United Parks & Resorts Inc. (NYSE: PRKS)

Sector: Consumer Cyclical Industry: Leisure CIK: 0001564902
Market Cap 1.89 Bn
P/B -6.11
P/E 10.42
P/S 1.13
ROIC (Qtr) 14.51
Div Yield % 0.00
Rev 1y % (Qtr) -6.24
Total Debt (Qtr) 2.35 Bn
Debt/Equity (Qtr) -7.62
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About

United Parks & Resorts Inc., or PRKS, is a leading player in the theme park and entertainment industry, with a focus on providing experiences that inspire guests to protect animals and the natural world. The company boasts a portfolio of well-known brands such as SeaWorld, Busch Gardens, Aquatica, Discovery Cove, and Sesame Place. United Parks & Resorts operates in the theme park industry, with its primary business activities centered around the operation of theme parks and attractions. The company's theme parks are strategically located near large...

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Investment thesis

Bull case

  • Healthy cash reserves of 220.79M provide 11.24x coverage of short-term debt 19.65M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 414.16M provides strong 25.16x coverage of stock compensation 16.46M, indicating sustainable incentive practices.
  • Strong operating cash flow of 414.16M provides 1.89x coverage of SG&A expenses 219.07M, showing efficient operational cost management.
  • Tangible assets of 2.52B provide exceptional 17.29x coverage of deferred revenue 145.55M, showing strong service capability backing.
  • Operating cash flow of 414.16M fully covers other non-current liabilities 195.92M by 2.11x, showing strong long-term stability.

Bear case

  • Operating cash flow of 414.16M barely covers its investment activities of (193.45M), with a coverage ratio of -2.14, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating earnings of 383.31M show weak coverage of depreciation charges of 171.77M, with a 2.23 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 220.71M represents just -10.48x of debt issuance (21.07M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 171.77M relative to operating cash flow of 414.16M, which is 0.41x suggests significant maintenance capital requirements affecting free cash flow.
  • Tax assets of 10.55M provide limited offset against tax liabilities of 263.63M, which is 0.04x, indicating potential future cash flow pressure from tax obligations.

Product and Service Breakdown of Revenue (2024)

Product and Service 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 1.48 1.19
EV to Cash from Ops. EV/CFO 9.78 -6.09
EV to Debt EV to Debt 1.72 14.49
EV to EBIT EV/EBIT 10.56 -159.90
EV to EBITDA EV/EBITDA 7.28 -4.06
EV to Free Cash Flow [EV/FCF] EV/FCF 18.35 0.74
EV to Market Cap EV to Market Cap 2.15 -0.64
EV to Revenue EV/Rev 2.42 4.65
Price to Book Value [P/B] P/B -6.11 4.75
Price to Earnings [P/E] P/E 10.42 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) 2.53 -30.68
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 33.94 -13.50
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 187.36 1,190.33
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 13.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -15.60 -111.75
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -12.72 -165.31
EBIT Growth (1y) % EBIT 1y % (Qtr) -19.19 -1,562.20
EBT Growth (1y) % EBT 1y % (Qtr) -27.60 -1,555.34
EPS Growth (1y) % EPS 1y % (Qtr) -16.71 -377.44
FCF Growth (1y) % FCF 1y % (Qtr) 21.73 10.93
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -8.71 17.65
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.61 0.73
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 0.59 3.31
Current Ratio Curr Ratio (Qtr) 1.09 4.80
Debt to Equity Ratio Debt/Equity (Qtr) -7.62 2.35
Interest Cover Ratio Int Coverage (Qtr) 2.53 -30.68
Times Interest Earned Times Interest Earned (Qtr) 2.53 -30.68
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 33.20 -57.55
EBIT Margin % EBIT Margin % (Qtr) 22.91 -65.38
EBT Margin % EBT Margin % (Qtr) 13.85 -69.55
Gross Margin % Gross Margin % (Qtr) 46.40 46.51
Net Profit Margin % Net Margin % (Qtr) 10.80 -74.45