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Red Rock Resorts, Inc. (RRR) Stock Fundamental Analysis & AI Rating 2026

RRR Nasdaq Hotels & Motels DE CIK: 0001653653
Recently Updated • Analysis: Apr 15, 2026 • SEC Data: 2025-12-31
SELL
72% Conf
Pending
Analysis scheduled

📊 RRR Key Takeaways

Revenue: $2.0B
Net Margin: 9.3%
Free Cash Flow: $290.5M
Current Ratio: 0.79x
Debt/Equity: 16.30x
EPS: $3.12
AI Rating: SELL with 72% confidence
Red Rock Resorts, Inc. (RRR) receives a SELL rating with 72% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $2.0B, net profit margin of 9.3%, and return on equity (ROE) of 90.3%, Red Rock Resorts, Inc. demonstrates mixed fundamentals in the Real Estate sector. Below is our complete RRR stock analysis for 2026.

Is Red Rock Resorts, Inc. (RRR) a Good Investment?

Claude

Red Rock Resorts exhibits strong operational cash flow generation ($609.5M) and maintained profitability, but net income declined 47.1% YoY despite modest 3.7% revenue growth, signaling margin compression. The company's extreme leverage (16.30x Debt/Equity) and deteriorating profitability create significant financial fragility, particularly concerning given weak liquidity metrics (0.79x current ratio) that provide limited buffer against operational disruptions.

Why Buy Red Rock Resorts, Inc. Stock? RRR Key Strengths

Claude
  • + Strong operating cash flow generation of $609.5M with healthy 14.4% FCF margin demonstrates underlying business cash generation capability
  • + Excellent operating margin of 29.7% shows efficient core operations in hospitality segment
  • + Positive free cash flow of $290.5M covers debt service and capital expenditure needs

RRR Stock Risks: Red Rock Resorts, Inc. Investment Risks

Claude
  • ! Extreme leverage of 16.30x Debt/Equity ratio creates severe financial fragility with only $208.3M equity cushion against $3.4B debt
  • ! Net income collapsed 47.1% YoY despite revenue growth, indicating margin compression or rising debt service burden that threatens equity value
  • ! Weak liquidity position (0.79x current ratio, 0.74x quick ratio) below 1.0x signals potential short-term solvency stress if operations deteriorate

Key Metrics to Watch

Claude
  • * Net income and operating margin trend - monitor if profitability decline continues or stabilizes
  • * Debt refinancing schedule and interest expense - assess whether rate environment impacts leverage sustainability
  • * Operating cash flow stability - critical as it services debt obligations given minimal equity cushion

Red Rock Resorts, Inc. (RRR) Financial Metrics & Key Ratios

Revenue
$2.0B
Net Income
$188.1M
EPS (Diluted)
$3.12
Free Cash Flow
$290.5M
Total Assets
$4.2B
Cash Position
$142.5M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

RRR Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin 29.7%
Net Margin 9.3%
ROE 90.3%
ROA 4.5%
FCF Margin 14.4%

RRR vs Real Estate Sector: How Red Rock Resorts, Inc. Compares

How Red Rock Resorts, Inc. compares to Real Estate sector averages

Net Margin
RRR 9.3%
vs
Sector Avg 20.0%
RRR Sector
ROE
RRR 90.3%
vs
Sector Avg 8.0%
RRR Sector
Current Ratio
RRR 0.8x
vs
Sector Avg 1.5x
RRR Sector
Debt/Equity
RRR 16.3x
vs
Sector Avg 1.5x
RRR Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Red Rock Resorts, Inc. Stock Overvalued? RRR Valuation Analysis 2026

Based on fundamental analysis, Red Rock Resorts, Inc. has mixed fundamental signals relative to the Real Estate sector in 2026.

