DB:W2L

Stock Analysis Report

SeaWorld Entertainment

Executive Summary

SeaWorld Entertainment, Inc., together with its subsidiaries, operates as a theme park and entertainment company in the United States.

Snowflake

Fundamentals

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has SeaWorld Entertainment's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.0%

W2L

3.7%

DE Hospitality

1.4%

DE Market


1 Year Return

-1.6%

W2L

-16.3%

DE Hospitality

3.7%

DE Market

Return vs Industry: W2L exceeded the German Hospitality industry which returned -16.3% over the past year.

Return vs Market: W2L underperformed the German Market which returned 3.7% over the past year.


Shareholder returns

W2LIndustryMarket
7 Day6.0%3.7%1.4%
30 Day0.6%21.6%1.3%
90 Day-17.6%26.1%3.4%
1 Year-1.6%-1.6%-10.6%-16.3%7.0%3.7%
3 Year92.9%92.9%16.0%0.5%18.5%8.3%
5 Year88.8%72.4%35.7%8.7%42.2%22.9%

Price Volatility Vs. Market

How volatile is SeaWorld Entertainment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is SeaWorld Entertainment undervalued compared to its fair value and its price relative to the market?

29.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: W2L (€24.8) is trading below our estimate of fair value (€35)

Significantly Undervalued: W2L is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: W2L is good value based on its PE Ratio (23.3x) compared to the Hospitality industry average (32.3x).

PE vs Market: W2L is poor value based on its PE Ratio (23.3x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: W2L is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: W2L is overvalued based on its PB Ratio (16.5x) compared to the DE Hospitality industry average (2.6x).


Next Steps

Future Growth

How is SeaWorld Entertainment forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: W2L's forecast earnings growth (15% per year) is above the savings rate (0.2%).

Earnings vs Market: W2L's earnings (15% per year) are forecast to grow faster than the German market (12.7% per year).

High Growth Earnings: W2L's earnings are forecast to grow, but not significantly.

Revenue vs Market: W2L's revenue (2.6% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: W2L's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: W2L's Return on Equity is forecast to be high in 3 years time (31.7%)


Next Steps

Past Performance

How has SeaWorld Entertainment performed over the past 5 years?

-25.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: W2L's earnings have declined by -25.4% per year over the past 5 years.

Accelerating Growth: W2L has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: W2L has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (-28.4%).


Return on Equity

High ROE: Whilst W2L's Return on Equity (76.45%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: W2L has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: W2L has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is SeaWorld Entertainment's financial position?


Financial Position Analysis

Short Term Liabilities: W2L's short term assets ($168.3M) do not cover its short term liabilities ($496.3M)

Long Term Liabilities: W2L's short term assets (168.3M) do not cover its long term liabilities (1.7B)


Debt to Equity History and Analysis

Debt Level: W2L's debt to equity ratio (1256.4%) is considered high

Reducing Debt: W2L's debt to equity ratio has increased from 294.5% to 1256.4% over the past 5 years.

Debt Coverage: W2L's debt is well covered by operating cash flow (20.2%).

Interest Coverage: W2L's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

Inventory Level: W2L has a high level of physical assets or inventory.

Debt Coverage by Assets: W2L's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is SeaWorld Entertainment's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage6.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate W2L's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate W2L's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if W2L's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if W2L's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: W2L is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of W2L's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of SeaWorld Entertainment's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Marc Swanson (48yo)

0.08yrs

Tenure

US$1,343,902

Compensation

Mr. Marc G. Swanson serves as Interim Chief Executive Officer at SeaWorld Entertainment, Inc. since September 16, 2019. Mr. Swanson served as appointed to Chief Financial Officer of the SeaWorld Entertainm ...


CEO Compensation Analysis

Compensation vs. Market: Marc has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the German market.

Compensation vs Earnings: Marc's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.3yrs

Average Tenure

47yo

Average Age

Experienced Management: W2L's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

64yo

Average Age

Experienced Board: W2L's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$315,357,19730 May 19
Hill Path Capital LP
EntityCompany
Shares13,214,000
Max PriceUS$23.87
SellUS$449,382,19329 May 19
Pacific Alliance Investment Management Limited
EntityCompany
Shares18,829,874
Max PriceUS$23.87

Ownership Breakdown


Management Team

  • Matthew Stroud (54yo)

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Chris Dold (46yo)

    Chief Zoological Officer

    • Tenure: 3.5yrs
    • Compensation: US$709.29k
  • Peter Frey

    Senior Marketing Officer of Seaworld Brands

    • Tenure: 8.7yrs
  • Tony Taylor (54yo)

    Chief Legal Officer

    • Tenure: 0yrs
    • Compensation: US$1.24m
  • Elizabeth Gulacsy (45yo)

    Chief Accounting Officer & Interim CFO

    • Tenure: 0.08yrs
  • Marc Swanson (48yo)

    Interim Chief Executive Officer

    • Tenure: 0.08yrs
    • Compensation: US$1.34m
  • Walter Bogumil (47yo)

    Chief Strategy Officer

    • Tenure: 1.3yrs
    • Compensation: US$3.31m
  • Mike Denninger

    Senior Vice President of Attractions

    • Tenure: 1.6yrs
  • Kathleen Liever (41yo)

    Senior Vice President of Human Resources

    • Tenure: 1.3yrs
  • Suzanne Beasley

    Manager of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Tom Moloney (75yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$226.58k
  • Charles Koppelman (79yo)

    Director

    • Tenure: 0.3yrs
  • Ron Bension (64yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: US$203.78k
  • Bill Gray (67yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$202.98k
  • Scott Ross (40yo)

    Non-Executive Chairman

    • Tenure: 0.3yrs
    • Compensation: US$183.78k
  • James Chambers (33yo)

    Director

    • Tenure: 0.3yrs
  • Yoshikazu Maruyama (48yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$295.78k

Company Information

SeaWorld Entertainment, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SeaWorld Entertainment, Inc.
  • Ticker: W2L
  • Exchange: DB
  • Founded: 1959
  • Industry: Leisure Facilities
  • Sector: Consumer Services
  • Market Cap: US$2.176b
  • Listing Market Cap: US$1.953b
  • Shares outstanding: 78.09m
  • Website: https://seaworldentertainment.com

Number of Employees


Location

  • SeaWorld Entertainment, Inc.
  • 9205 South Park Center Loop
  • Suite 400
  • Orlando
  • Florida
  • 32819
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SEASNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2013
W2LDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2013

Biography

SeaWorld Entertainment, Inc., together with its subsidiaries, operates as a theme park and entertainment company in the United States. The company operates SeaWorld theme parks in Orlando, Florida; San Ant ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 21:15
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.