Red Rock Profitability Analysis

RRR Stock  USD 50.65  0.03  0.06%   
Taking into consideration Red Rock's profitability measurements, Red Rock's profitability may be sliding down. It has an above-average chance of reporting lower numbers next quarter. Profitability indicators assess Red Rock's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2014-03-31
Previous Quarter
56.3 M
Current Value
90.9 M
Quarterly Volatility
55.8 M
 
Yuan Drop
 
Covid
As of 06/12/2024, Price To Sales Ratio is likely to drop to 0.90. In addition to that, Days Sales Outstanding is likely to drop to 9.02. At this time, Red Rock's Income Before Tax is relatively stable compared to the past year. As of 06/12/2024, Income Tax Expense is likely to grow to about 70.4 M, while Total Other Income Expense Net is likely to drop (186.8 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.450.5598
Significantly Down
Pretty Stable
Operating Profit Margin0.180.324
Way Down
Slightly volatile
For Red Rock profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Red Rock to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Red Rock Resorts utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Red Rock's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Red Rock Resorts over time as well as its relative position and ranking within its peers.
  

Red Rock's Revenue Breakdown by Earning Segment

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Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Red Rock. If investors know Red will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Red Rock listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.08)
Dividend Share
1
Earnings Share
2.87
Revenue Per Share
30.595
Quarterly Revenue Growth
0.127
The market value of Red Rock Resorts is measured differently than its book value, which is the value of Red that is recorded on the company's balance sheet. Investors also form their own opinion of Red Rock's value that differs from its market value or its book value, called intrinsic value, which is Red Rock's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Red Rock's market value can be influenced by many factors that don't directly affect Red Rock's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Red Rock's value and its price as these two are different measures arrived at by different means. Investors typically determine if Red Rock is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Red Rock's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Red Rock Resorts Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Red Rock's current stock value. Our valuation model uses many indicators to compare Red Rock value to that of its competitors to determine the firm's financial worth.
Red Rock Resorts is currently regarded as top stock in return on equity category among its peers. It is rated third in return on asset category among its peers reporting about  0.04  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Red Rock Resorts is roughly  23.34 . At this time, Red Rock's Return On Equity is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Red Rock by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Red Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Red Rock

Return On Equity

 = 

Net Income

Total Equity

 = 
2.37
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Red Rock

Return On Asset

 = 

Net Income

Total Assets

 = 
0.1
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Red Return On Asset Comparison

Red Rock is currently under evaluation in return on asset category among its peers.

Red Rock Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Red Rock, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Red Rock will eventually generate negative long term returns. The profitability progress is the general direction of Red Rock's change in net profit over the period of time. It can combine multiple indicators of Red Rock, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Operating Income558.7 M366.6 M
Income Before Tax380.8 M399.8 M
Total Other Income Expense Net-177.9 M-186.8 M
Net Income176 M121.5 M
Income Tax Expense43 M70.4 M
Net Income From Continuing Ops337.8 M177.6 M
Net Income Applicable To Common Shares236.3 M248.1 M
Interest Income200.4 M154.1 M
Net Interest Income-181 M-190.1 M
Non Operating Income Net Other3.1 M3.3 M
Change To Netincome125.9 M76.8 M
Net Income Per Share 3.04  3.19 
Income Quality 2.81  2.95 
Net Income Per E B T 0.46  0.75 

Red Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Red Rock. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Red Rock position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Red Rock's important profitability drivers and their relationship over time.

Red Rock Profitability Trends

Red Rock profitability trend refers to the progression of profit or loss within a business. An upward trend means that Red Rock's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Red Rock's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Red Rock Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Red Rock different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Red Rock in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Red Rock's future profitability.

Use Red Rock in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Red Rock position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Red Rock will appreciate offsetting losses from the drop in the long position's value.

Red Rock Pair Trading

Red Rock Resorts Pair Trading Analysis

The ability to find closely correlated positions to Red Rock could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Red Rock when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Red Rock - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Red Rock Resorts to buy it.
The correlation of Red Rock is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Red Rock moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Red Rock Resorts moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Red Rock can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

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Beers Theme
Companies involved in production and distribution of domestic and international beer. The Beers theme has 43 constituents at this time.
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Additional Tools for Red Stock Analysis

When running Red Rock's price analysis, check to measure Red Rock's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Red Rock is operating at the current time. Most of Red Rock's value examination focuses on studying past and present price action to predict the probability of Red Rock's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Red Rock's price. Additionally, you may evaluate how the addition of Red Rock to your portfolios can decrease your overall portfolio volatility.