AMC Stock Forecast 2022 – CrowdWisdom360


Latest AMC Stock Price

AMC Stock Forecast 2022: Performance Update

AMC STOCK FORECAST 2022: FUNDAMENTAL STATISTICS OF THE COMPANY

AMC
MARKET CAP $9.6 B
ENTERPRISE VALUE $19.89 B
P/E RATIO -1.28
FORWARD P/E -6.89
DIVIDEND YIELD NA
BOOK VALUE -8.28
EARNINGS PER SHARE  $-2.06
1 YEAR TARGET $5.00
ROE NA
BETA 1.75

AMC STOCK FORECAST 2022:MARKET CAP, REVENUE & EARNINGS

Pertaining to the acquisition of various cinemas companies, established in 1920, AMC Entertainment became the largest movie theater chain in the world in 2016. With 358 theatres in Europe and 620 theatres in the US, AMC remains the market leader of the US theater market both in terms of market share as well as the market cap, and as of now, the company’s market cap stands at  $9.6 Billion. 

AMC revenues witnessed a drastic fall from $5.47 B in 2019 to $1.24 B in 2020 as the covid badly hit the theatre business. As per the latest financial reports issued by the company, its revenue for the year 2021 stands at $1.51B, which is an increase of 21% from its previous year’s revenue of 2020, though it is far below the pre-covid level. Earnings of the company, repeating the same picture as revenues, have been negative for two consecutive years and stand currently at $-1.66 B.

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AMC STOCK FORECAST 2022:ANALYST’S ESTIMATION

In the future, AMC’s Entertainment revenue is forecast to grow at a rate of 220% per year, which is double the US market averages, with expected average revenue of $4.60 B. Despite this, the current consensus among the investment analysts is to sell the company’s stock, which has been held steady since the beginning of November last year. For the 12-month price forecasts for the company, the analysts are suggesting a median target of $6, with a high estimate of $35 and a low estimate of as low as $1. The median estimate represents a whopping 70% decrease from the current price range of around $20. 

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AMC STOCK FORECAST 2022:THE FUTURE AHEAD

After the second wave of corona passed and the theatres were opened, the stocks of AMC made an all-time high of $72.62 in may-June of 2021, driven mainly by the retail investors, but after that, the share price of the company has been in constant decline. The company stocks are currently trading at $20, which is a drop of 70% from its year’s high. Still, for those who invested at the beginning of 2021, the company is trading 1000% above.  

For the year ahead, there are serious factors that may drive the company’s price to the level it was in December 2020. The analysts hold a standard view that the company’s stocks are still very expensive, and it is likely to continue its downtrend. The fact that the management-level people, including the CEO, sell their stakes in bulk points towards the overvalued price. After losing more than 1B in three quarters of the current financial year, it does not seem that the company will report positive earnings. Moreover, the company stands with a debt of $5.4 B and the interests are in the way to erode the earnings margin. 

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AMC STOCK FORECAST 2022: LATEST NEWS

The only positive news in favour of the company is that it is exploring the possibility of entering into cryptocurrency as the company is in talks with movie studios about the potential of commemorative non-fungible tokens. In a previous move last September, AMC began accepting payments and transactions via Bitcoin, Ether and some other crypto coins.

Other than this, there is very little hope for the company as the theatre industry has been dwindling and losing appeal because of the disruption caused by the online streaming platforms. The latest movie from Marvel launched in theatres witnessed a grand opening in December and brought a relief to AMC but  the rising prices of the movies tickets is also a cause of concern and a major factor affecting the company badly. 

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AMC STOCK FORECAST 2022: Q4 EARNINGS ESTIMATION

AMC has announced a preliminary report of Q4 earnings which is an unaudited version on Tuesday, Feb 01, 2022. According to this report AMC has a net loss between $114 and $190 million dollars. AMC’s revenue increased $162.5 million dollars in the last 3 months. Net losses are narrowed compared to the $946 millions in the previous year Q4. Operating cash is about $216 millions. AMC’s 2021 earnings improved and the company has ended the quarter with $1.8 billion in liquidity. AMC said that they released preliminary Q4 results for the sake of potential investors meeting in advance.

AMC is going to announce their Q4 earnings reports on March 09, 2022. Analysts estimated the revenue to be $1.09 billions, but AMC is saying that they going to have a better Q4 results than the estimations. the company expecting the revenue to be $1.17 billion, which will make this quarter as the best quarter in the two years. AMC shares were 15% up in pre-market and gained more than 20% in the last year.

AMC STOCK FORECAST 2022: BUY, SELL OR HOLD?

From a business perspective, the company is not very likely to revive in 2022 and the year long growth remains uncertain due to the new variants popping up. Revenue and earning reports coupled by high debts do not justify the overvalued price of the company’s stocks. Taking all these factors into consideration the overall recommendation for the year 2022 is SELL. Investors with little risk capacity are advised to stay away from the stock of AMC as the price may keep going south and no recovery seems on the horizon soon and those holding stakes in the company must look for an exit. 

-Pratik Kaundilya

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.



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