AMC Entertainment (AMC) AI Stock Analysis

• Market Cap: $1.16B
• Dividend Yield: N/A
• Average Volume (3M): 7.97M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: -5.43%
• EPS Growth: 26.07%
• Country: US
• Employees: 2,915
• Sector: Communication Services
• Sector Strength: 82
• Industry: Entertainment
• EPS (TTM): -0.58
• Shares Outstanding: 433,143,550
• 10 Day Avg. Volume: 7,012,287
• 30 Day Avg. Volume: 7,969,854
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 7.86
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.95
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.77
• Price Target Upside: 1.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

AMC's overall stock score of 44 reflects significant financial difficulties, including declining revenues, negative cash flows, and high leverage, offset by some positive indications from its recent earnings guidance and strategic plans. While the earnings call highlights potential areas of recovery and growth, the current financial performance and technical indicators suggest caution.

Positive Factors

Market Share

AMC maintained its market share and printed positive gains in per-caps while closing more underperforming theaters.

Marketing Strategy

AMC is enhancing its marketing ecosystem through expanded loyalty and subscription offerings, which are designed to drive frequency, expand guest demographics, and increase food and beverage attach rates.

Revenue Mix

AMC’s revenue mix is increasingly weighted toward resilient, high-margin categories, led by the outperformance of its premium large format (PLF) experiences.

Negative Factors

Box Office Environment

AMC’s first quarter will reflect a challenged box office environment, with the domestic industry down 11.6% YoY to $1.42B.

Debt and Financial Obligations

AMC has $43 million in debt due this year, another $173 million due in 2026, and $526 million due by 2027, so it has to prioritize well.

Equity Value

Equity values likely influenced by macro uncertainty, in addition to the soft box office start to the year influencing equity values.

AMC Entertainment Business Overview & Revenue Model

Company Description

AMC Entertainment Holdings, Inc., through its subsidiaries, engages in the theatrical exhibition business. The company owns, operates, or has interests in theatres in the United States and Europe. As of March 1, 2022, it operated approximately 950 theatres and 10,600 screens. The company was founded in 1920 and is headquartered in Leawood, Kansas.

How the Company Makes Money

AMC Entertainment primarily makes money through ticket sales, which are the core revenue stream of its business. Customers purchase tickets to watch movies at AMC theaters, and the company often shares a portion of these revenues with film distributors. Additionally, AMC generates substantial income from the sale of food and beverages at its concession stands, which typically have higher profit margins than ticket sales. AMC also offers premium services such as IMAX screenings, 3D films, and membership programs like AMC Stubs, which provide additional revenue through subscription fees and increased customer retention. Furthermore, AMC collaborates with studios for exclusive content and special events, and may earn revenue through on-screen advertising and theater rentals for private events.

AMC Entertainment Financial Statement Overview

Summary

AMC faces substantial financial hurdles characterized by declining revenues, persistent losses, and a fragile balance sheet. Despite some cost management efforts improving gross margins, the company remains heavily leveraged with cash flow challenges, presenting significant risks going forward.

Income Statement

AMC's income statement shows a challenging financial performance with shrinking revenues and persistent net losses. The TTM (Trailing-Twelve-Months) revenue decreased by 3.64% compared to the previous year, and the net income remains negative, indicating ongoing profitability issues. The gross profit margin improved to 39.23% in the TTM, suggesting some control over costs, but the negative EBIT and net profit margins highlight significant operational challenges.

Balance Sheet

The balance sheet reveals a precarious financial position with zero stockholders' equity in the TTM, indicating insolvency. Previously, high levels of debt compared to equity reflect significant financial leverage and risk. With assets barely covering liabilities, the company's financial stability is questionable.

Cash Flow

The cash flow statement shows negative free cash flow growth, with a TTM free cash flow of -$468.8 million, worse than the previous year. The operating cash flow to net income ratio is negative, emphasizing ongoing cash constraints. Despite efforts to manage capital expenditures, the company struggles with cash generation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.64B	4.81B	3.91B	2.53B	1.24B
	Gross Profit
3.09B	1.15B	2.63B	1.78B	830.90M
	EBIT
-79.30M	34.30M	-387.10M	-839.10M	-1.56B
	EBITDA
412.70M	383.00M	-196.40M	-396.90M	-3.67B
	Net Income Common Stockholders
-352.60M	-396.60M	-973.60M	-1.27B	-4.59B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
632.30M	884.30M	631.50M	1.59B	308.30M
	Total Assets
8.25B	9.01B	9.14B	10.82B	10.28B
	Total Debt
8.28B	9.14B	651.60M	10.75B	96.00M
	Net Debt
7.64B	8.26B	20.10M	9.16B	-212.30M
	Total Liabilities
10.01B	10.86B	11.76B	12.61B	13.16B
	Stockholders Equity
-1.76B	-1.85B	-2.62B	-1.79B	-2.89B
Cash Flow		Free Cash Flow
-296.30M	-444.80M	-848.30M	-714.70M	-1.30B
	Operating Cash Flow
-50.80M	-215.20M	-628.50M	-614.10M	-1.13B
	Investing Cash Flow
-242.90M	-180.10M	-224.00M	-68.20M	-154.60M
	Financing Cash Flow
68.40M	649.30M	-91.30M	1.99B	1.33B

AMC Entertainment Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.73
• 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 Neutral. The current price of 2.73 is below the 20-day moving average (MA) of 2.74, below the 50-day MA of 2.86, and below the 200-day MA of 3.95, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 46.65 is Neutral, neither overbought nor oversold. The STOCH value of 73.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AMC.

AMC Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNK	75 Outperform	$3.54B	19.67	71.46%	0.26%	-0.80%	13.07%
IMAX	70 Outperform	$1.35B	54.03	9.00%	―	-1.98%	-1.18%
Sector *	60 Neutral	$13.44B	7.03	-2.73%	3.78%	2.17%	-39.43%
SPHR	52 Neutral	$1.04B	―	-14.67%	―	29.49%	-184.23%
LGF.A	47 Neutral	$1.93B	―	168.75%	―	-2.85%	75.96%
AMC	44 Neutral	$1.16B	―	20.03%	―	-5.43%	26.07%
LGF.B	42 Neutral	$1.93B	―	259.47%	―	-2.85%	75.96%

AMC Entertainment Corporate Events

AMC Entertainment Announces Retirement of Kevin Connor

On February 14, 2025, AMC Entertainment announced the retirement of Kevin Connor, its Senior Vice President, General Counsel, and Secretary, effective March 13, 2025, after a 23-year tenure. Connor played a significant role in AMC’s major milestones, including its merger with Loews Cineplex Entertainment in 2006 and its IPO in 2013. Edwin Gladbach has been appointed as the Interim General Counsel, with AMC considering both internal and external candidates for the permanent position later in the year.