SeaWorld Entertainment, Inc.

SeaWorld Entertainment, Inc. (NYSE: SEAS) is a theme park and entertainment company based in San Diego, California. SeaWorld, Busch Gardens, Aquatica, Sea Rescue, and Sesame Place are among the company's brands. It offers a broad portfolio of around 12 distinct theme parks located in markets throughout the United States.

Key Highlights

• The company reported YoY growth of 248.26% in total revenue to USD 1.50 billion in FY21 (ended December 31, 2021) compared to USD 431.78 million in FY20.
• SEAS reported net income of USD 256.51 million in FY21 vs. net loss of USD 312.32 million in FY20.
• As of December 31, 2021, the company had cash and cash equivalents of USD 443.71 million and total debt of USD 2.12 billion.
• SEAS’ net margin for FY21 was 17.1%, higher than the industry median of 5.8%.
• SEAS' FY21 cash cycle of 28 days is significantly higher than the industry median of 1 day.
• NVAX announced on April 13, 2022, that Swissmedic, the Swiss Agency for Therapeutic Products, had granted Novavax conditional marketing authorization (CMA) for Nuvaxovid COVID-19 Vaccine (recombinant, adjuvanted) for active immunization to prevent COVID-19 caused by SARS-CoV-2 in people aged 18 and up.
• Stock is currently trading above its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bullish indicator.
• Stock is currently leaning towards the higher end of the 52-week range of USD 41.94 to USD 76.00.

Conclusion: Considering the company’s surge in topline, improvement in profitability, technical indicators, and associated risks. We recommend a "Watch" rating on the stock at the current price of USD 72.965, up 1.58%, as of April 14, 2022, at 12:27 PM PDT.

Technical Price Chart (as on April 14, 2022, at 12:27 PM PDT). Source: REFINITIV, Analysis by Kalkine Group

Technical Analysis Summary:

*Current price as of April 14, 2022, at 12:27 PM PDT

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.