Do You Think Six Flags Entertainment Corporation (SIX) is a Reasonably Valued Stock?

Merion Road Capital, an investment advisor, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, Merion Road Small Cap Fund returned -11.5% compared to 2.1% return for the Russell 2000 Index, and its Long Only Large Cap returned -6.4% compared to -4.9% return for the S&P 500 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Merion Road Capital discussed stocks like Six Flags Entertainment Corporation (NYSE:SIX) in its Q3 2022 investor letter. Based in Arlington, Texas, Six Flags Entertainment Corporation (NYSE:SIX) is a theme and waterpark operator. On October 14, 2022, Six Flags Entertainment Corporation (NYSE:SIX) stock closed at $19.56 per share. One-month return of Six Flags Entertainment Corporation (NYSE:SIX) was -13.14% and its shares lost 54.44% of their value over the last 52 weeks. Six Flags Entertainment Corporation (NYSE:SIX) has a market capitalization of $1.594 billion.

Here is what Merion Road Capital specifically said about Six Flags Entertainment Corporation (NYSE:SIX) in its Q3 2022 investor letter:

“I am actively looking for new ideas and started dipping my toe in Six Flags Entertainment Corporation (NYSE:SIX). SIX is another turnaround situation. Unlike PTON, SIX is backed by hard assets and has a history of stable earnings. New management is looking to grow EBITDA to $700mm vs. the $525mm range over the past several years, covid aside. Their strategy is to effectively reduce traffic and increase price, while prioritizing capital spend on high return projects. Results have admittingly been mixed so far. But even assuming no benefit from the new initiatives, the company is trading at a reasonable valuation of 11x EBIT.”

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Six Flags Entertainment Corporation (NYSE:SIX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Six Flags Entertainment Corporation (NYSE:SIX) at the end of the second quarter which was 38 in the previous quarter.

We discussed Six Flags Entertainment Corporation (NYSE:SIX) in another article and shared Baron Funds’ views on the company. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.



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