National CineMedia, Inc. (NCMI) Bundle
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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