B. Riley Downgrades Six Flags Entertainment (SIX:NYE) to a Neutral rating and cuts the target price to $24

STA Research
by: STA Research

B. Riley Downgrades Six Flags Entertainment to a Neutral rating and cuts the target price to $24 from $55 on the company’s stock.

Based on the Six Flags Entertainment New stock forecasts from 8 analysts, the average analyst target price for Six Flags Entertainment New is USD 51.64 over the next 12 months. Six Flags Entertainment New’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Six Flags Entertainment New is Slightly Bullish , which is based on 5 positive signals and 3 negative signals. At the last closing, Six Flags Entertainment New’s stock price was USD 21.98Six Flags Entertainment New’s stock price has changed by -7.14% over the past week, -21.67% over the past month and -48.34% over the last year.

Six Flags Entertainment Corporation owns and operates regional theme and waterparks under the Six Flags name. Its parks offer various thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues, and retail outlets. The company also sells food, beverages, merchandise, and other products and services within its parks. As of February 28, 2022, the company operated 27 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 Arlington, Texas

What we like:

Underpriced on cashflow basis

The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.

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