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 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 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 Investment Alerts
AMC 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 performance across your portfolios.Please check all
investment alerts for AMC
AMC Networks Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare AMC 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.
AMC Networks Gross Profit
AMC Networks Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing AMC Networks previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show AMC Networks Gross Profit growth over the last 10 years. Please check AMC Networks'
gross profit and other
fundamental indicators for more details.
Is AMC Networks valued reasonably by the market?
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 Margin | 27.65 |
| EBITDA Margin | 0.24 |
| Gross Margin | 0.51 |
| Profit Margin | 0.14 |
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.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile 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 Rifka Kats do not own shares of AMC Networks. Please refer to our
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