1. Perform Financial Statement Analysis of Stock Symbols AMC a CNK both within the same industry: Common Size Statement Analysis of the Balance Sheet and the Income Statement (see the lecture PPT...

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1. Perform Financial Statement Analysis of Stock Symbols AMC a CNK both within the same industry: Common Size Statement Analysis of the Balance Sheet and the Income Statement (see the lecture PPT slides, compare the data of the selected 2 companies—no industry average data is required for Common Size analysis). Analyze the Balance Sheet, Income Statement and Statement of Cash Flows: provide comments based on your observation - which company has better financial data?). 2. Perform Financial Ratios Analysis of the TWO companies: Utilizing the company’s financial statements, please calculate the following ratios: Long-Term Debt to Equity (or Total Debt to Total Asset), ROE, Net Profit Margin, P/E ratio (please show your calculations) 3. Compare the above financial ratios of the two companies (OR with the Industry Average, if available) (see Chapters 3 and 4). 4. Perform Valuation Analysis: Determine and compare the Expected Return (Ke) and the Required Return (Kr) of each stock (see Chapters 8 and 9); OR calculate the Appraised (intrinsic) Value of the each company’s stock and compare this value with the company’s current stock price. Provide comments based on the above results. Please “Google” the latest Treasury bill rate (Risk-free rate). See attached sheet for RPm. 5. Based on the above analysis: Select One Company (one of the two) 6. Provide a brief description of the selected company, its products/services, its management and the company’s business strategy 7. Discussion of the selected company’s financial strength and reasons which this stock should be selected for investment. 8. Provide the selected company’s stock symbol (look up in yahoo.com (finance) 9. Provide the selected Company’s closing stock price (look up in yahoo.com (finance) 10. For the Final Report: Please submit (1) all calculations of Common Size statements, financial ratios and Appraised Values (2) discussions and conclusions. Please put in the appendix: The balance sheets, Income statements, Statements of Cash Flow (of the 2 companies) 1. Perform Financial Statement Analysis of Stock Symbols à AMC a CNK both within the same industry: Common Size Statement Analysis of the Balance Sheet and the Income Statement (see the lecture PPT slides, compare the data of the selected 2 companies — no industry average data is required for Common Size analysis). Analyze the Balance Sheet, Income Statement and Statement of Cash Flows: provide comments based on your observation - which company has be tter financial data?). 2. Perform Financial Ratios Analysis of the TWO companies: Utilizing the company’s financial statements, please calculate the following ratios: Long - Term Debt to Equity (or Total Debt to Total Asset), ROE, Net Profit Margin, P/E rati o (please show your calculations) 3. Compare the above financial ratios of the two companies (OR with the Industry Average, if available) (see Chapters 3 and 4). 4. Perform Valuation Analysis: Determine and compare the Expected Return (Ke) and the Required Return (Kr) of each stock (see Chapters 8 and 9); OR calculate the Appraised (intrinsic) Value of the each company’s stock and compare this value with the company’s current stock price. Provide comments based on the above results. Please “Google” the late st Treasury bill rate (Risk - free rate). See attached sheet for RPm. 5. Based on the above analysis: Select One Company (one of the two) 6. Provide a brief description of the selected company, its products/services, its management and the company’s business strategy 7. Discussion of the selected company’s financial strength and reasons which this stock should be selected for investment. 