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AMC Entertainment (AMC)
NYSE:AMC
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AMC Entertainment
(NYSE:AMC)
50Neutral
Positive Factors
Earnings
AMC's Q4 2024 performance exceeded expectations, driven by strong consumer demand, operational efficiency, and strategic execution.
Financial Performance
AMC strengthened its balance sheet by reducing debt and extending maturities, enhancing its financial flexibility.
Negative Factors
Debt
Significant uncertainty remains due to AMC’s high leverage, creating substantial uncertainty for equity values with its term loan due in 2026.
AMC Entertainment (AMC) vs. S&P 500 (SPY)
Market Cap
$1.29B
Dividend YieldN/A
Average Volume (3M)9.69M
Price to Earnings (P/E)―
Beta (1Y)1.16
Revenue Growth-3.64%
EPS Growth48.94%
CountryUS
Employees33,812
SectorCommunication Services
Sector Strength79
IndustryTraditional Media
Share Statistics
EPS (TTM)-1.13
Shares Outstanding431,949,800
10 Day Avg. Volume9,571,459
30 Day Avg. Volume9,692,462
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.29
Price to Cash Flow (P/CF)1.60
P/FCF Ratio1.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.51Price Target Upside18.18% Upside
Rating ConsensusHold
Number of Analyst Covering6
AMC Entertainment Business Overview & Revenue Model
Company DescriptionAMC Entertainment Holdings, Inc. is a leading American movie theater chain based in Leawood, Kansas. It operates one of the largest networks of cinemas across the United States and around the globe, offering a wide range of film exhibition experiences including IMAX and 3D formats. AMC Entertainment is committed to delivering premium quality viewing experiences through its state-of-the-art theaters, concessions, and customer service.
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 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 |
| 4.27B | 9.14B | 651.60M | 10.75B | 96.00M | Net Debt |
| 3.63B | 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
Negative
2.97
Price Trends
3.43
Negative
3.94
Negative
4.40
Negative
Market Momentum
-0.13
Positive
34.61
Neutral
10.83
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMC, the sentiment is Negative. The current price of 2.97 is below the 20-day moving average (MA) of 3.28, below the 50-day MA of 3.43, and below the 200-day MA of 4.40, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 34.61 is Neutral, neither overbought nor oversold. The STOCH value of 10.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMC.
AMC Entertainment Risk Analysis
AMC Entertainment disclosed 28 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.01B | 33.16 | 6.11% | 6.45% | -1.01% | -18.46% | |
71 Outperform | $1.31B | 51.38 | 9.10% | ― | -6.04% | 6.43% | |
65 Neutral | $2.97B | 11.96 | 67.31% | ― | -0.56% | 63.92% | |
59 Neutral | $29.20B | 0.14 | -13.78% | 4.02% | 2.18% | -51.50% | |
50 Neutral | $1.29B | ― | 20.03% | ― | -3.64% | 48.94% | |
48 Neutral | $509.37M | ― | -5.27% | ― | 45.67% | -100.72% | |
48 Neutral | $40.60M | ― | -177.51% | ― | -12.18% | -31.50% |
* Communication Services Sector Average
Performance Comparison
AMC
AMC Entertainment
2.97
-1.37
-31.57%
CNK
Cinemark Holdings
24.06
5.99
33.15%
IMAX
IMAX
24.23
7.42
44.14%
NCMI
National Cinemedia
5.35
1.48
38.24%
EPR
EPR Properties
52.01
12.27
30.88%
RDI
Reading International
1.31
-0.48
-26.82%
AMC Entertainment Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -9.17% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Positive
AMC reported strong financial performance in the fourth quarter of 2024 with record revenues and attendance post-pandemic. Significant growth in adjusted EBITDA and cash flow, along with debt reduction and new marketing initiatives, highlight positive momentum. However, challenges such as the reduced box office attendance compared to pre-pandemic levels and shortened theatrical windows present ongoing concerns.Highlights
Record Fourth Quarter Revenue and Attendance
AMC's revenue in the fourth quarter of 2024 was up 18% year-over-year, reaching a post-pandemic record of $1.3 billion. Attendance was also a post-pandemic record with over 62 million guests, marking a 20% increase compared to the fourth quarter of 2023.
Significant Growth in Adjusted EBITDA
AMC's adjusted EBITDA more than tripled in the fourth quarter of 2024 to $164.8 million, a 244% increase compared to the same period in 2023.
Cash Flow and Debt Reduction Achievements
AMC generated more than $200 million of cash from operating activities and $114 million in free cash flow in the fourth quarter, marking the highest quarterly cash flow post-pandemic. In 2024, AMC reduced the principal balance of its debt by $375.9 million.
Launch of New Loyalty and Subscription Initiatives
AMC launched a new loyalty program tier, Premier GO!, and announced enhancements to the A-List program, aiming to increase customer engagement and attendance.
Lowlights
Box Office Attendance Still Below Pre-Pandemic Levels
Domestic industry-wide movie theater attendance is still down almost 40% from full-year 2019 levels, impacting ticket and concession revenues.
Impact of Shortened Theatrical Windows
The current industry consensus has reduced the theatrical window to 45 days from the pre-pandemic 74 days, affecting potential revenue from longer theater runs.
Challenges Due to Hollywood Strikes
The first half of 2024 was heavily impacted by the Hollywood strikes of 2023, resulting in fewer film releases and affecting box office revenue.
Company Guidance
During the AMC Entertainment Holdings, Inc. fourth quarter and full year 2024 earnings webcast, CEO Adam Aron highlighted several key metrics. AMC's revenue for the fourth quarter increased by 18% year-over-year, driven by successful movie releases, reaching $1.3 billion, a post-pandemic record. Adjusted EBITDA soared to $164.8 million, more than triple the previous year's figure. The company generated over $200 million in cash from operating activities, with $114 million in free cash flow, marking the highest quarterly cash flow post-pandemic. Attendance rose 20% compared to Q4 2023, with 62 million guests visiting AMC theaters globally. Food and beverage revenue per patron hit an all-time fourth quarter record of $7.15. For the full year 2024, AMC welcomed 224 million moviegoers, achieving record per patron metrics for admissions, food and beverage, and total revenue. Aron expressed optimism for 2025, anticipating box office growth of $0.5 billion to $1 billion compared to 2024, with projections indicating a 17% increase in wide-release films.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.
Executive/Board ChangesBusiness Operations and Strategy
AMC Entertainment Announces Key Leadership Change
Neutral
Jan 31, 2025
On January 29, 2025, AMC Entertainment announced a leadership change with Nikkole Denson-Randolph promoted to Senior Vice President, U.S. Chief Content Officer, effective February 7, 2025. She replaces Elizabeth Frank, who will become the CEO of RealD, a major 3D technology partner for AMC. Denson-Randolph, with extensive experience in film programming and content strategy, is expected to continue AMC’s legacy of diverse and innovative film offerings. Juan Antonio Gomez will handle international content programming. This transition aims to strengthen AMC’s industry position and enhance relationships with filmmakers and studios globally.
Private Placements and Financing
AMC Entertainment Sells 50 Million Shares in 2025
Neutral
Jan 16, 2025
On December 6, 2024, AMC Entertainment entered into a Sales and Registration Agreement with Goldman Sachs to sell up to 50 million shares of its Class A common stock through at-the-market offerings. By January 15, 2025, all shares were sold, generating gross proceeds of $183.8 million. The company may receive additional payments from forward transactions, but there is no guarantee of further proceeds.
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.