Why Cedar Fair could be a solid long-term investment
Cedar Fair could be a good long-term investment option based on its current valuation, because the company generated adjusted EBITDA growth of over 80% YoY in 4Q14.
Cedar Fair’s 200-day moving average share price is $49.73 with a 52-week high and low of $56.09 and $43.81, respectively.
The share price of Cedar Fair (FUN) surged more than 5% after the announcement of its 4Q14 and FY14 results on February 19, 2015.
On February 25, Cedar Fair Entertainment announced the declaration of a regular quarterly cash dividend of $0.75 per limited partner (or LP) unit.
Cedar Fair’s cash flows from operations and credit facilities are expected to be sufficient to meet its working capital needs, debt service, and planned capital expenditures.
Cedar Fair’s adjusted EBITDA for the full year was a record $431 million, up 1% from 2013.
Cedar Fair’s (FUN) operating costs and expenses for 2014 were $748 million, up $32 million, or 4%, from 2013.
Cedar Fair’s revenue increased by 15.6% year-over-year to $160.8 million in the fourth quarter of 2014.
Before you invest in Six Flags, you should note that the company has been returning capital to its shareholders in the form of dividends and share buybacks.
Six Flags has a consensus rating of buy and a consensus mean price target of ~$52, which is 10% higher than the share price close as of February 20, 2014.
Six Flags has paid quarterly cash dividends since the fourth quarter of 2010. In 2014, it paid shareholders $184 million in dividends, 6% more than 2013.
Six Flags Entertainment (SIX) generally makes capital investments in the food, retail, games, and other in-park areas to increase per capita guest spending.
Six Flags’ per capita guest spending increased $2.79, or 7%, to $42.97 in 2014, primarily due to improved admissions pricing and new offerings in the parks.
A season pass or membership guest contributes higher aggregate profitability to Six Flags (SIX) over the course of a year than a single-day ticket guest.
Six Flags’ (SIX) admissions revenue per capita increased by 9% in 2014, primarily driven by pricing improvements on multi- and single-use ticket offerings.
Six Flags’ EBITDA increased by $11 million, or 30%, to $46 million. This increase was generated from a 19% increase in revenue.
Six Flags’ revenue increased 19.1% year-over-year to $183.7 million in 4Q14, mainly due to a 3% increase in guest spending and a 15% increase in attendance.
Six Flags has $1.2 billion in revenue and 18 parks across North America. It operates 16 parks in the United States, one in Mexico City, and one in Montreal.
Six Flags’ management plays a vital role in shaping the company and leading it in the desired direction. This article reviews three management positions.
Six Flags’ earnings per share are expected to grow from $2.45 in 2013 to $3.75 in 2017. Six Flags Entertainment (SIX) could be a good bet for the long term.