AMC Entertainment Stock Analysis, Valuation (NYSE:AMC)

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$15.95 $0.5 (3.04%) AMC stock closing price Jul 20, 2018 (Closing)

Investors can watch the Amigobulls AMC Entertainment stock analysis video here. This is our analyst opinion covering the buy and sell arguments for AMC stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

AMC Entertainment Holdings Inc Stock Rating 2.2/5

Amigobulls AMC stock analysis relies on business fundamentals such as AMC Entertainment revenue growth, profits and return on equity measures from the latest quarter 2018 Q1 earnings. We compare AMC Entertainment valuation with its sector peers to gauge relative attractiveness of AMC stock. Our AMC Entertainment stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy AMC stock?

  • When compared with the Consumer Discretionary sector average PS ratio of 1.6, the price-to-sales ratio of 0.4 for AMC stock is attractive.
  • The company has a healthy dividend yield of 5.02.

Should you sell AMC stock?

  • AMC Entertainment's TTM operating margin of 3.02 was rather poor.
  • Over the last 12 months, AMC Entertainment had an average Net loss of -9.2%.
  • With a debt/equity ratio of 2.35, AMC Entertainment is highly leveraged in comparison to Consumer Discretionary peers.
  • PE ratio is meaningless for AMC stock as the company has losses.
  • AMC Entertainment has a poor return on invested capital of 1.2.
  • A negative ROE of -20.4 indicates that the company is not able to generate profits with the money shareholders have invested.

Comments on this video and AMC Entertainment stock

Investors can make use of the Amigobulls AMC Entertainment stock analysis to ascertain how AMC stock fares in fundamental analysis investment criteria. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Among the financials of the company, AMC Entertainment revenue growth along with the profit or net income give a clear picture of the financial health. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of AMC Entertainment stock.