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AMC Networks (AMCX)
NASDAQ:AMCX
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AMC Networks
(NASDAQ:AMCX)51Neutral
Positive Factors
Financial Performance
AMCX reported 2Q revenues 2% above expectations, while AOI was 34% above Street estimates, indicating solid execution and cost controls.
Strategic Partnerships
AMCX renewed several major affiliate agreements during the 3Q, including a long-term deal with Charter, combining linear and streaming services.
Negative Factors
Revenue Declines
Guidance for another year of double-digit linear affiliate/ad declines underscores the pressures facing smaller cable nets with limited pricing power.
AMC Networks (AMCX) vs. S&P 500 (SPY)
Market Cap
$305.42M
Dividend YieldN/A
Average Volume (3M)601.47K
Price to Earnings (P/E)13.9
Beta (1Y)1.56
Revenue Growth-10.71%
EPS Growth-202.93%
CountryUS
Employees1,800
SectorCommunication Services
Sector Strength85
IndustryTraditional Media
Share Statistics
EPS (TTM)-5.25
Shares Outstanding32,651,188
10 Day Avg. Volume872,110
30 Day Avg. Volume601,468
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.13
Price to Cash Flow (P/CF)1.30
P/FCF Ratio0.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.50Price Target Upside6.38% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering4
AMC Networks Business Overview & Revenue Model
Company DescriptionAMC Networks, Inc. is a holding company, which engages in owning and management of cable television networks through its subsidiaries. It operates through the National Networks and International and Other segments. The National Networks segment includes activities of AMC Studios operations, AMC Broadcasting and Technology, and national programming networks, namely: AMC, WEtv, BBC AMERICA, IFC, and SundanceTV in the U. S.; and AMC, IFC, and Sundance Channel in Canada. The International and Other segment comprises AMC Networks International (AMCNI), the international programming businesses consisting of a portfolio of channels in Europe, Latin America, the Middle East, and parts of Asia and Africa; IFC Films, the independent film distribution business; and subscription streaming services, Sundance Now and Shudder. The company was founded by Charles Francis Dolan on March 9, 2011 and is headquartered in New York, NY.
How the Company Makes MoneyAMC Networks primarily generates revenue through a combination of subscription fees, advertising sales, and content licensing. Subscription fees are derived from cable and satellite providers who pay to carry the company's networks, as well as from direct-to-consumer streaming services like AMC+ and niche streaming platforms like Shudder and Acorn TV. Advertising sales represent income from commercial spots sold on the company's linear television networks. Content licensing involves selling the rights to air AMC Networks' original programming to other networks and streaming services, both domestically and internationally. The company's strategic partnerships with other media entities and content creators also play a role in enhancing its content offerings and expanding its audience reach.
AMC Networks Financial Statement Overview
Summary
AMC Networks faces significant financial challenges, with declining revenues and profitability issues. The lack of current balance sheet data suggests potential financial instability. However, strong cash flow metrics provide some resilience, indicating that while the company is under pressure, it still generates cash from operations. The high leverage poses a risk, requiring careful management to stabilize financial health.Income Statement
AMC Networks experienced a decline in total revenue and net income in the latest year, with the company reporting a negative EBIT and net income. This indicates significant challenges in maintaining profitability. The gross profit margin is non-existent due to the lack of COGS data, and the net profit margin has turned negative. Revenue growth has been negative, reflecting a downward trend in sales.45
Neutral
Balance Sheet
The balance sheet shows no data for the latest year, indicating potential issues in asset and equity management. In previous years, the debt-to-equity ratio was high, pointing to significant leverage risk. The return on equity and equity ratio have fluctuated, showing instability in financial health and shareholder returns.30
Negative
Cash Flow
Free cash flow in the latest year is positive, indicating some operational efficiency, but the growth rate is negative compared to previous years. The operating cash flow to net income ratio is favorable, as cash flows remain strong despite profitability challenges, suggesting operational cash generation capability.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.42B | 2.71B | 3.10B | 3.08B | 2.81B | Gross Profit |
| 2.42B | 1.40B | 1.58B | 1.65B | 1.41B | EBIT |
| -39.60M | 388.41M | 593.49M | 695.37M | 701.19M | EBITDA |
| 979.10M | 1.46B | 1.25B | 1.53B | 1.49B | Net Income Common Stockholders |
| -226.55M | 215.46M | 11.03M | 250.60M | 239.98M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 784.65M | 570.58M | 930.00M | 892.22M | 888.53M | Total Assets |
| 4.36B | 4.97B | 5.63B | 5.75B | 5.25B | Total Debt |
| 2.43B | 2.48B | 2.97B | 3.03B | 3.08B | Net Debt |
| 1.65B | 1.91B | 2.04B | 2.13B | 2.19B | Total Liabilities |
| 3.42B | 3.71B | 4.53B | 4.56B | 4.29B | Stockholders Equity |
| 855.60M | 1.05B | 806.99M | 851.09M | 616.80M |
| Cash Flow | Free Cash Flow | |||
| 375.62M | 168.71M | 137.56M | 100.90M | 702.14M | Operating Cash Flow |
| 375.62M | 203.92M | 181.83M | 143.47M | 748.74M | Investing Cash Flow |
| -40.38M | -24.32M | -39.38M | -26.58M | -35.16M | Financing Cash Flow |
| -110.22M | -544.43M | -97.11M | -84.10M | -648.00M |
AMC Networks Technical Analysis
Negative
7.05
Price Trends
9.02
Negative
8.91
Negative
10.00
Negative
Market Momentum
-0.67
Positive
30.32
Neutral
15.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMCX, the sentiment is Negative. The current price of 7.05 is below the 20-day moving average (MA) of 8.33, below the 50-day MA of 9.02, and below the 200-day MA of 10.00, indicating a bearish trend. The MACD of -0.67 indicates Positive momentum. The RSI at 30.32 is Neutral, neither overbought nor oversold. The STOCH value of 15.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMCX.
