What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies. Negative P/B indicates book equity has been reduced by buybacks — common in highly profitable capital-return businesses.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
AMC Entertainment Holdings, Inc. engages in the theatrical exhibition business in the United States and internationally. It owns, operates, or has interests in theatres. The company was founded in 1920 and is headquartered in Leawood, Kansas.
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
2021
Gross Profit %
67.0%▲
66.7%
66.6%
67.3%
N/A
Operating Margin %
0.8%▲
-0.1%
0.8%
-9.2%
N/A
Net Income %
-13.0%▼
-7.6%
-8.2%
-24.9%
N/A
Diluted EPS
-1.34▼
-1.06
-2.09
-8.21
N/A
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$8.0B
$8.2B
$9.0B
$9.1B
N/A
Total Debt
$8.1B↓
$8.3B
$9.1B
$10.0B
N/A
Working Capital
-$1.0B▼
-$798M
-$429M
-$788M
N/A
Years to Pay Debt
-12.87
-23.47
-23.05
-10.29
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
-$366M▼
-$296M
-$445M
-$848M
N/A
Owner Earnings
-$73M
$212M
$198M
-$358M
N/A
CapEx % of Net Income
N/A
N/A
N/A
N/A
N/A
Income Statement
2025
2024
2023
2022
2021
Tax Effect Of Unusual Items
-30,198
18,774
-5,754
-40,698
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
359,500
323,300
410,400
-2,600
Total Unusual Items
-143,800
89,400
-27,400
-193,800
Total Unusual Items Excluding Goodwill
-143,800
89,400
-27,400
-193,800
Net Income From Continuing Operation Net Minority Interest
-632,400
-352,600
-396,600
-973,600
Reconciled Depreciation
313,400
319,500
365,000
396,000
Reconciled Cost Of Revenue
1,602,200
1,544,800
1,606,400
1,280,300
EBITDA
215,700
412,700
383,000
-196,400
EBIT
-97,700
93,200
18,000
-592,400
Net Interest Income
-530,200
-443,700
-411,200
-378,700
Interest Expense
530,200
443,700
411,200
378,700
Normalized Income
-518,798
-423,226
-374,954
-820,498
Net Income From Continuing And Discontinued Operation
-632,400
-352,600
-396,600
-973,600
Total Expenses
4,808,400
4,644,000
4,773,500
4,272,500
Rent Expense Supplemental
887,300
873,600
873,500
886,200
Total Operating Income As Reported
-17,400
-79,300
-74,300
-522,300
Diluted Average Shares
472,899
414,418
260,574
118,738
Basic Average Shares
472,899
414,418
260,574
118,647
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
-632,400
-352,600
-396,600
-973,600
Net Income Common Stockholders
-632,400
-352,600
-396,600
-973,600
Net Income
-632,400
-352,600
-396,600
-973,600
Minority Interests
0
0
700
Net Income Including Noncontrolling Interests
-632,400
-352,600
-396,600
-973,600
Net Income Continuous Operations
-632,400
-352,600
-396,600
-973,600
Tax Provision
4,500
2,100
3,400
2,500
Pretax Income
-627,900
-350,500
-393,200
-971,100
Other Income Expense
-138,200
100,000
-21,100
-194,800
Other Non Operating Income Expenses
-1,200
-1,800
-1,400
600
Special Income Charges
-241,400
4,300
-74,700
-191,200
Other Special Charges
194,300
-76,700
-33,900
56,000
Write Off
0
1,000
0
Impairment Of Capital Assets
43,500
72,300
106,900
133,100
Restructuring And Mergern Acquisition
3,600
100
1,700
2,100
Earnings From Equity Interest
6,800
12,400
7,700
-1,600
Gain On Sale Of Security
97,600
85,100
47,300
-2,600
Net Non Operating Interest Income Expense
-530,200
-443,700
-411,200
-378,700
Total Other Finance Cost
1,000
Interest Expense Non Operating
530,200
443,700
411,200
378,700
Operating Income
40,500
-6,800
39,100
-361,100
Operating Expense
3,206,200
3,099,200
3,167,100
2,992,200
Other Operating Expenses
1,775,200
1,679,300
1,686,700
1,502,400
Depreciation Amortization Depletion Income Statement
313,400
319,500
365,000
396,000
Depreciation And Amortization In Income Statement
313,400
319,500
365,000
396,000
Selling General And Administration
1,117,600
1,100,400
1,115,400
1,093,800
General And Administrative Expense
1,117,600
1,100,400
1,115,400
1,093,800
Other Gand A
230,300
226,800
241,900
207,600
Rent And Landing Fees
