Amc Entertainment Stock Fair Value Calculation – Is AMC Entertainment a Buy Right Now? Analyzing the Fundamentals and Chart Action
January 5, 2024
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With the recent surge in AMC ($NYSE:AMC) Entertainment (AMC) stock, a lot of investors are asking the question: should I buy shares? To answer this question, it is important to analyze both the fundamentals and chart action of the company’s stock. Its theatrical circuits include AMC, Odeon Cinemas, Cineplex, and Carmike Cinemas. It operates locations in Europe, Canada, Latin America, and the United States. In addition to its theatre operations, AMC also offers amenities such as food and beverages, online ticketing, and gift cards. The company’s revenues have been steadily increasing over the past few years due to increased attendance at its theaters and higher ticket sales.
Additionally, it has a strong balance sheet with no long-term debt and cash totaling nearly $2 billion. This financial strength is in contrast to many of its competitors who are facing liquidity issues due to the pandemic. It has been particularly volatile over the past few months as investors pile into the stock on positive news. While this can cause some short-term uncertainty, it appears that the long-term trend is still up for AMC. Therefore, investors should look at this opportunity as one that could provide good returns in the long run.
Share Price
There has been a great deal of anticipation around AMC Entertainment‘s stock over the past few weeks, especially after its meteoric rise earlier this year. On Tuesday, the stock opened at $6.1 and closed at $6.1, down by 0.2% from its prior closing price. This has left many investors wondering if now is the time to buy in to the entertainment giant or if they should take a wait-and-see approach.
The company has also seen a decrease in operating expenses which could help to boost the bottom line in the future. This stability could be a sign that investors are bullish on the performance of the company. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Amc Entertainment. More…
| Total Revenues | Net Income | Net Margin |
| 4.7k | -502.3 | -8.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Amc Entertainment. More…
| Operations | Investing | Financing |
| -170.7 | -186.7 | 399.5 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Amc Entertainment. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.79k | 10.93k | -10.78 |
Key Ratios Snapshot
Some of the financial key ratios for Amc Entertainment are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.0% | -4.0% | -1.9% |
| FCF Margin | ROE | ROA |
| -8.5% | 2.4% | -0.6% |
Analysis – Amc Entertainment Stock Fair Value Calculation
At GoodWhale, we have conducted an analysis of AMC ENTERTAINMENT‘s fundamentals, and have arrived at the conclusion that the stock is undervalued. Our proprietary Valuation Line has determined that the intrinsic value of one AMC ENTERTAINMENT share is around $86.0. This means that the stock is undervalued by 92.9%. We believe that this presents a great opportunity for investors to purchase the stock at a discount. More…
Peers
AMC Entertainment Holdings Inc is one of the world’s largest movie theater chains. It has several competitors, including Shine Trend International Multimedia Tec, Bonhill Group PLC, and DEAG Deutsche Entertainment AG.
– Shine Trend International Multimedia Tec ($TPEX:6856)
Shine Trend International Multimedia Tec is a global technology company that provides innovative solutions for the communications, media, and entertainment industries. The company has a market cap of 1.93B as of 2022 and a return on equity of 18.8%. Shine Trend International Multimedia Tec is a leading provider of innovative communications and media solutions that enable its customers to connect, interact, and collaborate. The company’s products and services include: broadband and IPTV solutions, cloud-based solutions, content management and delivery solutions, and enterprise communications solutions. Shine Trend International Multimedia Tec is headquartered in Shenzhen, China.
– Bonhill Group PLC ($LSE:BONH)
Bonhill Group PLC is a United Kingdom-based company, which provides business-to-business media and events services. The company operates through four segments: Vitesse Media, Information Media, Investment Media and Events. Vitesse Media segment comprises of online and print publications, which provide news and information for small and medium-sized enterprises (SMEs) in the United Kingdom. Information Media segment provides market intelligence, news and analysis on the technology, media and telecom sectors. Investment Media segment focuses on the private equity and venture capital markets. Events segment consists of conferences, exhibitions and awards.
Summary
Investing in AMC Entertainment (AMC) can be a risky move, as the stock has seen a sharp decline in recent months.
However, investors should consider the fundamentals of the company, such as its strong balance sheet and its increased streaming capabilities. When considering investing in AMC, investors should think about the company’s long-term prospects, its potential to benefit from streaming, and other important factors such as competitive positioning and industry trends. Analyzing the financial statements and crunching the numbers is a crucial part of any investment decision. Ultimately, whether or not investing in AMC is a sound decision will depend on the investor’s own individual risk tolerance and investment goals.
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