This is a step-by-step stock review to answer the question, is Red Rock Resorts (RRR) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Red Rock Resorts (RRR) stock a good buy?
- Red Rock Resorts Company History
- MOS
- Meaning
- Moat
- Management
- 4M Score
- Is Red Rock Resorts (RRR) stock a good buy?
1. Red Rock Resorts Company History
- Founded: Red Rock Resorts, Inc. was established in 2006 and is headquartered in Las Vegas, Nevada.
- Primary Business: The company operates and manages a portfolio of casino and entertainment properties, primarily in Las Vegas.
- Flagship Properties: Red Rock Resorts is known for its flagship property, Red Rock Casino Resort & Spa, a premier destination offering gaming, dining, and entertainment.
- Public Listing: The company went public in 2016, trading on the Nasdaq under the ticker symbol “RRR.”
- Expansion: Red Rock Resorts has expanded its portfolio through acquisitions and development, including properties like Green Valley Ranch Resort and Palms Casino Resort.
- Ownership: The company is majority-owned by the Fertitta family, which has a long history in the gaming and hospitality industry.
- Mission: Red Rock Resorts aims to deliver exceptional guest experiences through top-notch facilities and personalized service in the vibrant Las Vegas market.
2. MOS (Margin Of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: Overpriced
- Score: 39
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Red Rock Resorts makes money:
- Casino Gaming: Revenue from gaming operations, including slot machines, table games, and sports betting.
- Hotel Accommodations: Earnings from room bookings and stays at their resort properties.
- Food and Beverage: Income from restaurants, bars, and dining services within their resorts.
- Entertainment: Revenue from shows, concerts, and other entertainment events hosted at their venues.
- Retail: Profits from retail shops and boutiques located within their resorts.
- Event Hosting: Revenue from hosting conferences, meetings, and special events.
Here are a few of the other companies thatRed Rock Resorts has acquired over the years. This is important because a company will use a “Buy before build” philosophy to go to market faster and add additional streams of revenue. A company with more revenue streams has a more stable business model. Keep in mind, that most companies don’t build new software because it takes too long to go to market and generate revenue.
- Red Rock Resort
- Palms Casino Resort
- Station Casinos
- Green Valley Ranch Resort
- Wildfire Gaming
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Red Rock Resorts stacks up against other companies.
- Gambling.com Group Limited.(GAMB) – 78
- Wynn Resorts, Limited.(WYNN) – 72
- Playa Hotels & Resorts N.V.(PLYA) – 67
- Golden Entertainment, Inc.(GDEN) – 61
- Melco Resorts & Entertainment Limited.(MLCO) – 61
- Red Rock Resorts, Inc.(RRR) – 39
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Expanded Market Reach: Frank Fertitta III Grew Red Rock Resorts into a leading operator in Las Vegas, with a strong presence in the local and regional gaming market.
- Successful IPO: Led the company through an initial public offering (IPO) in 2016, raising significant capital and increasing visibility.
- Strategic Acquisitions: Acquired and integrated multiple properties, including the purchase of the Palms Casino Resort, enhancing the company’s portfolio.
- Operational Efficiency: Improved operational practices, increasing revenue and profitability through effective management and cost controls.
- Innovative Projects: Developed and launched new projects and properties, such as the luxury resort concept, expanding the brand’s appeal and market share.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Red Rock Resorts (RRR) is 61/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Red Rock Resorts (RRR) stock a good buy?
Some of the top questions investors can have is Red Rock Resorts (RRR) stock a good buy or should I buy Red Rock Resorts (RRR) stock?
Red Rock Resorts (RRR) is a strong investment option due to its robust market presence and growth potential. The company has a solid track record of expanding its casino and resort portfolio, including high-profile acquisitions like the Palms Casino Resort. Its strategic location in Las Vegas, a major entertainment hub, drives consistent revenue and attracts high visitor traffic. Additionally, Red Rock Resorts’ successful IPO and focus on operational efficiency have improved profitability and financial stability. The company’s innovative projects and strong local market knowledge further enhance its investment appeal. However, potential investors should consider risks such as market volatility and economic downturns that could impact the gaming and hospitality industries. Overall, Red Rock Resorts offers promising investment opportunities for those looking for exposure to the vibrant Las Vegas market and well-managed gaming operations.
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To truly know if Red Rock Resorts is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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The Summary, Score, and MOS of this stock may have changed since the posting of this review. Please login to Tykr to see up-to-date information.