NasdaqGS:AMCX

Stock Analysis Report

Executive Summary

AMC Networks Inc. owns and operates various cable television’s brands delivering content to audiences, and a platform to distributors and advertisers in the United States and internationally.

Rewards

Trading at 59.6% below its fair value

Risk Analysis

Earnings are forecast to decline by an average of -2% per year for the next 3 years

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Good value with mediocre balance sheet.


Similar Companies

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Share Price & News

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


Latest Share Price and Events

Stable Share Price: AMCX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.7%

AMCX

0.07%

US Media

0.8%

US Market


1 Year Return

-32.3%

AMCX

21.3%

US Media

22.0%

US Market

Return vs Industry: AMCX underperformed the US Media industry which returned 21.3% over the past year.

Return vs Market: AMCX underperformed the US Market which returned 22% over the past year.


Shareholder returns

AMCXIndustryMarket
7 Day-1.7%0.07%0.8%
30 Day-5.7%0.007%1.7%
90 Day-26.0%0.8%5.2%
1 Year-32.3%-32.3%22.9%21.3%24.7%22.0%
3 Year-27.0%-27.0%20.1%15.2%46.9%37.3%
5 Year-40.9%-40.9%34.3%23.8%65.5%47.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is AMC Networks 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: AMCX ($37.39) is trading below our estimate of fair value ($92.61)

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


Price To Earnings Ratio

PE vs Industry: AMCX is good value based on its PE Ratio (4.6x) compared to the Media industry average (13.7x).

PE vs Market: AMCX is good value based on its PE Ratio (4.6x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: AMCX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AMCX is overvalued based on its PB Ratio (3.3x) compared to the US Media industry average (1.3x).


Next Steps

Future Growth

How is AMC Networks forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

-2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMCX's earnings are forecast to decline over the next 3 years (-2% per year).

Earnings vs Market: AMCX's earnings are forecast to decline over the next 3 years (-2% per year).

High Growth Earnings: AMCX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AMCX's revenue (2.5% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: AMCX's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMCX's Return on Equity is forecast to be high in 3 years time (35.5%)


Next Steps

Past Performance

How has AMC Networks performed over the past 5 years?

11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMCX has a large one-off loss of $164.8M impacting its September 30 2019 financial results.

Growing Profit Margin: AMCX's current net profit margins (15.1%) are lower than last year (17.8%).


Past Earnings Growth Analysis

Earnings Trend: AMCX's earnings have grown by 11.6% per year over the past 5 years.

Accelerating Growth: AMCX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AMCX had negative earnings growth (-11.3%) over the past year, making it difficult to compare to the Media industry average (-32.7%).


Return on Equity

High ROE: Whilst AMCX's Return on Equity (50.43%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AMC Networks's financial position?


Financial Position Analysis

Short Term Liabilities: AMCX's short term assets ($2.2B) exceed its short term liabilities ($820.4M).

Long Term Liabilities: AMCX's short term assets ($2.2B) do not cover its long term liabilities ($3.8B).


Debt to Equity History and Analysis

Debt Level: AMCX's debt to equity ratio (323.8%) is considered high.

Reducing Debt: AMCX had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: AMCX's debt is not well covered by operating cash flow (17.2%).

Interest Coverage: AMCX's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet

Inventory Level: AMCX has a low level of unsold assets or inventory.

Debt Coverage by Assets: AMCX's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate AMCX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AMCX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AMCX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AMCX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AMCX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of AMC Networks's salary, the management and board of directors tenure and is there insider trading?

8.5yrs

Average management tenure


CEO

Josh Sapan (68yo)

24.9yrs

Tenure

US$20,615,390

Compensation

Mr. Joshua W. Sapan has been President of AMC Networks Inc. (“AMC”) since March 2011 and its Chief Executive Officer since 1995. He is lauded by Fast Company magazine as one of the “100 Most Creative Peopl ...


CEO Compensation Analysis

Compensation vs Market: Josh's total compensation ($USD20.62M) is above average for companies of similar size in the US market ($USD3.87M).

