Stock fact sheet · data as of
Red Rock Resorts, Inc. (RRR): fair value, margin of safety and Wheel Score
Consumer Cyclical · Gambling, Resorts & Casinos · United States · High Yield Income
Is RRR undervalued?
RRR has a margin of safety of 46%: the stock closed at 49.77 on 16 Oct 2026 against a GLS average fair value of 91.51. 4 of the 9 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The 9 models disagree widely: DCF gives 6.95 while Payback Time gives 276.34. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files RRR under High Yield Income: a dividend yield above 4%.
Nine valuation models for RRR
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 6.95 | -86% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 13.93 | -72% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 77.50 | +56% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 27.23 | -45% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 156.49 | +214% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 202.70 | +307% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 276.34 | +455% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 30.02 | -40% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 32.42 | -35% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -60.00 | -221% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 70.70 | +42% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - RRR passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 5.8 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are high - ROIC 70.6%, ROE 90.3%, ROA 4.5% - with debt at 0.28 times equity and a free-cash-flow yield of 18.3%.
The dividend yield is high at 4.10% (payout ratio 0%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Casino 66%, Food and Beverage 18%, Occupancy 9% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 8/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 70.6% |
|---|---|---|---|
| GLS Moat | 5.8 / 10 | ROE | 90.3% |
| Debt / equity | 0.28 | ROA | 4.5% |
| Free-cash-flow yield | 18.3% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 8 · 5 / 10 |
Wheel Score 80: Prime
RRR scores 80 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 25/25), Piotroski health (11/20), the GLS moat (9/15), the option premium on offer (20/20) and how easily the stock trades (15/20).
Implied volatility is 42% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 3,953 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 805k shares a day on a market cap of $2.9B, with a beta of 1.41 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 15 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 46% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 9 / 15 | moat 5.8/10 | |
| Premium | 20 / 20 | implied volatility 42% | |
| Stability | 15 / 20 | 805k shares/day, $2.9B cap, beta 1.41 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Red Rock Resorts, Inc. reports earnings on 27 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Gambling, Resorts & Casinos
The 12 companies below are the closest to Red Rock Resorts, Inc. by market cap within the Gambling, Resorts & Casinos industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| VAC Marriott Vacations Worldwide Corporation | 106.23 | 42.56 | -150% | 43Weak | $3.7B |
| MCRI Monarch Casino & Resort, Inc. | 115.54 | 96.49 | -20% | 60Fair | $2.1B |
| PENN PENN Entertainment, Inc. | 14.52 | 21.24 | +32% | 45Weak | $1.9B |
| BRSL Brightstar Lottery PLC | 9.70 | 32.05 | +70% | 80Prime | $1.8B |
| BYD Boyd Gaming Corporation | 70.97 | 385.85 | +82% | 85Prime | $5.2B |
| RSI Rush Street Interactive, Inc. | 18.49 | 15.97 | -16% | 61Fair | $5.2B |
| MLCO Melco Resorts & Entertainment Limited | 4.32 | 25.35 | +83% | 77Good | $1.7B |
| MTN Vail Resorts, Inc. | 152.96 | 112.59 | -36% | 56Fair | $5.5B |
| SGHC Super Group (SGHC) Limited | 11.12 | 13.44 | +17% | 79Good | $5.6B |
| CHDN Churchill Downs Incorporated | 82.15 | 109.00 | +25% | 85Prime | $5.7B |
| CZR Caesars Entertainment, Inc. | 29.25 | 96.50 | +70% | 45Weak | $6.0B |
| LNWO Light & Wonder, Inc. | 81.71 | 103.62 | +21% | 39No options | $6.3B |
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Start free See the Sunday ScanQuestions about RRR
Is RRR undervalued right now?
By the GLS models, yes: at 49.77 the stock is 46% below the average fair value of 91.51 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of RRR and what does it mean?
RRR scores 80 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for RRR?
91.51 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Red Rock Resorts, Inc. report earnings next?
The next earnings report is due on 27 Oct 2026 (after the close), 11 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does RRR have listed options, and how liquid are they?
Yes. The nightly snapshot found 116 listed contracts with 3,953 open interest across all expiries and implied volatility of 42% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.