Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, theme park operator Six Flags Entertainment (NYSE: SIX ) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Six Flags' business and see what CAPS investors are saying about the stock right now.
Six Flags facts
|Headquarters (founded)||Grand Prairie, Texas (1971)|
|Market Cap||$2.6 billion|
|Trailing-12-Month Revenue||$1 billion|
|Management||Chairman/CEO James Reid-Anderson
CFO John Duffey
|Return on Capital (average, past 3 years)||3.3%|
|Cash/Debt||$231.4 million / $957.2 million|
Universal Parks & Resorts
Walt Disney Parks and Resorts
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 26% of the 38 members who have rated Six Flags believe the stock will underperform the S&P 500 going forward.
Six Flags would have to increase their yearly EPS three-fold to justify the current trading price of $45 per share. Yes, I know that they just increased their dividend to [$0.60] per quarter giving a yield of 5%. ...
However, even with this dividend (which I question whether they can even afford to pay) ... the stock is still far overvalued in my opinion. Unless there is some major -- I mean major -- increase in profits on short order the price has to fall from here.
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