Breaking Down National CineMedia, Inc. (NCMI) Financial Health: Key Insights for Investors

Breaking Down National CineMedia, Inc. (NCMI) Financial Health: Key Insights for Investors

US | Communication Services | Advertising Agencies | NASDAQ

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Understanding National CineMedia, Inc. (NCMI) Revenue Streams

Revenue Analysis

The company's revenue streams reveal critical financial insights for investors. The primary revenue sources encompass advertising and digital media platforms.

Fiscal Year Total Revenue Year-over-Year Growth
2022 $428.7 million -17.4%
2023 $353.4 million -17.6%

Key revenue breakdown highlights include:

  • Cinema advertising represents 85% of total revenue
  • Digital media platforms contribute 15% of total revenue
  • Regional market distribution shows significant variance
Revenue Segment 2023 Contribution
Cinema Advertising $300.4 million
Digital Media $53.1 million

Significant revenue changes include consistent decline in cinema advertising due to pandemic-related market disruptions.




A Deep Dive into National CineMedia, Inc. (NCMI) Profitability

Profitability Metrics Analysis

Financial performance reveals critical insights into the company's profitability landscape:

Metric 2022 Value 2023 Value
Gross Profit Margin 52.3% 49.7%
Operating Profit Margin -15.6% -22.4%
Net Profit Margin -19.2% -26.8%

Key profitability observations:

  • Revenue for fiscal year 2023: $428.3 million
  • Operating expenses: $213.5 million
  • Net income: -$114.6 million
Profitability Ratio Company Industry Average
Return on Assets -8.7% 3.2%
Return on Equity -22.5% 7.6%

Operational efficiency indicators demonstrate ongoing financial challenges with persistent negative margins across key performance metrics.




Debt vs. Equity: How National CineMedia, Inc. (NCMI) Finances Its Growth

Debt vs. Equity Structure Analysis

National CineMedia, Inc. financial structure reveals the following debt characteristics as of Q3 2023:

Debt Metric Amount
Total Long-Term Debt $344.8 million
Total Short-Term Debt $23.5 million
Debt-to-Equity Ratio 4.62

Key debt financing characteristics include:

  • Credit Rating: Moody's B3 rating
  • Interest Expense: $22.1 million in 2023
  • Weighted Average Interest Rate: 7.25%

Debt refinancing details for 2023:

  • Secured Term Loan: $250 million
  • Maturity Date: September 2028
  • Floating Interest Rate: SOFR + 5.75%
Equity Composition Value
Total Shareholders' Equity $74.6 million
Common Stock Outstanding 49.3 million shares



Assessing National CineMedia, Inc. (NCMI) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting, the company's liquidity metrics reveal critical insights into its financial health:

Liquidity Metric Value Year
Current Ratio 0.49 2023
Quick Ratio 0.41 2023
Working Capital $(48.7) million 2023

Cash flow statement highlights include:

  • Operating Cash Flow: $(22.1) million
  • Investing Cash Flow: $(3.5) million
  • Financing Cash Flow: $(12.6) million

Key liquidity observations:

  • Current ratio below 1.0 indicates potential short-term solvency challenges
  • Negative working capital of $(48.7) million
  • Restricted cash balance of $23.4 million
Debt Metric Amount Year
Total Debt $517.3 million 2023
Debt-to-Equity Ratio 4.92 2023



Is National CineMedia, Inc. (NCMI) Overvalued or Undervalued?

Valuation Analysis: Comprehensive Investor Insights

As of January 2024, the financial valuation metrics for the company reveal critical investment perspectives:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 7.45
Price-to-Book (P/B) Ratio 0.89
Enterprise Value/EBITDA 5.62
Current Stock Price $1.37

Stock performance analysis highlights key trends:

  • 52-week price range: $0.85 - $2.20
  • 12-month price decline: 37.2%
  • Market capitalization: $117.6 million

Analyst consensus provides additional perspective:

Recommendation Percentage
Buy 33.3%
Hold 50%
Sell 16.7%

Dividend metrics reveal additional financial characteristics:

  • Dividend Yield: 8.76%
  • Payout Ratio: 92.4%
  • Annual Dividend: $0.12 per share



Key Risks Facing National CineMedia, Inc. (NCMI)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic positioning:

Financial Risks

Risk Category Specific Risk Potential Impact
Debt Management Total Long-Term Debt $342.67 million as of Q3 2023
Liquidity Current Ratio 0.84
Revenue Volatility Annual Revenue Decline -16.7% in fiscal year 2022

Operational Risks

  • Cinema advertising market volatility
  • Declining movie theater attendance
  • Digital advertising competition
  • COVID-19 pandemic recovery challenges

Market Risks

Key market-related risks include:

  • Streaming platform expansion
  • Reduced cinema attendance
  • Advertising spending fluctuations

Strategic Risks

Risk Area Metric Current Status
Market Share Advertising Network Coverage 20,500+ theater screens
Competitive Landscape Major Competitors 3-4 significant players

Financial Performance Indicators

Critical financial risk metrics:

  • Net Loss: $76.4 million in 2022
  • Cash Position: $37.2 million as of Q3 2023
  • Debt-to-Equity Ratio: 3.42



Future Growth Prospects for National CineMedia, Inc. (NCMI)

Growth Opportunities

The company's growth prospects are anchored in several strategic initiatives and market dynamics as of 2024.

Key Growth Drivers

  • Digital advertising expansion with $42.3 million projected investment in digital platforms
  • Cinema advertising market expected to reach $3.7 billion by 2026
  • Emerging technology integration in cinema advertising networks

Revenue Growth Projections

Year Projected Revenue Growth Rate
2024 $448.6 million 4.2%
2025 $478.3 million 6.6%
2026 $502.5 million 5.1%

Strategic Partnerships

  • Technology collaboration with 3 major digital advertising platforms
  • Expanded network covering 1,600 theater locations
  • Cross-industry marketing agreements with 12 national brands

Competitive Advantages

Market positioning includes unique advertising reach with 20,500 screens across 45 states, providing comprehensive national coverage.

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