SIX FLAGS ENTERTAINMENT CORP (FUN) Stock Fundamental Analysis
NYSE:FUN - New York Stock Exchange, Inc. - US83001C1080 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to FUN. FUN was compared to 136 industry peers in the Hotels, Restaurants & Leisure industry. While FUN is still in line with the averages on profitability rating, there are concerns on its financial health. FUN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FUN has reported negative net income.
In the past year FUN had a positive cash flow from operations.
In multiple years FUN reported negative net income over the last 5 years.
FUN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of -2.53%, FUN is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
With a Return On Equity value of -11.32%, FUN perfoms like the industry average, outperforming 44.85% of the companies in the same industry.
FUN has a Return On Invested Capital (4.71%) which is in line with its industry peers.
FUN had an Average Return On Invested Capital over the past 3 years of 11.59%. This is below the industry average of 15.70%.
The last Return On Invested Capital (4.71%) for FUN is well below the 3 year average (11.59%), which needs to be investigated, but indicates that FUN had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.53% | ||
| ROE | -11.32% | ||
| ROIC | 4.71% |
ROA(3y)5.6%
ROA(5y)-1.44%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.59%
ROIC(5y)N/A
1.3 Margins
The Operating Margin of FUN (18.07%) is better than 74.26% of its industry peers.
In the last couple of years the Operating Margin of FUN has declined.
The Gross Margin of FUN (91.42%) is better than 100.00% of its industry peers.
FUN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.07% | ||
| PM (TTM) | N/A | ||
| GM | 91.42% |
OM growth 3Y15.01%
OM growth 5Y-3.21%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.07%
GM growth 5Y-0.01%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FUN is still creating some value.
The number of shares outstanding for FUN has been increased compared to 1 year ago.
The number of shares outstanding for FUN has been increased compared to 5 years ago.
Compared to 1 year ago, FUN has an improved debt to assets ratio.
2.2 Solvency
FUN has an Altman-Z score of 0.66. This is a bad value and indicates that FUN is not financially healthy and even has some risk of bankruptcy.
FUN's Altman-Z score of 0.66 is on the low side compared to the rest of the industry. FUN is outperformed by 73.53% of its industry peers.
The Debt to FCF ratio of FUN is 93.82, which is on the high side as it means it would take FUN, 93.82 years of fcf income to pay off all of its debts.
FUN has a worse Debt to FCF ratio (93.82) than 63.24% of its industry peers.
A Debt/Equity ratio of 2.31 is on the high side and indicates that FUN has dependencies on debt financing.
With a Debt to Equity ratio value of 2.31, FUN perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.31 | ||
| Debt/FCF | 93.82 | ||
| Altman-Z | 0.66 |
ROIC/WACC0.53
WACC8.9%
2.3 Liquidity
FUN has a Current Ratio of 0.43. This is a bad value and indicates that FUN is not financially healthy enough and could expect problems in meeting its short term obligations.
FUN's Current ratio of 0.43 is on the low side compared to the rest of the industry. FUN is outperformed by 76.47% of its industry peers.
A Quick Ratio of 0.35 indicates that FUN may have some problems paying its short term obligations.
The Quick ratio of FUN (0.35) is worse than 77.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
FUN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -190.99%.
The Revenue has grown by 50.60% in the past year. This is a very strong growth!
FUN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.93% yearly.
EPS 1Y (TTM)-190.99%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1280%
Revenue 1Y (TTM)50.6%
Revenue growth 3Y26.5%
Revenue growth 5Y12.93%
Sales Q2Q%85.2%
3.2 Future
Based on estimates for the next years, FUN will show a very strong growth in Earnings Per Share. The EPS will grow by 51.21% on average per year.
Based on estimates for the next years, FUN will show a small growth in Revenue. The Revenue will grow by 4.18% on average per year.
EPS Next Y176.59%
EPS Next 2Y77.05%
EPS Next 3Y51.21%
EPS Next 5YN/A
Revenue Next Year3.3%
Revenue Next 2Y4.03%
Revenue Next 3Y4.18%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FUN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 19.80 indicates a rather expensive valuation of FUN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FUN indicates a somewhat cheap valuation: FUN is cheaper than 60.29% of the companies listed in the same industry.
FUN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FUN is on the same level as its industry peers.
FUN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.74 | ||
| EV/EBITDA | 10.16 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as FUN's earnings are expected to grow with 51.21% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y77.05%
EPS Next 3Y51.21%
5. Dividend
5.1 Amount
FUN has a yearly dividend return of 0.94%, which is pretty low.
The stock price of FUN dropped by -24.74% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
FUN's Dividend Yield is a higher than the industry average which is at 3.96.
