The growth of the EPS is critical in understanding the current valuation of Red Rock Resorts. The EPS growth rate, as it is typically called, is usually expressed as a percentage, which at this time is hard to estimate, but revenue growth has been -42.50 % over the last twelve months. The higher the EPS growth rate, the higher the value that is added to shareholders and a good reflection on the performance of the management at Red Rock Resorts.
Red Rock Resorts trades as part of the travel and leisure industry and is part of the consumer cyclical sector. The company CEO is Frank J. Fertitta. Red Rock Resorts Inc along with its subsidiary is a gaming, development and management company. The company develops strategically-located casino and entertainment properties. It generates a majority of its revenue from Casino.
Previous Intraday Performance:
The RRR shares had a previous change of -1.03% which opened at 24.17 and closed at 24.08. It moved to an intraday high of 24.94 and a low of 23.44.
Over the last five trading days, RRR shares returned -3.95% and in the past 30 trading days it returned -11.08%. Over three months, it changed -24.41%. In one year it has changed -1.42% and within that year its 52-week high was 36.99 and its 52-week low was 21.20. RRR stock is 13.58% above its 52 Week Low.
Our calculations result in a 200 day moving average of 31.11 and a 50 day moving average of 26.43. Right now, RRR stock is trading -22.60% below its 200 day moving average and may not be a great opportunity to buy as it may continue to trend down.
The company has a market cap of $2.8b with 116.5m shares outstanding and a float of 115.4m shares. Trading volume was 1,537,290 shares and has experienced an average volume of 1,138,827 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is good.
The last annual reported EPS for Red Rock Resorts was 0.43 which ended on 31st of December 2017, which according to the previous close, that is a PE of 56.00. Based on 4 analyst estimates, the consensus EPS for the next quarter is 0.24. The trailing twelve month EPS is 1.25, which comes to a trailing twelve month PE of 19.26.
Below was the last reported quarterly earnings per share:
09-30-2018: 0.24 (estimated)
The dividend per share is currently 0.40, which is a dividend yield of 1.66%. Also, the payout ratio is 32.00%, therefore the dividend is safe according to our calculations.
Base on our calculations, the intrinsic value per share is 39.96, which means it might be undervalued and has a margin of safety of 39.74%
Indicators Also to Watch:
Based on the latest filings, there is 43.40% of institutional ownership. Short-interest was 0, which was 0.00% of shares outstanding. The short-interest ratio or days-to-cover ratio was 0.00.
I calculated the beta to be 1.63
Based on last reported financials, the company’s return on equity is 41.14%, return on assets is 4.75%, profit margin is 19.55%, price-to-sales is 2.38 and price-to-book is 5.59.
Company Score Card:
Results are out of six:
1 : Growth Expectations Result
1 : Financial Safety Result
5 : Past Performance Result
3 : Valuation Result
3 : Dividend Safety Result
2 : Overall Result