SIX Stock Intrinsic Value – SIX FLAGS ENTERTAINMENT Reports Strong Earnings Results for Q2 FY2023
August 24, 2023
☀️Earnings Overview
On June 30 2023, SIX FLAGS ENTERTAINMENT ($NYSE:SIX) reported its second quarter FY2023 earnings results. Total revenue for the quarter was up 1.9% year-over-year to USD 443.7 million, however, net income decreased 54.7% to USD 20.6 million as compared to the same period in the prior year.
Stock Price
On Thursday, SIX FLAGS ENTERTAINMENT reported strong financial results for the second quarter of FY2023. The company’s stock opened at $22.4 and closed at $21.8, down 4.5% from last closing price of 22.8. Despite the decline, the financial results indicated that the company is performing well and is on track towards achieving its long-term financial goals.
Overall, SIX FLAGS ENTERTAINMENT is in a strong financial position and is well-positioned for continued growth and success in the future. The strong earnings results for this quarter demonstrate that the company is effectively executing its strategic plan and are confident that it will continue to deliver strong performance in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for SIX. More…
| Total Revenues | Net Income | Net Margin |
| 1.37k | 79.89 | 8.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SIX. More…
| Operations | Investing | Financing |
| 290.75 | -123.21 | -195.74 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for SIX. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.71k | 3.16k | -11.93 |
Key Ratios Snapshot
Some of the financial key ratios for SIX are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.9% | 34.0% | 22.8% |
| FCF Margin | ROE | ROA |
| 12.0% | -19.4% | 7.2% |
Analysis – SIX Stock Intrinsic Value
At GoodWhale we recently performed an analysis of SIX FLAGS ENTERTAINMENT’s wellbeing. Our proprietary Valuation Line calculation revealed that the intrinsic value of SIX FLAGS ENTERTAINMENT share is around $48.0. However, the stock is currently being traded at $21.8, which means it is grossly undervalued by 54.6%. This presents a great investment opportunity for anyone looking to add this company to their portfolio. More…
Peers
Six Flags Entertainment Corporation is an American amusement park corporation based in Grand Prairie, Texas. It has properties in the United States, Mexico, and Canada. Cedar Fair LP, SeaWorld Entertainment Inc, and Ten Entertainment Group PLC are all competitors of Six Flags.
– Cedar Fair LP ($NYSE:FUN)
Cedar Fair LP is a publicly traded partnership headquartered in Sandusky, Ohio. The company owns and operates eleven amusement parks, two outdoor water parks, one indoor water park, and six hotels. Cedar Fair also operates the Gilroy Gardens Family Theme Park in Gilroy, California under a management contract.
Cedar Fair has a market cap of 2.23B as of 2022. The company’s return on equity is -51.78%. Cedar Fair LP is engaged in the business of operating amusement parks and resorts. The company owns and operates eleven amusement parks, two outdoor water parks, one indoor water park, and six hotels.
– SeaWorld Entertainment Inc ($NYSE:SEAS)
Seaworld Entertainment Inc is a theme park and entertainment company that operates marine-life parks, including SeaWorld, Busch Gardens, and Sesame Place. The company has a market cap of 3.45B as of 2022 and a Return on Equity of -74.7%.
– Ten Entertainment Group PLC ($LSE:TEG)
Ten Entertainment Group PLC is a United Kingdom-based company, which is engaged in the operation of bowling and entertainment centres. The Company’s segments include Bowling and Entertainment and Eating and Drinking. It operates approximately 30 bowling and entertainment centres and over 120 bars and restaurants in the United Kingdom. Its bowling and entertainment centres offer a range of activities, such as ten-pin bowling, laser quest, soft play areas, amusement arcades and pool tables. Its bars and restaurants offer a range of cuisines, such as Italian, Indian, American, British and Mexican. It also provides private party and corporate event facilities at its centres.
Summary
Six Flags Entertainment reported its earnings for the second quarter of FY2023, showing total revenue of USD 443.7 million, a 1.9% increase year-over-year.
However, net income for the quarter was USD 20.6 million, a 54.7% decrease compared to the same period in the previous year. As such, the stock price dropped on the same day. This serves as a cautionary tale for investors in Six Flags Entertainment as the company’s financial performance has been trending downward for some time. Investors should assess the risks associated with such investments and look at long-term trends rather than short-term fluctuations in order to make an informed decision.
