AMC Entertainment Holdings, Inc. (AMC) | Investment Case

1. Company Snapshot

1.a. Company Description

AMC Entertainment Holdings, Inc., through its subsidiaries, engages in the theatrical exhibition business.The company owns, operates, or has interests in theatres in the United States and Europe.As of March 1, 2022, it operated approximately 950 theatres and 10,600 screens.

The company was founded in 1920 and is headquartered in Leawood, Kansas.

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1.b. Last Insights on AMC

Here is a 90-word analysis of the negative drivers behind AMC Entertainment Holdings, Inc.'s recent stock performance: Declining attendance and profitability concerns weigh on AMC Entertainment's stock. The company's focus on operational efficiencies and strategic diversification is overshadowed by declining box office sales. The recent stock sale to raise cash has also raised concerns about the company's financial health. With the stock technically in oversold territory, investors are wary about the company's ability to reverse its trend. Analysts' estimates for Q4 earnings are a key metric to watch, but concerns about attendance and profitability will continue to pressure the stock.

1.c. Company Highlights

Last Price	2.29
Change Percentage	-1.51%
Open	2.31
Previous Close	2.33
Market Cap ( Millions)	1175
Volume	668523
Year High	4.88
Year Low	2.05
M A 50	2.6
M A 200	2.89

FCF Yield	-25.25%
Dividend Yield	0.00%
ROE	36.60%
Debt / Equity	-236.67%
Net Debt / EBIDTA	2047.44%
Price To Book	-0.66
Price Earnings Ratio	-1.83
Price To FCF	-3.96
Price To sales	0.24
EV / EBITDA	26.71

2. AMC Entertainment's Q3 2025 Earnings: A Strong Performance

AMC Entertainment reported a robust third quarter 2025, with revenues reaching $1.3 billion, beating Wall Street consensus assessments. The company's adjusted EBITDA was $122 million, also exceeding expectations. Earnings per share (EPS) came in at -$0.21, slightly below the estimated -$0.19. The company's admissions revenue per patron reached an all-time record of $12.25, while food and beverage revenue per patron was $7.74, the second-highest in company history.

Publication Date: Nov -24

                                    📋 Highlights
                                    Revenue and EBITDA Growth:
                                                AMC reported $1.3 billion revenue and $122 million adjusted EBITDA, surpassing Wall Street consensus.
Market Share Expansion:
                                                Domestic box office share rose to 24%, with 27% of U.S. market (excluding Canada).
Per-Patron Revenue Records:
                                                Admissions revenue per patron hit $12.25 (record), food revenue $7.74 (second-highest), and 54% contribution margin growth vs. 2019.
Taylor Swift Event Success:
                                                Generated $50 million in box office, capturing 36% market share during the event (typically 24%).

                                

Revenue Growth and Margin Expansion

AMC's consolidated revenue increased by 7.5% compared to the same period last year, driven by a 33.8% increase in admissions revenue per patron and a 60.5% increase in food and beverage revenue per patron compared to Q3 2019. The company's contribution margin per patron has also expanded, with a 54% increase compared to pre-pandemic levels. This growth in revenue and margin is a testament to AMC's successful marketing strategies and cost containment efforts.

Premium Large-Format Screens and Content Creation

AMC is continuing to invest in premium large-format screens, with 223 IMAX screens globally and over 177 Dolby Cinema PLFs. The company is also exploring new content creation opportunities, including live concerts and sporting events, with the technical capability to live broadcast events to over 277 of its 530 theaters in the US. This move into content creation is expected to drive future growth and increase AMC's market share.

Valuation Metrics

AMC's current valuation metrics indicate a mixed picture. The company's P/S Ratio is 0.23, indicating relatively low revenue multiples. However, the EV/EBITDA ratio is 26.49, suggesting that the company's EBITDA is not as strong as its revenue growth. The ROE is 36.6%, indicating a relatively high return on equity. These metrics suggest that AMC's stock price may be driven by expectations of future growth rather than current earnings.

Outlook and Conclusion

AMC is optimistic about its future, with a strong lineup of movies expected to be released over the next eight weeks. The company's focus on delivering a great experience for its guests is paying off, with high ticket prices and strong food and beverage sales. Analysts estimate revenue growth of 8.0% next year, indicating a relatively stable outlook for the company. With its strong performance metrics and growth prospects, AMC is well-positioned to continue its success in the coming quarters.

3. NewsRoom

AMC Entertainment Issues Statement About the Health of Chairman and CEO Adam Aron

Dec -04

Source: businesswire.com

AMC's New Trick Is Crazy Enough to Work

Dec -03

Source: fool.com

Netflix Hits New Streaming Record With 'Stranger Things' Season 5: Will Q1 Revenue Also Hit New Highs?

Dec -02

Source: feeds.benzinga.com

AMC Theatres® to Host Promotional Fan Screenings of the Stranger Things Finale From Netflix on December 31 and January 1

Dec -02

Source: businesswire.com

3 Things AMC Stock Must Do to Bounce Back in 2026

Dec -02

Source: fool.com

Dow Jones Today: Stock Indexes Close Lower to Begin December Trading; Big Tech, Crypto-Tied Shares Drop Amid Risk-Off Sentiment

Dec -02

Source: investopedia.com

Why AMC Entertainment Stock Got Mashed on Monday

Dec -01

Source: fool.com

Families Flock to AMC Theatres® During the Thanksgiving Holiday as AMC Records Its Busiest Week in 2025, Monday Through Sunday, in the U.S. and Globally – More Than 6.9 Million Guests Visited an AMC or ODEON Movie Theatre

Dec -01

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.74%)

6. Segments

Admissions

Expected Growth: 3.8%

AMC Entertainment Holdings, Inc.'s 3.8% growth in admissions is driven by strategic initiatives, including premium format expansion, enhanced food and beverage offerings, and targeted marketing efforts. Additionally, a strong film slate, including blockbuster releases and franchise sequels, has contributed to increased attendance and revenue growth.

