AMC Entertainment Rated 44% by Growth Investor Model

AMC Entertainment Holdings Inc receives a 44% rating based on the P/B Growth Investor model, suggesting limited interest in the stock. Despite showing strength in its book-to-market ratio, weaknesses in profitability metrics raise concerns for investors.

Date: 08-02-2025

AI Rating: 5

Overview

AMC Entertainment Holdings Inc is evaluated using the P/B Growth Investor model, indicating a 44% score derived from its core fundamentals and stock valuation. The model seeks out low book-to-market stocks known for sustainable growth. While this rating signifies some interest, it falls short of the 80% threshold that usually attracts more investor attention.

Financial Metrics

Despite the overall 44% score, the financial metrics show a mix of strengths and weaknesses:

Book/Market Ratio: The company passes this criterion, suggesting favorable valuation relative to its book value.
Return on Assets: AMC fails this test, highlighting poor asset efficiency and impacting profitability. This lack of efficiency can lead investors to question the company's operational performance.
Cash Flow from Operations to Assets: This metric also fails, indicating challenges in generating adequate cash flow relative to asset base.
Cash Flow from Operations to Assets vs. Return on Assets: AMC passes this ratio, hinting that while cash flow may be limited, its operational output relative to assets holds some merit.
Sales Variance: Another fail here denotes potential inconsistency in sales performance over time, which can affect future earnings potential.
Capital Expenditures to Assets: AMC passes this test, showing its readiness to invest in capital which could be a positive signal for long-term growth.

Other factors such as advertising to assets and research and development to assets show failures as well, which may hinder AMC's competitive stance in the motion picture industry.

Conclusion

The analysis indicates that while AMC has some attributes that might attract interest, significant weaknesses in profitability metrics, especially return on assets and cash flow from operations, raise red flags for investors. Therefore, the score of 44% suggests caution and a careful reconsideration of AMC's investment potential.

Stocks: AMC