AMCX
AMC Networks Inc - Ordinary Shares - Class A
TMT
07/19/2019
Presented
| Date | 07/16/2019 |
| Price | $56.17 |
| Market Cap | $3.19B |
| Ent Value | $6.29B |
| P/E Ratio | 7.52x |
| Book Value | $8.02 |
| Div Yield | 0% |
| Shares O/S | 56.81M |
| Ave Daily Vol | 544,254 |
| Short Int | 31.33% |
Current
| Price | $7.83 |
| Market Cap | $0.35B |
| AMC Networks, Inc. is a holding company, which engages in owning and management of cable television networks through its subsidiaries. It operates through the National Networks and International and Other segments. The National Networks segment includes activities of AMC Studios operations, AMC Broadcasting and Technology, and national programming networks, namely: AMC, WEtv, BBC AMERICA, IFC, and SundanceTV in the U. S.; and AMC, IFC, and Sundance Channel in Canada. The International and Other segment comprises AMC Networks International (AMCNI), the international programming businesses consisting of a portfolio of channels in Europe, Latin America, the Middle East, and parts of Asia and Africa; IFC Films, the independent film distribution business; and subscription streaming services, Sundance Now and Shudder. The company was founded by Charles Francis Dolan on March 9, 2011 and is headquartered in New York, NY. |
AMC Networks Inc (AMCX) – Short
Publicly traded companies mentioned herein: Altice USA Inc (ATUS), Amazon.com Inc (AMZN), AMC Networks Inc (AMCX), AT&T Inc (T), Cable One Inc (CABO), CBS Corp (CBS), Charter Communications Inc (CHTR), DISH Network Corp (DISH), Netflix Inc (NFLX), Viacom Inc (VIAB)
Highlights
The presenter is short shares of AMC Networks Inc (AMCX), viewing the company as a “melting ice cube” in structural decline with an unlikely chance of maintaining its profitability. Shares have fallen ~20% from 52-week highs and, coupled with a seemingly attractive ~7x earnings multiple, many investors question why the presenter considers this an attractive short now. He notes that shares of the stock should be traded on its EBITDA multiple, which is roughly in line with its historical figure. The Street estimates ~$950MM in EBITDA for 2019, but the presenter sees EBITDA declining to ~$800MM in 2021 on the back of secular trends and upcoming catalysts. This implies ~33% downside from the current ~$55 per share to ~$37 per share with additional downside based on the result of an upcoming litigation. He also considers the risk/reward attractive given his ~$65 per share upside estimate (~18%) if his expectations prove completely inaccurate.
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