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what it is
Red Rock owns and runs casinos, hotels, and entertainment spots in Las Vegas, mostly for locals instead of Strip tourists.
how it gets paid
Last year Red Rock Resorts made $2.0B in revenue. slot machine gaming was the main engine at $1.18B, or 59% of sales.
why it's growing
Revenue grew 3.7% last year. The company reported annual revenue of $2.01B, up 3.7% vs. prior year.
what just happened
Revenue hit $1.5B and EPS reached $2.37, both well ahead of the prior year.
At a glance
B balance sheet — gets the job done, barely
20/100 earnings predictability — expect surprises
23.8x trailing p/e — priced about right
1.7% dividend yield — cash in your pocket every quarter
8.5% return on capital — nothing to write home about
xvary composite: 52/100 — below average
What they do
Red Rock owns and runs casinos, hotels, and entertainment spots in Las Vegas, mostly for locals instead of Strip tourists.
This is a locals casino business, not a Strip tourism bet. Red Rock operates 7 major properties and 12 smaller casinos in Las Vegas, where being close to your customer matters more than having a fake-Eiffel-Tower view. If your regular casino is 10 minutes away, your habits stick, and 16,447 slot machines plus 320 table games give Red Rock a lot of ways to collect that routine spending.
How they make money
$2.0B
annual revenue · their business grew +3.7% last year
slot machine gaming
$1.18B
+4.0%
table games
$0.30B
+2.0%
hotel rooms
$0.18B
+3.0%
food and beverage
$0.24B
+3.0%
other entertainment and fees
$0.11B
+1.0%
The products that matter
casino gaming and hospitality
Casino Operations
$2.0B revenue · 100% of sales
it's the entire business. that makes the story easy to follow, but it also means you get no diversification if nevada gaming demand softens.
one segment
Key numbers
$3.3B
long-term debt
Debt → money the company owes → $3.3B matters because it equals 34% of capital and limits how forgiving the stock can be.
29.7%
operating margin
Operating margin → profit after running the business, before interest and taxes → nearly 30% says the casinos themselves are strong earners.
1.7%
dividend yield
Dividend yield → your cash payout from owning the stock → 1.7% gives you some income, but this is not a bond substitute.
23.8x
trailing p/e
P/E → stock price versus last year's earnings → 23.8x is rich for a company with only 3.0% projected sales growth, so you need earnings growth to stay strong.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 40 / 100
- long-term debt $3.3B (34% of capital)
- net profit margin 10.2% — keeps 10 cents of every dollar in revenue
- return on equity 42% — $0.42 profit for every $1 investors have put in
B — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in RRR 3 years ago → it's now worth $15,760.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Revenue hit $1.5B and EPS reached $2.37, both well ahead of the prior year.
The company reported annual revenue of $2.01B, up 3.7% vs. prior year. The last reported quarter also crushed the Street's $0.35 EPS estimate with an actual result of $0.75, a 114.29% surprise.
$1.5B
revenue
$2.37
eps
114.29%
eps surprise
the number that mattered
The 114.29% EPS surprise matters most because it shows how fast sentiment can change when this company clears a very low bar.
-
red rock resorts likely closed out 2025 with mixed results.
-
we think fourth-quarter revenues rose modestly compared to the previous-year tally.
-
the core las vegas business probably posted decent results.
-
we believe the durango casino resort had a another good showing.that property has continued to expand the las vegas locals market, despite the disruption caused by recent construction programs, which were likely completely at the end of december.
-
these initiatives will add more than 25,000 square feet of additional casino space, including a new high-limit slot area and bar.
source: company earnings report, 2026
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What could go wrong
the core risk is simple: 100% of revenue comes from the same casino bucket while $3.3B of debt stays fixed. if local gaming demand cools, the whole model feels it at once.
med
single-engine revenue base
Casino Operations is the entire $2.0B business. that makes the model easy to understand, but it also means you have no second segment to offset a slowdown.
impact: 100% of reported revenue sits inside the same casino and hospitality bucket.
med
$3.3B of debt makes small mistakes louder
long-term debt is $3.3B, or 34% of capital. that's manageable in steady conditions. it gets less comfortable fast if revenue stalls or margins fade.
impact: the debt load does not shrink just because casino traffic does.
med
digital gaming pressure is part of the debate
the source set references a Jefferies downgrade to hold tied to sports betting competition. detail is thin here, so we are not stretching the claim. but when growth is only +3.7%, even small share pressure matters.
impact: the stock is priced for steadiness, which means even modest competitive slippage can hit the multiple.
med
regulatory or systems problems hit the whole company
gaming is regulated and transaction-heavy. a meaningful rule change, compliance issue, or cybersecurity event can disrupt casino, hotel, and payment operations quickly.
impact: because this is a one-segment story, an operating hit lands on the same $2.0B revenue base that drives everything else.
the quiet part: RRR does not need a disaster to disappoint you. it only needs same-store demand to soften while the valuation stays premium and the debt stays fixed.
source: institutional data · regulatory filings · risk analysis
Pay attention to
margin
whether the 9.3% quarterly margin holds
revenue only rose 2%, so profit discipline mattered more than top-line acceleration. if margin slips, the steady-growth argument gets thinner fast.
trend
revenue growth above +3.7%
at 23.8x trailing earnings, you want more than a flat $2B revenue profile. here's the thing: this is the cleanest sign the story is improving instead of just standing still.
risk
debt versus earnings momentum
$3.3B of long-term debt is fine when EPS climbs. it gets louder if EPS stalls around the current $2.60–$2.75 zone.
earnings
the next quarterly print
watch whether quarterly revenue moves decisively above $476M or whether this stays a slow-and-steady casino story priced like something better.
Analyst rankings
short-term outlook
average
momentum score 3. in human-speak, analysts see a normal setup here, not a stock with obvious fuel.
risk profile
average
stability score 3. you're not hiding in a bunker stock, but you're not riding a rollercoaster either.
chart momentum
average
technical score 3. the chart says "fine," which is less helpful when the stock already sits near its high.
earnings predictability
20 / 100
earnings predictability is weak. translation: quarterly results can surprise you, and not always in the fun direction.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 141 buyers vs. 98 sellers in 3q2025. total institutional holdings: 50.5M shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$46
$90
$62
current price
$68
target midpoint · +10% from current · 3-5yr high: $105 (+70% · 15% ann'l return)
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