Six Flags Entertainment Corporation/NEW (NYSE: FUN)

Sector: Consumer Cyclical Industry: Leisure CIK: 0001999001
Market Cap 1.47 Bn
P/B 2.40
P/E -0.83
P/S 0.47
ROIC (Qtr) -19.15
Div Yield % 0.00
Rev 1y % (Qtr) -2.27
Total Debt (Qtr) 5.24 Bn
Debt/Equity (Qtr) 8.53
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About

Investment thesis

Bull case

  • Healthy cash reserves of 70.68M provide 4.70x coverage of short-term debt 15.04M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 5.10B provide exceptional 15.32x coverage of deferred revenue 333.10M, showing strong service capability backing.
  • Strong free cash flow of (168.71M) provides 236.95x coverage of acquisition spending (712000), indicating disciplined M&A strategy.
  • Operating cash flow of 332.57M provides strong 3.92x coverage of inventory 84.92M, indicating efficient inventory management.
  • Tangible assets of 5.10B provide robust 7.01x coverage of other current liabilities 727.75M, indicating strong asset backing.

Bear case

  • Operating cash flow of 332.57M barely covers its investment activities of (501.99M), with a coverage ratio of -0.66, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 70.68M provide limited coverage of acquisition spending of (712000), which is -99.27x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 332.57M provides insufficient coverage of deferred revenue obligations of 333.10M, which is 1x, raising concerns about future service delivery capabilities.
  • High receivables of 280.88M relative to inventory of 84.92M (3.31 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (168.71M) provides weak coverage of capital expenditures of 501.27M, with a -0.34 ratio suggesting additional external financing needs for growth initiatives.

Product and Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Leisure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AS Amer Sports, Inc. 22.38 Bn 71.89 3.67 1.87 Bn
2 HAS Hasbro, Inc. 13.30 Bn 46.47 3.26 3.32 Bn
3 PLNT Planet Fitness, Inc. 7.78 Bn 37.79 6.04 2.58 Bn
4 GOLF Acushnet Holdings Corp. 7.40 Bn 80.24 4.75 0.90 Bn
5 LTH Life Time Group Holdings, Inc. 6.29 Bn 21.85 2.16 4.13 Bn
6 MAT Mattel Inc /De/ 5.43 Bn 12.57 1.04 2.59 Bn
7 YETI YETI Holdings, Inc. 3.97 Bn 24.75 2.17 0.22 Bn
8 MSGE Madison Square Garden Entertainment Corp. 2.95 Bn 56.80 2.91 1.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.87 1.19
EV to Cash from Ops. EV/CFO 20.70 -6.09
EV to Debt EV to Debt 1.31 14.49
EV to EBIT EV/EBIT -5.06 -159.90
EV to EBITDA EV/EBITDA -8.32 -4.06
EV to Free Cash Flow [EV/FCF] EV/FCF -40.81 0.74
EV to Market Cap EV to Market Cap 4.67 -0.64
EV to Revenue EV/Rev 2.19 4.65
Price to Book Value [P/B] P/B 2.40 4.75
Price to Earnings [P/E] P/E -0.83 12.00
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -0.51
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.11
Dividend per Basic Share Div per Share (Qtr) 0.00 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 6.13
Interest Coverage Int. cover (Qtr) -3.89 -30.68
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -80.01 -13.50
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -21.21 1,190.33
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 13.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -1,596.89 -111.75
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -256.07 -165.31
EBIT Growth (1y) % EBIT 1y % (Qtr) -638.15 -1,562.20
EBT Growth (1y) % EBT 1y % (Qtr) -2,856.27 -1,555.34
EPS Growth (1y) % EPS 1y % (Qtr) -2,960.66 -377.44
FCF Growth (1y) % FCF 1y % (Qtr) -236.96 10.93
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 16.62 17.65
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.40 0.73
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 0.08 3.31
Current Ratio Curr Ratio (Qtr) 0.58 4.80
Debt to Equity Ratio Debt/Equity (Qtr) 8.53 2.35
Interest Cover Ratio Int Coverage (Qtr) -3.89 -30.68
Times Interest Earned Times Interest Earned (Qtr) -3.89 -30.68
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -28.30 -57.55
EBIT Margin % EBIT Margin % (Qtr) -43.36 -65.38
EBT Margin % EBT Margin % (Qtr) -54.49 -69.55
Gross Margin % Gross Margin % (Qtr) 36.30 46.51
Net Profit Margin % Net Margin % (Qtr) -56.40 -74.45