PRKS

United Parks & Resorts Inc.

Consumer


Presented:02/13/2023
Price:$66.05
Cap:$4.22B
Current Price:$50.88
Cap:$2.95B

Presented

Date02/13/2023
Price$66.05
Market Cap$4.22B
Ent Value$5.19B
P/E Ratio15x
Book ValueN/A
Div Yield0%
Shares O/S63.89M
Ave Daily Vol686,737
Short Int9.08%

Current

Price$50.88
Market Cap$2.95B
SeaWorld Entertainment, Inc. is a holding company, which engages in the ownership and operation of theme parks. It operates through the following brands: SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Sesame Place, and Sea Rescue. The company was founded in 1959 and is headquartered in Orlando, FL.

Please note, on 2/13/24 SeaWorld Entertainment Inc. changed its company name and ticker to United Parks & Resorts Inc.(PRKS). The content of this idea will make reference to the original company name and ticker symbol.
Publicly traded companies mentioned herein: Cedar Fair LP (FUN), SeaWorld Entertainment Inc (SEAS), Six Flags Entertainment Corp (SIX)

Highlights

The presenter is short shares of SeaWorld Entertainment Inc (SEAS), which is trading near all-time highs at the current $66 share price. Short interest (~6%) has fallen since mid-2022 and the stock is trading at its historical average EBITDA multiple of ~8.5x. This is a compelling valuation for the short position given his belief that SEAS is fighting a broken growth algorithm with pricing and the expectation that the attendance algorithm will get uglier throughout 2023 after already missing on attendance the previous two quarters. He is forecasting a significant miss when SEAS reports Q4’22 on February 28th and models 2023 EBITDA more than 20% below the Street’s $729MM. As the market digests the weak 2023 EBITDA performance, which could continue through 2025 or longer, investors could recognize that the algorithm is broken and drive compression in the multiple. 

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.