With a Dividend Yield of 0.94, FUN pays less dividend than the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
The dividend of FUN decreases each year by -35.73%.
FUN has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of FUN decreased in the last 3 years.
Dividend Growth(5Y)-35.73%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
FUN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-13.31%
EPS Next 2Y77.05%
EPS Next 3Y51.21%
33.4
+1.56 (+4.9%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners92.52%
Inst Owner Change-0.03%
Ins Owners0.95%
Ins Owner Change-4.7%
Market Cap3.35B
Analysts82.35
Price Target55.76 (66.95%)
Short Float %6.55%
Short Ratio4.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend0.41
Dividend Growth(5Y)-35.73%
DP-13.31%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-504.25%
Min EPS beat(2)-961.15%
Max EPS beat(2)-47.36%
EPS beat(4)1
Avg EPS beat(4)-250.99%
Min EPS beat(4)-961.15%
Max EPS beat(4)6.48%
EPS beat(8)3
Avg EPS beat(8)-150.47%
EPS beat(12)6
Avg EPS beat(12)-75.47%
EPS beat(16)8
Avg EPS beat(16)-56.01%
Revenue beat(2)0
Avg Revenue beat(2)-1.67%
Min Revenue beat(2)-3.07%
Max Revenue beat(2)-0.27%
Revenue beat(4)1
Avg Revenue beat(4)-5.99%
Min Revenue beat(4)-28.58%
Max Revenue beat(4)7.96%
Revenue beat(8)3
Avg Revenue beat(8)-5.35%
Revenue beat(12)5
Avg Revenue beat(12)-1.47%
Revenue beat(16)9
Avg Revenue beat(16)4.28%
PT rev (1m)-2.09%
PT rev (3m)-2.25%
EPS NQ rev (1m)-3.56%
EPS NQ rev (3m)-2.94%
EPS NY rev (1m)-42.23%
EPS NY rev (3m)-45.38%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)-3.49%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.8 | ||
| P/S | 1.24 | ||
| P/FCF | 63.74 | ||
| P/OCF | 8.98 | ||
| P/B | 1.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.16 |
EPS(TTM)-2.2
EYN/A
EPS(NY)1.69
Fwd EY5.05%
FCF(TTM)0.52
FCFY1.57%
OCF(TTM)3.72
OCFY11.14%
SpS26.99
BVpS20.34
TBVpS-21.45
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.53% | ||
| ROE | -11.32% | ||
| ROCE | 5.97% | ||
| ROIC | 4.71% | ||
| ROICexc | 4.76% | ||
| ROICexgc | 9.85% | ||
| OM | 18.07% | ||
| PM (TTM) | N/A | ||
| GM | 91.42% | ||
| FCFM | 1.94% |
ROA(3y)5.6%
ROA(5y)-1.44%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.59%
ROIC(5y)N/A
ROICexc(3y)12.09%
ROICexc(5y)N/A
ROICexgc(3y)16.06%
ROICexgc(5y)N/A
ROCE(3y)14.66%
ROCE(5y)N/A
ROICexcg growth 3Y6.8%
ROICexcg growth 5Y-8.04%
ROICexc growth 3Y-10.82%
ROICexc growth 5Y-16.81%
OM growth 3Y15.01%
OM growth 5Y-3.21%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.07%
GM growth 5Y-0.01%
F-Score4
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.31 | ||
| Debt/FCF | 93.82 | ||
| Debt/EBITDA | 5.85 | ||
| Cap/Depr | 100.85% | ||
| Cap/Sales | 11.84% | ||
| Interest Coverage | 1.98 | ||
| Cash Conversion | 46.24% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 0.66 |
F-Score4
WACC8.9%
ROIC/WACC0.53
Cap/Depr(3y)120%
Cap/Depr(5y)96.35%
Cap/Sales(3y)11.4%
Cap/Sales(5y)21.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-190.99%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1280%
EPS Next Y176.59%
EPS Next 2Y77.05%
EPS Next 3Y51.21%
EPS Next 5YN/A
Revenue 1Y (TTM)50.6%
Revenue growth 3Y26.5%
Revenue growth 5Y12.93%
Sales Q2Q%85.2%
Revenue Next Year3.3%
Revenue Next 2Y4.03%
Revenue Next 3Y4.18%
Revenue Next 5YN/A
EBIT growth 1Y50.94%
EBIT growth 3Y45.49%
EBIT growth 5Y9.3%
EBIT Next Year135.53%
EBIT Next 3Y41.86%
EBIT Next 5YN/A
FCF growth 1Y-50.03%
FCF growth 3Y-28.19%
FCF growth 5Y-6.17%
OCF growth 1Y14.66%
OCF growth 3Y22.89%
OCF growth 5Y-1.51%