This “Marvel” founded a multibillion company in the wake of the dot-com bubble. Here are his secrets to success!
June 9, 2025
- Credit risk with a YTW of 12.342% relative to an Intrinsic YTW of 10.567% and an Intrinsic CDS of 660bps. Furthermore, Moody’s is materially overstating AMCX’s fundamental credit risk with its B2 credit rating five notches below Valens’ XO (Baa3) credit rating.
- Incentives Dictate Behavior™ analysis highlights mostly positive signals for credit holders. Management’s compensation metrics should drive them to focus on all three value drivers: margin expansion, asset efficiency, and top-line growth, which should lead to Uniform ROA expansion and increased cash flows available for servicing obligations. In addition, most management members have low change-in-control compensation relative to their annual compensation, indicating they may not be incentivized to pursue a takeover or accept a sale of the company, decreasing event risk for creditors.
- Earnings Call Forensics™ of the firm’s Q1 2025 earnings call (05/09/2025) highlights that management is confident they are seeing high demand for AMC+ from subscribers coming from their agreement with Charter and that their affiliate revenue started to include revenue from distributors.