Risk/Reward Rating: Negative
AMC Entertainment has been on a downward trajectory for some time. The business collapse during COVID lockdowns was more of a punctuation mark than a one-off negative event. Peak earnings in recent times have been in the $110 million per year range as was seen in 2015, 2016, and again in 2018. In between these years, the company has generated losses.
At a current equity valuation of $27 billion, the stock of the company is being valued at 246x peak earnings of recent years. Unfortunately, the fundamentals of the company have been deteriorating well before this.
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