Red Rock Return On Equity vs. EBITDA
| RRR Stock | USD 50.49 0.36 0.71% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 1.04243688 | Current Value 1.19 | Quarterly Volatility 2.65472891 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.46 | 0.6367 |
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| Operating Profit Margin | 0.18 | 0.324 |
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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.
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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 (0.19) | Dividend Share 1 | Earnings Share 2.72 | Revenue Per Share 32.44 | Quarterly Revenue Growth 0.137 |
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 EBITDA 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 fifth in ebitda category among its peers totaling about 441,510,238 of EBITDA per Return On Equity. 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 EBITDA 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 |
| = | 1.57 |
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.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Red Rock |
| = | 694.32 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Red EBITDA Comparison
Red Rock is currently under evaluation in ebitda 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 Reported | Projected for Next Year | ||
| Operating Income | 558.7 M | 366.6 M | |
| Income Before Tax | 380.8 M | 399.8 M | |
| Total Other Income Expense Net | -177.9 M | -169 M | |
| Net Income | 176 M | 121.5 M | |
| Income Tax Expense | 43 M | 70.4 M | |
| Net Income From Continuing Ops | 337.8 M | 177.6 M | |
| Net Income Applicable To Common Shares | 236.3 M | 248.1 M | |
| Interest Income | 200.4 M | 154.1 M | |
| Net Interest Income | -181 M | -190.1 M | |
| Non Operating Income Net Other | 3.1 M | 3.3 M | |
| Change To Netincome | 125.9 M | 76.8 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.
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.Use Investing Themes to Complement your Red Rock position
In addition to having Red Rock in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Broad Equity ETFs theme has 479 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.