AMC - Embedded Expectations Analysis - 2020 04 03
ï€ AMC Entertainment Holdings, Inc. (AMC:USA) currently trades above corporate averages relative to Uniform earnings, with a 56.2x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management is concerned about their capital allocation strategy, theatre attendance, and executive compensationï€ Moreover, management may lack confidence in their ability to effectively liquidate assets for their deleveraging strategy. In addition, they may have concerns about the effectiveness of the changes in management compensation and about the sufficiency of their liquidity position. Furthermore, they may lack confidence in their ability to entice moviegoers to get out of the house by adding to the theater experience, and they may be downplaying changes related to the popularity of theatergoing. Moreover, they may lack confidence in their ability to sustain increasing attendance, and may be downplaying concerns about the economic impact of closed Italian theaters
AMC Entertainment Holdings is a theatrical exhibition company. Through its direct and indirect subsidiaries, including American Multi-Cinema, Inc. and its subsidiaries, the company is principally involved in theatrical exhibition business and owns, operates or has interests in theatres primarily located in the U.S. and Europe. The company provides consumers a range of entertainment alternatives including film programming, independent and foreign films, performing arts, music and sports. The company also provides food and beverage alternatives such as made-to-order meals, customized coffee, snacks, beer, wine, cocktails and dine-in theatre options.
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