8. Provide the selected company’s stock symbol (look up in yahoo.com (finance) 9. Provide the selected Company’s closing st ock price (look up in yahoo.com (finance) 10. For the Final Report: Please submit (1) all calculations of Common Size statements, financial ratios and Appraised Values (2) discussions and conclusions. Please put in the appendix: The balance sheets, Income statements, Statements of Cash Flow (of the 2 companies) 1. Perform Financial Statement Analysis of Stock Symbols  AMC a CNK both within the same industry: Common Size Statement Analysis of the Balance Sheet and the Income Statement (see the lecture PPT slides, compare the data of the selected 2 companies—no industry average data is required for Common Size analysis). Analyze the Balance Sheet, Income Statement and Statement of Cash Flows: provide comments based on your observation - which company has better financial data?). 2. Perform Financial Ratios Analysis of the TWO companies: Utilizing the company’s financial statements, please calculate the following ratios: Long-Term Debt to Equity (or Total Debt to Total Asset), ROE, Net Profit Margin, P/E ratio (please show your calculations) 3. Compare the above financial ratios of the two companies (OR with the Industry Average, if available) (see Chapters 3 and 4). 4. Perform Valuation Analysis: Determine and compare the Expected Return (Ke) and the Required Return (Kr) of each stock (see Chapters 8 and 9); OR calculate the Appraised (intrinsic) Value of the each company’s stock and compare this value with the company’s current stock price. Provide comments based on the above results. Please “Google” the latest Treasury bill rate (Risk-free rate). See attached sheet for RPm. 5. Based on the above analysis: Select One Company (one of the two) 6. Provide a brief description of the selected company, its products/services, its management and the company’s business strategy 7. Discussion of the selected company’s financial strength and reasons which this stock should be selected for investment. 8. Provide the selected company’s stock symbol (look up in yahoo.com (finance) 9. Provide the selected Company’s closing stock price (look up in yahoo.com (finance) 10. For the Final Report: Please submit (1) all calculations of Common Size statements, financial ratios and Appraised Values (2) discussions and conclusions. Please put in the appendix: The balance sheets, Income statements, Statements of Cash Flow (of the 2 companies)
Answered 1 days AfterSep 17, 2021

Answer To: 1. Perform Financial Statement Analysis of Stock Symbols AMC a CNK both within the same industry:...

Tanmoy answered on Sep 19 2021
140 Votes
Income Statement - AMC
        AMC Entertainment Holdings, Inc. (AMC)
        Income Statement    12/30/2020    % Change    12/30/2019    % Change    12/30/2018    % Change    12/302017    % Change
        Total Revenue    1,242,400    100.00%    5,471,000    100.00%    5,460,800    100.00%    5,079,200    100.00%
        Operating Revenue    1,242,400    100.00%    5,471,000    100.00%    5,460,800    100.00%    5,079,200    100.00%
        Cost of Revenue    411,500    33.12%    1,977,800    36.15%    1,981,100    36.28%    1,856,400    36.55%
        Gross Profit    830,900    66.88%    3,493,200    63.85%    3,479,700    63.72%    3,222,800    63.45%
        Operating Expense    2,371,500    190.88%    3,257,400    59.54%    3,169,600    58.04%    3,014,400    59.35%
        Selling General and Administrative    1,040,800    83.77%    1,120,800    20.49%    977,100    17.89%    927,800    18.27%
        General & Administrative Expense    1,040,800    83.77%    1,120,800    20.49%    977,100    17.89%    927,800    18.27%
        Rental & Landing Fees    884,100    71.16%    967,800    17.69%    797,800    14.61%    794,400    15.64%
        Other G and A    156,700    12.61%    153,000    2.80%    179,300    3.28%    133,400    2.63%
        Depreciation Amortization Depletion
    498,300    40.11%    450,000    8.23%    537,800    9.85%    538,600    10.60%
        Depreciation & amortization    498,300    40.11%    450,000    8.23%    537,800    9.85%    538,600    10.60%
