Red Rock Resorts Inc. Class A Common Stock (RRR)

FairStock Score: 48/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business I can understand, bought at a sensible price, with durability. Red Rock operates casinos in the Las Vegas locals market, a business with regulatory barriers and local loyalty, but not one immune to competition or economic cycles. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $510.3 million and net income $39.1 million, or $0.67 per diluted share. A year earlier, fiscal Q2 2025 showed revenue of $526.3 million, net income of $56.4 million, and EPS of $0.95. That is a real contraction. For FY2025, revenue was $2.0 billion and net income $188.1 million, up from FY2024's $154.1 million, so the multi-year record is mixed. FairStock labels it a SLOW GROWER — Shrinking, with profit down 6.1% a year over four years and revenue up 5.6%. Returns on capital are modest: ROCE 8.54%, and Altman Z-Score 0.68 suggests financial risk. The Piotroski F-Score is 4/9, not compelling. On the plus side, trailing free cash flow is $193.0 million, a 6.5% FCF yield, and the dividend yield is 2.04%. But at $50.83 on 2026-10-13, FairStock calculations put the P/E at 17.96 and P/B at 17.23. The Graham Number is only $13.57, leaving a margin of safety of -274.58%. I see a fair business, high leverage, and a price that already assumes better days. I would want evidence of stabilizing profit before calling it a bargain.

In plain English: Red Rock Resorts runs casinos and entertainment properties in the Las Vegas area, including Durango Casino & Resort. The business is still profitable and produces cash, but recent quarterly sales and profit fell from a year earlier, and the balance sheet looks heavily indebted. At the recent price of $50.83, the shares do not look cheap compared with the company's reported earnings and accounting value; they look fair to expensive unless results improve.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer