National CineMedia Stock Price and Value Analysis

Should you buy National CineMedia stock? (NasdaqGS:NCMI). Let's see how it does in our automated value investing analysis system.

NCMI Free Cash Flow Trend

Free Cash Flow trendline for NCMI
Free Cash Flow trendline for National CineMedia

Based on historical returns, we believe that National CineMedia can grow its free cash at a rate of about 1%. That's positive!

AdvantagesDisadvantages
  • This company is solid.
  • This stock is on sale.
  • This company has a large dividend yield!
  • This company has fluctuating growth.
  • This company is making money at a modest rate.

Inside the NCMI Numbers

NCMI Price
(National CineMedia stock price per share)
$4.77
[?] NCMI Fair Price
(based on intrinsic value)
$5.67
[?] 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
[?] Cash Yield 36.93%
[?] 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.

Is National CineMedia Stock on Sale?

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.

Should You Buy NCMI Stock?

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.