competitive strategy

Six Flags Entertainment Corporation (SIX) Case Study

[WLOs: 2, 3] [CLOs: 2, 4, 5, 6]

Prior to completing this assignment, read Chapters 7, 8, and 14 in the Dhandho Investor You may want to review Chapters 5 and 6 from the Dhandho Investor as well, assigned in Week 2, before beginning this assignment. Then, read Chapters 3 and 4 in the Outsiders text.

In addition, read the following articles and resources:

Six Flags is a regional theme park company with 27 parks located throughout the United States, Canada, and Mexico. In October of 2019, SIX, the company’s ticker symbol, reported record attendance and revenues; and on October 24, 2019, SIX announced it had hired a new president and CEO, Michael Spanos.

For the 4 years ending December 31, 2019, the cumulative shareholder return on SIX stock was 0.44%. In contrast, for the same period, the S&P 500 cumulative return was 71.49% and the S&P Movies and Entertainment Index return was 47.78% (Six Flags, n.d.-b).

The SIX stock opened 2020 at $44.61 per share, and, in light of the COVID-19 pandemic, the stock hit a record low of $10.36 per share on March 18, 2020. The SIX stock price recovered to $34.10 per share by the end of 2020. SIX was profitable prior to the pandemic, but in 2020 reported a net loss of $423.38 million. Throughout 2020, SIX announced several debt restructurings to help it succeed through the pandemic.

You have been asked to evaluate SIX and present a report analyzing the investment opportunity in the company. Be sure to include relevant or scholarly sources in your report to support your conclusions.

In your report,

  • Explain SIX’s competitive strategy, advantages, and weaknesses.
  • Analyze SIX’s capital allocation changes during 2020.
  • Analyze the changes in SIX’s P/B ratio from 2016 through 2021.
  • Analyze SIX’s leadership strategy with respect to creating shareholder value throughout 2020 and 2021.
  • Evaluate the investment opportunity in SIX stock as of September 30, 2021, using principles from the Dhandho Investor
  • Justify your proposed investment decision.

The Six Flags Entertainment Corporation (SIX) Case Study paper,

Carefully review the Grading RubricLinks to an external site. for the criteria that will be used to evaluate your assignment.


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