SIX

Six Flags Entertainment Corp

Consumer


Presented:04/13/2022
Price:$40.77
Cap:$3.52B
Current Price:$32.00
Cap:$2.70B

Presented

Date04/13/2022
Price$40.77
Market Cap$3.52B
Ent Value$6.70B
P/E Ratio27.79x
Book ValueN/A
Div Yield0%
Shares O/S86.24M
Ave Daily Vol1,490,683
Short Int6.24%

Current

Price$32.00
Market Cap$2.70B
Six Flags Entertainment Corp. operates theme parks. It operates under the brand name Six Flags, which offers rides, water attractions, themed areas, concerts and shows, restaurants, game venues, and retail outlets. The company was founded by Angus G. Wynne Jr. in 1961 and is headquartered in Arlington, TX.

Publicly traded companies mentioned herein: Merlin Entertainments PLC (MERL LN), Middleby Corp (MIDD), SeaWorld Parks & Entertainment (SEAS), Six Flags Entertainment Corp (SIX)

Highlights

The presenter is long shares of Six Flags Entertainment Corp (SIX), believing it to be a lower cost leisure story that will benefit from the ongoing reopening and a revamp of its subscription packages which will effectively raise prices 25% - 35% across the board. As a trade down attraction in an inflationary environment, its parks should maintain a majority of their attendance, thereby driving earnings above Street estimates. Using its current ~11x forward EBITDA multiple and the presenter’s $700MM 2024 EBITDA estimate provides a base case valuation of $56 per share or $59 including a year of cash flow. 

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Idea Discussion

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