Pursuit Attractions and Hospitality (PRSU) AI Stock Analysis

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Pursuit Attractions and Hospitality

(NYSE:PRSU)

52Neutral

Pursuit Attractions and Hospitality shows potential for recovery with strong earnings guidance and strategic positioning. However, its financial performance is inconsistent, and technical indicators suggest a bearish trend. Valuation appears attractive due to a low P/E ratio, but lack of dividend yield limits investor appeal.

Pursuit Attractions and Hospitality (PRSU) vs. S&P 500 (SPY)

Market Cap

$885.59M

Dividend YieldN/A

Average Volume (3M)307.90K

Price to Earnings (P/E)2.6

Beta (1Y)1.36

Revenue Growth-6.87%

EPS GrowthN/A

CountryUS

Employees1,500

SectorIndustrials

Sector Strength70

IndustrySpecialty Business Services

Share Statistics

EPS (TTM)12.14

Shares Outstanding28,149,603

10 Day Avg. Volume296,645

30 Day Avg. Volume307,902

Financial Highlights & Ratios

PEG Ratio0.92

Price to Book (P/B)N/A

Price to Sales (P/S)0.74

Price to Cash Flow (P/CF)2.30

P/FCF Ratio2.50

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$50.00

Price Target Upside57.58% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Pursuit Attractions and Hospitality Business Overview & Revenue Model

Company DescriptionPursuit Attractions and Hospitality (PRSU) is a dynamic company operating in the tourism and hospitality industry. It specializes in offering unique travel experiences and hospitality services, including attractions, lodges, and tours. PRSU is dedicated to creating unforgettable adventures for travelers, combining breathtaking destinations with exceptional service.

How the Company Makes MoneyPRSU makes money through a diverse revenue model that includes entry fees from its attractions, accommodation charges from its lodges, and tour packages. Additionally, the company generates revenue from partnerships with travel agencies and other tourism-related businesses, which help in broadening its customer base. PRSU also benefits from retail and dining operations at its various locations, contributing to its overall financial success.

Pursuit Attractions and Hospitality Financial Statement Overview

Summary

Viad's financial statements reflect a company on a growth trajectory, with improving profitability and cash flow metrics. However, high leverage remains a concern. Continued revenue growth and effective cost management will be crucial for maintaining financial health and reducing risk associated with debt levels.

Income Statement

Positive

Viad has shown strong revenue growth over recent years, particularly with a 13% increase in TTM (Trailing-Twelve-Months) compared to the previous annual period. The gross profit margin improved significantly to 10.15% in TTM, and the net profit margin has increased to 2.21%, reflecting enhanced profitability. EBIT and EBITDA margins have also improved, indicating better operational efficiency. However, the company still faces challenges with relatively low profit margins due to high costs.

Balance Sheet

Positive

Viad's balance sheet shows a high debt-to-equity ratio due to substantial debt levels, though stockholders' equity has increased in the TTM period. The equity ratio improved to 8.09%, showing a healthier balance sheet position. However, the company remains highly leveraged, which poses potential risks if revenue growth slows or if interest rates rise significantly.

Cash Flow

Positive

The company has demonstrated strong cash flow management, with a significant increase in free cash flow by 64.6% in the most recent period. The operating cash flow to net income ratio is robust, indicating efficient conversion of operating income into cash. Positive free cash flow to net income ratio underscores the company’s ability to generate cash beyond its earnings.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
1.40B	1.24B	1.13B	507.34M	415.44M	90.24M
	Gross Profit
142.05M	108.50M	289.19M	-46.93M	-647.85M	-1.19B
	EBIT
120.65M	94.46M	17.32M	-60.52M	-182.56M	18.89M
	EBITDA
169.49M	142.09M	121.99M	-12.89M	-286.03M	77.86M
	Net Income Common Stockholders
30.89M	16.02M	23.22M	-93.29M	-375.11M	22.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
50.82M	52.70M	59.72M	61.60M	39.55M	62.00M
	Total Assets
1.10B	1.14B	1.09B	1.04B	853.22M	1.32B
	Total Debt
581.37M	576.12M	584.70M	565.24M	379.54M	445.52M
	Net Debt
530.55M	523.41M	524.99M	503.64M	339.99M	383.52M
	Total Liabilities
1.02B	999.97M	988.55M	940.35M	673.90M	765.29M
	Stockholders Equity
-4.25M	43.43M	14.53M	6.28M	95.95M	467.50M
Cash Flow		Free Cash Flow
47.08M	28.59M	6.26M	-95.79M	-133.81M	31.99M
	Operating Cash Flow
121.22M	104.68M	73.43M	-37.85M	-80.25M	108.14M
	Investing Cash Flow
-70.19M	-74.86M	-63.27M	-51.80M	-6.77M	-165.56M
	Financing Cash Flow
-99.25M	-36.16M	-6.13M	107.89M	66.29M	73.47M

Pursuit Attractions and Hospitality Technical Analysis

Technical Analysis Sentiment

Negative

Last Price31.73

Price Trends

50DMA

37.46

Negative

100DMA

39.95

Negative

200DMA

37.77

Negative

Market Momentum

MACD

-0.85

Positive

RSI

37.84

Neutral

STOCH

19.26

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRSU, the sentiment is Negative. The current price of 31.73 is below the 20-day moving average (MA) of 35.05, below the 50-day MA of 37.46, and below the 200-day MA of 37.77, indicating a bearish trend. The MACD of -0.85 indicates Positive momentum. The RSI at 37.84 is Neutral, neither overbought nor oversold. The STOCH value of 19.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRSU.

