DB:AH9

Stock Analysis Report

AMC Entertainment Holdings

Executive Summary

AMC Entertainment Holdings, Inc., through its subsidiaries, involved in the theatrical exhibition business.


Snowflake Analysis

Undervalued with moderate growth potential.


Similar Companies

Share Price & News

How has AMC Entertainment Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AH9 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.4%

AH9

2.0%

DE Entertainment

-0.2%

DE Market


1 Year Return

-44.1%

AH9

34.2%

DE Entertainment

13.7%

DE Market

Return vs Industry: AH9 underperformed the German Entertainment industry which returned 34.2% over the past year.

Return vs Market: AH9 underperformed the German Market which returned 13.7% over the past year.


Shareholder returns

AH9IndustryMarket
7 Day6.4%2.0%-0.2%
30 Day3.1%-0.7%0.3%
90 Day-5.7%7.3%3.7%
1 Year-39.8%-44.1%36.0%34.2%17.2%13.7%
3 Year-71.0%-77.3%42.7%35.8%15.4%5.3%
5 Year-68.7%-76.9%116.7%99.5%21.3%4.7%

Price Volatility Vs. Market

How volatile is AMC Entertainment Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is AMC Entertainment Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AH9 (€6.65) is trading below our estimate of fair value (€22.55)

Significantly Below Fair Value: AH9 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AH9 is good value based on its PE Ratio (23x) compared to the Entertainment industry average (44.4x).

PE vs Market: AH9 is poor value based on its PE Ratio (23x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: AH9 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: AH9 is good value based on its PB Ratio (0.7x) compared to the DE Entertainment industry average (1.5x).


Next Steps

Future Growth

How is AMC Entertainment Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

67.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AH9's forecast earnings growth (67.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: AH9's earnings (67.2% per year) are forecast to grow faster than the German market (13.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AH9's revenue (1.8% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: AH9's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AH9 is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has AMC Entertainment Holdings performed over the past 5 years?

-44.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AH9 has a large one-off loss of $94.9M impacting its September 30 2019 financial results.

Growing Profit Margin: AH9 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AH9's earnings have declined by -44.6% per year over the past 5 years.

Accelerating Growth: AH9 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AH9 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Entertainment industry (14.6%).


Return on Equity

High ROE: AH9's Return on Equity (3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AMC Entertainment Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: AH9's short term assets ($448.7M) do not cover its short term liabilities ($1.6B).

Long Term Liabilities: AH9's short term assets ($448.7M) do not cover its long term liabilities ($10.5B).


Debt to Equity History and Analysis

Debt Level: AH9's debt to equity ratio (399.9%) is considered high.

Reducing Debt: AH9's debt to equity ratio has increased from 119% to 399.9% over the past 5 years.

Debt Coverage: AH9's debt is not well covered by operating cash flow (9.2%).

Interest Coverage: AH9's interest payments on its debt are not well covered by EBIT (0.7x coverage).


Balance Sheet

Inventory Level: AH9 has a high level of physical assets or inventory.

Debt Coverage by Assets: AH9's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is AMC Entertainment Holdings's current dividend yield, its reliability and sustainability?

10.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AH9's dividend (10.31%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: AH9's dividend (10.31%) is in the top 25% of dividend payers in the German market (3.65%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AH9 has been paying a dividend for less than 10 years.

Growing Dividend: AH9 has only been paying a dividend for 6 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (237%), AH9's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AH9's dividends in 3 years are not forecast to be well covered by earnings (2642.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.4yrs

Average management tenure


CEO

Adam Aron (64yo)

4.1yrs

Tenure

US$9,470,202

Compensation

Mr. Adam M. Aron has been the Chief Executive Officer and President of AMC Entertainment Holdings, Inc. since January 4, 2016 and AMC Entertainment Inc. since January 14, 2016. Mr. Aron has been Chief Exec ...


CEO Compensation Analysis

Compensation vs Market: Adam's total compensation ($USD9.47M) is above average for companies of similar size in the German market ($USD1.19M).

Compensation vs Earnings: Adam's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Adam Aron
President4.1yrsUS$9.47m0.41% $2.9m
Craig Ramsey
Executive VP & CFO17.8yrsUS$2.51m0.14% $1.0m
John McDonald
Executive Vice President of U.S. Operations10.6yrsUS$1.84m0.064% $451.2k
Mark McDonald
Executive Vice President of Global Development21.2yrsUS$1.75m0.093% $654.4k
Elizabeth Frank
Executive VP of Worldwide Programming & Chief Content Officer9.5yrsUS$1.81m0.098% $689.2k
Chris Cox
Senior VP & Chief Accounting Officer17.8yrsno data0.020% $142.0k
John Merriwether
Vice President of Investor Relations5.1yrsno datano data
Kevin Connor
Senior VP16.8yrsUS$690.75k0.067% $468.1k
Stephen Colanero
Chief Marketing Officer & Executive VP10.2yrsUS$612.74k0.094% $659.2k
Carla Chavarria
Senior VP & Chief Human Resources Officer6.1yrsno data0.025% $179.4k

10.4yrs

Average Tenure

56yo

Average Age

Experienced Management: AH9's management team is seasoned and experienced (10.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Adam Aron
President4.1yrsUS$9.47m0.41% $2.9m
Lloyd Hill
Independent Director6.2yrsUS$279.68k0.025% $177.3k
Kathleen Pawlus
Independent Director5.2yrsUS$284.68k0.019% $130.7k
Gary Locke
Director4yrsUS$219.09k0.025% $173.1k
Lee Wittlinger
Independent Director1.3yrsno datano data
Adam Sussman
Independent Director0.8yrsno data0.0030% $21.0k
Lin Zhang
Non-Executive Chairman0yrsno datano data
Anthony Saich
Independent Director7.5yrsUS$279.68k0.015% $102.5k
Howard Koch
Director5.3yrsUS$224.68k0.017% $121.8k
Mao Zeng
Director4yrsno datano data

4.1yrs

Average Tenure

64yo

Average Age

Experienced Board: AH9's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AMC Entertainment Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AMC Entertainment Holdings, Inc.
  • Ticker: AH9
  • Exchange: DB
  • Founded: 1920
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: US$759.142m
  • Listing Market Cap: US$703.421m
  • Shares outstanding: 103.85m
  • Website: https://www.amctheatres.com

Number of Employees


Location

  • AMC Entertainment Holdings, Inc.
  • One AMC Way
  • 11500 Ash Street
  • Leawood
  • Kansas
  • 66211
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMCNYSE (New York Stock Exchange)YesClass A Common StockUSUSDDec 2013
AH9DB (Deutsche Boerse AG)YesClass A Common StockDEEURDec 2013

Biography

AMC Entertainment Holdings, Inc., through its subsidiaries, involved in the theatrical exhibition business. The company owns, operates, or has interests in theatres. As of December 31, 2018, it owned, operated, or had interests in 637 theatres with a total of 8,114 screens in the United States; and 369 theatres and 2,977 screens in European markets. The company was founded in 1920 and is headquartered in Leawood, Kansas. AMC Entertainment Holdings, Inc. is a subsidiary of Dalian Wanda Group Co., Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 22:44
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.