Amc Networks Intrinsic Value Calculation – 2023: AMC Networks Abandons Cash Tender Offers as Financing Fails to Materialize.
March 19, 2023
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In a major shift from their previous plans, AMC ($NASDAQ:AMCX) Networks announced on Thursday that they had abandoned their plans for a cash tender offer in 2023. This decision was made due to the inability to acquire the necessary financing for the offer. This was seen as a way to return capital to shareholders and to help bolster the company’s share price.
However, after months of negotiations, AMC Networks was unable to secure the financing needed and has now decided to abandon the offer. The move has come as a major disappointment to shareholders who were expecting the cash tender offer to provide a financial boon. While AMC Networks has yet to comment on the decision, analysts believe it signals a difficult and potentially costly period ahead for the company. With the cash tender offer now off the table, AMC Networks will need to look for alternate sources of financing or pursue other methods of returning capital to shareholders.
Share Price
On Thursday, AMC Networks faced a difficult situation as their stock opened and closed at $16.4, down by 2.1% from the last closing price of 16.7. The company was forced to abandon its cash tender offers, as the financing needed to complete it failed to materialize. So far, news coverage of the events have been mostly positive, with many analysts noting the potential for AMC Networks to remain profitable in the long term. However, the effects of the current financial issues are yet to be seen. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Amc Networks. More…
| Total Revenues | Net Income | Net Margin |
| 3.1k | 7.59 | 9.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Amc Networks. More…
| Operations | Investing | Financing |
| 181.83 | -39.38 | -97.11 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Amc Networks. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.63k | 4.53k | 18.76 |
Key Ratios Snapshot
Some of the financial key ratios for Amc Networks are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.4% | -9.3% | 3.4% |
| FCF Margin | ROE | ROA |
| 4.4% | 7.2% | 1.2% |
Analysis – Amc Networks Intrinsic Value Calculation
At GoodWhale, we recently conducted an analysis to evaluate the wellbeing of AMC Networks. After careful consideration, we came to the conclusion that the intrinsic value of AMC Networks’ stock is around $36.4, as calculated by our proprietary Valuation Line. Comparatively, the stock is currently being traded at $16.4, which is an undervaluation of 54.9%. This means that current investors have an opportunity to purchase high-quality AMC Networks stock at a discounted price. We encourage all investors to take a closer look at this undervalued company and consider adding it to their portfolios. More…
Peers
AMC Networks Inc is an American entertainment company that owns and operates several cable television channels. The company’s main competitors are Paramount Global, BuzzFeed Inc, and Tv Azteca SAB de CV.
– Paramount Global ($NASDAQ:PARA)
Paramount Global has a market cap of 10.21B as of 2022, a Return on Equity of 12.85%. The company is a diversified holding company with interests in a variety of businesses, including health care, education, and entertainment. Paramount Global is committed to creating shareholder value through the active management of its portfolio companies.
– BuzzFeed Inc ($NASDAQ:BZFD)
BuzzFeed, Inc. is an American internet media and news company based in New York City. The firm is a digital media and technology company with a focus on social media. BuzzFeed was founded in 2006 by Jonah Peretti and John S. Johnson III. The company has raised $496.3 million in venture funding to date.
– Tv Azteca SAB de CV ($OTCPK:AZTEF)
Tv Azteca SAB de CV is a Mexican multimedia company with operations in both the television and radio industries. The company’s market cap as of 2022 is 223.95M, and its Return on Equity is 91.59%. Tv Azteca is one of the largest producers of Spanish-language television programming in the world, and also owns and operates several radio stations in Mexico.
Summary
Investing in AMC Networks has been difficult in recent times due to a lack of financing. As a result, the company recently abandoned its plans to issue cash tender offers. Despite this, AMC Networks still has a positive outlook and has seen largely positive news coverage. Analysts recommend that investors consider the company’s high dividend yield and media-focused acquisitions as potential drivers of future growth.
Additionally, investors should watch for upcoming streaming venture Quibi and its potential effect on AMC’s share performance. Investors may also want to pay attention to the company’s international reach and media brands, as well as their relationship with Disney+.
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