A Look At Six Flags Entertainment (FUN) Valuation After Speedway Stunt Coaster Opens In Mexico

Six Flags Entertainment (FUN) just opened Speedway Stunt Coaster at Six Flags Mexico, a family-friendly roller coaster aimed at broadening the park’s appeal and potentially lifting interest in visits and season passes.

See our latest analysis for Six Flags Entertainment.

Speedway Stunt Coaster lands at a time when Six Flags Entertainment’s share price has been volatile, with a 30 day share price return of 13.55% and a year to date share price return of 12.01%, set against a 1 year total shareholder return decline of 61.67%. This points to some near term momentum building after a much tougher longer term experience for holders.

If the Six Flags news has you thinking about where else growth and excitement might show up next, it could be worth scanning 22 top founder-led companies as a starting point for fresh ideas.

So with Six Flags Entertainment trading at a discount to both analyst targets and one intrinsic value estimate after a long stretch of weak returns, is this a mispriced turnaround story, or is the market already factoring in future growth?

Most Popular Narrative: 31.2% Undervalued

Six Flags Entertainment’s most followed narrative pegs fair value at $25.23 per share, compared with the last close at $17.35, pointing to a wide gap the market has not closed yet.

Consolidation synergies from the Cedar Fair merger, ongoing portfolio optimization, and aggressive cost discipline (targeting $120M in permanent annual savings) are expected to structurally lower the cost base, raising net margins and accelerating deleveraging through more robust free cash flow.

Read the complete narrative.

Curious what kind of revenue growth, margin rebuild and future earnings multiple need to line up for that fair value to make sense? The narrative lays out a tight set of assumptions that link guest spending, cost cuts and balance sheet repair into one valuation story.

Result: Fair Value of $25.23 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, that story can quickly change if high leverage and interest costs bite harder than expected, or if weather-related park closures keep interrupting attendance and cash flow.

Find out about the key risks to this Six Flags Entertainment narrative.

Build Your Own Six Flags Entertainment Narrative

If you look at the numbers and come to a different conclusion, or prefer building your own thesis from scratch, you can spin up a fully tailored narrative in just a few minutes and Do it your way.

A great starting point for your Six Flags Entertainment research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If this has you thinking bigger than just one stock, now is the moment to broaden your watchlist and look for opportunities that fit your approach.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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