        Other Operating Expenses    832,400    67.00%    1,686,600    30.83%    1,654,700    30.30%    1,548,000    30.48%
        Operating Income    -1,540,600    -124.00%    235,800    4.31%    310,100    5.68%    208,400    4.10%
        Net Non Operating Interest Income Expense    -396,200    -31.89%    -340,800    -6.23%    -342,700    -6.28%    -275,000    -5.41%
        Interest Expense Non Operating    356,900    28.73%    340,800    6.23%    342,300    6.27%    274,000    5.39%
        Total Other Finance Cost    39,300    3.16%    0    0.00%    400    0.01%    1,000    0.02%
        Other Income Expense    -2,592,700    -208.68%    -66,600    -1.22%    156,300    2.86%    -266,500    -5.25%
        Gain on Sale of Security    -116,300    -9.36%    19,400    0.35%    115,800    2.12%    25,600    0.50%
        Earnings from Equity Interest    -30,900    -2.49%    30,600    0.56%    86,700    1.59%    -185,200    -3.65%
        Special Income Charges    -2,444,400    -196.75%    -115,300    -2.11%    -45,100    -0.83%    -106,600    -2.10%
        Restructuring & Mergers Acquisition    24,600    1.98%    15,500    0.28%    31,300    0.57%    63,000    1.24%
        Impairment of Capital Assets    2,513,900    202.34%    84,300    1.54%    13,800    0.25%    43,600    0.86%
        Other Special Charges    -94,100    -7.57%    15,500    0.28%    0    0.00%    0    0.00%
        Gain on Sale of Business    0    0.00%    16,000    0.29%    6,200    0.11%    22,600    0.44%
        Other Non Operating Income Expenses    -1,100    -0.09%    -1,300    -0.02%    -1,100    -0.02%    -300    -0.01%
        Pretax Income    -4,529,500    -364.58%    -171,600    -3.14%    123,700    2.27%    -333,100    -6.56%
        Tax Provision    59,900    4.82%    -22,500    -0.41%    13,600    0.25%    154,100    3.03%    1.92%
        Net Income Common Stockholders    -4,589,400    -369.40%    -149,100    -2.73%    110,100    2.02%    -487,200    -9.59%
        Net Income    -4,589,400    -369.40%    -149,100    -2.73%    110,100    2.02%    -487,200    -9.59%
        Net Income Including Non-Controlling Interests    -4,589,400    -369.40%    -149,100    -2.73%    110,100    2.02%    -487,200    -9.59%
        Net Income Continuous Operations    -4,589,400    -369.40%    -149,100    -2.73%    110,100    2.02%    -487,200    -9.59%
        Minority Interests    -300        0        0        0
        Diluted NI Available to Com Stockholders    -4,589,400        -149,100        110,100        -487,200
        Basic EPS    -39.15        -1.44        0.91        -3.8
        Diluted EPS    -39.15        -1.44        0.41        -3.8
        Basic Average Shares    117,212        103,832        120,621        128,246
        Diluted Average Shares    117,212        103,832        130,105        128,246
        Total Operating Income as Reported    -4,102,700        136,000        265,000        101,800
        Rent Expense Supplemental    884,100        967,800        797,800        794,400
        Total Expenses    2,783,000        5,235,200        5,150,700        4,870,800
        Net Income from Continuing & Discontinued Operation    -4,589,400        -149,100        110,100        -487,200
        Normalized Income    -2,720,089        -65,763        47,177        -438,600
        Interest Expense    356,900        340,800        342,300        274,000
        Net Interest Income    -396,200        -340,800        -342,700        -275,000
        EBIT    -4,172,600        169,200        466,000        -59,100
        EBITDA    0        0        0        0
        Reconciled Cost of Revenue    411,500        1,977,800        1,981,100        1,856,400
        Reconciled Depreciation    498,300        450,000        537,800        538,600
        Net Income from Continuing Operation Net Minority Interest    -4,589,400        -149,100        110,100        -487,200
        Total Unusual Items Excluding Goodwill    -2,560,700        -95,900        70,700        -81,000
        Total Unusual Items    -2,560,700        -95,900        70,700        -81,000