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


Management Age and Tenure

8.5yrs

Average Tenure

58yo

Average Age

Experienced Management: AMCX's management team is seasoned and experienced (8.5 years average tenure).


Board Age and Tenure

8.5yrs

Average Tenure

67yo

Average Age

Experienced Board: AMCX's board of directors are considered experienced (8.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$273,05014 Jun 19
James Gallagher
EntityIndividual
Role
Chief Legal Officer
Executive VP & General Counsel
Shares5,000
Max PriceUS$54.61
SellUS$1,487,14012 Jun 19
Sean Sullivan
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares27,232
Max PriceUS$54.61
SellUS$440,86008 Mar 19
James Gallagher
EntityIndividual
Role
Chief Legal Officer
Executive VP & General Counsel
Shares7,000
Max PriceUS$62.98

Ownership Breakdown

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


Management Team

  • Chuck Dolan (93yo)

    Executive Chairman of the Board

    • Tenure: 8.5yrs
    • Compensation: US$2.83m
  • Josh Sapan (68yo)

    President & CEO

    • Tenure: 24.9yrs
    • Compensation: US$20.62m
  • Anne Kelly

    Senior VP of Corporate

    • Tenure: 0yrs
  • Sean Sullivan (52yo)

    Executive VP & CFO

    • Tenure: 8.5yrs
    • Compensation: US$10.21m
  • Jamie Gallagher (61yo)

    Executive VP & General Counsel

    • Tenure: 8.5yrs
    • Compensation: US$6.82m
  • Ed Carroll (55yo)

    Chief Operating Officer

    • Tenure: 10.9yrs
    • Compensation: US$8.72m
  • Seth Zaslow

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Marnie Black

    Executive Vice President of Public Relations of AMC

    • Tenure: 1yrs
  • Chris Wymbs (49yo)

    Chief Accounting Officer & Executive VP

    • Tenure: 3.3yrs
  • David Hunter

    Senior VP & Chief Information Officer

    • Tenure: 1.9yrs

Board Members

  • Chuck Dolan (93yo)

    Executive Chairman of the Board

    • Tenure: 8.5yrs
    • Compensation: US$2.83m
  • Jim Dolan (64yo)

    Director

    • Tenure: 8.8yrs
    • Compensation: US$220.82k
  • Thomas Dolan (67yo)

    Director

    • Tenure: 8.5yrs
    • Compensation: US$220.82k
  • Patrick Dolan (67yo)

    Director

    • Tenure: 8.5yrs
    • Compensation: US$222.82k
  • Leonard Tow (90yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$281.82k
  • Bob Wright (76yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$222.82k
  • Carl Vogel (62yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$272.53k
  • William Bell (79yo)

    Director

    • Tenure: 8.5yrs
    • Compensation: US$222.82k
  • Brian Sweeney (55yo)

    Director

    • Tenure: 8.5yrs
    • Compensation: US$222.82k
  • Marianne E. Weber (62yo)

    Director

    • Tenure: 8.5yrs
    • Compensation: US$220.82k

Company Information

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


Key Information

  • Name: AMC Networks Inc.
  • Ticker: AMCX
  • Exchange: NasdaqGS
  • Founded: 1980
  • Industry: Broadcasting
  • Sector: Media
  • Market Cap: US$2.077b
  • Shares outstanding: 55.56m
  • Website: https://www.amcnetworks.com

Number of Employees


Location

  • AMC Networks Inc.
  • 11 Penn Plaza
  • New York
  • New York
  • 10001
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMCXNasdaqGS (Nasdaq Global Select)YesNew Class A Common StockUSUSDJun 2011
9ACDB (Deutsche Boerse AG)YesNew Class A Common StockDEEURJun 2011

Biography

AMC Networks Inc. owns and operates various cable television’s brands delivering content to audiences, and a platform to distributors and advertisers in the United States and internationally. The company o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/16 00:27
End of Day Share Price2019/12/13 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.