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

RRR Nasdaq Hotels & Motels DE CIK: 0001653653
Updated This Month • Analysis: May 8, 2026 • SEC Data: 2026-03-31
Combined AI Grade
B
55% Confidence
N/A
B
55% Conf
Pending
Analysis scheduled

📊 RRR Key Takeaways

Revenue: $507.3M
Net Margin: 8.5%
Free Cash Flow: $22.6M
Current Ratio: 0.81x
Debt/Equity: 24.74x
EPS: $0.73
AI Grade: B with 55% confidence
Red Rock Resorts, Inc. (RRR) receives a B fundamental grade with 55% confidence from our AI analysis based on SEC 10-K filings. With revenue of $507.3M, net profit margin of 8.5%, and return on equity (ROE) of 30.1%, 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 demonstrates strong operational profitability with 28.3% operating margins and 22.1% YoY net income growth, but faces severe balance sheet stress from extreme leverage (24.74x debt-to-equity) and deteriorated liquidity (current ratio 0.81x). The company's thin 2.9x interest coverage and minimal free cash flow ($22.6M after CapEx) create substantial financial distress risk if revenue declines or interest rates rise further.

Red Rock Resorts, Inc. Key Strengths (RRR)

Claude
  • + Strong operational profitability with 28.3% operating margin and 30.1% ROE
  • + Improving earnings with 22.1% YoY net income growth and 23.3% EPS growth
  • + Positive operating cash flow of $139.8M demonstrates underlying business cash generation

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

Claude
  • ! Extreme leverage with 24.74x debt-to-equity ratio and $3.5B debt against only $142.7M equity
  • ! Poor liquidity ratios (current ratio 0.81x, quick ratio 0.76x) indicate inability to cover short-term obligations
  • ! Thin interest coverage ratio of 2.9x leaves minimal buffer for operational deterioration or rate increases
  • ! Minimal free cash flow of $22.6M after capital expenditures ($117.2M) constrains debt reduction capacity
  • ! Low ROA of 1.0% despite high margins suggests inefficient asset utilization on $4.2B asset base

Key Metrics to Watch

Claude
  • * Interest coverage ratio trend and debt service capacity
  • * Quarterly free cash flow and debt reduction progress
  • * Current and quick ratios for liquidity improvement signals
  • * Operating cash flow sustainability amid economic cycles
  • * Capital expenditure levels relative to depreciation

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

Revenue
$507.3M
Net Income
$42.9M
EPS (Diluted)
$0.73
Free Cash Flow
$22.6M
Total Assets
$4.2B
Cash Position
$134.0M

💡 AI Analyst Insight

The relatively thin 4.5% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.

RRR Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin 28.3%
Net Margin 8.5%
ROE 30.1%
ROA 1.0%
FCF Margin 4.5%

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 8.5%
vs
Sector Avg 20.0%
RRR Sector
ROE
RRR 30.1%
vs
Sector Avg 8.0%
RRR Sector
Current Ratio
RRR 0.8x
vs
Sector Avg 1.5x
RRR Sector
Debt/Equity
RRR 24.7x
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
30.1%
Sector avg: 8%
Net Profit Margin
8.5%
Sector avg: 20%
Revenue Growth
N/A
Year-over-year
Debt/Equity
24.74x
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
0.81x
Quick Ratio
0.76x
Debt/Equity
24.74x
Debt/Assets
94.1%
Interest Coverage
2.90x
Long-term Debt
$3.5B

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
4.5%
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
Q1 2026 $497.9M $42.9M $0.73
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

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
$139.8M
Cash generated from operations
Stock Buybacks
$38.3M
Shares repurchased (TTM)
Capital Expenditures
$117.2M
Investment in assets
Dividends Paid
$75.3M
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
May 28, 2026 4 xslF345X06/ownership.xml View →
May 7, 2026 10-Q rrr-20260331.htm View →
Apr 29, 2026 8-K d942244d8k.htm View →
Apr 23, 2026 DEF 14A d52675ddef14a.htm View →
Mar 20, 2026 4 xslF345X06/ownership.xml View →

Frequently Asked Questions about RRR

What is the AI rating for RRR?

Red Rock Resorts, Inc. (RRR) has an AI grade of B with 55% confidence, based on fundamental analysis of SEC EDGAR filings.

What are RRR's key strengths?

Claude: Strong operational profitability with 28.3% operating margin and 30.1% ROE. Improving earnings with 22.1% YoY net income growth and 23.3% EPS growth.

What are the risks of investing in RRR?

Claude: Extreme leverage with 24.74x debt-to-equity ratio and $3.5B debt against only $142.7M equity. Poor liquidity ratios (current ratio 0.81x, quick ratio 0.76x) indicate inability to cover short-term obligations.

What is RRR's revenue and growth?

Red Rock Resorts, Inc. reported revenue of $507.3M.

Does RRR pay dividends?

Red Rock Resorts, Inc. pays dividends, with $75.3M 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 $0.73.

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 grade reflects both perspectives for balanced insights.

What is RRR's fundamental grade?

Based on our AI fundamental analysis in May 2026, Red Rock Resorts, Inc. has a B grade with 55% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is RRR stock overvalued or undervalued?

Valuation metrics for RRR: ROE of 30.1% (sector avg: 8%), net margin of 8.5% (sector avg: 20%). Higher ROE suggests strong returns relative to peers.

What is RRR's AI grade for 2026?

Our dual AI analysis gives Red Rock Resorts, Inc. a combined B grade 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 $139.8M, with capital expenditures of $117.2M. FCF margin is 4.5%.

How does RRR compare to other Real Estate stocks?

Vs Real Estate sector averages: Net margin 8.5% (avg: 20%), ROE 30.1% (avg: 8%), current ratio 0.81 (avg: 1.5).

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

RRR has a debt-to-equity ratio of 24.74x, 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 30.1%, 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 8.5% 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: May 8, 2026 | Data as of: 2026-03-31 | Powered by Claude AI