A Look At Six Flags Entertainment (FUN) Valuation After Its $1b Senior Notes Refinancing

Six Flags Entertainment (FUN) has simply closed a personal providing of US$1b in 8.625% senior notes due 2032, and is utilizing the proceeds to totally redeem its excellent 2027 senior notes.

See our newest evaluation for Six Flags Entertainment.

The refinancing information has arrived alongside a pointy 17.68% 1 month share worth return and a 3.95% 7 day share worth achieve. However, the 1 yr whole shareholder return of 62.66% and three yr whole shareholder return of 58.63% point out that long run momentum has been weak.

If this type of steadiness sheet reshaping has your consideration, it may very well be a superb second to broaden your watchlist and take a look at auto producers as one other space of the market to analysis.

With Six Flags Entertainment buying and selling at US$16.57 and screening on some metrics as materially under each analyst targets and sure intrinsic estimates, the important thing query is whether or not this displays an undervalued turnaround story or a market already trying by means of to future development.

Most Popular Narrative: 36.5% Undervalued

The most adopted narrative at present factors to a good worth of about US$26.08 per share in opposition to the final shut of US$16.57, which units up a cloth valuation hole for buyers to weigh.

The resurgence in attendance and season move gross sales following the launch of latest sights and the reimagined all-park move construction suggests heightened shopper demand for in-person experiences as climate normalizes, supporting greater recurring income and improved earnings visibility.

Read the entire narrative.

Want to see what’s behind that valuation hole? The narrative refers to regular income features, margin rebuild and a future earnings a number of under many hospitality friends. Curious how these transferring elements mix into right this moment’s truthful worth estimate?

Result: Fair Value of $26.08 (UNDERVALUED)

Have a learn of the narrative in full and perceive what’s behind the forecasts.

However, the truthful worth story nonetheless competes with actual stress from excessive leverage, with web debt of US$5.3b, and climate pushed attendance volatility.

Find out about the important thing dangers to this Six Flags Entertainment narrative.

Build Your Own Six Flags Entertainment Narrative

If you aren’t satisfied by this view, or just favor to check the assumptions your self, you possibly can construct a customized thesis in minutes with Do it your approach.

A fantastic place to begin on your Six Flags Entertainment analysis is our evaluation highlighting 3 key rewards and a couple of vital warning indicators that would impression your funding resolution.

Looking for extra funding concepts?

If Six Flags has sparked your curiosity, don’t cease there; broaden your alternative set and use information pushed filters to uncover shares that actually suit your targets.

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Note that our evaluation might not issue within the newest price-sensitive firm bulletins or qualitative materials.
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