Amc Entertainment Holdings, Inc. (NYSE: AMC)

Sector: Communication Services Industry: Entertainment CIK: 0001411579
Market Cap 752.59 Mn
P/B -0.42
P/E -1.17
P/S 0.15
ROIC (Qtr) -0.80
Div Yield % 0.00
Rev 1y % (Qtr) -3.60
Total Debt (Qtr) 8.20 Bn
Debt/Equity (Qtr) -4.61

About

AMC Entertainment Holdings, Inc., better known as AMC, is a prominent player in the global theatrical exhibition industry, with its operations spanning across the United States and Europe. The company's primary business activities revolve around the ownership and management of movie theaters, as well as the sale of concessions and tickets. AMC generates the majority of its revenue through box office admissions and theatre food and beverage sales. The company offers a diverse range of products and services, encompassing traditional film programming,...

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Price action

Investment thesis

Bull case

  • Tangible assets of 5.47B provide exceptional 13.30x coverage of deferred revenue 411.50M, showing strong service capability backing.
  • Tangible assets of 5.47B provide robust 7.33x coverage of other current liabilities 746.40M, indicating strong asset backing.
  • Cash reserves of 416.90M provide solid 2.54x coverage of other non-current liabilities 164.30M, indicating strong liquidity.
  • Retained earnings of (8.85B) represent substantial 4.98x of equity (1.78B), indicating strong internal capital generation.
  • Cash reserves of 416.90M provide comfortable 11.74x coverage of tax obligations 35.50M, showing strong fiscal management.

Bear case

  • Operating cash flow of (42.90M) barely covers its investment activities of (252.80M), with a coverage ratio of 0.17, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (42.90M) provides insufficient coverage of deferred revenue obligations of 411.50M, which is -0.10x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (42.90M) shows concerning coverage of stock compensation expenses of 24.60M, with a -1.74 ratio indicating potential earnings quality issues.
  • Free cash flow of (295.30M) provides weak coverage of capital expenditures of 252.40M, with a -1.17 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (179.10M) show weak coverage of depreciation charges of 311.60M, with a -0.57 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Entertainment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NFLX Netflix Inc 398.09 Bn 38.16 9.18 14.46 Bn
2 DIS Walt Disney Co 204.13 Bn 16.46 2.16 42.03 Bn
3 WBD Warner Bros. Discovery, Inc. 70.69 Bn 145.75 1.87 33.52 Bn
4 FWONA Liberty Media Corp 53.12 Bn -399.43 13.15 7.04 Bn
5 LYV Live Nation Entertainment, Inc. 33.40 Bn 103.67 1.36 9.39 Bn
6 FOXA Fox Corp 33.26 Bn 16.34 2.02 6.60 Bn
7 PSKY Paramount Skydance Corp 18.94 Bn -1,353.00 0.66 14.73 Bn
8 TKO TKO Group Holdings, Inc. 17.56 Bn 76.76 4.05 4.04 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.07 1.53
EV to Cash from Ops. EV/CFO -199.34 25.10
EV to Debt EV to Debt 1.04 5.03
EV to EBIT EV/EBIT -47.75 165.24
EV to EBITDA EV/EBITDA 32.87 -156.71
EV to Free Cash Flow [EV/FCF] EV/FCF -28.96 72.07
EV to Market Cap EV to Market Cap 11.36 2.12
EV to Revenue EV/Rev 1.76 6.42
Price to Book Value [P/B] P/B -0.42 2.40
Price to Earnings [P/E] P/E -1.17 -114.33
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 1.03
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -17.28
Dividend per Basic Share Div per Share (Qtr) 0.00 0.14
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.73
Interest Coverage Int. cover (Qtr) -0.39 -38.17
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -10.75 -33.75
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -27.76 248.04
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 0.52
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -1,390.36 -100.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 35.24 -28.24
EBIT Growth (1y) % EBIT 1y % (Qtr) -1,380.17 -85.91
EBT Growth (1y) % EBT 1y % (Qtr) -59.45 24.10
EPS Growth (1y) % EPS 1y % (Qtr) 16.86 18.31
FCF Growth (1y) % FCF 1y % (Qtr) 47.28 118.70
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 45.93 30.85
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.61 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 0.26 0.45
Current Ratio Curr Ratio (Qtr) 0.39 1.09
Debt to Equity Ratio Debt/Equity (Qtr) -4.61 1.01
Interest Cover Ratio Int Coverage (Qtr) -0.39 -38.17
Times Interest Earned Times Interest Earned (Qtr) -0.39 -38.17
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 2.70 -65.26
EBIT Margin % EBIT Margin % (Qtr) -3.68 -79.53
EBT Margin % EBT Margin % (Qtr) -13.07 -82.47
Gross Margin % Gross Margin % (Qtr) 12.50 35.56
Net Profit Margin % Net Margin % (Qtr) -13.20 -83.18