AMC Networks Risk Analysis
AMC Networks disclosed 35 risk factors in its most recent earnings report. AMC Networks reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AMC Networks Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $24.64B | 12.03 | 20.09% | 0.93% | 4.29% | 177.70% | |
79 Outperform | $5.18B | 7.93 | 31.99% | 4.08% | 9.61% | 128.67% | |
73 Outperform | $11.74B | ― | -5.19% | ― | 18.03% | 82.15% | |
59 Neutral | $30.54B | 0.25 | -13.23% | 4.04% | 2.36% | -49.53% | |
51 Neutral | $305.42M | 13.94 | -26.48% | ― | -10.71% | -202.93% | |
50 Neutral | $4.03B | ― | 12.66% | ― | 3.53% | 3.23% | |
50 Neutral | $8.01B | ― | -15.04% | 4.46% | -2.84% | -249.80% |
* Communication Services Sector Average
Performance Comparison
AMCX
AMC Networks
7.05
-5.40
-43.37%
LBTYA
Liberty Global A
11.58
2.83
32.34%
NXST
Nexstar Media Group
169.63
15.73
10.22%
SIRI
Sirius XM Holdings
23.23
-17.10
-42.40%
ROKU
Roku
85.07
22.40
35.74%
FOXA
Fox
56.34
28.24
100.50%
AMC Networks Earnings Call Summary
Earnings Call Date: Feb 14, 2025 | % Change Since: -28.35% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment. While AMC Networks achieved its full-year guidance and showed growth in streaming subscriptions and innovative partnerships, challenges in domestic revenue, operating losses, and anticipated future revenue decline indicate significant headwinds.Highlights
Achievement of Full-Year Guidance
AMC Networks achieved their full-year guidance for 2024, with consolidated revenue of $2.4 billion, AOI of $563 million, and free cash flow of $331 million.
Increase in Streaming Subscribers
The company reported an 8% year-over-year increase in streaming subscribers, ending the year with 12.4 million subscribers.
Innovative Content Licensing and Partnerships
Successful execution of a licensing agreement with Netflix, leading to heightened viewer awareness and interest in AMC titles, notably boosting viewership and acquisition on AMC Plus.
Expansion of Advertising Innovation
Introduction of AMCN Outcomes, a new advertising performance product, and the upcoming launch of an ad-supported version of Shudder.
Successful Reduction in Gross Debt
AMC Networks reduced its gross debt by approximately half a billion dollars, with no bond maturities until 2029.
Positive International Advertising Revenue Growth
International advertising revenues grew 16% and 12% for the full year and fourth quarter, respectively.
Lowlights
Decline in Domestic Operations Revenue
Domestic operations revenues decreased by 9% for the full year and 11% for the fourth quarter, driven by linear subscriber declines and challenges in the entertainment ad market.
Consolidated Operating Loss
The company reported a consolidated operating loss of $40 million for the full year, including impairment and restructuring charges.
Challenges in the UK and Spain Markets
A non-renewal of a distribution agreement in the UK and a recent non-renewal with Movistar in Spain are expected to impact revenue in 2025.
Anticipated Decrease in 2025 Revenue
AMC Networks expects a 5% decrease in total consolidated revenue for 2025 compared to 2024.
Company Guidance
During the AMC Networks Fourth Quarter 2024 earnings call, the company provided a comprehensive overview of their financial results and future outlook. Key metrics highlighted include achieving a consolidated revenue of $2.4 billion, an adjusted operating income (AOI) of $563 million, and a free cash flow of $331 million for the year. They also announced an updated cumulative free cash flow outlook of approximately $550 million over the 2024-2025 period. The company reported having 12.4 million streaming subscribers, reflecting an 8% year-over-year increase. Domestic operations saw a 9% revenue decrease for the full year, while streaming revenue grew by 7%, offsetting a 13% decline in affiliate revenue. For 2025, AMC Networks expects a 5% decrease in total consolidated revenue, with a focus on streaming growth projected in the low to mid-teens percentage range. Additionally, the call addressed strategic content licensing agreements with platforms like Netflix, which have bolstered viewer engagement and subscription growth on AMC Plus.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.