Six Flags Entertainment Corporation

FUN

$15.03

-2.84%

N/A-$0.44

Consumer Cyclical

Leisure

NYSE

Active Trading

Six Flags Entertainment Corporation stands as a prominent operator of amusement and resort properties situated across North America. Its extensive network encompasses ...

Fundamental Analysis of FUN

Key Strengths

Largest regional amusement park operator in North America with a diverse portfolio of 20 parks and 14 water parks.

Strong intellectual property portfolio (Looney Tunes, DC Comics, PEANUTS) enhancing brand appeal.

Risk Factors

Extremely high leverage: debt-to-equity ratio of 4495%, net debt to EBITDA of -5.6x (negative due to losses), and financial leverage of 64.8x, exposing to interest rate risk and refinancing challenges.

Negative profitability: net margin of -64.4%, and negative ROA and ROE, indicating operational inefficiencies and potential impairments.

Profitability

Net Margin-64.35%

Operating Margin11.09%

Valuation

P/E Ratio-0.87x

Current Ratio0.42

Efficiency

ROE-449.53%

ROA-23.55%

Fundamental Analysis of FUN

Six Flags Entertainment Corporation, operating under the ticker FUN, is a leading regional amusement park operator in North America, with a portfolio including 20 amusement parks, 14 water parks, and 9 resort properties across the U.S., Canada, and Mexico. The company leverages a strong brand portfolio with intellectual properties like Looney Tunes, DC Comics, and PEANUTS to enhance guest experiences. However, the financial metrics reveal significant concerns. The company is currently reporting a net loss, with a net profit margin of -64.4%, and negative returns on equity (-449.5%) and assets (-23.5%). This is partly due to a massive debt load (debt-to-equity ratio of 4495.2%, financial leverage ratio of 64.8x), leading to high interest expenses (interest coverage ratio of only 0.8). The current ratio of 0.42 and quick ratio of 0.36 indicate severe liquidity issues. Despite these, the company generates positive operating cash flow per share ($4.64) and free cash flow per share ($1.48), and price-to-sales ratio of 0.6 suggests the stock may be undervalued relative to revenue. The company has a beta of 0.39, indicating lower volatility, and pays a dividend of $1.2 per share (though the payout ratio appears 0 due to negative earnings). The EV/EBITDA is negative (-7.35x), reflecting non-cash impairments. Analyst consensus suggests a 'hold' rating, with cautious optimism given the company's strategic initiatives to improve operational efficiency and reduce debt. However, the high leverage and seasonality present substantial risks to long-term investors.

Key Strengths of FUN

Largest regional amusement park operator in North America with a diverse portfolio of 20 parks and 14 water parks.
Strong intellectual property portfolio (Looney Tunes, DC Comics, PEANUTS) enhancing brand appeal.
Extensive geographic diversification across 13 U.S. states, Canada, and Mexico, mitigating regional economic risks.
Proven operational resilience with over 28 million guests annually, demonstrating stable demand.
Price-to-sales ratio of 0.6 and price-to-operating-cash-flow ratio of 3.4, suggesting potential undervaluation relative to cash generation.
Consistent dividend payment of $1.2 per share, reflecting commitment to shareholder returns.
Positive free cash flow per share ($1.48) despite heavy capital expenditures, indicating some cash generation capability.

Risk Factors of FUN

Extremely high leverage: debt-to-equity ratio of 4495%, net debt to EBITDA of -5.6x (negative due to losses), and financial leverage of 64.8x, exposing to interest rate risk and refinancing challenges.
Negative profitability: net margin of -64.4%, and negative ROA and ROE, indicating operational inefficiencies and potential impairments.
Liquidity risk: current ratio of 0.42 and quick ratio of 0.36, potentially limiting ability to meet short-term obligations.
High capital intensity: capex to revenue of 0.118, requiring continuous investment in rides and attractions, which may strain cash flows.
Seasonality of theme park business, leading to volatile earnings and cash flows.
Dependence on consumer discretionary spending; economic downturns could reduce park attendance.
Competition from other entertainment options and parks, as well as safety and liability risks from ride incidents.
Potential further dilution or asset sales to service debt, impacting shareholder value.

Market Cap vs Revenue & Earnings

Earnings

n/a

Revenue

n/a

Market cap

$1.54B

-0.9x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Last Reportedn/a

Earnings per share (EPS)n/a

Gross Margin36.31%

Net Profit Margin-64.35%

Debt/Equity Ratio44.95

Profitability Bridge (Current vs YoY)

How gross, operating and net margins shifted versus last year.

Revenue / Net Income / FCF History (USD B)

Growth Signals of FUN

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Revenue	—	—	—	—	Flat
Diluted EPS	—	—	—	—	Flat
Free Cash Flow	—	—	—	—	Flat

Profitability of FUN

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Net Margin	—	-38.42%	—	—	Flat
Operating Margin	—	16.80%	—	—	Flat
ROE	—	—	—	—	Flat

Financial Health of FUN

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Current Ratio	—	0.420	—	—	Flat
Quick Ratio	—	0.359	—	—	Flat
Debt / Equity	—	44.952	—	—	Flat

Valuation of FUN

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
P/E	—	-2.57x	—	—	Flat
P/B	—	18.19x	—	—	Flat

Supply Chain of FUN

RELATIONS

Upstream

Bolliger & Mabillard (B&M)Intamin Amusement RidesMack RidesAntonio Zamperla S.p.A.Rocky Mountain Construction (RMC)S&S WorldwideVekoma Rides ManufacturingAlphabet Inc. (Google Cloud)NASDAQ:GOOGLHCLTechNSE:HCLTECHDell TechnologiesNYSE:DELL Snowflake Inc.NYSE:SNOWaccesso Technology Group plcLSE:ACSOThe Coca-Cola CompanyNYSE:KO The ICEE Company (J&J Snack Foods Corp.)NASDAQ:JJSFMars Inc.Gildan Activewear Inc.NYSE:GIL Warner Bros. DiscoveryNASDAQ:WBDPeanuts Worldwide (WildBrain Ltd.)TSX:WILDSansei Technologies, Inc.TSE:6357

Downstream

Individual Consumers / General PublicSeason Pass / Membership HoldersGroup Sales (Corporate Events, Schools, Scout Groups, Birthday Parties)Hotel Partner Program (various hospitality partners)Online Travel Agencies (aRes Travel, etc.)Corporate Sponsors / Media Network Partners

Proxies

United Parks & Resorts Inc.NYSE:PRKS The Walt Disney CompanyNYSE:DIS Comcast CorporationNASDAQ:CMCSA EPR PropertiesNYSE:EPR

About UsPrivacy PolicyTerms of ServiceDisclaimerStock DirectoryETFsIndices13F HoldingsAnalyst TargetsFree ToolsTechnology MapJoin our Slack

Plutux is not an investment adviser. Market data and AI-generated analysis are for information and education only, not investment advice. Disclaimer