887,300
873,600
873,500
886,200
Salaries And Wages
1,400
-600
-700
Gross Profit
3,246,700
3,092,400
3,206,200
2,631,100
Cost Of Revenue
1,602,200
1,544,800
1,606,400
1,280,300
Total Revenue
4,848,900
4,637,200
4,812,600
3,911,400
Operating Revenue
4,848,900
4,637,200
4,812,600
3,911,400
Balance Sheet
2025
2024
2023
2022
2021
Ordinary Shares Number
512,944
414,418
260,574
131,034
Share Issued
512,944
414,418
260,574
131,034
Net Debt
3,610,000
3,442,800
3,693,100
4,509,300
Total Debt
8,136,000
8,276,900
9,142,300
10,019,600
Tangible Book Value
-4,458,300
-4,205,900
-4,353,300
-5,113,900
Invested Capital
2,143,700
2,314,600
2,729,500
2,516,200
Working Capital
-1,041,800
-797,600
-429,300
-788,200
Net Tangible Assets
-4,458,300
-4,205,900
-4,353,300
-5,113,800
Capital Lease Obligations
4,097,500
4,201,800
4,564,900
4,878,800
Common Stock Equity
-1,894,800
-1,760,500
-1,847,900
-2,624,600
Preferred Stock Equity
100
100
Total Capitalization
2,123,800
2,250,400
2,704,400
2,496,300
Total Equity Gross Minority Interest
-1,894,800
-1,760,500
-1,847,900
-2,624,500
Stockholders Equity
-1,894,800
-1,760,500
-1,847,900
-2,624,500
Gains Losses Not Affecting Retained Earnings
-42,200
-132,000
-78,200
-77,300
Other Equity Adjustments
-42,200
-132,000
-78,200
-77,300
Retained Earnings
-8,979,200
-8,346,800
-7,994,200
-7,597,600
Additional Paid In Capital
7,121,500
6,714,200
6,221,900
5,049,800
Capital Stock
5,100
4,100
2,600
600
Common Stock
5,100
4,100
2,600
500
Preferred Stock
0
0
0
100
Total Liabilities Net Minority Interest
9,912,600
10,008,000
10,857,100
11,760,100
Total Non Current Liabilities Net Minority Interest
8,140,300
8,263,200
9,224,700
10,069,800
Other Non Current Liabilities
529,600
520,500
556,000
580,800
Employee Benefits
24,700
25,400
33,300
30,100
Non Current Pension And Other Postretirement Benefit Plans
24,700
25,400
33,300
30,100
Non Current Deferred Liabilities
35,700
33,900
32,400
32,100
Non Current Deferred Taxes Liabilities
35,700
33,900
32,400
32,100
Long Term Debt And Capital Lease Obligation
7,550,300
7,683,400
8,603,000
9,426,800
Long Term Capital Lease Obligation
3,531,700
3,672,500
4,050,700
4,306,000
Long Term Debt
4,018,600
4,010,900
4,552,300
5,120,800
Current Liabilities
1,772,300
1,744,800
1,632,400
1,690,300
Other Current Liabilities
79,300
71,600
77,900
84,900
Current Deferred Liabilities
465,500
432,400
421,800
402,700
Current Deferred Revenue
465,500
432,400
421,800
402,700
Current Debt And Capital Lease Obligation
585,700
593,500
539,300
592,800
Current Capital Lease Obligation
565,800
529,300
514,200
572,800
Current Debt
19,900
64,200
25,100
20,000
Other Current Borrowings
19,900
64,200
25,100
20,000
Pensionand Other Post Retirement Benefit Plans Current
200
200
100
700
Current Provisions
2,300
1,500
3,400
4,200
Payables And Accrued Expenses
639,300
645,600
589,900
605,000
Current Accrued Expenses
180,200
186,000
191,300
192,000
Interest Payable
31,000
43,100
50,300
53,000
Payables
459,100
459,600
398,600
413,000
Total Tax Payable
76,200
81,300
78,100
82,500
Accounts Payable
382,900
378,300
320,500
330,500
Total Assets
8,017,800
8,247,500
9,009,200
9,135,600
Total Non Current Assets
7,287,300
7,300,300
7,806,100
8,233,500
Other Non Current Assets
131,900
110,800
98,400
93,300
Defined Pension Benefit
8,300
14,200
17,200
16,600
Non Current Deferred Assets
0
700
3,100
6,100
Non Current Deferred Taxes Assets
0
600
Financial Assets
800
3,300
9,200
0
Investments And Advances
65,200
64,000
72,600
93,400
Investmentin Financial Assets
5,300
5,800
12,500
0
Available For Sale Securities
5,300
5,800
12,500
Long Term Equity Investment
65,200
64,000
66,800
80,900
Investment Properties
6,900
3,500
3,600
6,500
Goodwill And Other Intangible Assets
2,563,500
2,445,400
2,505,400
2,489,300
Other Intangible Assets
147,400
144,300
146,700
147,300
Goodwill
2,416,100
2,301,100
2,358,700
2,342,000
Net PPE
4,511,500
4,662,400
5,104,900
5,522,100
