AMC Entertainment (AMC) AI Stock Analysis

• Market Cap: $1.50B
• Dividend Yield: N/A
• Average Volume (3M): 11.37M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: 9.42%
• EPS Growth: 39.83%
• Country: US
• Employees: 2,915
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.00
• Shares Outstanding: 512,943,540
• 10 Day Avg. Volume: 16,171,253
• 30 Day Avg. Volume: 11,372,154
• PEG Ratio: 0.08
• Price to Book (P/B): -0.75
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -4.47
• Enterprise Value/Market Cap: 6.10
• Enterprise Value/Revenue: 1.86
• Enterprise Value/Gross Profit: 2.80
• Enterprise Value/Ebitda: 20.57
• 1Y Price Target: $3.40
• Price Target Upside: 17.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 46 Neutral
• Price Target: $3.00 ▲(3.81% Upside)

AMC's overall stock score is primarily impacted by its challenging financial performance and valuation concerns. While the earnings call provided positive insights and optimism for future growth, the company's financial instability and technical analysis suggest caution. The stock's potential is hindered by its financial leverage and ongoing profitability issues.

Positive Factors

Revenue Growth

The significant revenue and EBITDA growth indicates strong market demand and effective strategic initiatives, supporting long-term business expansion.

Strategic Initiatives

Innovative pricing and loyalty programs enhance customer engagement and revenue predictability, strengthening AMC's competitive position.

Financial Position

Improved capital structure and debt reduction enhance financial stability, providing greater flexibility for future investments and growth.

Negative Factors

Financial Leverage

High leverage indicates reliance on debt financing, which can constrain financial flexibility and increase vulnerability to economic downturns.

Profitability Challenges

Ongoing profitability issues suggest difficulties in cost management and achieving sustainable margins, impacting long-term financial health.

Cash Flow Concerns

Negative cash flow indicates potential liquidity issues, limiting the company's ability to invest in growth opportunities and meet financial obligations.

AMC Entertainment Business Overview & Revenue Model

Company Description

AMC Entertainment Holdings, Inc. is a leading theatrical exhibition company based in the United States, primarily engaged in the operation of multiplex cinemas across the globe. With a rich history dating back to 1920, AMC operates a vast network of theaters, showcasing a wide range of films, including blockbusters, independent films, and special screenings. The company is known for its innovative customer experiences, including premium formats like IMAX and Dolby Cinema, as well as enhanced concession offerings.

How the Company Makes Money

AMC generates revenue primarily through ticket sales and concessions. The company earns a significant portion of its income from the sale of movie tickets, where it retains a percentage of the box office revenue after sharing it with film distributors. Additionally, AMC's concession sales, including popcorn, beverages, and other snacks, contribute substantially to its profits, often yielding higher margins than ticket sales. The company also benefits from premium viewing experiences, such as IMAX and 3D screenings, which command higher ticket prices. Furthermore, AMC has explored partnerships with various brands for promotional events and loyalty programs, enhancing customer engagement and driving repeat business. Subscription models, like AMC Stubs A-List, allow customers to pay a monthly fee for a set number of movies, providing a predictable revenue stream. Overall, AMC's diverse revenue model is supported by its extensive theater network and commitment to enhancing the cinematic experience.

AMC Entertainment Financial Statement Overview

Summary

AMC Entertainment faces significant financial challenges, with a heavily leveraged balance sheet and negative cash flow metrics. Despite some revenue growth, profitability remains a major concern, impacting overall financial stability.

Income Statement

AMC Entertainment has shown a moderate revenue growth rate of 8.08% in the TTM, indicating some recovery. However, the company continues to face profitability challenges with a negative net profit margin of -8.60% and a low EBIT margin of 1.59%. The gross profit margin remains relatively strong at 56.63%, but the overall profitability metrics suggest ongoing financial difficulties.

Balance Sheet

The balance sheet reflects significant financial leverage with a high debt-to-equity ratio of -4.78, indicating a heavy reliance on debt financing. The negative stockholders' equity and a return on equity of 22.74% suggest that the company is struggling to generate returns for shareholders. The equity ratio is negative due to the negative equity, highlighting financial instability.

