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AMCX AMC Networks Inc. - Fundamental Analysis

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AMCX Stock | Fundamental Analysis & Investment Insights
NASDAQ Communication Services Entertainment
Current Price Live
$7.21
Analyst Target
$7.33
+1.7% Upside
52W High
$10.28
52W Low
$5.41

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AI Analysis

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Confidence Score
85%
Analysis Accuracy
AMCX's Piotroski F-Score of 4/9 indicates weak financial health, signaling distress in operational efficiency and capital structure. The absence of an Altman Z-Score raises red flags for potential bankruptcy risk, especially given a high Debt/Equity ratio of 1.83. While the stock trades at a deeply discounted valuation (P/E 4.34, Price/Book 0.31), its negative revenue growth (-0.80% YoY) and inconsistent earnings performance undermine long-term viability. The Graham Number of $29.31 suggests significant undervaluation, but the intrinsic value of $11.62 reflects low growth expectations and high risk. Overall, the combination of weak fundamentals, poor insider sentiment, and deteriorating trends makes the stock a high-risk proposition.

Key Strengths

Deeply undervalued on a Price/Book basis (0.31)
Strong gross margin of 50.63% indicates pricing power and cost control
Positive operating margin of 10.20% shows operational efficiency
Historically strong EPS surprises (e.g., +99.1% in 2023 Q1) suggest potential for upside if execution improves
Low P/E ratio (4.34) relative to sector average (22.05) implies market discount for risk

Key Risks

Piotroski F-Score of 4/9 indicates weak financial health and deteriorating operational efficiency
Debt/Equity ratio of 1.83 is elevated and unsustainable without strong cash flow
Negative revenue growth (-0.80% YoY) and inconsistent earnings beat rate (only 1/4 in last 4 quarters)
Insider selling activity (1 sale, $0.05M) with no buys signals lack of confidence
No Altman Z-Score available, but high leverage and declining revenue suggest potential distress risk
AI Fair Value Estimate
Based on comprehensive analysis
$11.62
+61.2% above current price

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