AMC Networks Stock Analysis, Valuation (NASDAQ:AMCX)

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$51.99 $0.52 (1.01%) AMCX stock closing price Feb 23, 2018 (Closing)
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AMC Networks
Updated on : Feb 23, 2018
previous close
AMCX 52 (0%)
S&P 500 2747.3 (0%)
Closing Price On: Feb 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Broadcasting-Radio-TV
Sector :
Consumer Discretionary
5 Quarter Revenue
Revenue Growth
2017-Q3
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
23.7%
Sector Average:
11%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
3.13B
Debt/Equity Ratio:
 37.59
Compared to the industry
Cash Flow
Operating cash flow:
$107.6M
Net Income:
$87M
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
PE Valuation
Recent Growth
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
AMCX PS :
1.2
Industry PS :
1.7
Sector:   Consumer Discretionary.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
12.7%
Return on Equity:
503.3%
Free Cash Flow Margin:
13.2%
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AMC Networks Stock Analysis

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View the AMC Networks stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for AMCX stock is shown in the video.

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 Networks Inc Stock Rating 3.9/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for AMCX stock analysis. AMC Networks valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. AMC Networks stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy AMCX stock?

  • AMC Networks's average operating margin of 23.7% was exceptional.
  • Net margins came in at average 12.1% for AMC Networks over the last twelve months.
  • AMCX stock is trading at an earnings multiple of 7.5 which is better than the industry average of 22.4.
  • When compared with the Broadcasting-Radio-TV industry average PS ratio of 1.7, the price-to-sales ratio of 1.2 for AMCX stock is attractive.
  • AMC Networks has an attractive ROIC (Return on Invested Capital) of 12.7%
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for AMC Networks at 503.3%.
  • AMC Networks has a healthy FCF (Free Cash Flow) margin of 13.2%.

Should you sell AMCX stock?

  • AMC Networks salesgrew by a marginal 2.1% year over year in 2017 Q3.
  • With a debt/equity ratio of  37.59, AMC Networks is highly leveraged in comparison to Consumer Discretionary peers.

Comments on this video and AMC Networks stock

Investors can use Amigobulls AMC Networks stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamentals of a company give detailed information which helps in making invesment decisions.

While doing a study of the company financials, AMC Networks revenue growth and profit or net income are two main metrics which help in identifying whether AMCX stock is overvalued or undervalued. One can also combine technical analysis and fundamental analysis to get a holistic picture about AMCX stock.