One-glance verdict
Within fair range
$32.61 our estimate vs market $53.28
Wall Street consensus: $73.39 (125.0% higher than our fair-value estimate)
63% above our estimate
Fundamentals snapshot
Red Rock Resorts, Inc.
RRR · NMS · Consumer Cyclical · Resorts & Casinos
Current price
$53.28
52-week range
$50.52 - $68.99
Market cap
$5.43B
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 Stock trades 11.6% above its 5-year average P/E.
What this company does
Red Rock Resorts, Inc.
Red Rock Resorts operates a network of casinos and entertainment venues, such as the Station Casinos brand, that primarily serve residents of the Las Vegas area instead of tourists on the famous Strip. The company generates its revenue (the total money earned from sales before subtracting costs) from these local customers spending on gambling, dining, and other activities. This focus on locals is important because the company's financial health is closely linked to the local Las Vegas economy and its growing population, which can provide a more stable customer base than the seasonal ups and downs of tourism.
How the company got here
The company started in 1976 as Station Casinos, focusing on building a gaming and entertainment business for the residents of Las Vegas, rather than tourists. It grew by developing and buying properties, becoming a major player in the Las Vegas locals market. After going private in 2007 and navigating a bankruptcy during the 2009 financial crisis, the company re-emerged and went public again in 2016 under the new name Red Rock Resorts, Inc. Today, it operates as a holding company (a company that owns other companies' stock) for its core business, Station Casinos.
What it actually does
Red Rock Resorts owns and runs a network of casino and entertainment properties primarily for people who live in and around Las Vegas. Unlike the giant casinos on the Las Vegas Strip that cater to tourists, Red Rock's properties are designed to be convenient, neighborhood destinations for the local community. Their locations offer a mix of slot machines, table games, restaurants, movie theaters, bowling alleys, and hotels, aiming to provide a complete entertainment experience.
Las Vegas Operations
This is the company's main business, making up the vast majority of its revenue (the money it brings in from sales). This segment includes large resort-style casinos like Red Rock Casino Resort & Spa and Green Valley Ranch, as well as many smaller neighborhood casinos under the Station Casinos brand. Customers are primarily Las Vegas residents who visit frequently for gaming, dining, and entertainment. The company makes money from slot machines, table games, hotel room stays, and food and beverage sales.
Native American Management
This is a much smaller but distinct part of the company's business. In this segment, Red Rock Resorts gets paid to develop and manage casinos for Native American tribes. Instead of owning the properties, the company earns management fees for its expertise in building and running these gaming facilities. This provides a separate stream of income that is different from the day-to-day operations of its own Las Vegas casinos.
What management is betting on now
The company's main strategy is to deepen its focus on the Las Vegas locals market, which they believe will continue to grow as more people move to the area. A key part of this plan involves developing large parcels of land the company already owns in fast-growing residential neighborhoods. The recent opening of the Durango Casino & Resort is a prime example of this strategy in action, and the company plans to expand it and build other new properties to capture future demand. Management is betting that by owning the best locations and providing high-quality amenities, they can remain the top choice for Las Vegas residents' entertainment spending.
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 $32.61 vs current price $53.28
Wall Street consensus is the average analyst price target: $73.39 (125.0% higher than our fair-value estimate).
Our most-likely fair value is $32.61 a share — about 38.8% away from today's price of $53.28, 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 $3.26B 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 $12.79M Interest coverage 1,225.91x +40,047% vs RRR Carries about 401.5x more debt cushion than RRR.
Total debt $25.92B 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 1.9% with 11-year payout history.
Risks
-
Net debt grew 14.9% over 3 years.
-
Stock trades 11.6% above its 5-year average P/E.
-
Operating margin compressed from 35.7% to 26.7% over 3 years.
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)
19.03x
Forward P/E
13.60x
P/B
18.04x
P/S
2.71x
EV/EBITDA
8.49x
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
2.80
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
1.9%
Payout ratio
36.4%
Last ex-div date
2026-09-15