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United Parks & Resorts (PRKS)
NYSE:PRKS
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United Parks & Resorts
(NYSE:PRKS)
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Rating:53Neutral
Price Target:
$36.00
▲(3.87% Upside)
United Parks & Resorts faces significant financial challenges, including high leverage and declining revenue growth, which weigh heavily on its stock score. While technical indicators suggest bearish momentum, the stock's valuation is relatively attractive. The earnings call highlights both opportunities and risks, with future attractions and investments offering potential upside.
Positive Factors
Operational Efficiency
High gross and EBIT margins indicate effective cost management and operational efficiency, which can support long-term profitability and competitiveness.
Forward Booking Trends
Strong forward booking trends suggest robust future demand and revenue potential, supporting long-term growth and stability.
Upcoming Attractions
Investing in new attractions can enhance guest experiences, drive attendance, and support revenue growth, strengthening market position.
Negative Factors
Declining Revenue Growth
A decline in revenue growth can indicate challenges in market demand or competitive pressures, potentially impacting long-term financial performance.
High Financial Leverage
High leverage and negative equity suggest financial instability, which can limit the company's ability to invest in growth and weather economic downturns.
Attendance Decline
A decline in attendance can affect revenue and profitability, indicating potential issues with market appeal or competitive positioning.
United Parks & Resorts (PRKS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.93B
Dividend YieldN/A
Average Volume (3M)1.32M
Price to Earnings (P/E)10.7
Beta (1Y)0.89
Revenue Growth-3.27%
EPS Growth-17.93%
CountryUS
Employees3,300
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)1.61
Shares Outstanding54,550,610
10 Day Avg. Volume857,725
30 Day Avg. Volume1,322,423
Financial Highlights & Ratios
PEG Ratio3.36
Price to Book (P/B)-7.25
Price to Sales (P/S)1.94
P/FCF Ratio14.44
Enterprise Value/Market Cap2.59
Enterprise Value/Revenue2.99
Enterprise Value/Gross Profit3.24
Enterprise Value/Ebitda9.01
Forecast
1Y Price Target
$45.91Price Target Upside32.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)3.26
Revenue Forecast (FY)$1.67B
United Parks & Resorts Business Overview & Revenue Model
Company DescriptionUnited Parks & Resorts (PRKS) is a leading entertainment and hospitality company specializing in the development and management of theme parks, water parks, and resort properties. With a diverse portfolio that includes family-friendly attractions, luxury accommodations, and unique dining experiences, PRKS aims to create memorable experiences for guests of all ages. The company operates in the leisure and tourism sectors, focusing on providing high-quality entertainment options and exceptional customer service.
How the Company Makes MoneyUnited Parks & Resorts generates revenue through multiple streams, predominantly from ticket sales, which include daily admission and season passes to its parks and attractions. The company also profits from on-site retail operations, including merchandise sales, food and beverage services, and rental services for equipment such as lockers and strollers. Additionally, PRKS earns significant income from hotel accommodations within its resort properties, as well as from partnerships with local businesses and travel agencies that promote package deals. Seasonal events and special attractions further enhance revenue generation, while strategic marketing efforts and loyalty programs help to retain and attract visitors, contributing to a steady flow of earnings.
United Parks & Resorts Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with strong in-park spending and forward bookings, but significant challenges in attendance, revenue, and cost management. Despite international visitation declines and revenue decreases, the company remains optimistic about future attractions and investment strategies.Q3-2025 Updates
Positive Updates
In-Park Per Capita Spending Growth
In-park per capita spending has grown in 20 of the last 22 quarters, showing consistent consumer engagement and spending at the parks.
Record Attendance at Halloween Events
The Howl-O-Scream events in Orlando and San Diego saw record attendance, indicating strong performance during Halloween.
Encouraging Forward Booking Trends
Forward booking revenue trends for 2026 at Discovery Cove and group business are up over 20% compared to the same time last year.
SeaWorld Orlando Attendance Increase
Year-to-date attendance at SeaWorld Orlando is up, despite challenges in the broader market.
Share Repurchase Program
The Board approved a $500 million share repurchase program, and 635,020 shares have been repurchased for $32.2 million, highlighting confidence in the company's valuation.
Upcoming Attractions and Investments
Several new rides and attractions are planned for 2026, including SEAQuest in Orlando and Barracuda Strike in San Antonio, indicating continued investment in park offerings.
Strong Balance Sheet
Net total leverage ratio of 3.2x with approximately $872 million of total available liquidity and $221 million of cash on hand.
Negative Updates
Decrease in Total Revenue
Total revenue for the third quarter decreased by $34.1 million or 6.2% compared to the third quarter of 2024.
Attendance and Admissions Decline
Attendance decreased by approximately 240,000 guests or 3.4%, and admission per capita decreased by 6.3% compared to the prior year quarter.
International Visitation Decline
A decline in international visitation resulted in approximately 90,000 fewer guests, reversing earlier positive trends.
Increased Operating and Administrative Expenses
Operating expenses increased by $7.1 million or 3.4%, and selling, general, and administrative expenses increased by $5.3 million or 9.6%.
Net Income Decline
Net income for the third quarter decreased to $89.3 million from $119.7 million in the third quarter of 2024.
Challenges in Cost Management
The company expressed disappointment in cost management and has implemented new processes to address execution issues.