Pursuit Attractions and Hospitality Risk Analysis

Pursuit Attractions and Hospitality disclosed 26 risk factors in its most recent earnings report. Pursuit Attractions and Hospitality 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

Pursuit Attractions and Hospitality Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNF	79 Outperform	$3.09B	21.52	7.17%	0.79%	5.04%	31.69%
TH	71 Outperform	$682.63M	9.56	17.85%	―	-31.46%	-56.72%
ABM	66 Neutral	$2.76B	34.99	4.46%	2.12%	2.81%	-67.57%
BV	63 Neutral	$1.23B	78.61	4.15%	―	-1.69%	―
Sector *	62 Neutral	$7.50B	12.89	3.19%	3.38%	3.64%	-14.27%
ARMK	60 Neutral	$9.01B	26.76	11.46%	1.22%	-5.98%	-46.55%
PRSU	52 Neutral	$885.59M	2.61	-36.15%	―	-6.87%	―

* Industrials Sector Average

Performance Comparison

PRSU

Pursuit Attractions and Hospitality

31.73

-4.59

-12.64%

ABM

ABM Industries

46.11

3.38

7.91%

UNF

UniFirst

174.15

13.95

8.71%

ARMK

ARAMARK Holdings

33.13

1.89

6.05%

BrightView Holdings

13.16

1.85

16.36%

Target Hospitality

7.00

-3.71

-34.64%

Pursuit Attractions and Hospitality Earnings Call Summary

Earnings Call Date: Mar 11, 2025 | % Change Since: -14.66% | Next Earnings Date: May 1, 2025

Earnings Call Sentiment Positive

The earnings call highlighted Pursuit's strong strategic positioning and growth prospects following the sale of GES and successful expansion efforts. However, challenges such as impairment charges and the impact of the Jasper wildfire were noted. The company remains optimistic about its future growth trajectory, bolstered by a strong balance sheet and strategic acquisitions.

Highlights

Completion of GES Sale

Pursuit completed the sale of GES to Truelink Capital for $535 million, allowing the company to eliminate high-cost debt and establish substantial liquidity.

Expansion and New Openings

Pursuit opened a new FlyOver attraction in Chicago and expanded the experience at Sky Lagoon in Iceland, contributing to a 13% year-over-year growth in attractions ticket revenue.

Strong Financial Performance

Full-year revenue grew to $366.5 million, up 5% year-over-year, overcoming the impact of the Jasper wildfire. Adjusted EBITDA guidance for 2025 is expected to see double-digit growth.

Strategic Acquisitions

Completed three strategic tuck-in acquisitions including Eddie's Cafe and the Jasper SkyTram, expanding Pursuit's presence in iconic locations.

Optimized Balance Sheet

Pursuit ended 2024 with a net leverage ratio of approximately zero and a new $200 million undrawn revolver, providing a strong foundation for future growth.

Lowlights

Impairment Charges

Pursuit recorded impairment charges totaling $47.6 million for the full year, including a $27.5 million asset write-down related to FlyOver Las Vegas due to slower-than-expected performance.

Jasper Wildfire Impact

The Jasper wildfire negatively impacted revenue by approximately $23 million and adjusted EBITDA by $15 million in the second half of 2024.

Foreign Exchange Headwinds

The weaker Canadian dollar is expected to create a $7 million headwind to EBITDA due to translation effects.

Company Guidance

During the call, Pursuit provided guidance for 2025, expecting to achieve double-digit growth in both revenue and adjusted EBITDA. The company projects adjusted EBITDA to range between $98 million and $108 million, marking an increase of $21 million to $31 million compared to 2024, driven by the anticipated recovery of $15 million in EBITDA from the Jasper wildfire impact and $5 million to $7 million from recent acquisitions. The guidance incorporates an exchange rate assumption of $0.69 per Canadian dollar, with a $7 million EBITDA impact due to translation effects. Pursuit emphasized the strength of their balance sheet, with zero net leverage and $250 million in liquidity, to support investment in their Refresh, Build, Buy strategy. They also highlighted expected growth in visitation and revenues from new additions such as FlyOver Chicago and the expansion of Sky Lagoon.

Pursuit Attractions and Hospitality Corporate Events

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy

Pursuit Attractions and Hospitality Secures Funding and Sells GES

Positive

Jan 7, 2025

Pursuit Attractions and Hospitality has secured a $200 million revolving credit facility with Bank of America and other lenders, allowing flexibility in various currencies, to fund operations, growth, acquisitions, and general corporate purposes. Additionally, Pursuit completed the sale of its GES business to TL Voltron Purchaser, LLC for $535 million, which signifies a strategic shift and will be reported as a discontinued operation, impacting its financial results and operations significantly.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.