Food and Beverage

Expected Growth: 3.5%

AMC Entertainment Holdings, Inc.'s Food and Beverage segment growth of 3.5% is driven by increased premium format adoption, enhanced menu offerings, and strategic pricing initiatives. Additionally, investments in mobile ordering and self-service kiosks have improved operational efficiency, leading to higher average concession spend per patron.

Other Theatre

Expected Growth: 4.2%

AMC Entertainment's Other Theatre segment growth of 4.2% is driven by increasing demand for premium formats like Dolby Cinema, IMAX, and 3D, as well as strategic acquisitions and renovations. Additionally, the segment benefits from a diverse geographic presence, with a strong foothold in the European market, and a focus on enhancing the customer experience through loyalty programs and targeted marketing initiatives.

Advertising

Expected Growth: 4.5%

AMC Entertainment Holdings, Inc.'s 4.5% advertising growth is driven by increasing demand for on-screen advertising, strategic partnerships with major brands, and effective utilization of data analytics to target high-value audiences. Additionally, the company's efforts to enhance the cinematic experience, such as premium formats and recliner seating, have attracted more advertisers.

7. Detailed Products

Movie Tickets

AMC Entertainment Holdings, Inc. sells movie tickets to customers through its various channels, including online, mobile, and in-theater sales.

Food and Beverages

AMC offers a range of food and beverages, including snacks, meals, and specialty drinks, at its theaters.

Premium Formats

AMC offers premium formats, such as IMAX, Dolby Cinema, and 3D, which provide an enhanced cinematic experience.

Subscription Services

AMC offers subscription services, such as AMC Stubs A-List, which allow customers to see multiple movies per month for a flat fee.

Advertising

AMC sells advertising space to companies, including on-screen ads, lobby displays, and online promotions.

Events and Screen Rentals

AMC offers event hosting and screen rentals for private events, such as birthday parties and corporate events.

8. AMC Entertainment Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for AMC Entertainment Holdings, Inc. is medium. While there are alternative forms of entertainment, such as streaming services and video games, the unique experience offered by AMC's theaters helps to mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers for AMC Entertainment Holdings, Inc. is low. Individual customers have limited negotiating power, and the company's large customer base helps to reduce the impact of any individual customer's demands.

Bargaining Power Of Suppliers

The bargaining power of suppliers for AMC Entertainment Holdings, Inc. is medium. While the company relies on a few large suppliers for film distribution, the suppliers also rely on AMC for exhibition, which helps to balance the power dynamic.

Threat Of New Entrants

The threat of new entrants for AMC Entertainment Holdings, Inc. is low. The high barriers to entry, including the need for significant capital investment and regulatory approvals, make it difficult for new competitors to enter the market.

Intensity Of Rivalry

The intensity of rivalry for AMC Entertainment Holdings, Inc. is high. The company operates in a highly competitive market with several large competitors, and the need to constantly invest in technology and customer experience to remain competitive.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	156.97%
Debt Cost	4.46%
Equity Weight	-56.97%
Equity Cost	13.17%
WACC	-0.50%
Leverage	-275.53%

11. Quality Control: AMC Entertainment Holdings, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Alliance Entertainment Holding

A-Score: 4.1/10

Value: 5.7

Growth: 2.7

Quality: 5.9

Yield: 0.0

Momentum: 10.0

Volatility: 0.7

1-Year Total Return ->

Dolphin Entertainment

A-Score: 3.7/10

Value: 8.6

Growth: 4.0

Quality: 3.6

Yield: 0.0

Momentum: 4.0

Volatility: 2.0

1-Year Total Return ->

Reservoir Media

A-Score: 3.7/10

Value: 4.5

Growth: 2.6

Quality: 4.5

Yield: 0.0

Momentum: 3.0

Volatility: 7.3

1-Year Total Return ->

Reading International

A-Score: 3.6/10

Value: 8.2

Growth: 2.7

Quality: 3.4

Yield: 0.0

Momentum: 4.0

Volatility: 3.3

1-Year Total Return ->

AMC Entertainment Holdings

A-Score: 3.4/10

Value: 8.5

Growth: 3.1

Quality: 5.5

Yield: 0.0

Momentum: 1.5

Volatility: 1.7

1-Year Total Return ->

HOFRE

A-Score: 3.1/10

Value: 10.0

Growth: 3.7

Quality: 3.6

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

0.25%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

-0.50%

AMC Entertainment Holdings, Inc. - US00165C3025

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on AMC

1.c. Company Highlights

Weak Momentum

More Volatile

Lower Growth

Earnings Miss

Revenues Beats

Revenues Miss

Earnings Beats

Fairly Valued

Medium Volatility

Stable Momentum

Average Growth

2. AMC Entertainment's Q3 2025 Earnings: A Strong Performance

Revenue Growth and Margin Expansion

Premium Large-Format Screens and Content Creation

Valuation Metrics

Outlook and Conclusion

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.74%)

6. Segments

Admissions

Expected Growth: 3.8%

Food and Beverage

Expected Growth: 3.5%

Other Theatre

Expected Growth: 4.2%

Advertising

Expected Growth: 4.5%

7. Detailed Products

Movie Tickets

Food and Beverages

Premium Formats

Subscription Services

Advertising

Events and Screen Rentals

8. AMC Entertainment Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: AMC Entertainment Holdings, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.29$

Current Price

2.29$

Potential

0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA