| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 84.68 | 125 |
| Intrinsic value (DCF) | 26.72 | -29 |
| Graham-Dodd Method | 10.24 | -73 |
| Graham Formula | 31.06 | -17 |
United Parks & Resorts Inc. (NYSE: PRKS) is a leading theme park and entertainment company in the U.S., operating a diverse portfolio of 12 parks under iconic brands like SeaWorld, Busch Gardens, Aquatica, and Sesame Place. Headquartered in Orlando, Florida, the company offers immersive experiences across marine life attractions, thrill rides, water parks, and family-friendly entertainment. With a strong presence in key tourist destinations such as Florida, Texas, California, and Virginia, PRKS capitalizes on the growing leisure and tourism industry. The company, formerly known as SeaWorld Entertainment, rebranded in 2024 to reflect its expanded focus on integrated resort experiences. Despite challenges in the cyclical consumer discretionary sector, PRKS maintains resilience through diversified revenue streams, including admissions, merchandise, and food services. Its strategic investments in new attractions and conservation initiatives enhance brand loyalty and visitor engagement, positioning it as a key player in the competitive theme park industry.
United Parks & Resorts Inc. (PRKS) presents a mixed investment profile. The company benefits from strong brand recognition, a diversified park portfolio, and consistent revenue growth (FY revenue: $1.73B). However, its high leverage (total debt: $2.36B) and beta of 1.51 reflect sensitivity to economic downturns and discretionary spending cuts. The lack of dividends may deter income-focused investors, but operational cash flow ($480M) supports reinvestment in high-margin attractions. Competitive pressures from larger peers like Disney and Universal, coupled with capex demands ($248M), could strain margins. Investors should weigh PRKS’s recovery potential in post-pandemic tourism against cyclical risks and debt management.
United Parks & Resorts Inc. (PRKS) competes in the high-stakes theme park industry by differentiating through niche offerings like marine life exhibits (SeaWorld) and regional accessibility (Busch Gardens). Its competitive advantage lies in lower average ticket prices compared to Disney or Universal, attracting value-conscious families. PRKS also leverages seasonal events (e.g., Halloween Horror Nights) and partnerships (e.g., Sesame Street) to drive footfall. However, it lacks the scale and IP depth of Disney’s franchises or Universal’s film-themed rides. PRKS’s focus on conservation and education provides a unique selling point but limits broad international appeal. Operational efficiency is a strength, with EBITDA margins improving post-pandemic, yet capex intensity to refresh attractions remains a challenge. The company’s regional clustering (e.g., Florida parks) aids cost synergies but exposes it to localized demand shocks. While PRKS holds a solid #3 position in the U.S. market, it must balance debt reduction with innovation to fend off smaller rivals like Cedar Fair and Six Flags.