        Normalized EBITDA    -1,113,600        715,100        933,100        560,500
        Tax Rate for Calcs    0        0        0        0
        Tax Effect of Unusual Items    -691,389        -12,563        7,777        -32,400
        Ratio Analysis    12/30/2020    12/30/2019    12/30/2018    12/30/2017
        Long term debt to equity ratio    0.78    1.10    1.17    1.27
        ROE    -0.43    4.51    3.91    2.40
        Net Profit Margin    -369.40%    -2.73%    2.02%    -9.59%
        P/E Ratio    -0.31    -38.39    138.91    -12.73
        Calculation of Intrinsic Value            Valuation Model
        Market Assumptions            Cal Year     Year    Gr Rate    FCF ($M)    Term Value    Total     PV
        Risk Free Rate (30 year Daily Treasury Yield Curve Rates)    1.65%        2021    0    5.00%    100,000        100,000
        Market Risk Premium    5.60%        2022    1    5.00%    105000        105,000    96199
                    2023    2    5.00%    110250        110,250    92542
        Equity Assumptions            2024    3    5.00%    115763        115,763    89024
        Beta    1.33        2025    4    5.00%    121551        121,551    85640
        Cost of Equity    9.10%        2026    5    5.00%    127628        127,628    82385
        MV of Equity est ($M)    2858200        2027    6    5.00%    134010        134,010    79254
                    2028    7    5.00%    140710        140,710    76241
        Debt Assumptions            2029    8    3.00%    147746    2474866    2,622,612    1301901
        Pre-Tax Cost of Debt    11.65%                    Firm Value            1903187
        Effective Tax Rate    18%                    Debt Value            356,900
        After Tax Cost of Debt    9.56%                    Equity Value            1546287
        MV of Debt est ($M)    356,900                    Shares Outstanding            228,066
                                Intrinsic Value            6.78
        Firm Assumptions                        Market Price/ Share (As on 28/12/2020)            2.12
        Firm Value est ($M)    3215100
        Debt to MV Ratio    11.10%                    Intrinsic Value is at 6.78 and is more than the market price per share at 2.12 as on 28/12/2020. Hence, AMC share is undervalued and is good for the investors to purchase the share of AMC.
        WACC    9.15%
        Initial Cash Flow (Assumed)    100,000
        Long Term Terminal Growth Rate    3.00%
Balance Sheet - AMC
        AMC Entertainment Holdings, Inc. (AMC)
        Balance Sheet    12/30/2020    % Change    12/30/2019    % Change    12/30/2018    % Change    12/30/2017    % Change
        Total Assets    10,276,400    100.00%    13,675,800    100.00%    9,495,800    100.00%    9,805,900    100.00%
        Current Assets    487,000    4.74%    673,100    4.92%    781,300    8.23%    872,400    8.90%
        Cash, Cash Equivalents & Short Term Investments    308,300    3.00%    265,000    1.94%    313,300    3.30%    310,000    3.16%
        Cash And Cash Equivalents    308,300    3.00%    265,000    1.94%    313,300    3.30%    310,000    3.16%
        Receivables    99,000    0.96%    265,900    1.94%    284,200    2.99%    298,000    3.04%
        Accounts receivable    23,100    0.22%    160,300    1.17%    183,200    1.93%    271,500    2.77%
        Taxes Receivable    8,000    0.08%    11,700    0.09%    24,700    0.26%    26,500    0.27%
        Other Receivables    67,900    0.66%    93,900    0.69%    76,300    0.80%    0    0.00%
        Inventory    21,300    0.21%    37,500    0.27%    35,200    0.37%    34,000    0.35%
        Finished Goods    21,300    0.21%    37,500    0.27%    35,200    0.37%    34,000    0.35%
        Prepaid Assets    33,800    0.33%    63,400    0.46%    99,800    1.05%    114,100    1.16%
        Restricted Cash    13,100    0.13%    10,500    0.08%    10,700    0.11%    8,300    0.08%
        Assets Held for Sale Current    0    0.00%    0    0.00%    0    0.00%    80,000    0.82%
