Investment Thesis
Six Flags is in severe financial distress with -119% net margins, -137.1M negative free cash flow, and extreme 19.13x debt/equity leverage despite 14.4% revenue growth. The company is burning cash operationally while carrying $5.3B debt against only $279.2M equity and has poor liquidity (0.68x current ratio), creating near-term solvency risk. Worsening profitability despite revenue growth indicates structural operational problems that growth alone cannot solve.
Strengths
- Revenue growth of 14.4% YoY demonstrates customer demand and market activity
- Significant asset base of $7.7B represents valuable operating properties and infrastructure
- Recent insider Form 4 activity (7 filings in 90 days) shows management engagement
Risks
- Operating losses of -312.2M with -138.4% operating margin indicate core business is structurally unprofitable
- Extreme leverage of 19.13x debt/equity with negative free cash flow creates critical bankruptcy and refinancing risk
- Negative free cash flow of -137.1M annually is unsustainable and deteriorating (-60.8% FCF margin)
- Poor liquidity (0.68x current ratio) with current liabilities exceeding current assets threatens operational continuity
- Profitability worsening (-3.2% YoY decline in net income) despite revenue growth signals underlying operational dysfunction
Key Metrics to Watch
- Free cash flow trend and path to cash flow positivity (currently -137.1M)
- Operating margin improvement trajectory (currently -138.4%)
- Debt refinancing capabilities and near-term debt obligations vs. available liquidity
Financial Metrics
Revenue
225.6M
Net Income
-268.6M
EPS (Diluted)
$-2.65
Free Cash Flow
-137.1M
Total Assets
7.7B
Cash
116.5M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-138.4%
Net Margin
-119.0%
ROE
-96.2%
ROA
-3.5%
FCF Margin
-60.8%
Balance Sheet & Liquidity
Current Ratio
0.68x
Quick Ratio
0.62x
Debt/Equity
19.13x
Debt/Assets
0.0%
Interest Coverage
N/A
Long-term Debt
5.3B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-09T10:42:45.478414 |
Data as of: 2026-03-29 |
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