AMC Networks Stock Analysis, Valuation (NASDAQ:AMCX)

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$64.16 $0.35 (0.55%) AMCX stock closing price Sep 19, 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?

  • The TTM operating margin was good at 25.72 for AMC Networks.
  • Net margins stood at a healthy 17.2% (average) for AMC Networks in the Trailing Twelve Months.
  • The company has an operating cash flow which is 1.5219 times the net income.
  • The AMC Networks stock currently trades at a price to earnings ratio of 7.9, compared to the sector average of 21.9. We rate this as a positive.
  • When compared with the Consumer Discretionary sector average PS ratio of 1.7, the price-to-sales ratio of 1.3 for AMCX stock is attractive.
  • AMC Networks's return on invested capital of 17 is good.
  • The LTM ROE of 325.4 for AMC Networks is attractive.
  • The company has a healthy free cash flow margin of 17.9.

Should you sell AMCX stock?

  • With a debt/equity ratio of 16.02, 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.