Six Flags Entertainment Corp

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SIX : NYSE : Services
$53.61 up 0.36 | 0.68%
Today's Range: 53.10 - 53.85
Avg. Daily Volume: 1,254,800
09/30/16 - 4:02 PM ET

Financial Analysis


SIX FLAGS ENTERTAINMENT CORP's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. SIX FLAGS ENTERTAINMENT CORP has weak liquidity. Currently, the Quick Ratio is 0.72 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 168.01% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)407.07386.07
EBITDA ($mil)170.24163.71
EBIT ($mil)144.32138.13
Net Income ($mil)60.8965.53


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)163.55154.79
Total Assets ($mil)2590.292698.3
Total Debt ($mil)1651.961526.41
Equity ($mil)-92.15135.48


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin56.2456.76
EBITDA Margin41.8242.4
Operating Margin35.4535.78
Sales Turnover0.510.44
Return on Assets6.692.45
Return on Equity0.048.4
Debt Q2 FY16 Q2 FY15
Current Ratio0.971.31
Debt/Capital1.060.92
Interest Expense20.2118.97
Interest Coverage7.147.28


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)92.8894.76
Div / share0.580.52
EPS0.640.67
Book value / share-0.991.43
Institutional Own % n/a n/a
Avg Daily Volume1194896.0816567.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 30.66 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 24.84. 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 proves to trade at a discount 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 29.45 Peers 30.66   SIX 10.26 Peers 14.15

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

SIX is trading at a valuation on par with 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 31.66 Peers 25.77   SIX 1.51 Peers 2.92

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

SIX is trading at a valuation on par with 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 39.76   SIX 188.70 Peers 30.28

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.

 

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

SIX is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SIX 3.72 Peers 3.04   SIX 9.89 Peers 6.43

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

SIX has a sales growth rate that significantly exceeds its peers.

 

 

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