AMC Networks (AMCX) AI Stock Analysis

• Market Cap: $278.55M
• Dividend Yield: N/A
• Average Volume (3M): 519.34K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.99
• Revenue Growth: -8.14%
• EPS Growth: -258.98%
• Country: US
• Employees: 1,800
• Sector: Communication Services
• Sector Strength: 89
• Industry: Entertainment
• EPS (TTM): 0.52
• Shares Outstanding: 33,442,870
• 10 Day Avg. Volume: 757,672
• 30 Day Avg. Volume: 519,337
• PEG Ratio: 0.07
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.03
• Enterprise Value/Market Cap: -1.65
• Enterprise Value/Revenue: -0.05
• Enterprise Value/Gross Profit: -0.38
• Enterprise Value/Ebitda: -0.14
• 1Y Price Target: $5.92
• Price Target Upside: -4.52% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6

• Rating: 55 Neutral
• Price Target: $6.50 ▲( 4.84% Upside)

AMC Networks faces significant challenges, primarily due to declining revenues and profitability, as evidenced by negative profit margins and a negative P/E ratio. Technical indicators suggest a bearish trend, contributing to a lower technical analysis score. However, the company shows potential in its streaming and digital advertising initiatives, which are highlighted in the earnings call analysis. Positive cash flow management provides some stability in an otherwise challenging environment.

Positive Factors

Cost Control

Management focus remains on being surgical with its cost controls to maximize free cash flow.

Streaming Growth

Management expects streaming growth to accelerate through the year due to planned price increases, indicating potential future revenue improvement.

Negative Factors

Advertising Revenue

There has been a noticeable decline in domestic advertising, which was worse than expected and is affecting revenue negatively.

EBITDA Declines

Headwinds to the traditional TV bundle are accelerating AMC Networks' EBITDA declines.

Linear TV Decline

AMC Networks is facing consistent erosion of its linear business, with increasing pressure on advertising and affiliate revenue in a softer economic environment.

AMC Networks Business Overview & Revenue Model

Company Description

AMC Networks Inc., an entertainment company, owns and operates a suite of video entertainment products that are delivered to audiences and a platform to distributors and advertisers in the United States and internationally. The company operates in two segments, Domestic Operations, and International and Other. The Domestic Operations segment operates various national programming networks, including the AMC, WE tv, BBC AMERICA, IFC, and SundanceTV; provides subscription streaming services comprising Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE, as well as AMC+ and other streaming initiatives; and engages in film distribution business under the IFC Films name. This segment also produces and licenses original programming for various programming networks, as well as services the national programming networks. The International and Other segment operates a portfolio of channels under the AMCNI name; and production and comedy venues activities under the Levity name. AMC Networks Inc. was founded in 1980 and is headquartered in New York, New York.

How the Company Makes Money

AMC Networks generates revenue primarily through three key streams: advertising, affiliate fees, and content licensing. Advertising revenue comes from commercial spots aired during its cable television programming on channels like AMC and WE tv. Affiliate fees are generated from agreements with cable and satellite TV operators who pay AMC Networks for the right to carry their content. The company's streaming services also contribute to subscription-based revenue, as consumers pay for access to its diverse array of digital content. Additionally, content licensing agreements with third parties, such as international broadcasters and streaming platforms, provide another substantial revenue stream. Strategic partnerships and co-productions with other media companies enhance its content offerings and expand its reach, further contributing to its financial performance.

AMC Networks Financial Statement Overview

Summary

AMC Networks is experiencing declining revenues and profitability, with negative net profit margins and reduced EBIT margins. The balance sheet shows improved equity and reduced debt, but negative ROE remains a concern. Cash flow is stable with consistent positive free cash flow, providing some financial cushion.

Income Statement

AMC Networks shows a declining revenue trend with a notable decrease from $3.09B in 2022 to $2.38B in TTM, impacting profitability. Gross Profit Margin stands at 51.36% for TTM, reflecting a decent cost management. However, negative Net Profit Margin at -10.68% in TTM indicates struggles in achieving profitability. EBIT and EBITDA margins have also weakened over time, with TTM EBIT Margin at 0.59% and EBITDA Margin at 36.69%.

Balance Sheet

The balance sheet reflects moderate leverage with a Debt-to-Equity Ratio of 0.15 in TTM, indicating a reduction in debt. Stockholders' Equity has increased to $888.84M, improving the Equity Ratio to 20.52% in TTM. However, the Return on Equity is negative due to net losses, highlighting profitability challenges.

Cash Flow

Free Cash Flow remains positive with a slight decline in growth, resulting in TTM Free Cash Flow of $271.45M. The Operating Cash Flow to Net Income Ratio is negative due to net losses, but Free Cash Flow to Net Income Ratio is favorable. Cash flow management appears stable despite profitability issues.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.38B	2.42B	2.71B	3.10B	3.08B	2.81B
	Gross Profit
1.22B	1.29B	1.40B	1.58B	1.65B	1.41B
	EBIT
14.17M	-39.60M	388.41M	593.49M	695.37M	701.19M
	EBITDA
873.77M	985.15M	1.46B	1.25B	1.53B	1.49B
	Net Income Common Stockholders
-254.30M	-226.55M	215.46M	11.03M	250.60M	239.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
930.00M	784.65M	570.58M	930.00M	892.22M	888.53M
	Total Assets
5.63B	4.36B	4.97B	5.63B	5.75B	5.25B
	Total Debt
2.97B	2.43B	2.48B	2.97B	3.03B	3.08B
	Net Debt
2.04B	1.65B	1.91B	2.04B	2.13B	2.19B
	Total Liabilities
4.53B	3.42B	3.71B	4.53B	4.56B	4.29B
	Stockholders Equity
806.99M	855.60M	1.05B	806.99M	851.09M	616.80M
Cash Flow		Free Cash Flow
271.45M	330.84M	168.71M	137.56M	100.90M	702.14M
	Operating Cash Flow
323.95M	375.62M	203.92M	181.83M	143.47M	748.74M
	Investing Cash Flow
-52.21M	-40.38M	-24.32M	-39.38M	-26.58M	-35.16M
	Financing Cash Flow
-100.06M	-110.22M	-544.43M	-97.11M	-84.10M	-648.00M

AMC Networks Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.20
• 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 AMCX, the sentiment is Negative. The current price of 6.2 is below the 20-day moving average (MA) of 6.31, below the 50-day MA of 6.44, and below the 200-day MA of 8.28, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 46.83 is Neutral, neither overbought nor oversold. The STOCH value of 57.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMCX.

AMC Networks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBGI	67 Neutral	$983.05M	7.15	34.07%	7.08%	11.62%	―
Sector *	60 Neutral	$14.12B	6.43	-3.56%	3.69%	2.49%	-35.43%
IQ	59 Neutral	$1.61B	39.86	2.21%	―	-10.05%	-85.30%
PARA	56 Neutral	$8.51B	―	-28.56%	1.67%	-4.50%	-898.86%
AMC	55 Neutral	$1.40B	―	20.03%	―	-5.43%	26.07%
AMCX	55 Neutral	$278.55M	13.94	-25.83%	―	-8.14%	-258.98%
LGF.B	42 Neutral	$1.93B	―	259.47%	―	-2.85%	75.96%