Last Updated: 18 Sep 2024
Executive Summary
Red Rock Resorts Inc. (RRR) is a leading casino, gaming, and entertainment company in the United States. The company has a strong financial position with a market capitalization of $5.45 billion, EBITDA of $757.16 million, and EPS of $2.83. RRR is expected to continue to grow in the future, driven by its strong brand recognition, loyal customer base, and expansion plans.
Company Overview
Red Rock Resorts Inc. was founded in 1999 and is headquartered in Las Vegas, Nevada. The company operates 10 casinos in Nevada and California, including the Red Rock Casino Resort & Spa, Green Valley Ranch Resort & Spa, and Palace Station Hotel & Casino. RRR also owns and operates the Wildfire Golf Club and the Fiesta Henderson Hotel & Casino.
Fundamental Analysis
RRR's financial performance has been strong in recent years. The company's revenue has grown by an average of 5% annually over the past five years. In 2023, RRR reported revenue of $1.85 billion, up 7% from the previous year. The company's net income also grew by 7% in 2023, to $406.8 million.
RRR's financial ratios are also strong. The company has a debt-to-equity ratio of 0.54, which is below the industry average. RRR also has a strong cash flow from operations, which provides the company with the flexibility to invest in new projects and expand its operations.
Technical Analysis
RRR's stock price has been trending higher in recent months. The stock is currently trading at $53.63, up 10% from its 52-week low. The stock's technical indicators are also positive, with the MACD and RSI indicators both showing bullish signals.
Short Term Outlook
RRR's short-term outlook is positive. The company is expected to continue to benefit from the strong demand for casino and gaming services. RRR is also expected to benefit from its expansion plans, which include the opening of a new casino in Las Vegas in 2024.
Long Term Outlook
RRR's long-term outlook is also positive. The company is expected to continue to grow its revenue and earnings in the years to come. RRR is also expected to benefit from the legalization of sports betting in the United States, which is expected to drive demand for casino and gaming services.
Analyst Recommendations
Analysts are bullish on RRR's stock. The consensus analyst rating for RRR is "Buy." The average analyst target price for RRR is $64.62, which represents a potential upside of 20% from the current stock price.
