Six Flags Entertainment's stock has been under pressure after a fatal accident on one of its roller coasters earlier this month. Analysts at Mizuho see more turbulence ahead.

The amusement park operator is grappling with a "deteriorating balance sheet," according to Mizuho analyst Ben Chaiken, who says the company isn't generating free cash flow as debt maturities come into focus.

The analyst slashed his price target for the amusement park operator in half. Chaiken, who rates the stock as Underperform, lowered that target to $5, from $10 previously.

Among the issues he cited, he said Six Flags is facing a seasonally high use of its revolving credit and has debt maturity considerations in the medium term. It also is paying about $370 million to acquire the remaining stake it doesn't own of Six Flags Over Georgia, the park where the accident occurred.

The company has "some runway," in terms of access to both secured and unsecured debt, the analyst said, "but the picture is concerning if operations do not accelerate." He expects the company to issue high-cost unsecured debt to bridge the next 12 months, but stressed that "an acceleration is imperative."

Chaiken forecasts "negative $27 million in free cash flow," saying its estimated 2027 earnings before interest, taxes, and depreciation is $822 million.

Six Flags stock closed down 10%, to $7.07, on Wednesday, whereas the S&P 500 index ended up 0.6%. The stock is down 40.7% from its close on Oct. 12, when the accident occurred.

Six Flags couldn't immediately be reached for comment.

If the company doesn't issue secured debt near-term, "then it will effectively be shut out (as far as we can tell)" until the second half of 2027, given that it will need to draw the revolver in by about $400 million, Mizuho warned.

The company is still grappling with the aftermath of its $8 billion merger with Cedar Fair in 2024 and with softer attendance figures. In its fiscal second-quarter earnings released Aug. 6, it said revenue dropped 7% from the year before to $865 million, below the nearly $928 million expected.

Six Flags suspended operations for its Goliath roller coaster at Six Flags Over Georgia earlier this month after the accident, and it also suspended eight similar attractions at theme parks across the U.S. and Canada. It is unclear when operations will resume.

Six Flag's stock is down 54% this year and down nearly 72% over the past 12 months.