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Stock impact report

3 Cash-Producing Stocks We Think Twice About [Yahoo! Finance]

United Parks & Resorts Inc. (PRKS) 
Company Research Source: Yahoo! Finance
Cash flow is valuable, but it's not everything - StockStory helps you identify the companies that truly put it to work. Keeping that in mind, here are three cash-producing companies to avoid and some better opportunities instead. Trailing 12-Month Free Cash Flow Margin: 13.2% Parent company of SeaWorld and home of the world-famous Shamu, United Parks & Resorts (NYSE:PRKS) is a theme park chain featuring marine life, live entertainment, roller coasters, and waterparks. Why Do We Steer Clear of PRKS? Sluggish trends in its visitors suggest customers aren't adopting its solutions as quickly as the company hoped Low free cash flow margin of 11.8% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders Eroding returns on capital from an already low base indicate that management's recent investments are destroying value United Parks & Resorts's stock price of $35.08 implies a valuation ratio of 9.2x Show less Read more
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