Six Flags Story

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SIX -- USA Stock  

USD 19.76  0.75  3.66%

Six Flags Entertainment is scheduled to announce its earnings today. The next earnings report is expected on the 27th of October 2020. Six Flags Net Current Assets as percentage of Total Assets are fairly stable at the moment as compared to the past year. Six Flags reported Net Current Assets as percentage of Total Assets of 1.27 in 2019. Current Ratio is likely to grow to 1.40 in 2020, whereas Net Income Per Employee is likely to drop 3,187 in 2020. As many millenniums are trying to avoid consumer cyclical space, it makes sense to break down Six Flags Entertainment a little further and try to understand its current market patterns. We will analyze why Six Flags investors may still consider a stake in the business.
Published over two months ago
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You think Six Flags (NYSE:SIX) debt is an issue for investors?
This firm has 2.49 B in debt with debt to equity (D/E) ratio of 569.6, demonstrating that Six Flags Entertainment may be unable to create cash to meet all of its financial commitments. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Six Flags has an asset utilization ratio of 60.12 percent. This suggests that the company is making $0.6 for each dollar of assets. An increasing asset utilization means that Six Flags Entertainment is more efficient with each dollar of assets it utilizes for everyday operations.
Six Flags financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Six Flags, including all of Six Flags's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Six Flags assets, the company is considered highly leveraged. Understanding the composition and structure of overall Six Flags debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Six Flags Total Debt

Six Flags Entertainment liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Six Flags Entertainment has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Six Flags balance sheet include debt obligations and money owed to different Six Flags vendors, workers, and loan providers. Below is the chart of Six Flags main long-term debt accounts currently reported on its balance sheet.
You can use Six Flags Entertainment financial leverage analysis tool to get a better grip on understanding its financial position

How important is Six Flags's Liquidity

Six Flags financial leverage refers to using borrowed capital as a funding source to finance Six Flags Entertainment ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Six Flags financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Six Flags's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Six Flags, but it might be worth checking our own buy vs. sell analysis

What is driving Six Flags Investor Appetite?

The company reported the last year's revenue of 1.46 B. Total Income to common stockholders was 163.65 M with profit before taxes, overhead, and interest of 787.28 M.

Asset Breakdown

2.6 B
Assets Non Current
1.2 B
Current Assets
Total Assets3.04 Billion
Current Assets391.43 Million
Assets Non Current2.64 Billion
Goodwill1.17 Billion
Tax Assets58.57 Million

Another small slide for Six Flags

Current maximum drawdown is at 30.54. As of the 29th of July, Six Flags has the Coefficient Of Variation of 1323.48, risk adjusted performance of 0.1336, and Semi Deviation of 4.75. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Six Flags Entertainment, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for Six Flags Entertainment, which can be compared to its competition. Please validate Six Flags Entertainment standard deviation, as well as the relationship between the value at risk and kurtosis to decide if Six Flags is priced more or less accurately, providing market reflects its prevalent price of 19.19 per share. Given that Six Flags Entertainment has jensen alpha of 0.1893, we advise you to double-check Six Flags Entertainment's current market performance to make sure the company can sustain itself at a future point.

Our Final Take On Six Flags

While some other companies in the leisure industry are either recovering or due for a correction, Six Flags may not be as strong as the others in terms of longer-term growth potentials. On the whole, as of the 29th of July 2020, our primary 30 days buy-sell recommendation on the company is Cautious Hold. We believe Six Flags is undervalued with average odds of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Six Flags Entertainment. Please refer to our Terms of Use for any information regarding our disclosure principles.

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