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Is this Large Market Cap Stock target price reasonable for Red Rock Resorts, Inc. (NASDAQ:RRR)?

The company in question is, Red Rock Resorts, Inc. (NASDAQ:RRR) currently with a stock price of 22.47 (-0.13% today). The market cap for Red Rock Resorts, Inc. is 2634.3, and is in the sector Services, and Rental & Leasing Services industry. The target price for Red Rock Resorts, Inc. is 25. Currently Red Rock Resorts, Inc. is trading with a P/E of 10.19, and a forward P/E of 12.66. Average volume for Red Rock Resorts, Inc. is 332.74 and so far today it is 45010.

Performance in the last year for Red Rock Resorts, Inc. has been *TBA. For EPS growth, Red Rock Resorts, Inc. has seen a growth of -3.70%, and is looking to grow in the next year to 46.86%. More long term stats show that EPS growth has been 17.20% over the last five years and could be 3.00% for the next five years. Red Rock Resorts, Inc. has seen sales growth quarter over quarter at 4.10%, with EPS growth quarter over quarter at -78.10%. The 20-day simple moving average is 0.00%, with the 200-day simple moving average coming to 4.01%.

Since the IPO date for Red Rock Resorts, Inc. on the 4/27/2016, Red Rock Resorts, Inc. has seen performance year to date to be 20.87%. With Red Rock Resorts, Inc. trading at 22.47, the dividend yield is 1.78%, and the EPS is 2.21.

So could Red Rock Resorts, Inc., be undervalued? Well as said before P/E is 10.19. The PEG is 3.4, P/S is 1.91 and the P/B is at 4.75. The P/cash is 10.48, with P/free cash flow at 15.41.

Red Rock Resorts, Inc. ability to deal with debt shows that the current ratio is 1.4, and the quick ratio is 1.4. This is with long term debt/equity at 12.18, and total debt/equity at 12.52.

In terms of margins, Red Rock Resorts, Inc. has a gross margin of 57.20%, an operating margin of 22.10% and a profit margin of 9.50%.Payout ratio for Red Rock Resorts, Inc. is 0.00%. Return on assets come to 4.40% with return on investment coming to *TBA.

Insider ownership for Red Rock Resorts, Inc., is at 0.70% and institutional ownership comes to 69.50%. Outstanding shares are at 117.08. While shares float is 41.13. The float short is currently 1.58%, and short ratio is 1.95.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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