Six Flags Entertainment Corp

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SIX : NYSE : Services
$58.96 | %
Today's Range: 57.93 - 59.33
Avg. Daily Volume: 1323900.0
09/22/17 - 4:02 PM ET

Financial Analysis


SIX FLAGS ENTERTAINMENT CORP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. SIX FLAGS ENTERTAINMENT CORP has very weak liquidity. Currently, the Quick Ratio is 0.42 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 502.02% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)422.37407.07
EBITDA ($mil)201.0170.24
EBIT ($mil)174.18144.32
Net Income ($mil)52.0360.89


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)71.06163.55
Total Assets ($mil)2543.692590.29
Total Debt ($mil)2048.061651.96
Equity ($mil)-554.73-92.15


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin56.6156.24
EBITDA Margin47.5841.82
Operating Margin41.2435.45
Sales Turnover0.520.51
Return on Assets3.886.69
Return on Equity0.00.0
Debt Q2 FY17 Q2 FY16
Current Ratio0.650.97
Debt/Capital1.371.06
Interest Expense27.2120.21
Interest Coverage6.47.14


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)85.5692.88
Div / share0.640.58
EPS0.590.64
Book value / share-6.48-0.99
Institutional Own % n/a n/a
Avg Daily Volume1354667.0806286.0

Valuation


HOLD. This stock's P/E ratio indicates a premium compared to an average of 44.25 for the Hotels, Restaurants & Leisure industry and a significant premium compared to the S&P 500 average of 24.88. 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 current price-to-sales ratio is well above the S&P 500 average and above 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 53.64 Peers 44.25   SIX 11.12 Peers 18.23

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

SIX is trading at a 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 24.96 Peers 25.32   SIX 1.08 Peers 2.87

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 premium to its peers.

 

Discount. 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 trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SIX NM Peers 9.96   SIX -40.23 Peers 50.58

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 3.72 Peers 3.35   SIX 0.27 Peers 7.77

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 premium to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SIX significantly trails its peers on the basis of sales growth

 

 

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