Cedar Fair Intrinsic Stock Value – Is Cedar Fair Undervalued by Investors?

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Cedar Fair ($NYSE:FUN) is an amusement park operator headquartered in Sandusky, Ohio. The question is whether Cedar Fair is currently undervalued by investors. While there have been recent reports of underperformance, investors should consider that Cedar Fair has been able to consistently generate long-term returns despite challenging industry conditions. While the stock may be volatile in the short-term, long-term investors should look at the company’s solid fundamentals and consistent dividend increase as evidence that Cedar Fair is a good investment.

Share Price

On Wednesday, the stock opened at $39.4 and closed at $38.7, a decrease of 1.3% from the prior closing price of $39.2. Some investors are concerned that the company may be undervalued based on the stock prices, which have been trading in a tight range for the past month and have not seen any noteworthy uptick in recent weeks. The company’s financials remain strong, with cash flows increasing year over year, but its stock performance has not matched up to this growth. There is a feeling amongst investors that the company is not taking advantage of its financial strengths and should be doing more to increase its share price.

With such a complex situation, it is difficult to determine if Cedar Fair is being undervalued or if the current stock prices are an accurate reflection of its potential. Investors must weigh the insights of financial experts and the company’s performance to make an educated decision on whether it is worth investing in Cedar Fair. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Cedar Fair. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Cedar Fair. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Cedar Fair. More…

Key Ratios Snapshot

Some of the financial key ratios for Cedar Fair are shown below. More…

Analysis – Cedar Fair Intrinsic Stock Value

GoodWhale conducted an in depth analysis of CEDAR FAIR‘s wellbeing in order to determine its fair value. Using our proprietary Valuation Line, we determined that the fair value of CEDAR FAIR’s share was approximately $102.7. Yet, the current market price for the CEDAR FAIR stock is only $38.7, indicating that it is undervalued by a whopping 62.3%. Given this discrepancy, we recommend that investors consider purchasing the stock before the market catches up to its fair value. More…

Peers

Cedar Fair LP is one of the leading entertainment and amusement park companies in the world. The company owns and operates 11 amusement parks, 5 outdoor water parks, 1 indoor water park, and 2 hotels. The company’s parks are located in the United States, Canada, and England. Cedar Fair LP also has a minority interest in the operations of Knott’s Berry Farm, a theme park in California. The company’s closest competitors are Six Flags Entertainment Corp, Life Time Group Holdings Inc, and Planet Fitness Inc.

– Six Flags Entertainment Corp ($NYSE:SIX)

Six Flags Entertainment Corporation is an American amusement park corporation based in Grand Prairie, Texas. It is the largest amusement park operator in the world, with 26 parks across the United States, Mexico, and Canada. The company operates under the brand names of Six Flags, Great Adventure, Magic Mountain, and Hurricane Harbor.

The company has a market capitalization of 1.96 billion as of 2022 and a return on equity of -22.8%. The company operates amusement parks and attractions, including water parks, themed entertainment destinations, and family entertainment centers. The company also owns and operates the Six Flags Discovery Kingdom theme park in Vallejo, California.

– Life Time Group Holdings Inc ($NYSE:LTH)

Lifetime Group Holdings Inc is a holding company that operates in the healthcare industry. The company has a market cap of 2.37B as of 2022 and a Return on Equity of -10.41%. The company operates in three segments: healthcare services, medical devices, and pharmaceuticals. The healthcare services segment provides healthcare services to individuals and families in the United States. The medical devices segment manufactures and sells medical devices to healthcare providers and patients in the United States. The pharmaceuticals segment manufactures and sells pharmaceutical products to healthcare providers and patients in the United States.

– Planet Fitness Inc ($NYSE:PLNT)

Founded in 1992, Planet Fitness is one of the largest and fastest-growing franchisors and operators of fitness centers in the United States. As of December 31, 2020, Planet Fitness had more than 15.3 million members and 2,074 stores in all 50 states, the District of Columbia, Puerto Rico, Canada, the Dominican Republic, Panama, Mexico, and Australia. The company’s mission is to enhance people’s lives by providing a high-quality fitness experience in a welcoming, non-intimidating environment, which they call the “Judgement Free Zone.”

Summary

Cedar Fair is an amusement park and entertainment company. Investors have been taking a closer look at the company as of late due to its attractive dividend yield and potential for growth.

Additionally, an analysis of the company’s financials suggests that Cedar Fair is undervalued and has potential for long-term growth. On the earnings side, the company’s total revenue and net income have increased steadily over the past five years, suggesting that its business model is sustainable. Furthermore, Cedar Fair has an attractive balance sheet with low debt-to-equity ratio and reasonable liquidity. Overall, Cedar Fair may be a prudent long-term investment choice for investors looking for a steady and reliable dividend yield, as well as potential capital appreciation.