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United Parks & Resorts (PRKS)
NYSE:PRKS

United Parks & Resorts (PRKS) AI Stock Analysis

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United Parks & Resorts

(NYSE:PRKS)

63Neutral
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 (PRKS) vs. S&P 500 (SPY)

United Parks & Resorts Business Overview & Revenue Model

Company DescriptionSeaWorld 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 MoneyUnited 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
70
Positive
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
45
Neutral
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
65
Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.73B1.73B1.73B1.50B431.78M
Gross Profit
1.59B868.93M1.60B1.39B395.07M
EBIT
463.29M459.75M507.53M431.96M-241.66M
EBITDA
622.73M613.98M660.19M521.65M-88.89M
Net Income Common Stockholders
227.50M234.20M291.19M256.51M-312.32M
Balance SheetCash, Cash Equivalents and Short-Term Investments
115.89M246.92M79.20M443.71M433.91M
Total Assets
2.57B2.63B2.33B2.61B2.57B
Total Debt
134.62M2.22B2.23B2.24B2.32B
Net Debt
18.73M1.97B2.15B1.79B1.88B
Total Liabilities
3.04B2.83B2.76B2.64B2.67B
Stockholders Equity
-461.54M-208.22M-437.66M-33.92M-105.80M
Cash FlowFree Cash Flow
231.71M200.08M363.88M374.16M-229.90M
Operating Cash Flow
480.14M504.92M564.59M503.01M-120.73M
Investing Cash Flow
-248.50M-305.61M-200.71M-128.85M-109.17M
Financing Cash Flow
-362.66M-34.71M-726.05M-364.90M624.20M

United Parks & Resorts Technical Analysis

Technical Analysis Sentiment
Negative
Last Price47.69
Price Trends
50DMA
52.51
Negative
100DMA
54.21
Negative
200DMA
52.84
Negative
Market Momentum
MACD
-1.65
Positive
RSI
40.16
Neutral
STOCH
28.56
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 Risk Analysis

United Parks & Resorts disclosed 46 risk factors in its most recent earnings report. United Parks & Resorts reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

United Parks & Resorts Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DIDIS
76
Outperform
$178.32B31.455.54%0.98%3.97%89.53%
MTMTN
71
Outperform
$6.04B23.7138.12%5.49%3.57%13.75%
66
Neutral
$392.80M79.461.73%0.59%-1.53%-80.10%
63
Neutral
$2.58B11.81-52.57%-0.07%6.29%
59
Neutral
$12.43B10.562.81%3.69%1.58%-17.58%
55
Neutral
$7.92B46.48-79.88%10.30%23.45%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PRKS
United Parks & Resorts
47.69
-3.65
-7.11%
RICK
RCI Hospitality Holdings
45.40
-8.84
-16.30%
MTN
Vail Resorts
159.57
-49.10
-23.53%
DIS
Walt Disney
98.64
-12.30
-11.09%
PLNT
Planet Fitness
95.51
34.90
57.58%
FUN
Six Flags Entertainment Corporation
47.04
4.33
10.14%

United Parks & Resorts Earnings Call Summary

Earnings Call Date: Feb 26, 2025 | % Change Since: -12.69% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment. While the company highlighted strong attendance growth and strategic investments in new attractions for 2025, it also faced challenges such as decreased revenue and EBITDA, along with increased operating expenses. The impact of poor weather on attendance further contributed to the overall balanced sentiment.
Highlights
Near-Record Attendance and Revenue
Despite poor weather conditions, the company delivered near-record attendance and record in-park per capita for the fourth quarter and fiscal year 2024.
Share Repurchase Program
Repurchased 9.4 million shares or approximately 15% of total shares outstanding in 2024, demonstrating strong cash flow generation and confidence in the company's valuation.
Positive Booking Trends for 2025
2025 group bookings are up double digits, and international sales growth is up mid-single digits, indicating strong future performance.
Numerous Industry Accolades
SeaWorld Orlando and Aquatica Orlando received top rankings in USA TODAY's best amusement and water parks, and Busch Gardens Williamsburg was named the world's most beautiful theme park for the thirty-fourth consecutive year.
Innovative New Attractions for 2025
The company announced an exciting lineup of new rides and attractions across various parks, which are expected to attract more visitors.
Lowlights
Impact of Poor Weather
Hurricanes and unfavorable weather led to a decrease in attendance by approximately 167,000 guests in the fourth quarter and 432,000 guests for the fiscal year.
Decline in Total Revenue and EBITDA
Total revenue for fiscal year 2024 decreased by $1.3 million, and adjusted EBITDA decreased by $13.3 million or 1.9% compared to 2023.
Increased Operating Expenses
Operating expenses increased by $2.6 million or 1.4% compared to the fourth quarter of 2023, primarily due to increased non-cash adjustments.
Decreased Net Income
Net income for the fiscal year 2024 was $227.5 million, a decrease of $6.7 million compared to 2023.
Lower Admission Per Capita
Admission per capita decreased by 1.9% due to the impact of lower pricing on certain promotional admission products.
Company Guidance
During the United Parks & Resorts Inc. fourth quarter and fiscal year 2024 earnings call, the company provided guidance indicating expectations for a record year in 2025, assuming weather conditions are no worse than in 2024. Despite challenging weather, including hurricanes that impacted attendance, the company reported near-record attendance and revenue metrics for the year. They highlighted a strategic focus on increasing attendance, growing total per capita spending, and managing costs to enhance shareholder value. The company expects significant growth in international sales and group bookings in 2025, with new rides and attractions planned to drive visitor numbers. Their capital allocation strategy includes investing in the business, returning capital to shareholders, and exploring real estate monetization options. United Parks & Resorts Inc. also reported a net total leverage ratio of 2.94x and available liquidity of approximately $798.4 million as of December 31, 2024, with a commitment to maintaining strong financial health to support strategic growth initiatives.

United Parks & Resorts Corporate Events

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
United Parks & Resorts Reports 2024 Financial Results
Neutral
Feb 26, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.