Return on Equity
90.3%
Sector avg: 8%
Net Profit Margin
9.3%
Sector avg: 20%
Revenue Growth
N/A
Year-over-year
Debt/Equity
16.30x
Sector avg: 1.5x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Red Rock Resorts, Inc. Balance Sheet: RRR Debt, Cash & Liquidity

Current Ratio
0.79x
Quick Ratio
0.74x
Debt/Equity
16.30x
Debt/Assets
92.0%
Interest Coverage
2.96x
Long-term Debt
$3.4B

RRR Revenue & Earnings Growth: 5-Year Financial Trend

RRR 5-year financial data: Year 2021: Revenue $1.9B, Net Income -$3.4M, EPS $-0.05. Year 2022: Revenue $1.7B, Net Income -$150.4M, EPS $-2.13. Year 2023: Revenue $1.7B, Net Income $241.9M, EPS $2.84. Year 2024: Revenue $1.9B, Net Income $205.5M, EPS $3.36. Year 2025: Revenue $2.0B, Net Income $176.0M, EPS $2.94.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Red Rock Resorts, Inc.'s revenue has shown modest growth of 8% over the 5-year period. The most recent EPS of $2.94 reflects profitable operations.

RRR Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
14.4%
Free cash flow / Revenue

RRR Quarterly Earnings & Performance

Quarterly financial performance data for Red Rock Resorts, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $468.0M $29.0M $0.48
Q2 2025 $486.4M $35.7M $0.59
Q1 2025 $488.9M $42.8M $0.68
Q3 2024 $411.6M $29.0M $0.48
Q2 2024 $416.1M $35.7M $0.59
Q1 2024 $433.6M $42.8M $0.68
Q3 2023 $411.6M $35.5M $0.60
Q2 2023 $416.1M $15.7M $0.26

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Red Rock Resorts, Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$609.5M
Cash generated from operations
Stock Buybacks
$79.0M
Shares repurchased (TTM)
Capital Expenditures
$319.0M
Investment in assets
Dividends Paid
$120.8M
Returned to shareholders

RRR SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Red Rock Resorts, Inc. (CIK: 0001653653)

📋 Recent SEC Filings

Date Form Document Action
Mar 20, 2026 4 xslF345X06/ownership.xml View →
Mar 20, 2026 4 xslF345X06/ownership.xml View →
Mar 20, 2026 4 xslF345X06/ownership.xml View →
Mar 5, 2026 4 xslF345X05/ownership.xml View →
Feb 20, 2026 10-K rrr-20251231.htm View →

Frequently Asked Questions about RRR

What is the AI rating for RRR?

Red Rock Resorts, Inc. (RRR) has an AI rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are RRR's key strengths?

Claude: Strong operating cash flow generation of $609.5M with healthy 14.4% FCF margin demonstrates underlying business cash generation capability. Excellent operating margin of 29.7% shows efficient core operations in hospitality segment.

What are the risks of investing in RRR?

Claude: Extreme leverage of 16.30x Debt/Equity ratio creates severe financial fragility with only $208.3M equity cushion against $3.4B debt. Net income collapsed 47.1% YoY despite revenue growth, indicating margin compression or rising debt service burden that threatens equity value.

What is RRR's revenue and growth?

Red Rock Resorts, Inc. reported revenue of $2.0B.

Does RRR pay dividends?

Red Rock Resorts, Inc. pays dividends, with $120.8M distributed to shareholders in the trailing twelve months.

Where can I find RRR SEC filings?

Official SEC filings for Red Rock Resorts, Inc. (CIK: 0001653653) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is RRR's EPS?

Red Rock Resorts, Inc. has a diluted EPS of $3.12.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is RRR a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Red Rock Resorts, Inc. has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is RRR stock overvalued or undervalued?

Valuation metrics for RRR: ROE of 90.3% (sector avg: 8%), net margin of 9.3% (sector avg: 20%). Higher ROE suggests strong returns relative to peers.

Should I buy RRR stock in 2026?

Our dual AI analysis gives Red Rock Resorts, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is RRR's free cash flow?

Red Rock Resorts, Inc.'s operating cash flow is $609.5M, with capital expenditures of $319.0M. FCF margin is 14.4%.

How does RRR compare to other Real Estate stocks?

Vs Real Estate sector averages: Net margin 9.3% (avg: 20%), ROE 90.3% (avg: 8%), current ratio 0.79 (avg: 1.5).

Is Red Rock Resorts, Inc. carrying too much debt?

RRR has a debt-to-equity ratio of 16.30x, which is above the Real Estate sector average of 1.5x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.

Why is RRR's return on equity (ROE) so high?

Red Rock Resorts, Inc. has a return on equity of 90.3%, significantly above the Real Estate sector average of 8%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 9.3% net margin.

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 15, 2026 | Data as of: 2025-12-31 | Powered by Claude AI