AMC Entertainment Holdings, Inc. (AMC)
Valuation Overview•Is AMC Entertainment Holdings, Inc. Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
Fragile underlying quality score of 45/100; weak margins or elevated debt leverage warrant caution.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is cautious, forecasting potential downside alongside robust expected earnings growth. The company currently dilutes shareholders to fund operations and growth rather than returning capital.
AMC demonstrates adequate business quality with stable profitability. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company demonstrates solid revenue growth (7.4% 3Y CAGR) paired with stable bottom-line earnings. This growth is supported by elite operational efficiency, sustaining an impressive 46.5% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $1.0B | +4.6% | +7.4% | +31.3% | +5.1% | |
| EBITDA | $408.5M | — | — | — | — | |
| Net Income | -$117.1M | -79.4% | +13.4% | — | — | |
| EPS (Diluted) | $-0.22 | -16.0% | — | — | — | |
| Free Cash Flow | -$174.7M | -23.5% | +24.4% | +22.4% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 75.3% | 69.4% | 69.2% | 66.6% |
| Operating Margin | 46.5% | 11.6% | -3.1% | -32.9% |
| Net Margin | -10.9% | -9.6% | -20.8% | -48.0% |
| FCF Margin | -2.5% | -7.7% | -14.6% | -18.0% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $-0.32 | $-0.36 | -12.5% | ||
| Q1'26 | $-0.20 | $-0.18 | +10.0% | ||
| Q4'25 | — | $-0.58 | — | ||
| Q3'25 | $-0.04 | $-0.01 | +72.9% | ||
| Q2'25 | $-0.61 | $-0.58 | +4.9% | ||
| Q1'25 | $-0.16 | $-0.18 | -12.5% | ||
| Q4'24 | $-0.07 | $-0.04 | +42.9% | ||
| Q3'24 | $-0.10 | $-0.43 | -330.0% |
Total return is -6.3% (1Y), lagging the benchmark by -31.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +75.8% | +66.5% | — |
| 1Y | -6.3% | -31.3% | — |
| 3YCAGR | -60.5% | -80.8% | — |
| 5YCAGR | -65.7% | -78.7% | — |
| 10YCAGR | -16.8% | -30.3% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about AMC Entertainment Holdings, Inc. (AMC) valuation, health, and returns.
AMC Entertainment Holdings, Inc. is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Limited: Cheap versus peers compared to industry peers. undervalued (implying +1842.8% upside to DCF intrinsic value of $54.98)
AMC Entertainment Holdings, Inc. has multiple valuation anchors: DCF Intrinsic Value: $54.98 | Peer Relative Fair Value: $43.16 | Wall Street Analyst Target: $1.50 (implying -47.0% upside). A convergence of these signals offers higher conviction.
AMC Entertainment Holdings, Inc. displays fair financial health with a composite quality score of 45/100, supported by a Altman Z-Score of -1.4 (distress zone), Piotroski F-Score of 3/9, Return on Invested Capital (ROIC) of 23.7%.
AMC Entertainment Holdings, Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
AMC Entertainment Holdings, Inc.'s current growth trajectory is Decelerating. The company achieved +4.6% 1Y revenue growth and -16.0% 1Y EPS growth, compared to its 3Y revenue CAGR of +7.4%.
Wall Street consensus is Hold based on 28 analysts, beating EPS expectations in 67% of recent quarters with a -1-quarter streak. The consensus price target represents a -47.0% change from current levels.
Investment risks for AMC Entertainment Holdings, Inc. include: -73.2% 1-year max drawdown, high beta (1.82x market volatility), elevated distress risk. Volatility risk is characterized by a beta of 1.82x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.