– The largest regional theme park operator in the US.
– Quality business with great management trading on a below-normal multiple on below-normal earnings due to short-term earnings pressures and confusion over new management’s strategy.
– Newly appointed CEO with a great track record – delivered 28% IRR over 18 years as CEO of MIDD.
– The model indicates a doubling of EPS to $3.66/share between ’22 and ’26.
– At 17x PE for 2026, it’s $60 stock.
– Multiple implies 10x EBITDA, which is below 12x historical average, and Merlin’s acquisition by BX and Lego.
Exp. gain: +115% to $60/share over 3-4 years.
Full SIX write-up (free guest account required): https://www.valueinvestorsclub.com/idea/SIX_FLAGS_ENTERTAINMENT_CORP/2144221496