AMC Networks Stock Analysis, Valuation (NASDAQ:AMCX)

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$61.55 $0.6 (0.97%) AMCX stock closing price Jul 20, 2018 (Closing)

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 4.2/5

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 had a healthy average operating margin of 25.63 over the last 4 quarters.
  • Net margins came in at average 17.4% for AMC Networks over the last twelve months.
  • AMCX stock is trading at an earnings multiple of 7.8 which is better than the sector average of 22.9.
  • AMCX stock is trading at a favorable price to sales multiple of 1.3 as against the Consumer Discretionary sector average multiple of 1.6.
  • AMC Networks has an attractive ROIC (Return on Invested Capital) of 16.4
  • AMC Networks has a good Return On Equity (ROE) of 393.4.
  • AMC Networks has a healthy FCF (Free Cash Flow) margin of 14.2.

Should you sell AMCX stock?

  • AMC Networks had a low YoY revenue growth of 2.9% in the 2018-03.
  • AMC Networks is debt laden and has a high debt/equity ratio of 11.99.
  • Cash flow from operations is low at 0.7458 times the net income.

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.