Company Guidance
During the United Parks & Resorts Third Quarter Earnings Conference Call, several key metrics and trends were highlighted. Attendance for the third quarter of 2025 decreased by approximately 240,000 guests or 3.4% compared to the previous year, influenced by an unfavorable calendar shift and a decline in international visitation of about 90,000 guests. Despite these challenges, in-park per capita spending increased by 1.1%, marking growth in 20 of the last 22 quarters. Total revenue for the quarter was $511.9 million, a decrease of 6.2% from 2024, while adjusted EBITDA was $216.3 million. The company reported net income of $89.3 million for the quarter and highlighted a strong balance sheet with a net total leverage ratio of 3.2x and $872 million of total available liquidity. Looking forward, there is optimism with forward booking revenue trends at Discovery Cove and group business up over 20% for 2026, and several new attractions and events planned for 2026, such as SEAQuest: Legends of the Deep at SeaWorld Orlando and Barracuda Strike at SeaWorld San Antonio. Additionally, the company has made progress with international partnerships, signing one memorandum of understanding (MOU) and expecting another, while also seeing growing adoption of their mobile app with over 16.8 million downloads, contributing to a 37% increase in average transaction value for in-app purchases.United Parks & Resorts Financial Statement Overview
Summary
United Parks & Resorts shows strong operational efficiency with high gross and EBIT margins. However, declining revenue growth, significant financial leverage, and cash flow volatility pose risks. The balance sheet's negative equity and high debt levels indicate financial instability.Income Statement
United Parks & Resorts shows strong gross profit margins consistently above 90%, indicating efficient cost management. However, the company faces challenges with declining revenue growth, as seen in the recent TTM data with a -1.99% growth rate. Net profit margins have decreased slightly over the years, reflecting pressure on profitability. Despite these challenges, EBIT and EBITDA margins remain healthy, suggesting operational efficiency.65
Positive
Balance Sheet
The balance sheet reveals significant financial leverage, with a negative stockholders' equity leading to a high debt-to-equity ratio. This indicates potential financial instability and risk. The negative return on equity further highlights challenges in generating returns for shareholders. The equity ratio is also negative, underscoring the company's reliance on debt financing.40
Negative
Cash Flow
Operating cash flow remains positive, but free cash flow has shown volatility, with a recent decline of -11.82% in TTM. The operating cash flow to net income ratio is close to 1, indicating adequate cash generation relative to net income. However, the free cash flow to net income ratio suggests limited cash available after capital expenditures, which could constrain future growth investments.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.67B | 1.73B | 1.73B | 1.73B | 1.50B | 431.78M |
| Gross Profit | 1.54B | 1.59B | 1.59B | 1.60B | 1.39B | 395.07M |
| EBITDA | 555.08M | 622.73M | 613.98M | 660.19M | 521.65M | -91.39M |
| Net Income | 181.20M | 227.50M | 234.20M | 291.19M | 256.51M | -312.32M |
Balance Sheet | ||||||
| Total Assets | 2.74B | 2.57B | 2.63B | 2.33B | 2.61B | 2.57B |
| Cash, Cash Equivalents and Short-Term Investments | 183.23M | 115.89M | 246.92M | 79.20M | 443.71M | 433.91M |
| Total Debt | 2.35B | 2.36B | 2.22B | 2.23B | 2.24B | 2.32B |
| Total Liabilities | 3.05B | 3.04B | 2.83B | 2.76B | 2.64B | 2.67B |
| Stockholders Equity | -308.74M | -461.54M | -208.22M | -437.66M | -33.92M | -105.80M |
Cash Flow | ||||||
| Free Cash Flow | 220.71M | 231.71M | 200.08M | 363.88M | 374.16M | -229.90M |
| Operating Cash Flow | 414.16M | 480.14M | 504.92M | 564.59M | 503.01M | -120.73M |
| Investing Cash Flow | -193.45M | -248.50M | -305.61M | -200.71M | -128.85M | -109.17M |
| Financing Cash Flow | -76.75M | -362.66M | -34.71M | -726.05M | -364.90M | 624.20M |
United Parks & Resorts Technical Analysis
Negative
34.66
Price Trends
40.98
Negative
46.19
Negative
46.17
Negative
Market Momentum
-1.12
Negative
40.75
Neutral
13.24
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRKS, the sentiment is Negative. The current price of 34.66 is below the 20-day moving average (MA) of 35.21, below the 50-day MA of 40.98, and below the 200-day MA of 46.17, indicating a bearish trend. The MACD of -1.12 indicates Negative momentum. The RSI at 40.75 is Neutral, neither overbought nor oversold. The STOCH value of 13.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRKS.
United Parks & Resorts Risk Analysis
United Parks & Resorts disclosed 46 risk factors in its most recent earnings report. United Parks & Resorts reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
United Parks & Resorts Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $5.73B | 20.61 | 10.38% | ― | 15.77% | 86.16% | |
70 Outperform | $2.16B | 29.87 | 13.53% | 0.80% | 7.27% | 45.12% | |
64 Neutral | $2.15B | -1.45 | -46.95% | ― | -3.58% | -12720.97% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $367.14M | -4.60 | ― | ― | -3.55% | -111.90% | |
53 Neutral | $1.93B | 10.67 | ― | ― | -3.27% | -17.93% | |
46 Neutral | $1.23B | -22.03 | ― | 2.49% | 3.88% | 34.36% |
* Consumer Cyclical Sector Average
PRKS
United Parks & Resorts
34.66
-19.42
-35.91%
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United Parks & Resorts Corporate Events
Executive/Board Changes
United Parks & Resorts CFO Resignation Announced
Neutral
Oct 28, 2025
On October 22, 2025, United Parks & Resorts Inc. announced that its Chief Financial Officer and Treasurer, James Mikolaichik, will resign effective November 15, 2025, to pursue another opportunity. His departure is not due to any disagreements with the company. The company has appointed James W. Forrester, Jr., the Senior Vice President of Finance, as the Interim Chief Financial Officer and Treasurer starting November 15, 2025. Mr. Forrester brings extensive experience in theme park finance and operations, having previously held significant roles at SeaWorld Orlando and other major entertainment companies.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.