        Other Current Assets    11,500    0.11%    30,800    0.23%    38,100    0.40%    28,000    0.29%
        Total non-current assets    9,789,400    95.26%    13,002,700    95.08%    8,714,500    91.77%    8,933,500    91.10%
        Net PPE    6,774,000    65.92%    7,445,200    54.44%    3,039,600    32.01%    3,116,500    31.78%
        Gross PPE    9,017,100    87.75%    9,265,300    67.75%    4,736,700    49.88%    4,383,400    44.70%
        Properties    0    0.00%    0    0.00%    0    0.00%    0    0.00%
        Land And Improvements    92,600    0.90%    106,300    0.78%    104,600    1.10%    130,500    1.33%
        Buildings And Improvements    295,500    2.88%    311,400    2.28%    1,006,000    10.59%    1,084,300    11.06%
        Machinery Furniture Equipment    2,343,700    22.81%    2,216,800    16.21%    2,065,400    21.75%    1,970,600    20.10%
        Other Properties    4,451,500    43.32%    4,796,000    35.07%    0    0.00%    0    0.00%
        Leases    1,833,800    17.84%    1,834,800    13.42%    1,560,700    16.44%    1,198,000    12.22%
        Accumulated Depreciation    -2,243,100    -21.83%    -1,820,100    -13.31%    -1,697,100    -17.87%    -1,266,900    -12.92%
        Goodwill And Other Intangible Assets    2,710,500    26.38%    4,984,400    36.45%    5,140,800    54.14%    5,312,200    54.17%
        Goodwill    2,547,300    24.79%    4,789,100    35.02%    4,788,700    50.43%    4,931,700    50.29%
        Other Intangible Assets    163,200    1.59%    195,300    1.43%    352,100    3.71%    380,500    3.88%
        Investment Properties    16,000    0.16%    16,800    0.12%    16,200    0.17%    7,600    0.08%
        Investments And Advances    97,500    0.95%    267,100    1.95%    319,000    3.36%    404,500    4.13%
        Long Term Equity Investment    97,500    0.95%    267,100    1.95%    263,300    2.77%    404,500    4.13%
        Investment in Financial Assets    0    0.00%    0    0.00%    55,700    0.59%    0    0.00%
        Available for Sale Securities    0    0.00%    0    0.00%    55,700    0.59%    0    0.00%
        Financial Assets    0    0.00%    38,000    0.28%    0    0.00%    0    0.00%
        Non Current Deferred Assets    8,600    0.08%    81,400    0.60%    35,300    0.37%    38,400    0.39%
        Non Current Deferred Taxes Assets    300    0.00%    70,100    0.51%    28,600    0.30%    28,900    0.29%
        Non Current Prepaid Assets    28,600    0.28%    0    0.00%    0    0.00%    0    0.00%
        Defined Pension Benefit    20,800    0.20%    19,600    0.14%    25,700    0.27%    26,900    0.27%
        Other Non Current Assets    133,400    1.30%    150,200    1.10%    137,900    1.45%    27,400    0.28%
        Total Liabilities Net Minority Interest    13,134,600    100.00%    12,461,600    100.00%    8,097,800    100.00%    7,692,700    100.00%
        Current Liabilities    1,578,500    12.02%    1,933,200    15.51%    1,328,100    16.40%    1,409,400    18.32%
        Payables And Accrued Expenses    468,900    3.57%    753,300    6.04%    673,500    8.32%    773,800    10.06%
        Payables    385,400    2.93%    618,500    4.96%    526,000    6.50%    657,200    8.54%
        Accounts Payable    298,800    2.27%    543,300    4.36%    452,600    5.59%    569,600    7.40%
        Total Tax Payable    86,600    0.66%    75,200    0.60%    73,400    0.91%    87,600    1.14%
        Current Accrued Expenses    83,500    0.64%    134,800    1.08%    147,500    1.82%    116,600    1.52%
        Interest Payable    31,400    0.24%    21,200    0.17%    32,600    0.40%    27,500    0.36%
        Pension & Other Post Retirement Benefit Plans Current    600    0.00%    500    0.00%    300    0.00%    300    0.00%
        Current Debt And Capital Lease Obligation    616,500    4.69%    616,100    4.94%    82,200    1.02%    87,700    1.14%
        Current Debt    20,000    0.15%    20,000    0.16%    82,200    1.02%    87,700    1.14%
        Other Current...
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