Six Flags Entertainment Corp

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SIX : NYSE : Services
$57.64 | %
Today's Range: 57.16 - 57.9
Avg. Daily Volume: 1195900.0
12/02/16 - 4:04 PM ET

Financial Analysis


SIX FLAGS ENTERTAINMENT CORP's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. SIX FLAGS ENTERTAINMENT CORP has average liquidity. Currently, the Quick Ratio is 1.14 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 111.41% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)557.6575.26
EBITDA ($mil)228.02317.15
EBIT ($mil)200.63290.8
Net Income ($mil)102.48157.3


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)238.76210.83
Total Assets ($mil)2648.792720.46
Total Debt ($mil)1652.721524.65
Equity ($mil)-18.4161.21


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin64.9565.89
EBITDA Margin40.8955.13
Operating Margin35.9850.55
Sales Turnover0.490.45
Return on Assets4.474.35
Return on Equity0.073.09
Debt Q3 FY16 Q3 FY15
Current Ratio1.41.71
Debt/Capital1.010.9
Interest Expense21.2819.27
Interest Coverage9.4315.09


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)92.0493.15
Div / share0.580.52
EPS1.091.64
Book value / share-0.21.73
Institutional Own % n/a n/a
Avg Daily Volume1257689.0973192.0

Valuation


BUY. SIX FLAGS ENTERTAINMENT CORP's P/E ratio indicates a significant premium compared to an average of 30.32 for the Hotels, Restaurants & Leisure industry and a significant premium compared to the S&P 500 average of 25.16. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, SIX FLAGS ENTERTAINMENT CORP seems to be trading at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SIX 45.12 Peers 30.32   SIX 10.95 Peers 15.08

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

SIX is trading at a significant premium to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SIX is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SIX 28.77 Peers 30.95   SIX NM Peers 1.37

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

SIX is trading at a significant premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

SIX's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SIX NM Peers 7.40   SIX 5.08 Peers 69.89

Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SIX's P/B is negative making this valuation measure meaningless.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, SIX is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SIX 3.97 Peers 2.87   SIX 5.47 Peers 5.67

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SIX is trading at a significant premium to its industry.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

SIX is keeping pace with its peers on the basis of sales growth.

 

 

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