Accumulated Depreciation
-3,532,600
-3,288,100
-3,109,800
-2,853,800
Gross PPE
8,044,100
7,950,500
8,214,700
8,375,900
Leases
2,149,500
2,018,600
1,958,300
1,880,800
Other Properties
3,137,300
3,220,100
3,544,500
3,802,900
Machinery Furniture Equipment
2,443,700
2,386,600
2,387,000
2,354,300
Buildings And Improvements
256,800
262,900
262,300
264,200
Land And Improvements
56,800
62,300
62,600
73,700
Current Assets
730,500
947,200
1,203,100
902,100
Other Current Assets
10,200
9,700
14,500
14,900
Restricted Cash
48,800
48,500
27,100
22,900
Prepaid Assets
43,100
36,000
32,500
28,800
Inventory
42,600
51,200
39,500
36,400
Finished Goods
42,600
51,200
39,500
36,400
Receivables
157,300
169,500
205,200
167,600
Other Receivables
60,900
82,100
90,200
74,300
Taxes Receivable
1,300
1,400
1,500
1,000
Accounts Receivable
95,100
86,000
113,500
92,300
Cash Cash Equivalents And Short Term Investments
428,500
632,300
884,300
631,500
Cash And Cash Equivalents
428,500
632,300
884,300
631,500
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
-365,900
-296,300
-444,800
-848,300
Repayment Of Debt
-241,500
-160,700
-167,200
-1,449,400
Issuance Of Debt
244,400
27,000
0
1,318,000
Issuance Of Capital Stock
169,600
254,900
832,700
220,400
Capital Expenditure
-246,100
-245,500
-229,600
-219,800
Interest Paid Supplemental Data
406,900
401,600
421,200
379,000
Income Tax Paid Supplemental Data
2,800
700
4,300
800
End Cash Position
477,300
680,800
911,400
654,400
Beginning Cash Position
680,800
911,400
654,400
1,620,300
Effect Of Exchange Rate Changes
12,700
-5,300
3,000
-22,100
Changes In Cash
-216,200
-225,300
254,000
-943,800
Financing Cash Flow
125,200
68,400
649,300
-91,300
Cash Flow From Continuing Financing Activities
125,200
68,400
649,300
-91,300
Net Other Financing Charges
-47,300
-52,800
-16,200
-179,600
Cash Dividends Paid
0
0
-700
0
Net Preferred Stock Issuance
220,400
0
Preferred Stock Issuance
220,400
0
Net Common Stock Issuance
169,600
254,900
832,700
220,400
Common Stock Issuance
169,600
254,900
832,700
220,400
Net Issuance Payments Of Debt
2,900
-133,700
-167,200
-131,400
Net Short Term Debt Issuance
0
0
-335,000
Short Term Debt Payments
0
0
-335,000
Net Long Term Debt Issuance
2,900
-133,700
-167,200
-131,400
Long Term Debt Payments
-241,500
-160,700
-167,200
-1,449,400
Long Term Debt Issuance
244,400
27,000
0
1,318,000
Investing Cash Flow
-221,600
-242,900
-180,100
-224,000
Cash Flow From Continuing Investing Activities
-221,600
-242,900
-180,100
-224,000
Net Other Investing Changes
4,400
2,600
19,500
10,700
Net Investment Purchase And Sale
24,100
0
0
13,000
Sale Of Investment
24,100
0
0
13,000
Net Business Purchase And Sale
-4,000
0
30,000
-27,900
Sale Of Business
0
0
30,000
0
Purchase Of Business
-4,000
0
0
-27,900
Net PPE Purchase And Sale
0
0
-4,000
-17,800
Purchase Of PPE
0
0
-4,000
-17,800
Capital Expenditure Reported
-246,100
-245,500
-225,600
-202,000
Operating Cash Flow
-119,800
-50,800
-215,200
-628,500
Cash Flow From Continuing Operating Activities
-119,800
-50,800
-215,200
-628,500
Change In Working Capital
21,200
73,000
-79,700
-73,300
Change In Other Current Assets
4,600
-10,700
-6,700
2,300
Change In Payables And Accrued Expense
3,400
46,300
-27,400
-79,600
Change In Accrued Expense
10,900
-13,800
-26,700
-39,200
Change In Payable
-7,500
60,100
-700
-40,400
Change In Account Payable
-7,500
60,100
-700
-40,400
Change In Receivables
13,200
37,400
-45,600
4,000
Other Non Cash Items
-19,700
-74,900
-110,500
-241,000
Stock Based Compensation
16,900
22,000
42,500
22,500
Unrealized Gain Loss On Investment Securities
3,000
12,600
6,300
0
Asset Impairment Charge
53,800
72,300
107,900
133,100
Deferred Tax
1,800
1,500
700
1,700
Deferred Income Tax
1,800
1,500
700
1,700
Depreciation Amortization Depletion
313,400
319,500
365,000
396,000
Depreciation And Amortization
313,400
319,500
365,000
396,000
Operating Gains Losses
125,200
-111,600
-144,500
