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United Parks & Resorts (PRKS)
NYSE:PRKS
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United Parks & Resorts
(NYSE:PRKS)
Rating:66Neutral
Price Target:
$53.00
▼(-1.76% Downside)
Positive Factors
Attendance Growth
Attendance growth is tracking ahead of expectations with a +1-3% year-to-date increase.
Share Buyback
A new $500M buyback has been announced, subject to approval.
Negative Factors
Competitive Pressure
Competition from Epic Universe remains a risk.
Pricing Power Concerns
Declines in per guest spend increase questions on pricing power amid rising macroeconomic and competitive uncertainty.
Revenue Decline
Revenue growth is needed to unlock greater operating leverage as core expenses only grew +1% YoY but revenues declined -2%.
United Parks & Resorts (PRKS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.89B
Dividend YieldN/A
Average Volume (3M)847.11K
Price to Earnings (P/E)14.1
Beta (1Y)0.90
Revenue Growth-1.43%
EPS Growth-2.50%
CountryUS
Employees3,300
SectorConsumer Cyclical
Sector Strength80
IndustryLeisure
Share Statistics
EPS (TTM)1.45
Shares Outstanding55,013,897
10 Day Avg. Volume624,482
30 Day Avg. Volume847,112
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.65
Enterprise Value/Revenue2.78
Enterprise Value/Gross Profit3.53
Enterprise Value/Ebitda7.70
Forecast
1Y Price Target
$55.18Price Target Upside2.28% Upside
Rating ConsensusHold
Number of Analyst Covering10
United Parks & Resorts Business Overview & Revenue Model
Company DescriptionUnited Parks & Resorts (PRKS) is a leading entertainment and hospitality company that operates a diverse portfolio of amusement parks, resorts, and recreational facilities. The company focuses on delivering unique experiences to families and visitors through a variety of attractions, including thrilling rides, water parks, themed entertainment, and accommodations that enhance guest experiences. With a commitment to innovation and customer satisfaction, PRKS aims to be a premier destination for leisure and entertainment.
How the Company Makes MoneyUnited Parks & Resorts generates revenue through multiple streams including ticket sales for park admissions, seasonal passes, and group sales. Additional revenue comes from food and beverage sales, merchandise retail, and accommodations at their resorts. The company also partners with local businesses and tourism boards to drive traffic to their parks, while leveraging sponsorships and advertising agreements within their facilities. Special events and seasonal attractions, such as holiday celebrations and concerts, further contribute to their earnings, enhancing the overall guest experience and attracting a broader audience.
United Parks & Resorts Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there are positive aspects such as increased attendance despite weather challenges, strong forward booking trends, and strategic initiatives like share repurchases and digital transformation, these are counterbalanced by declines in revenue, net income, and adjusted EBITDA, as well as challenges in cost management. The sentiment is balanced with both positive advancements and notable financial setbacks.Q2-2025 Updates
Positive Updates
Attendance Growth Despite Weather Challenges
Attendance increased by approximately 48,000 guests or 0.8% compared to the prior year, despite experiencing some of the worst weather conditions in the second quarter.
Strong Forward Booking Trends
Forward booking trends in the Group business and at Discovery Cove are up mid- to high-single digits for the remainder of the year and are also showing strong trends for 2026.
New $500 Million Share Repurchase Program
The Board approved a new $500 million share repurchase program, indicating confidence in the business and the belief that shares are materially undervalued.
International and Sponsorship Opportunities
Active discussions with international partners for MOUs and anticipated sponsorship revenue growth to $20 million annually highlight diversification and growth potential.
Digital Transformation Success
The mobile app has been downloaded more than 15.6 million times, showing a 35% increase in average transaction value for food and beverage purchases made through the app compared to point-of-sale orders.
Negative Updates
Decrease in Total Revenue
Total revenue decreased by $7.4 million or 1.5% compared to the second quarter of 2024, primarily due to decreases in admissions per capita and in-park per capita spending.
