Six Flags Stock Shares Inclusion Efforts Ahead of Earnings

SIX is down nearly 42% in the past 12 months

Jul 20, 2022 at 10:55 AM
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Six Flags Entertainment Corp (NYSE:SIX) is the world’s largest regional theme park company with a market cap of $1.85 billion and 27 parks across the United States, Mexico, and Canada. On Thursday, July 14, Six Flags announced that it had expanded access for guests with physical disabilities and autism. Specifically, the theme park company designed a specialized restraint harness that allows access to all Six Flags Thrill Rides for guests with physical disabilities. It also is the first theme park to be accredited at all locations as Certified Autism Centers so autistic guests and their families can enjoy inclusive options at the parks. 

On top of its latest inclusion developments, Six Flags is scheduled to release its second quarter financial results before the market opens on Thursday, August 11. SIX has outperformed earnings expectations on all four of its most recent earnings reports. Most recently, Six Flags reported losses of 76 cents per share, which beat expectations by a margin of $0.28.

Despite this, SIX has a tendency to drop lower after earnings. The session after five of its last eight reports, SIX saw negative returns, including an 8.6% drop back in October 2020. Regardless of direction, the security has averaged a next-day swing of 4.7%. 

Six Flags stock price has dropped 42% over the past 12 months, though its added nearly 5% so far in July. A close atop a recent ceiling at the 30-day continues to elude the security, which was last seen up 1.9% at $23.16. 

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Short term options traders have been incredibly put-biased recently. This is per SIX's Schaeffer's put/call open interest ratio (SOIR) of 2.22, which sits higher than 93% of readings from the past year. 

SIX now provides an attractive valuation at a forward price-earnings ratio of 8.88 and a price-sales ratio of 1.20. In addition, Six Flags’ trailing 12-month revenues and net income have already increased by 4% and 23%, respectively, since its fiscal 2021 report. Nonetheless, the business’ balance sheet offers very minimal long-term security. SIX currently holds $2.83 billion in total debt and only $252.2 million in cash, which could limit its growth rate over the coming years.


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