F.U.N. Fundamental Analysis of Cedar Fair, L.P

[mbl92212]

While reading my post I hope you get the FUN song from sponge bob stuck in your head.

I am very new to investing and financial analysis so any input would be highly appreciated!

Here is my analysis:

1. Last 10 years GMP 91.55% ranked higher than 786 other company's in travel and leisure industry. VERY GOOD.
2. Net operating margin percentage is 15.1%(low) Typical median is around %20. This is bad.
3. Operating leverage of 3.5. VERY GOOD.
4. Financial leverage 1.75 (bad)
5. Debt to equity ratio current -6.48. Median is 1.42 (.42 higher than would like) But current is very good and especially being good during this corona virus I think this is great.
6. Quick ratio 0.5, current ratio 1.25. 1.25:0.5. Beats a very appropriate 2:1 ratio
7. Return on equity last 12 months 60.8%. 2015-2019 average of 500.8%

Overall from my fundamental analysis and typically high paying dividends this company to me is a big buy. What do you guys think ?

 

[godpraisingman]

@mbl92212 They have 2.1 Billion in long term debt, almost no cash on hand, parks have been largely closed (basically no revenue the last two quarters and massive losses) all while they’re servicing that debt and COVID is still going strong for the foreseeable future.

You really think this is a good investment? Your analysis feels like you picked a bunch of random, backward looking ratios.

A turnaround could happen; things reopen, etc. but FUN seems very risky.

 

[unknownguy07]

@godpraisingman Agreed, I had FUN precovid but sold it now, because its not gonna be back to normal, at the latest next summer.

It will pop on the news, but impossible to time that

 

[mcleanch1]

@mbl92212 Nothing about the business itself and the current issues it's going through.

" typically high paying dividends this company to me is a big buy"

I really don't agree with the obsession with dividends that has become such a big thing in this sub in recent years I don't know what started it but it could be the most mediocre company but if it paid high single digit % yield you'd get people on here going, "OOOH LOOK AT THAT DIVIDEND!"

Something that pays a high dividend should absolutely not be automatically a "big buy" because of that.