AMCX - Embedded Expectations Analysis - 2019 03 27
AMC Networks Inc. (AMCX:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 11.7x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management has concerns about their ability to create original content, generate viewership for existing shows, and monetize their programming.Specifically, management may lack confidence in their ability to sustain domestic affiliate revenue, limit expense base growth, and maintain The Walking Dead viewership. Moreover, they may be concerned about viewership for the upcoming season of Doctor Who, their ability to increase licensing revenue for The Walking Dead, and subscription video on demand revenue declines. Also, they may be exaggerating the success of Killing Eve and Love After Lockup, ad monetization opportunities across their programming, and the audience for British dramas. In addition, they may be concerned about their ability to create original content, navigate near term programming headwinds, and generate demand for their content.
AMC Networks is a holding company. Through its subsidiaries, the company is engaged in owning and operating entertainment businesses and assets. The company's operating segments are: National Networks, which includes activities of the company's programming businesses, which include programming networks such as AMC, WE tv, BBC AMERICA, IFC, and SundanceTV in the U.S., and AMC and IFC in Canada; and International and Other, which includes AMC Networks International, the company's international programming businesses consisting of a portfolio of channels; IFC Films, the company's independent film distribution business, and its subscription streaming services Acorn TV and UMC, Shudder and Sundance Now.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.