Should you buy National CineMedia stock? (NasdaqGS:NCMI). Let's see how it does in our automated value investing analysis system.
Based on historical returns, we believe that National CineMedia can grow its free cash at a rate of about 1%. That's positive!
(National CineMedia stock price per share)
||NCMI Fair Price
(based on intrinsic value)
|NCMI Safety Price (based on a variable margin of safety)||$3.69|
|PE Ratio versus Sector||52% lower than other Technology stocks|
|PE Ratio versus Industry||56% lower than other Advertising Agencies stocks|
|Free Cash Flow Jitter||33%|
|Dividend Yield||6%||Shares Shorted||2,992,932|
This stock has short interest! This means that people have shorted it.
Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.
As of the latest analysis, there are 2,992,932 shares shorted. With 58,030,192 shares available for purchase and an average trading volume over the past 10 trading days of 632,980, it would take at least 4.728 days for all of the short holders to cover their shorts.
We believe that National CineMedia may be worth examining further. It's making money, which is a very positive sign. Is it on sale?
National CineMedia looks like a price in the fair value range. Based on our analysis—if the company keeps making money the way it has been—you could be looking at a good stock. See Before You Buy for your next steps.
Does National CineMedia have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.
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