99,800
Pension And Employee Benefit Expense
1,200
1,800
1,400
-600
Earnings Losses From Equity Investments
-200
-1,600
-200
7,600
Gain Loss On Investment Securities
-71,800
-72,900
12,600
13,500
Gain Loss On Sale Of Business
0
0
-15,500
0
Net Income From Continuing Operations
-632,400
-352,600
-396,600
-973,600
These metrics estimate what AMC Entertainment Holdings, Inc. is worth based on its fundamentals — independent of what the market currently prices it at.
Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles.
EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.
Graham's Fair Value
N/A (negative EPS)
Margin of Safety
—
Market Cap ÷ Company Value
-1.12
P/B Ratio
-0.45
Warren's Owner Earnings
-$73M
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
1/6 — Speculative Investor
✅Adequate Size
$4.8B
vs > $1.5B revenue
❌Strong Financial Condition
0.41x
vs Current Ratio > 2.0x
❌Earnings Stability
4 loss years (4 yrs data)
vs No negative EPS years
❌Dividend Record
No dividend
vs Uninterrupted dividends
❌Moderate P/E Ratio
-5.1x
vs P/E ≤ 15.0x
❌Moderate Price-to-Book
N/A (negative book value)
vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5
Graham's 7 Criteria — Explained
What each criterion measures and why it may or may not apply to modern businesses.
✅ Adequate Size — $4.8Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 0.41xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
❌ Earnings Stability — 4 loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
❌ Moderate P/E Ratio — -5.1xvs P/E ≤ 15.0x
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
"The price-earnings ratio should be no more than 15 times average earnings."
This company has negative book equity — meaning accumulated buybacks and dividends exceed retained earnings on paper. This is common in highly profitable, capital-return-focused businesses (e.g. Domino's, McDonald's, Home Depot) and does not indicate financial distress. P/B is not a meaningful valuation metric for these companies.
"The price should not be more than 1½ times book value. P/E × P/B ≤ 22.5."
Net Current Asset Value
$-15.76
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
$0.77
Per share, no-growth floor. Compare to current price.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.68%
Low — management has little skin in the game
Return on Assets (ROA)
-7.9%
Poor — assets are not generating adequate returns
Debt Trend YoY
-1.7% YoY
Debt is declining — management is deleveraging
Leadership Team
Adam Aron
Chairman, President & CEO
Age 70
Pay: $5,909,868
John Merriwether
Vice President of Capital Markets and Investor Relations
Ryan Noonan
Senior Vice President of Public Relations
Mark Jonathan Way
MD of Odeon Cinema Group & President of AMC Europe
Age 53
Top Institutional Holders
Institution
% Owned
Shares
Vanguard Group Inc
8.99%
50,180,840
Blackrock Inc.
7.21%
40,209,722
Marshall Wace LLP
2.88%
16,068,266
Geode Capital Management, LLC
2.20%
12,254,550
State Street Corporation
2.03%
11,349,046
Renaissance Technologies, LLC
1.44%
8,009,819
Jane Street Group, LLC
1.31%
7,283,473
Goldman Sachs Group Inc
0.89%
4,985,084
⚠️Very high beta — extreme price volatility
⚠️Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
2.33
High volatility — moves more than the market
Short Interest
15.4% of float
Heavy short selling — market has significant bearish bets
Current Ratio
0.41x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $0.93Current: $1.45High: $4.08
Currently at 17% of 52-week range
AMC Entertainment Holdings, Inc. (AMC) fundamental analysis — Overall grade F based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A (negative EPS). Gross profit margin: 67.0%. Operating margin: 0.8%. Net margin: -13.0%. Market cap: $845M. Sector: Communication Services. Industry: Entertainment. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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