Cedar Fair LP (FUN, Financial), a prominent player in the Travel & Leisure industry, has recently seen a notable increase in its stock price. Over the past week, the stock has surged by 9.98%, and over the last three months, it has climbed by 12.99%. Currently, the market capitalization stands at $2.63 billion with a stock price of $51.31. According to the GF Value, which is set at $49.72, Cedar Fair is considered fairly valued. This valuation marks a shift from three months ago when the stock was deemed modestly undervalued with a GF Value of $54.20.
Overview of Cedar Fair LP
Cedar Fair LP operates a diverse array of amusement park resorts across the United States and Canada, including well-known destinations such as Cedar Point and Kings Island. The company's revenue streams are multifaceted, encompassing admissions, parking fees, and attractions. Cedar Fair's portfolio also includes other parks under management contracts, enhancing its operational scope and revenue potential. 
Assessing Cedar Fair's Profitability
Cedar Fair boasts a high Profitability Rank of 8/10, indicating robust profitability within its sector. The company's Operating Margin is an impressive 17.62%, ranking higher than 75.61% of its peers. Although the ROE data is not applicable, its ROA stands at 5.53%, and its ROIC is at 10.65%, both metrics surpassing the majority of competitors. Cedar Fair has maintained profitability for eight out of the past ten years, outperforming 74.94% of companies in its industry. 
Growth Trajectory of Cedar Fair
The company's Growth Rank is 6/10, reflecting moderate growth potential. The 3-Year Revenue Growth Rate per Share is an impressive 121.50%, significantly higher than 97.46% of its peers. Over a five-year period, the revenue growth rate per share stands at 14.00%, surpassing 87.81% of competitors. Looking ahead, the estimated Total Revenue Growth Rate for the next three to five years is 3.54%, which is better than 13.97% of companies in the sector. 
Key Shareholders and Market Position
Jefferies Group (Trades, Portfolio) is a major holder in Cedar Fair, possessing 737,914 shares, which accounts for 1.44% of the company's stock. In terms of market competition, Cedar Fair is closely aligned with Six Flags Entertainment Corp (SIX, Financial) with a market cap of $2.7 billion, Vista Outdoor Inc (VSTO, Financial) valued at $2.03 billion, and Bowlero Corp (BOWL, Financial) with a market capitalization of $2 billion. These companies represent the competitive landscape in the Travel & Leisure sector.
Conclusion
Cedar Fair LP has demonstrated strong profitability and significant growth in revenue per share over the past three years. The stock's current valuation as fairly valued reflects a balanced market perception, considering its recent price increases and solid financial metrics. With its strategic operations and competitive standing within the industry, Cedar Fair is well-positioned to maintain its upward trajectory in the market.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
