AMC Networks Current Valuation vs. Return On Equity
| AMCX Stock | USD 9.70 0.22 2.22% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.62 | 0.5169 |
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| Net Profit Margin | 0.11 | 0.0795 |
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| Operating Profit Margin | 0.28 | 0.1432 |
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| Return On Assets | 0.0648 | 0.0434 |
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For AMC Networks profitability analysis, we use financial ratios and fundamental drivers that measure the ability of AMC Networks to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well AMC Networks utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between AMC Networks's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of AMC Networks over time as well as its relative position and ranking within its peers.
AMC |
AMC Networks' Revenue Breakdown by Earning Segment
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Is Broadcasting space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of AMC Networks. If investors know AMC will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about AMC Networks listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.47) | Earnings Share 0.71 | Revenue Per Share 56.487 | Quarterly Revenue Growth (0.06) | Return On Assets 0.0472 |
The market value of AMC Networks is measured differently than its book value, which is the value of AMC that is recorded on the company's balance sheet. Investors also form their own opinion of AMC Networks' value that differs from its market value or its book value, called intrinsic value, which is AMC Networks' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because AMC Networks' market value can be influenced by many factors that don't directly affect AMC Networks' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between AMC Networks' value and its price as these two are different measures arrived at by different means. Investors typically determine if AMC Networks is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AMC Networks' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
AMC Networks Return On Equity vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining AMC Networks's current stock value. Our valuation model uses many indicators to compare AMC Networks value to that of its competitors to determine the firm's financial worth. AMC Networks is rated below average in current valuation category among its peers. It is rated below average in return on equity category among its peers . The ratio of Current Valuation to Return On Equity for AMC Networks is about 85,741,564,792 . At this time, AMC Networks' Return On Equity is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the AMC Networks' earnings, one of the primary drivers of an investment's value.AMC Networks' Earnings Breakdown by Geography
AMC Current Valuation vs. Competition
AMC Networks is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Communication Services industry is presently estimated at about 181.59 Billion. AMC Networks claims roughly 2.06 Billion in current valuation contributing just under 2% to stocks in Communication Services industry.
AMC Return On Equity vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
AMC Networks |
| = | 2.06 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
AMC Networks |
| = | 0.024 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
AMC Return On Equity Comparison
AMC Networks is currently under evaluation in return on equity category among its peers.
AMC Networks Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in AMC Networks, profitability is also one of the essential criteria for including it into their portfolios because, without profit, AMC Networks will eventually generate negative long term returns. The profitability progress is the general direction of AMC Networks' change in net profit over the period of time. It can combine multiple indicators of AMC Networks, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -232.8 M | -221.2 M | |
| Operating Income | 388.4 M | 598 M | |
| Income Before Tax | 296 M | 402.7 M | |
| Total Other Income Expense Net | -92.4 M | -87.8 M | |
| Net Income | 215.5 M | 280.4 M | |
| Income Tax Expense | 94.6 M | 89.7 M | |
| Net Income Applicable To Common Shares | 8.7 M | 8.3 M | |
| Net Loss | -38.1 M | -36.2 M | |
| Non Operating Income Net Other | 19.4 M | 11.1 M | |
| Interest Income | 31.7 M | 24.4 M | |
| Net Interest Income | -120.3 M | -126.3 M | |
| Change To Netincome | 409.3 M | 429.8 M | |
| Net Income Per Share | 4.92 | 3.18 | |
| Income Quality | 0.95 | 0.90 | |
| Net Income Per E B T | 0.73 | 0.61 |
AMC Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on AMC Networks. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of AMC Networks position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the AMC Networks' important profitability drivers and their relationship over time.
Use AMC Networks in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if AMC Networks position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AMC Networks will appreciate offsetting losses from the drop in the long position's value.AMC Networks Pair Trading
AMC Networks Pair Trading Analysis
The ability to find closely correlated positions to AMC Networks could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AMC Networks when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back AMC Networks - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling AMC Networks to buy it.
The correlation of AMC Networks is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as AMC Networks moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AMC Networks moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for AMC Networks can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your AMC Networks position
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Additional Tools for AMC Stock Analysis
When running AMC Networks' price analysis, check to measure AMC Networks' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy AMC Networks is operating at the current time. Most of AMC Networks' value examination focuses on studying past and present price action to predict the probability of AMC Networks' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move AMC Networks' price. Additionally, you may evaluate how the addition of AMC Networks to your portfolios can decrease your overall portfolio volatility.