Company Overview
United Parks & Resorts Inc. operates as a theme park and entertainment company within the United States, managing a portfolio of attractions including marine-life theme parks located in San Diego, Orlando, and San Antonio under the SeaWorld brand. The company functions within the consumer cyclical sector, specifically the leisure industry, which implies that its performance is intrinsically linked to discretionary consumer spending and economic cycles. This entity employs approximately 3,300 individuals and maintains a market capitalization of $1.71 billion while generating $1.66 billion in annual revenue. These valuation and revenue figures indicate that the company holds a significant but mid-sized position in the leisure market, balancing substantial operational scale with a market cap that reflects the cyclical nature of its business model.
Financial Health
The company reported revenue of $1.66 billion and net income of $168.35 million for the trailing twelve months, with an EBITDA of $554.97 million. The substantial gap between the $1.66 billion revenue and the $168.35 million net income reveals a significant cost structure where approximately 90% of revenue is consumed by operating expenses, taxes, and interest before arriving at the bottom line. Despite the high EBITDA figure, the free cash flow stands at $79.40 million, which suggests that while the business generates strong operating earnings, capital expenditures or working capital requirements absorb a considerable portion of that profit, limiting immediate financial flexibility. The company maintains a cash balance of $99.76 million against total debt of $2.35 billion, resulting in a debt-to-equity ratio that is not explicitly quantified in the available data but indicates a heavily leveraged balance sheet where debt obligations significantly exceed liquid assets. The current ratio is 0.73, indicating that the company's current assets are insufficient to cover its current liabilities without relying on external financing or asset sales. Return on equity is listed as not available, whereas return on assets is 9.3%, revealing that for every dollar of assets employed, the company generates 9.3 cents in pre-financing return, highlighting the impact of its capital structure on overall profitability metrics.
Valuation Assessment
The stock trades with a trailing twelve-month P/E ratio of 10.22 and a forward P/E of 7.51. The notable difference between these two ratios implies that the market expects earnings to decline in the future or that the current earnings base is inflated relative to future projections, as the forward multiple is significantly lower than the historical average. The price-to-book ratio is -3.67, which indicates that the market values the company at a negative premium relative to its book value, a situation often associated with significant intangible assets or goodwill that are not captured on the balance sheet. Alternative valuation metrics such as a price-to-sales ratio of 1.03 and an EV/EBITDA of 6.80 suggest the company is priced at roughly one dollar of revenue per dollar of sales, while the enterprise value relative to earnings remains low compared to the broader theme park sector. The stock has traded between a 52-week low of $29.62 and a 52-week high of $56.95, meaning the current market price sits within this historical range but remains well below the peak valuation achieved in the last year. The beta value of 1.19 indicates that the stock exhibits higher price volatility than the broader market, moving 19% more aggressively than the benchmark index during periods of market fluctuation.
Growth & Income
Revenue growth year over year is -2.8%, while earnings growth year over year is -44.1%. This divergence implies that earnings are contracting at a much faster rate than revenue, suggesting that cost pressures or one-time charges are disproportionately impacting the bottom line compared to top-line sales performance. The company does not pay dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, indicating that the firm retains all earnings to fund operations, debt reduction, or potential share buybacks rather than distributing income to shareholders. Consequently, the absence of a dividend payout means investors receive no current income stream, relying entirely on capital appreciation for returns. Overall, the growth and income profile is characterized by negative earnings momentum and a lack of dividend distribution, reflecting a capital allocation strategy focused on internal reinvestment during a period of earnings contraction.