Six Flags Entertainment Corp ($SIX) Cautious Buy or Hold to $37 Confident Investor Rating: Fair

Company name Six Flags Entertainment Corp
Stock ticker SIX
Live stock price [stckqut]SIX[/stckqut]
P/E compared to competitors Good


Employee productivity Poor
Sales growth Poor
EPS growth Good
P/E growth Good
EBIT growth Good


Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $57.29
Target stock price (averages with growth) $12.2
Target stock price (averages with no growth) $3.7
Target stock price (manual assumptions) $41.67

The following company description is from Google Finance:

Six Flags Entertainment Corporation (Six Flags), incorporated on December 09, 1997, owns and operates regional theme, water and zoological parks. As of the December 31, 2011, of the 18 parks the Company owned or operated, 16 are located in the United States, one is located in Mexico City, Mexico and one is located in Montreal, Canada. Its diversified portfolio of North American theme parks serves an aggregate population of approximately 100 million people and 160 million people within a radius of 50 miles and 100 miles, respectively, with some of the highest per capita gross domestic product in the United States. During the year ended December 31, 2012, the Company’s parks offered approximately 800 rides, including over 120 roller coasters, making the Company the provider of thrill rides in the industry.


Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Six Flags Entertainment Corp as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $37.02

Growth: 0.12

Current EPS (TTM): $2.38

P/E: 16

Future EPS Calc: $4.19

Future Stock Price Calc: $67.1

Target stock price: $41.67

I hope that this makes you a better investor. [/s2If]

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