SIX Stock Intrinsic Value – B. Riley Reaffirms ‘Neutral’ Rating for Six Flags Entertainment Stock
July 25, 2023
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B. Riley analysts reaffirmed their “neutral” rating for Six Flags Entertainment ($NYSE:SIX)’s stock in a report published on Friday. Six Flags has a wide range of attractions, from roller coasters and water parks to live entertainment and shopping. The company also offers season passes, which allow customers to visit their parks multiple times throughout the year.
In addition, the company also operates several international theme parks and attractions under its subsidiary, Six Flags Global Entertainment Corporation. The stock was rated “neutral” by B. Riley due to the company’s cautious approach to park reopenings amid the coronavirus pandemic. Although the company has seen an increase in stock price over the past year, analysts cautioned investors that future performance could be impacted by government regulations and medical developments related to the virus. Overall, Six Flags Entertainment Corporation remains one of the largest regional theme park companies in the world, with a wide range of attractions and services. Investors should take into account B. Riley’s “neutral” rating and consider all potential risks before making any investments.
Market Price
On Monday, B. Riley reaffirmed its ‘Neutral’ rating for Six Flags Entertainment stock, as the stock opened at $22.7 and closed at $23.4, up by 2.5% from its prior closing price of $22.8. The company’s stock performance has been somewhat volatile in the past, and B. Riley analysts are keeping a close eye on any changes in the stock price. They believe investors should evaluate Six Flags Entertainment’s stock with caution and should maintain a neutral rating until the company’s financial outlook becomes clearer. 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 |
| 1.36k | 104.73 | 10.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SIX. More…
| Operations | Investing | Financing |
| 268.8 | -107.53 | -346.16 |
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 |
| 2.66k | 3.15k | -12.21 |
Key Ratios Snapshot
Some of the financial key ratios for SIX are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -2.3% | -3.6% | 24.9% |
| FCF Margin | ROE | ROA |
| 11.7% | -21.6% | 8.0% |
Analysis – SIX Stock Intrinsic Value
At GoodWhale, we have conducted an analysis of SIX FLAGS ENTERTAINMENT’s financials. Through our proprietary Valuation Line, we have calculated the fair value of SIX FLAGS ENTERTAINMENT’s share to be around $48.7. This is significantly higher than the current market price of $23.4, which means the stock is undervalued by an astonishing 52.0%. This presents an attractive opportunity for investors who are looking to capitalize on this potential upside. More…
Peers
Six Flags Entertainment Corporation is an American amusement park corporation based in Grand Prairie, Texas. It has properties in the United States, Mexico, and Canada. Cedar Fair LP, SeaWorld Entertainment Inc, and Ten Entertainment Group PLC are all competitors of Six Flags.
– Cedar Fair LP ($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
Investment analysts at B. Riley recently reaffirmed their “neutral” rating for Six Flags Entertainment’s stock. This rating indicates that the stock is expected to perform in line with the overall market. The analysts believe there are no major catalysts that could boost the stock’s performance, although they did not rule out the potential for strong returns in the long-term.
Nevertheless, they suggest investors remain vigilant and stay up-to-date on any potential changes. As such, investors should use caution when making decisions about investing in Six Flags Entertainment as the stock may experience short-term volatility.
