SeaWorld: Jumping into the Deep End
SeaWorld Entertainment Inc (NYSE:SEAS) went public on April 19, 2013 with an offer price of $27 and is one of the newest companies listed on the NYSE. The company owns 11 parks across the United States, including SeaWorld Entertainment Inc (NYSE:SEAS), Busch Gardens, Adventure Island and Sesame Place. The diversity in SeaWorld Entertainment Inc (NYSE:SEAS) parks is what gives this company a competitive advantage. They offer shows involving seals, dolphins and whales that cannot be seen at any other amusement park in America. The parks pair wildlife with thrill rides to give consumers a unique park experience. Even though it only recently went public, this (killer) whale of an amusement company has shown impressive revenue and growth in the past few years. It recently posted revenues of $1.4 billion in 2012, which yielded a net income of $77.4 million. In SeaWorld Entertainment Inc (NYSE:SEAS)’s first quarter of 2013, the company generated revenue of $238.6 million which is a 12% increase from the same period in 2012. This increase is attributed to a 10% increase in total revenue per capita and a 2% increase in park attendance. While it is still early in SeaWorld Entertainment Inc (NYSE:SEAS)’s public life, with the strong brand and increase of park attendance, I see the stock rising above its current price of $37.15 like Free Willy jumping over a small boy on a rock barrier.
You might have noticed that I did not include evaluations of Disney or Universal theme parks. While these are influential theme parks, they are only a small part of the larger companies that own them. If you’re interested in either company there are plenty of Foolish articles on them.
The theme park industry has huge barriers to entry that keep competition limited. With the summer season, now is the time to keep track of amusement parks’ attendance and revenue. With a solid industry growth of 3%, these three parks should continue to grow as they have since 2010. So invest and the next time you’re at a packed amusement park you can smile knowing the long lines and overpriced food are helping your investment grow.
The article Become a Thrillionaire: The 3 Theme Park Stocks you Should Own originally appeared on Fool.com and is written by Ben Popkin.
Ben Popkin has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Ben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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