- AMC Networks Inc. has a ROIC of -0.86% and a WACC of 4.89%, indicating it’s not generating sufficient returns to cover its cost of capital.
- TEGNA Inc. and Fox Corporation show positive ROIC to WACC ratios, suggesting better capital efficiency compared to AMC.
- Nexstar Media Group, Inc. stands out with a ROIC of 165.47% and a WACC of 6.83%, highlighting its significant returns on invested capital.
AMC Networks Inc. (NASDAQ:AMCX) is a prominent player in the entertainment industry, known for its popular television channels and original programming. The company operates in a competitive landscape alongside peers like TEGNA Inc., Fox Corporation, Sinclair, Inc., Nexstar Media Group, Inc., and National Beverage Corp. These companies are evaluated based on their financial metrics, particularly Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC).
AMC Networks Inc. currently has a ROIC of -0.86% and a WACC of 4.89%, resulting in a ROIC to WACC ratio of -0.18. This negative ratio indicates that AMC is not generating enough returns to cover its cost of capital, which could be a red flag for investors. In contrast, its peers show more favorable financial metrics, suggesting better capital efficiency.
TEGNA Inc. reports a ROIC of 8.33% and a WACC of 4.67%, leading to a ROIC to WACC ratio of 1.78. This positive ratio indicates that TEGNA is generating returns well above its cost of capital, making it a more attractive option for investors compared to AMC. Similarly, Fox Corporation has a ROIC of 11.89% and a WACC of 5.81%, resulting in a ROIC to WACC ratio of 2.05, further highlighting its financial strength.
Sinclair, Inc. and National Beverage Corp. also demonstrate strong financial performance with ROIC to WACC ratios of 1.31 and 4.48, respectively. However, Nexstar Media Group, Inc. stands out with an impressive ROIC of 165.47% and a WACC of 6.83%, leading to a ROIC to WACC ratio of 24.24. This indicates that Nexstar is generating significantly higher returns on its invested capital compared to its cost of capital, making it a potentially attractive investment opportunity among its peers.
