Enterprise Value (EV) is Market Capitalization + Debt – Cash. Many investors prefer EV to just Market Cap as a better way to determine the value of a company. EBITDA, as the acronym depicts, is earnings before interest, taxes, depreciation and amortization. That means these items are added back into the net income to produce this earnings number.
A higher number means the more debt a company has compared to its capital structure. Investors like this metric as it shows how a company finances its operations, i.e., what percentage is financed thru shareholder equity or debt. A ratio under 40% is generally considered to be good.But note; this ratio can vary widely from industry to industry.
Cash Flow per share ($/share) calculates the amount of incoming cash vs. the amount of outgoing cash for a company. It’s then divided by the number of shares outstanding to determine how much cash is generated per share. First, it’s important to note the company’s rising stock price has little to do with its operating performance. While it is slowly bouncing back, the company is still losing money every quarter. There is no telling when or if the company will generate profits on the bottom line.
- AMC Entertainment posted a third-quarter net loss of 9 cents per share amid a healthy 45% rise in sales to $1.41 billion.
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- When a stock shows a high level of short interest and is getting bid up, you can almost count on a chain reaction of buying to occur.
- But, it’s made even more meaningful when looking at the longer-term 4 week percent change.
- Debt to Equity (or D/E ratio) is total liabilities divided by total shareholder equity.
Since there is a fair amount of discretion in what’s included and not included in the ‘ITDA’ portion of this calculation, it is considered a non-GAAP metric. The EV/EBITDA ratio is a valuation multiple and is often used in addition, or as an alternative, to the P/E ratio. And like the P/E ratio, a lower number is typically considered ‘better’ than a higher number. This trend is unlikely to reverse, as studios keep a higher share of film revenue if they don’t have to split with movie theaters like AMC.
AMC Entertainment Holdings Inc. Cl A
Keep in mind that blockbuster movies or TV shows don’t necessarily lead to an equally sizable windfall for the theater operators. AMC has seen its market value plummet to $894 million, according to MarketSmith. At one point on Feb. 28, 2023, the stock was valued at $14.9 billion. But the stock is on deck to fall off the stairs like a Family Guy character. Retail traders’ darling has been hit hard by heavy selling pressure. Its CEO remains optimistic and even squared up to naysayers on X.
AMC shares crater as investors brace for stock conversion
This results in the aforementioned short squeeze, which really puts a big hurt on the short-sellers and leads to lots of profit potential for those holding the stock. The 12 Week Price Change displays the percentage price change over the most recently completed 12 weeks (60 days). The 1 Week Price Change displays the percentage price change over the last 5 trading days using the most recently eur usd trading completed close to the close from 5 days before. A stock with a P/E ratio of 20, for example, is said to be trading at 20 times its annual earnings. In general, a lower number or multiple is usually considered better that a higher one. Value investors will typically look for stocks with P/E ratios under 20, while growth investors and momentum investors are often willing to pay much more.
On average, they expect the company’s share price to reach $9.75 in the next year. This suggests a possible upside of 140.4% from the stock’s current price. View analysts price targets for AMC or view top-rated stocks among Wall Street analysts.
AMC Stock News Headlines
This score means AMC stock had outperformed 96% of all stocks in the IBD database over the past 12 months. And the 3-month RS Rating at the time zoomed to a highest possible 99, according to MarketSmith data. Let’s first https://bigbostrade.com/ revisit the hyper-fast run during the meme stock boom of 2021. Prior to the giant gain on June 2, 2021, over just five sessions of trade (May 24 to 28), AMC obliterated the short sellers by rising as much as 203%.
In December, AMC also completed its latest at-the-market equity offering, raising approximately $350 million. AMC shares plunged another 36% in September last year to 7.99. The 33% gain in October was pleasant to see, but AMC stock gave back all of that rebound in November.
In the week ended June 4, AMC stock almost finished up 100% or more for a second straight week. Over a two-day period on Sept. 6-7, the stock fell a combined 43% after the company announced a plan via a filing to the Securities & Exchange Commission to sell up to 40 million in additional common shares. AMC’s recent market performance reflects the demise of the movie-theater chain’s meme-stock status. AMC Chief Executive Adam Aron described the recent slide in the company’s shares as “painful” and pointed to the lingering impact of the COVID-19 pandemic on the movie-theater industry.
Sign-up to receive the latest news and ratings for AMC and its competitors with MarketBeat’s FREE daily newsletter. They just revealed what they believe are the ten best stocks for investors to buy right now… That’s right — they think these 10 stocks are even better buys. Since AMC generates nearly all of its revenue from people visiting theaters in person, the coronavirus pandemic was a catastrophe. What’s more, AMC still had to come up with the rent payments on its theaters and interest payments to its lenders.
“The continued decline in AMC shares … is likely due to investors focusing on the strong possibility that AMC begins issuing large amounts of equity to address the debt balance,” Eric Wold, an analyst at B. AMC Entertainment Holdings, Inc., is the world’s largest movie theater chain with over 11,000 screens. The company was founded in 1920 by the Dubinsky Family and is headquartered in Leawood, Kansas.
A D/E ratio of 2 might be par for the course in one industry, while 0.50 would be considered normal for another. So it’s a good idea to compare a stock’s debt to equity ratio to its industry to see how it stacks up to its peers first. But while AMC still grabs plenty of attention, the company no longer fits the bill of a meme stock, according to Alicia Reese, vice president of equity research at Wedbush.