| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 64 | 19.8x | 17.8x | Around median | |
Growth | 28 | 0.9% | 7.1% | Bottom tier | |
Quality | 89 | 13.8% | 4.5% | Top tier | |
Safety | 36 | 4.5x | 2.6x | Bottom tier | |
Capital Return | 61 | 2.09% | 2.12% | Around median | |
Momentum | 41 | 0.0% | 2.9% | Around median | |
Sentiment | 63 | 5 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Red Rock Resorts operates a portfolio of integrated resorts primarily targeting residents of the Las Vegas Valley, generating revenue from slot and table games and sports betting, alongside hotels, food and beverage, and entertainment. Management described slot gaming as the primary and most important source of business, while hotels and food and beverage provide additional diversification; the food and beverage business benefited in Q2 FY2026 from higher guest counts and average check value, while hotel occupancy also increased despite renovations at Green Valley Ranch.
In Q2 FY2026, consolidated revenue was $510.3 million, down 3% year over year, while net income was $39.1 million and earnings per share were $0.67. Las Vegas operations generated net revenue of $503.2 million, representing approximately 98.6% of consolidated revenue, down 2%, while the North Fork project contributed $3.8 million in revenue. Adjusted EBITDA was $208 million, down 9.3%, and its margin declined 281 basis points to 40.8%; Las Vegas operations recorded $227.5 million at a 45.2% margin, down 143 basis points.
The financial statements show a degree of stability in business volume with some pressure on profitability: revenue increased from $507.3 million in Q1 FY2026 to $510.3 million in Q2 FY2026, but net income decreased from $42.9 million to $39.1 million. On a trailing twelve-month basis, revenue was $2.0 billion, net income was $186.2 million, and earnings per share were $3.1364, compared with revenue of $2.0 billion, net income of $188.1 million, and earnings per share of $3.12 in FY2025.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $71.22, within a wide range of $61 to $75, with a “Buy” consensus. The average target is approximately 3.2% above the 52-week range high of $68.99, while the stock's 52-week range is $50.52 to $68.99; no published price-to-earnings ratio is available in the data, so the valuation framework here relies more on the target range relative to the annual trading record than on a comparable earnings multiple. The optimism reflected in the consensus should be weighed against the 9.3% annual decline in adjusted EBITDA, the margin decrease to 40.8%, and net debt of $3.5 billion.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
The company primarily relies on its integrated resorts targeting residents of the Las Vegas Valley, with slot gaming being the primary and most important source according to management. Revenue from Las Vegas operations was $503.2 million in Q2 FY2026, out of total consolidated revenue of $510.3 million. Table games, sports betting, hotels, and food and beverage provide additional sources, while the food and beverage business benefited from higher guest counts and average check value during the same period.
The consolidated adjusted EBITDA margin was 40.8%, down 281 basis points year over year. Management attributed the pressure primarily to disruption at Green Valley Ranch, the absence of a North Fork reimbursement payment recorded in the comparable period, and one-time repair and maintenance items and contributions. The company estimated the impact of the Green Valley Ranch disruption at approximately $7 million after more than 21 thousand room nights were removed from available inventory during the quarter.
The company is targeting the opening of North Fork in early Q4 FY2026, with its expected total cost remaining at approximately $750 million and the project being fully funded. The full East Tower product at Green Valley Ranch is scheduled to return to service in September 2026, while the remaining Green Valley Ranch and Sunset Station improvements will come online progressively during 2026 and 2027. The Durango North expansion remains scheduled to open in the second half of 2027.
The company ended Q2 FY2026 with $136.5 million in cash and $3.6 billion in outstanding debt, resulting in net debt of $3.5 billion and a net debt-to-EBITDA ratio of 4.21 times. In contrast, it generated $100 million in operating free cash flow during the quarter and $206.7 million since the beginning of FY2026. It expects capital expenditures of between $375 million and $425 million in FY2026 and approved a cash dividend of $0.26 per Class A share, payable on September 30, 2026, to shareholders of record on September 15, 2026.
The immediate risk is the combination of third-quarter seasonality and a one-time marketing expense of approximately $8 million for the 50th anniversary. Management also expects an impact of approximately $2.5 million from Durango construction in Q3 FY2026 and in each subsequent quarter through the second half of 2027, in addition to road projects surrounding the property continuing for approximately one year from June 2026. Utility costs and the approximately 3% annual increase in salaries and wages add to the pressure after adjusted EBITDA declined 9.3% annually in Q2 FY2026.
The analyst consensus rates the stock a “Buy,” with an average target of $71.22 and targets ranging from $61 to $75. The average target exceeds the 52-week range high of $68.99, while the annual range extends from $50.52 to $68.99. The data do not present a price-to-earnings ratio, so these targets should be considered alongside the decline in the consolidated margin to 40.8% and net debt of $3.5 billion, rather than as standalone evidence of valuation attractiveness.
