United Parks & Resorts (PRKS) AI Stock Analysis

• Market Cap: $2.58B
• Dividend Yield: N/A
• Average Volume (3M): 977.14K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.83
• Revenue Growth: -0.07%
• EPS Growth: 6.29%
• Country: US
• Employees: 16,700
• Sector: Consumer Cyclical
• Sector Strength: 51
• Industry: Hotels, Lodging & Leisure
• EPS (TTM): 3.87
• Shares Outstanding: 55,029,034
• 10 Day Avg. Volume: 1,061,600
• 30 Day Avg. Volume: 977,137
• PEG Ratio: 1.88
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.46
• Price to Cash Flow (P/CF): 5.60
• P/FCF Ratio: 4.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $60.57
• Price Target Upside: 27.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

United Parks & Resorts demonstrates strong operational efficiency and cash flow generation, supporting its reasonable valuation. Despite these strengths, the company's financial stability is undermined by negative equity and lack of revenue growth. The earnings call presents a mixed outlook with strategic growth initiatives tempered by recent financial declines and increased expenses. The technical analysis suggests neutral momentum, aligning with the overall balanced but cautious stock outlook.

Positive Factors

Post-Pandemic Recovery

Post-pandemic recovery of PRKS is well ahead of the curve, with revenue and AEBITDA significantly outperforming competitors.

Valuation

PRKS shares are attractively valued at a discount to the average pre-merger multiple of competitors, suggesting potential for value growth.

Negative Factors

Competition

The introduction of EPIC is viewed as a potential revenue and EBITDA headwind due to competition in Orlando.

Financial Performance

PRKS will face increased cash taxes in the future, significantly impacting financials.

Operational Costs

Cash operating costs remain higher despite lower revenue, indicating a mature business stage.

United Parks & Resorts Business Overview & Revenue Model

Company Description

SeaWorld Entertainment, Inc. is a holding company, which through its subsidiary, engages in the park and entertainment business. Its brand portfolio of theme parks includes SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Sesame Place, Sea Rescue. The company was founded in 1959 and is headquartered in Orlando, FL.

How the Company Makes Money

United Parks & Resorts generates revenue primarily through the sale of admission tickets to its theme parks and resorts. Additional revenue streams include in-park sales such as food and beverage, merchandise, and premium experiences like VIP tours and special events. The company also benefits from hotel accommodations and vacation packages associated with its resort properties. Strategic partnerships with various brands and franchises enhance its offerings and drive additional traffic and sales. Licensing agreements for branded merchandise and intellectual property further contribute to its earnings. The company's financial performance is also bolstered by marketing collaborations and sponsorship deals that align with its brand image and target audience.

United Parks & Resorts Financial Statement Overview

Summary

United Parks & Resorts shows solid operational efficiency with strong cash generation, indicated by consistent margins and robust cash flow ratios. However, the lack of revenue growth and negative stockholders' equity present significant risks to financial stability, limiting growth prospects and highlighting potential solvency issues.

Income Statement

The company's TTM (Trailing-Twelve-Months) income statement shows a stable performance with a gross profit margin of 67.19% and a net profit margin of 13.19%. Revenue has remained relatively flat year-over-year, indicating stability but limited growth potential. The EBIT margin stands at 27.00%, and the EBITDA margin is 36.11%, both reflecting solid operational efficiency. Despite the stable profitability metrics, the lack of revenue growth could be a concern for future expansion.

Balance Sheet

The balance sheet reveals financial instability due to negative stockholders' equity, resulting in a lack of available equity ratio or debt-to-equity ratio calculations. The company has no current debt, which eliminates leverage risk but also indicates limited growth through financing. The absence of liabilities in the TTM data provides no immediate leverage concerns, but the negative equity suggests potential financial distress.

Cash Flow

The cash flow statement shows a strong operating cash flow to net income ratio of 2.00, indicating efficient cash generation from operations. The free cash flow has grown by 25.54% from the previous year, suggesting improving cash flow management. However, the free cash flow to net income ratio stands at 1.10, indicating some reliance on non-operating cash flows to support net income. Overall, the cash flow situation appears stable with room for improvement in free cash flow generation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.73B	1.73B	1.73B	1.50B	431.78M
	Gross Profit
1.59B	868.93M	1.60B	1.39B	395.07M
	EBIT
463.29M	459.75M	507.53M	431.96M	-241.66M
	EBITDA
622.73M	613.98M	660.19M	521.65M	-88.89M
	Net Income Common Stockholders
227.50M	234.20M	291.19M	256.51M	-312.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
115.89M	246.92M	79.20M	443.71M	433.91M
	Total Assets
2.57B	2.63B	2.33B	2.61B	2.57B
	Total Debt
134.62M	2.22B	2.23B	2.24B	2.32B
	Net Debt
18.73M	1.97B	2.15B	1.79B	1.88B
	Total Liabilities
3.04B	2.83B	2.76B	2.64B	2.67B
	Stockholders Equity
-461.54M	-208.22M	-437.66M	-33.92M	-105.80M
Cash Flow		Free Cash Flow
231.71M	200.08M	363.88M	374.16M	-229.90M
	Operating Cash Flow
480.14M	504.92M	564.59M	503.01M	-120.73M
	Investing Cash Flow
-248.50M	-305.61M	-200.71M	-128.85M	-109.17M
	Financing Cash Flow
-362.66M	-34.71M	-726.05M	-364.90M	624.20M

United Parks & Resorts Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 47.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRKS, the sentiment is Negative. The current price of 47.69 is below the 20-day moving average (MA) of 50.74, below the 50-day MA of 52.51, and below the 200-day MA of 52.84, indicating a bearish trend. The MACD of -1.65 indicates Positive momentum. The RSI at 40.16 is Neutral, neither overbought nor oversold. The STOCH value of 28.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRKS.

United Parks & Resorts Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DIS	76 Outperform	$178.32B	31.45	5.54%	0.98%	3.97%	89.53%
MTN	71 Outperform	$6.04B	23.71	38.12%	5.49%	3.57%	13.75%
RICK	66 Neutral	$392.80M	79.46	1.73%	0.59%	-1.53%	-80.10%
PRKS	63 Neutral	$2.58B	11.81	-52.57%	―	-0.07%	6.29%
Sector *	59 Neutral	$12.43B	10.56	2.81%	3.69%	1.58%	-17.58%
PLNT	55 Neutral	$7.92B	46.48	-79.88%	―	10.30%	23.45%

United Parks & Resorts Corporate Events

United Parks & Resorts Reports 2024 Financial Results

United Parks & Resorts Inc. reported its financial results for the fourth quarter and fiscal year 2024, revealing a slight decline in attendance and revenue compared to the previous year, largely due to adverse weather conditions. Despite these challenges, the company achieved record in-park per capita spending and continued its strategic growth initiatives, including refinancing debt and repurchasing shares, which underscore its commitment to enhancing shareholder value. Looking ahead, the company is optimistic about 2025, with plans for new attractions and events aimed at boosting attendance and revenue.