Cash Flow

AMC's cash flow situation is concerning, with negative operating cash flow and free cash flow. The free cash flow growth rate is negative at -35.43%, and the operating cash flow to net income ratio is -0.15, indicating cash flow challenges. However, the free cash flow to net income ratio of 2.04 suggests some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.92B	4.64B	4.81B	3.91B	2.53B	1.24B
Gross Profit	3.27B	3.09B	1.15B	2.63B	1.78B	830.90M
EBITDA	444.50M	412.70M	383.00M	-196.40M	-396.90M	-3.67B
Net Income	-363.10M	-352.60M	-396.60M	-973.60M	-1.27B	-4.59B
Balance Sheet
Total Assets	8.17B	8.25B	9.01B	9.14B	10.82B	10.28B
Cash, Cash Equivalents and Short-Term Investments	423.70M	632.30M	884.30M	631.50M	1.59B	308.30M
Total Debt	8.27B	8.28B	9.14B	651.60M	10.75B	96.00M
Total Liabilities	9.90B	10.01B	10.86B	11.76B	12.61B	13.16B
Stockholders Equity	-1.73B	-1.76B	-1.85B	-2.62B	-1.79B	-2.89B
Cash Flow
Free Cash Flow	-306.40M	-296.30M	-444.80M	-848.30M	-714.70M	-1.30B
Operating Cash Flow	-59.50M	-50.80M	-215.20M	-628.50M	-614.10M	-1.13B
Investing Cash Flow	-245.00M	-242.90M	-180.10M	-224.00M	-68.20M	-154.60M
Financing Cash Flow	-49.80M	68.40M	649.30M	-91.30M	1.99B	1.33B

AMC Entertainment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMC, the sentiment is Negative. The current price of 2.89 is above the 20-day moving average (MA) of 2.84, below the 50-day MA of 2.95, and below the 200-day MA of 3.16, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.23 is Neutral, neither overbought nor oversold. The STOCH value of 29.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMC.

AMC Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMAX	71 Outperform	1.75B	54.31	10.23%	―	1.25%	55.54%
CNK	69 Neutral	3.29B	15.58	65.32%	0.84%	13.80%	109.00%
MCS	66 Neutral	479.70M	35.00	1.46%	1.85%	13.28%	―
PLAY	54 Neutral	667.33M	55.22	5.84%	―	-4.46%	-86.94%
MSGE	50 Neutral	2.15B	59.89	-281.44%	―	-1.72%	-75.17%
AMC	46 Neutral	$1.50B	―	20.03%	―	9.42%	39.83%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

AMC Entertainment Corporate Events

AMC Entertainment Completes Major Refinancing Transactions

On July 24, 2025, AMC Entertainment Holdings, Inc. completed a series of refinancing transactions aimed at strengthening its balance sheet and financial flexibility. The transactions included new capital funding of approximately $244 million, significant debt reduction, and the resolution of litigation with holders of its 7.5% Senior Secured Notes due 2029. These moves, supported by around 90% of AMC’s term loan lenders, position the company to benefit from a recovering box office and enhance its market position.

AMC Entertainment Plans Note Redemption Amid New Offering

On July 7, 2025, AMC Entertainment Holdings, Inc. announced its intention to fully redeem its outstanding 5.875% Senior Subordinated Notes and 10%/12% Cash/PIK Toggle Second Lien Subordinated Secured Notes, both due in 2026. This redemption is contingent upon the successful completion of a private offering of Senior Secured Notes due 2029, expected to generate at least $223 million in gross proceeds, which could enhance the company’s financial structure and market positioning.

AMC Entertainment Secures Lender Support for Debt Refinancing

On July 2, 2025, AMC Entertainment Holdings, Inc. announced that lenders representing over 80% of its term loans have consented to proceed with balance sheet strengthening transactions. This support allows AMC to refinance debt, convert notes, and resolve litigation, positioning the company for improved financial health and long-term shareholder value amid a recovering box office market.

AMC Entertainment Announces New Transaction Support Agreement

On July 1, 2025, AMC Entertainment Holdings, Inc. announced a Transaction Support Agreement with key creditor groups to strengthen its financial position. The agreement includes approximately $223.3 million in new financing to refinance 2026 debt, the conversion of at least $143 million of debt into equity, and the resolution of litigation with holders of AMC’s 7.5% Senior Secured Notes due 2029. This strategic move is aimed at fortifying AMC’s balance sheet and capitalizing on a recovering box office market, with expectations of continued growth in the industry.