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AMC Entertainment (AMC)
NYSE:AMC
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AMC Entertainment
(NYSE:AMC)
42Neutral
Positive Factors
Consumer Demand
Early signs of renewed consumer demand and a deep release slate support AMC's confidence in a strong recovery.
Financial Performance
AMC's Q1 2025 results exceeded expectations in both revenue and AEBITDA, despite challenges from a weak box office.
Market Positioning
AMC's premium market positioning should help it retain share as production volumes normalize and theatrical windows are reinforced.
Negative Factors
Box Office Performance
A high concentration of expectations within two films posed a risk to the box office, contributing to a 12% decline in Q1 compared to the prior year.
Debt Concerns
AMC faces significant debt obligations, with $43 million due this year, $173 million in 2026, and $526 million by 2027.
Market Uncertainty
Equity values are likely influenced by macro uncertainty and a soft box office start to the year.
AMC Entertainment (AMC) vs. S&P 500 (SPY)
Market Cap
$1.26B
Dividend YieldN/A
Average Volume (3M)8.79M
Price to Earnings (P/E)―
Beta (1Y)0.98
Revenue Growth-5.43%
EPS Growth26.07%
CountryUS
Employees2,915
SectorCommunication Services
Sector Strength83
IndustryEntertainment
Share Statistics
EPS (TTM)-0.58
Shares Outstanding433,143,550
10 Day Avg. Volume9,870,506
30 Day Avg. Volume8,790,599
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)-0.64
Price to Sales (P/S)0.00
P/FCF Ratio-3.99
Enterprise Value/Market Cap7.03
Enterprise Value/Revenue0.48
Enterprise Value/Gross Profit4.36
Enterprise Value/Ebitda5.56
Forecast
1Y Price Target
$2.83Price Target Upside-5.98% Downside
Rating ConsensusHold
Number of Analyst Covering6
AMC Entertainment Business Overview & Revenue Model
Company DescriptionAMC 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 MoneyAMC 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 Key Performance Indicators (KPIs)
Any
Total Attendance
Tracks the overall number of attendees, providing a clear picture of customer engagement and demand for the company’s entertainment offerings.
Tracks the overall number of attendees, providing a clear picture of customer engagement and demand for the company’s entertainment offerings.
Data provided by:
Main Street Data
Main Street DataAMC 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.40
Negative
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.30
Negative
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.35
Negative
| 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
Positive
3.01
Price Trends
2.83
Positive
3.14
Negative
3.87
Negative
Market Momentum
0.02
Negative
66.47
Neutral
57.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMC, the sentiment is Positive. The current price of 3.01 is above the 20-day moving average (MA) of 2.74, above the 50-day MA of 2.83, and below the 200-day MA of 3.87, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 66.47 is Neutral, neither overbought nor oversold. The STOCH value of 57.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMC.
AMC Entertainment Risk Analysis
AMC Entertainment disclosed 30 risk factors in its most recent earnings report. AMC Entertainment 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 Entertainment Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.64B | 20.90 | 71.46% | 0.25% | -0.80% | 13.07% | |
70 Outperform | $1.46B | 58.52 | 9.00% | ― | -1.98% | -1.18% | |
60 Neutral | $14.09B | 6.90 | -3.35% | 3.68% | 2.44% | -36.27% | |
58 Neutral | $1.42B | ― | -14.67% | ― | 29.49% | -184.23% | |
47 Neutral | $1.93B | ― | 168.75% | ― | -2.85% | 75.96% | |
42 Neutral | $1.26B | ― | 20.03% | ― | -5.43% | 26.07% | |
42 Neutral | $1.93B | ― | 259.47% | ― | -2.85% | 75.96% |
* Communication Services Sector Average
Performance Comparison
AMC
AMC Entertainment
3.01
-2.05
-40.51%
CNK
Cinemark Holdings
31.60
13.90
78.53%
IMAX
IMAX
27.11
10.53
63.51%
LGF.A
Lions Gate Entertainment Class A
8.59
-1.85
-17.72%
LGF.B
Lions Gate Entertainment Class B
7.69
-2.06
-21.13%
SPHR
Sphere Entertainment
39.35
2.01
5.38%
AMC Entertainment Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 11.07%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
Despite a challenging first quarter with the lowest box office since 1996, AMC's performance metrics, such as high revenue per patron and successful debt reduction, indicate a resilient business. The strong performance in April and May 2025 suggests a promising outlook for the rest of the year.Q1-2025 Updates
Positive Updates
Strong Performance in April 2025
The industry-wide domestic box office in April 2025 was double that of April 2024, with a similar trend in May, indicating a strong rebound in moviegoing demand.
AMC Outperforms Box Office Decline
While the North American box office was down 12.4% year-over-year, AMC outperformed by 150 basis points, with a domestic admissions revenue decline of only 10.9%.
Record Revenue Per Patron
AMC achieved an all-time first quarter record for U.S. admissions revenue per patron and noted significant increases in food and beverage revenue per patron.
Debt Reduction Initiatives
Since 2022, AMC has lowered its principal debt and finance leases by approximately $1.1 billion and repaid about $281 million in deferred leases.
Expansion of Premium Formats
AMC plans to expand its Premium Large Format and Extra Large Format screens from over 600 to more than 1,000, enhancing the moviegoing experience.
Negative Updates
Weak First Quarter 2025 Box Office
The first quarter of 2025 saw the lowest industry-wide domestic box office since 1996, excluding COVID-impacted years.
Seasonal Working Capital Shift
AMC experienced a seasonal working capital shift from positive in Q4 to negative in Q1, amplified by a soft box office.
Company Guidance
During the AMC Entertainment Holdings Incorporated first quarter 2025 earnings webcast, CEO Adam Aron and CFO Sean Goodman provided guidance indicating a promising outlook for the remainder of 2025 and beyond, despite a challenging first quarter. The company expects the full-year 2025 industry-wide domestic box office to be at the high end of their forecasted range, predicting an increase of $500 million to $1 billion over the 2024 box office. AMC's financial performance is anticipated to improve significantly with revenue per patron up 1.6% year-over-year and 40% compared to pre-pandemic 2019, driven by a 49% increase in food and beverage revenue and a 26% increase in admissions revenue per patron. Furthermore, AMC surpassed Wall Street expectations with domestic admissions revenue per patron achieving a record $12.31, despite a 10.9% decline in domestic admissions revenue. The company also highlighted capital initiatives, including the expansion of their Premium Large Format and Extra Large Format screens from 600 to over 1,000, and a strategic Go Plan to enhance the guest experience, which includes innovative food and beverage offerings, loyalty programs, and seating upgrades. AMC expects to be free cash flow positive for the nine months ending December 31, 2025, and anticipates a robust recovery, with 2025 on pace to deliver the strongest box office since 2019.AMC Entertainment Corporate Events
Executive/Board Changes
AMC Entertainment Announces Retirement of Kevin Connor
Neutral
Feb 14, 2025
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.
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.