Red Rock Resorts, Inc.

Durable Las Vegas locals casino franchise with top-percentile margins and cash generation, but high leverage.

Strengths

• Operating margin 29.7% and OCF margin 30.3% (both 100th pct), with net margin 9.3% and a supply-constrained locals market (SB208 moat)
• Revenue +3.7% with growing Native American development fees and strong repeat-customer model

Risks

• Very high leverage (debt/equity 16.2, 93.8th pct) inflating the 90% ROE; thin equity base
• Capital-intensive expansion (Durango, North Fork) and exposure to Las Vegas local economy and rising competition

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• High leverageHigh leverage (debt/equity 16.22)
• Weak liquidityCurrent ratio 0.79 (<1)