Decline in Net Income and Adjusted EBITDA
Net income for the second quarter was $80.1 million, a decrease from $91.1 million in the prior year quarter. Adjusted EBITDA decreased by $11.9 million compared to the second quarter of 2024.
Increased Operating Expenses
Operating expenses increased by $14.6 million or 7.7% compared to the second quarter of 2024, attributed to a $9.6 million increase in noncash self-insurance adjustments.
Deferred Revenue Decrease
Deferred revenue decreased by approximately $22.7 million compared to June of 2024, with the pass base down approximately 3% compared to July 2024.
Cost Management Challenges
Acknowledged challenges in proactively managing park labor and operating expenses in response to poor weather, with an additional cost reduction plan aiming to reduce up to $15 million in costs in the second half of the year.
Company Guidance
During the United Parks & Resorts Second Quarter 2025 Earnings Conference Call, the company provided guidance indicating strong forward-booking trends, particularly in their Group business and Discovery Cove property, which have seen mid- to high-single-digit increases for the remainder of the year. Despite weather challenges, attendance at SeaWorld Orlando and other Orlando parks increased, and early 2026 bookings are also showing promising trends. The company announced a $500 million share repurchase program, highlighting their confidence in the undervaluation of their shares. They acknowledged challenges in managing park labor costs due to poor weather but have implemented a cost reduction plan aimed at saving up to $15 million in the second half of the year. The net total leverage ratio stood at 3.0x, with approximately $883 million in total available liquidity as of June 30, 2025. The company remains optimistic about their special events lineup, including popular Halloween and Christmas events, expecting them to drive significant attendance and revenue growth.United Parks & Resorts Financial Statement Overview
Summary
United Parks & Resorts exhibits strong operational performance with efficient cost management, but faces challenges with its highly leveraged balance sheet and negative equity, indicating financial distress. While cash flow generation remains solid, the decrease in free cash flow highlights potential pressures. Overall, the company displays mixed financial health, with stable income but significant balance sheet risks.Income Statement
United Parks & Resorts shows moderately stable revenue with a slight decline in the TTM period. Gross profit margin is robust at 78.9%, indicating efficient cost management. However, net profit margin dropped to 13.0% in TTM, reflecting potential cost pressures or inefficiencies impacting profitability. The EBIT and EBITDA margins demonstrate consistent operational efficiency.65
Positive
Balance Sheet
The balance sheet reveals high leverage with a negative stockholders' equity, indicating financial distress. The debt-to-equity ratio cannot be calculated due to negative equity, and the equity ratio is negative, underscoring significant liabilities compared to assets. These factors highlight financial risk and potential instability.45
Neutral
Cash Flow
Cash flow from operations remains strong, maintaining a healthy ratio to net income, suggesting good cash conversion. However, free cash flow has declined in the TTM period, reducing financial flexibility. The company's capability to manage its capital investments efficiently is evident despite the drop.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.71B | 1.73B | 1.73B | 1.73B | 1.50B | 431.78M |
| Gross Profit | 1.35B | 1.59B | 868.93M | 1.60B | 1.39B | 395.07M |
| EBITDA | 620.19M | 622.73M | 613.98M | 660.19M | 521.65M | -88.89M |
| Net Income | 222.56M | 227.50M | 234.20M | 291.19M | 256.51M | -312.32M |
Balance Sheet | ||||||
| Total Assets | 2.57B | 2.57B | 2.63B | 2.33B | 2.61B | 2.57B |
