries about 4.6x less debt cushion than RRR.
Total debt $12.60M Interest coverage 1,225.91x +40,047% vs RRR Carries about 401.5x more debt cushion than RRR.
Total debt $25.81B Interest coverage 0.89x -71% vs RRR Carries about 3.4x less debt cushion than RRR.
What you should know
The case for and against RRR
3 Rewards
3 Risks
Rewards
-
Returns 108.9% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 7/10 years.
-
Dividend yield is 2.1% with 11-year payout history.
Risks
-
Net debt grew 14.9% over 3 years.
-
Operating margin compressed from 35.7% to 26.7% over 3 years.
-
Insider ownership is only 9.7% (peer median: 17.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
17.37x
Forward P/E
12.75x
P/B
16.64x
P/S
2.50x
EV/EBITDA
8.19x
PEG ratio
1.69x
Profitability
How much profit each dollar creates
Gross margin
67.2%
Operating margin
26.7%
Net margin
8.4%
ROE
108.9%
ROA
8.5%
Health
Liquidity and balance-sheet strength
Debt / equity
12.46x
Current ratio
0.68x
Quick ratio
0.49x
Total debt
$3.64B
Total cash
$136.45M
Growth
How the business has been compounding
Revenue TTM
$2.00B
Revenue 5Y CAGR
5.6%
EPS TTM
2.83
EPS 5Y CAGR
-2.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$622.62M
Free CF TTM
$290.50M
FCF margin
14.5%
Dividend
Shareholder payout
Yield
2.1%
Payout ratio
36.4%
Last ex-div date
2026-09-15