NYSE:SIX

Stock Analysis Report

Executive Summary

Six Flags Entertainment Corporation owns and operates regional theme and waterparks under the Six Flags name.


Snowflake Analysis

Second-rate dividend payer and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SIX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.9%

SIX

2.7%

US Hospitality

7.2%

US Market


1 Year Return

-74.9%

SIX

-44.6%

US Hospitality

-10.4%

US Market

Return vs Industry: SIX underperformed the US Hospitality industry which returned -43.4% over the past year.

Return vs Market: SIX underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

SIXIndustryMarket
7 Day-2.9%2.7%7.2%
30 Day-50.3%-36.3%-12.6%
90 Day-72.1%-47.7%-19.4%
1 Year-73.3%-74.9%-43.1%-44.6%-8.5%-10.4%
3 Year-74.8%-78.4%-31.2%-35.9%15.8%8.3%
5 Year-66.7%-73.9%-25.3%-33.6%35.8%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

5.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SIX ($13.95) is trading above our estimate of fair value ($12.36)

Significantly Below Fair Value: SIX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SIX is good value based on its PE Ratio (6.6x) compared to the Hospitality industry average (12.3x).

PE vs Market: SIX is good value based on its PE Ratio (6.6x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: SIX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SIX has negative assets, so we can't compare its PB Ratio to the US Hospitality industry average.


Next Steps

Future Growth

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

-12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIX's earnings are forecast to decline over the next 3 years (-11.9% per year).

Earnings vs Market: SIX's earnings are forecast to decline over the next 3 years (-11.9% per year).

High Growth Earnings: SIX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SIX's revenue (0.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SIX's revenue (0.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SIX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Six Flags Entertainment performed over the past 5 years?

23.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SIX has high quality earnings.

Growing Profit Margin: SIX's current net profit margins (12%) are lower than last year (18.9%).


Past Earnings Growth Analysis

Earnings Trend: SIX's earnings have grown significantly by 23.3% per year over the past 5 years.

Accelerating Growth: SIX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SIX had negative earnings growth (-35.1%) over the past year, making it difficult to compare to the Hospitality industry average (1.6%).


Return on Equity

High ROE: SIX's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Six Flags Entertainment's financial position?


Financial Position Analysis

Short Term Liabilities: SIX has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: SIX has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: SIX has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: SIX's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: SIX's debt is not well covered by operating cash flow (18%).

Interest Coverage: SIX's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: SIX has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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

7.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SIX's dividend (7.17%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: SIX's dividend (7.17%) is in the top 25% of dividend payers in the US market (5.49%)


Stability and Growth of Payments

Stable Dividend: SIX has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SIX's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (155%), SIX's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SIX's dividends in 3 years are forecast to be covered by earnings (63.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Mike Spanos (54yo)

0.25

Tenure

US$4,850,190

Compensation

Mr. Michael Spanos, also known as Mike, has been a Director of Six Flags Entertainment Corporation since October 24, 2019 and has been its President and Chief Executive Officer since November 18, 2019. Mr. ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD4.85M) is above average for companies of similar size in the US market ($USD3.18M).

Compensation vs Earnings: Insufficient data to compare Mike's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Spanos
President0.25yrUS$4.85m0.032% $339.7k
Brett Petit
Senior Vice President of Marketing & Sales9.67yrsUS$854.83k0.23% $2.4m
Catherine Aslin
Senior Vice President of Human Resources3.17yrsUS$638.88k0.051% $540.7k
Marshall Barber
Transitional Advisorno dataUS$1.06m0.25% $2.7m
Lance Balk
Of Counsel Advisorno dataUS$1.02m0.28% $3.0m
Leonard Russ
Interim CFO and Senior VP of Strategic Planning & Analysisno datano data0.079% $842.7k
Mario Centola
Vice President of International Operations & Business Development1.67yrsno datano data
Wilson Brooks
VP & Chief Accounting Officer1.67yrsno data0.0013% $13.6k
David Austin
Senior VP of Information Systems & Chief Information Officer2.25yrsno datano data
Stephen Purtell
Senior VP of Investor Relations & Treasurerno datano datano data

2.0yrs

Average Tenure

53yo

Average Age

Experienced Management: SIX's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Spanos
President0.25yrUS$4.85m0.032% $339.7k
Selim Bassoul
Independent Directorno datano data0.023% $247.1k
B. Baldanza
Independent Directorno datano data0.0029% $30.6k
Richard Roedel
Independent Non-Executive Chairman0.25yrUS$296.53k0.072% $769.8k
Nancy Krejsa
Independent Director3yrsUS$229.99k0.22% $2.4m
Kurt Cellar
Independent Director9.83yrsUS$262.49k0.098% $1.0m
Jon Luther
Independent Director9.83yrsUS$269.99k0.063% $668.9k
Stephen Owens
Independent Director9.83yrsUS$267.49k0.035% $372.7k
Arik Ruchim
Independent Director0.17yrno data9.21% $98.0m

3.0yrs

Average Tenure

57yo

Average Age

Experienced Board: SIX's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SIX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Six Flags Entertainment Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Six Flags Entertainment Corporation
  • Ticker: SIX
  • Exchange: NYSE
  • Founded: 1961
  • Industry: Leisure Facilities
  • Sector: Consumer Services
  • Market Cap: US$1.064b
  • Shares outstanding: 84.66m
  • Website: https://www.sixflags.com

Number of Employees


Location

  • Six Flags Entertainment Corporation
  • 924 Avenue J East
  • Grand Prairie
  • Texas
  • 75050
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SIXNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2010
6FEDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2010

Biography

Six Flags Entertainment Corporation owns and operates regional theme and waterparks under the Six Flags name. The company’s parks offer various thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues, and retail outlets. It owns and operates 26 parks in the United States, Mexico, and Canada. The company was formerly known as Six Flags, Inc. and changed its name to Six Flags Entertainment Corporation in April 2010. Six Flags Entertainment Corporation was founded in 1961 and is based in Grand Prairie, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 02:10
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.