| Cash, Cash Equivalents and Short-Term Investments | 75.67M | 115.89M | 246.92M | 79.20M | 443.71M | 433.91M |
| Total Debt | 2.36B | 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 | -478.29M | -461.54M | -208.22M | -437.66M | -33.92M | -105.80M |
Cash Flow | ||||||
| Free Cash Flow | 216.36M | 231.71M | 200.08M | 363.88M | 374.16M | -229.90M |
| Operating Cash Flow | 434.41M | 480.14M | 504.92M | 564.59M | 503.01M | -120.73M |
| Investing Cash Flow | -218.05M | -248.50M | -305.61M | -200.71M | -128.85M | -109.17M |
| Financing Cash Flow | -344.41M | -362.66M | -34.71M | -726.05M | -364.90M | 624.20M |
United Parks & Resorts Technical Analysis
Positive
53.95
Price Trends
49.55
Positive
47.13
Positive
49.96
Positive
Market Momentum
1.11
Negative
62.46
Neutral
70.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRKS, the sentiment is Positive. The current price of 53.95 is above the 20-day moving average (MA) of 51.31, above the 50-day MA of 49.55, and above the 200-day MA of 49.96, indicating a bullish trend. The MACD of 1.11 indicates Negative momentum. The RSI at 62.46 is Neutral, neither overbought nor oversold. The STOCH value of 70.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $4.40B | 20.04 | 27.51% | 1.25% | 3.83% | 28.57% | |
69 Neutral | $2.32B | 32.96 | 13.16% | 0.72% | 8.51% | 31.24% | |
66 Neutral | $2.89B | 14.12 | -52.57% | ― | -1.43% | -2.50% | |
61 Neutral | $17.59B | 13.29 | -5.28% | 3.05% | 1.25% | -14.67% | |
58 Neutral | $1.50B | ― | -108.04% | 2.10% | 4.05% | 77.32% | |
57 Neutral | $1.76B | ― | -46.53% | ― | -2.35% | -7104.57% | |
52 Neutral | $409.44M | ― | 22.27% | ― | -3.02% | -517.53% |
* Consumer Cyclical Sector Average
Performance Comparison
PRKS
United Parks & Resorts
53.95
1.34
2.55%
MODG
Topgolf Callaway Brands
9.20
-1.56
-14.50%
GOLF
Acushnet Holdings
74.50
7.69
11.51%
OSW
OneSpaWorld Holdings
22.37
6.95
45.07%
LUCK
Lucky Strike Entertainment
10.48
-0.49
-4.47%
XPOF
Xponential Fitness
8.47
-4.06
-32.40%
United Parks & Resorts Corporate Events
Executive/Board Changes
United Parks & Resorts Appoints New Chief Accounting Officer
Neutral
Aug 19, 2025
On August 13, 2025, United Parks & Resorts Inc. announced the appointment of Kevin Connelly as the new Chief Accounting Officer, effective August 18, 2025. Connelly brings extensive experience from his previous roles in finance and accounting, having served in senior positions at various companies, including Appreciation Homes, LLC and Capview Partners, LLC. This leadership change follows the stepping down of William Myers from the role on August 13, 2025, who will remain with the company until the end of the month to ensure a smooth transition. Connelly’s compensation package includes a base salary, bonus opportunities, and stock options, aligning with the company’s incentive plans.
Executive/Board ChangesBusiness Operations and Strategy
United Parks & Resorts HR Chief Resigns
Negative
Jul 22, 2025
On July 16, 2025, Michael Rady, Chief Human Resources Officer of United Parks & Resorts Inc., announced his resignation, effective August 1, 2025. This change in leadership may impact the company’s human resources strategies and operations moving forward.
Executive/Board ChangesShareholder Meetings
United Parks & Resorts Approves Key Proposals at Annual Meeting
Neutral
Jun 17, 2025
On June 13, 2025, United Parks & Resorts Inc. held its Annual Meeting of Stockholders, where a quorum was present. During the meeting, several proposals were voted on, including the election of directors, ratification of KPMG LLP as the independent registered public accounting firm, approval of executive compensation, and the 2025 Omnibus Incentive Plan. All proposals were approved, including the election of directors to serve until the 2026 Annual Meeting and the approval of the director compensation limit in the incentive plan.
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.