Amc Networks Story

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AMCX -- USA Stock  

USD 53.07  1.24  2.28%

As many millenniums are trying to avoid communication services space, it makes sense to break down AMC Networks a little further and try to understand its current market patterns. What exactly are AMC Networks shareholders getting in February? Is AMC Networks valuation justified? I am going to cover the entity perspective on valuation to give you a better outlook on taking a position in it.
Published over a month ago
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Is AMC Networks (NASDAQ:AMCX) ready for a correction?
AMC Networks currently holds 3.11 B in liabilities with Debt to Equity (D/E) ratio of 2.86, implying the firm greatly relies on financing operations through barrowing. This firm has a current ratio of 2.38, suggesting that it is liquid enough and is able to pay its financial obligations when due. Our advice tool can be used to complement AMC Networks trade recommendation provided by experts. It analyzes the company's potential to grow against your specific risk preferences and investment horizon.
We determine the current worth of Amc Networks Cl using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Amc Networks Cl based exclusively on its fundamental and basic technical indicators. By analyzing Amc Networks's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Amc Networks's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Amc Networks. We calculate exposure to Amc Networks's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Amc Networks's related companies.

Amc Networks Cl Investment Alerts

Amc Networks investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Amc Networks Cl performance across your portfolios.Please check all investment alerts for Amc Networks

Amc Networks Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Amc Networks value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Amc Networks competition to find correlations between indicators driving the intrinsic value of Amc Networks.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Amc Networks, but it might be worth checking our own buy vs. sell analysis

AMC Networks exotic insider transaction detected

Legal trades by Amc Networks insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
AMC Networks insider trading alert for general transaction of class a common stock by Patrick Dolan, the corporate stakeholder, on 13th of January 2021. This event was filed by Amc Networks Inc with SEC on 2021-01-13. Annual statement of changes in beneficial ownership - SEC Form 5 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down a bit more

The company reported the previous year's revenue of 2.82 B. Net Income was 136.69 M with profit before overhead, payroll, taxes, and interest of 1.59 B.

Margins Breakdown

AMC Networks profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or AMC Networks itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of AMC Networks profit margins.
Operating Margin27.65
EBITDA Margin0.24
Gross Margin0.51
Profit Margin0.14

AMC Networks Earnings Before Interest Taxes and Depreciation Amortization EBITDA is fairly stable at the moment. AMC Networks Net Income Per Employee is increasing over the last 8 years. The previous year's value of AMC Networks Net Income Per Employee was 116,297. Additionally, AMC Networks Revenue Per Employee is fairly stable at the moment. AMC Networks Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years. AMC Networks Net Income Per Employee is increasing over the last 8 years. The current value of AMC Networks Net Income Per Employee is 116,297. Additionally, AMC Networks Revenue Per Employee is fairly stable at the moment.

Our take on today AMC Networks rise

The jensen alpha is down to 1.13 as of today. AMC Networks currently demonstrates below-verage downside deviation. It has Information Ratio of 0.31 and Jensen Alpha of 1.13. However, we do advice investors to further question AMC Networks expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Take On AMC Networks

While some other entities within the broadcasting industry are still a little expensive, even after the recent corrections, AMC Networks may offer a potential longer-term growth to investors. All things considered, as of the 23rd of January 2021, our primary 30 days advice on the company is Strong Buy. However, we believe AMC Networks is overvalued with below average probability of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Amc Networks Cl. Please refer to our Terms of Use for any information regarding our disclosure principles.

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