Six Flags Entertainment Corp

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SIX : NYSE : Services
$60.85 -0.18 | -0.29%
Today's Range: 60.47 - 61.11
Avg. Daily Volume: 757300.0
05/26/17 - 4:02 PM ET

Financial Analysis


SIX FLAGS ENTERTAINMENT CORP's gross profit margin for the first quarter of its fiscal year 2017 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. SIX FLAGS ENTERTAINMENT CORP has very weak liquidity. Currently, the Quick Ratio is 0.23 which clearly shows a lack of 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 152.55% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)99.53115.42
EBITDA ($mil)-47.08-25.09
EBIT ($mil)-74.37-51.12
Net Income ($mil)-57.55-46.94


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)35.0922.59
Total Assets ($mil)2429.382393.36
Total Debt ($mil)1714.461576.53
Equity ($mil)-184.84-73.19


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin-0.179.68
EBITDA Margin-47.3-21.74
Operating Margin-74.72-44.29
Sales Turnover0.540.54
Return on Assets4.437.44
Return on Equity0.00.0
Debt Q1 FY17 Q1 FY16
Current Ratio0.470.47
Debt/Capital1.121.05
Interest Expense21.2219.6
Interest Coverage-3.51-2.61


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)91.2693.25
Div / share0.640.58
EPS-0.63-0.51
Book value / share-2.03-0.78
Institutional Own % n/a n/a
Avg Daily Volume766408.0713754.0

Valuation


HOLD. SIX FLAGS ENTERTAINMENT CORP's P/E ratio indicates a significant premium compared to an average of 36.58 for the Hotels, Restaurants & Leisure industry and a significant premium compared to the S&P 500 average of 25.54. 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 54.49 Peers 36.58   SIX 12.20 Peers 19.54

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 25.71 Peers 25.87   SIX 0.83 Peers 1.65

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 11.15   SIX -38.47 Peers 120.34

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 4.27 Peers 3.39   SIX 0.71 Peers 4.07

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.

 

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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