📊 NCMI Key Takeaways
Is National CineMedia, Inc. (NCMI) a Good Investment?
NCMI exhibits severe operational distress with -84.1% net margins and -79.1% operating margins despite 1% revenue growth, signaling fundamental business dysfunction. While the balance sheet remains stable with low leverage (0.03x debt/equity) and positive free cash flow of 17.8M indicates working capital flexibility, the company's inability to generate profits at scale presents substantial deterioration risk.
Fundamentals show a de‑levered balance sheet with strong liquidity and modest positive free cash flow despite GAAP losses. Profitability is improving (EPS up YoY), but revenue growth is tepid and operating margin remains negative, indicating an incomplete turnaround. Sustained margin expansion and consistent cash generation are needed before a more constructive view.
National CineMedia, Inc. Key Strengths (NCMI)
- Strong free cash flow generation of 17.8M (52.4% FCF margin) despite net losses
- Solid liquidity position with 1.82x current ratio and 48.6M cash reserves
- Conservative balance sheet with only 12M long-term debt and 0.03x debt-to-equity ratio
- Low leverage and ample liquidity (2.22x current ratio, 0.03x D/E)
- Positive operating and free cash flow with modest capex needs
- Improving earnings trend with narrowing losses (EPS improving YoY)
NCMI Stock Risks: National CineMedia, Inc. Investment Risks
- Profitability crisis with -84.1% net margin and -26.9M operating income on 34M revenue base
- Negligible revenue growth of 1% YoY indicates stagnant business with limited expansion
- Negative returns on equity (-8.3%) and assets (-6.1%) demonstrate severe capital inefficiency
- Negative interest coverage ratio signals vulnerability if debt levels increase
- Persistent negative operating margin and net margin
- Slow top-line growth in a cyclical ad environment with high operating leverage
- Negative interest coverage indicates earnings do not cover fixed costs
Key Metrics to Watch
- Operating cash flow sustainability and margin expansion toward positive territory
- Revenue growth acceleration beyond 1% YoY to demonstrate business viability
- Path to EBITDA/operating profitability to justify balance sheet assets
- Operating margin
- Free cash flow margin
National CineMedia, Inc. (NCMI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 52.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
NCMI Profit Margin, ROE & Profitability Analysis
NCMI vs Services Sector: How National CineMedia, Inc. Compares
How National CineMedia, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is National CineMedia, Inc. Stock Overvalued? NCMI Valuation Analysis 2026
Based on fundamental analysis, National CineMedia, Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
National CineMedia, Inc. Balance Sheet: NCMI Debt, Cash & Liquidity
NCMI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: National CineMedia, Inc.'s revenue has grown significantly by 112% over the 5-year period, indicating strong business expansion. The most recent EPS of $14.34 reflects profitable operations.
NCMI Revenue Growth, EPS Growth & YoY Performance
NCMI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $34.0M | -$28.6M | $-0.31 |
| Q3 2025 | $62.4M | $1.6M | $0.02 |
| Q2 2025 | $51.8M | -$8.7M | $-0.09 |
| Q1 2025 | $34.9M | -$30.7M | $-0.32 |
| Q3 2024 | $24.7M | -$3.6M | $-0.04 |
| Q2 2024 | $14.8M | -$8.7M | $-0.09 |
| Q1 2024 | $34.9M | -$34.7M | $-0.36 |
| Q3 2023 | $24.7M | -$8.9M | $-1.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
National CineMedia, Inc. Dividends, Buybacks & Capital Allocation
NCMI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for National CineMedia, Inc. (CIK: 0001377630)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NCMI
What is the AI rating for NCMI?
National CineMedia, Inc. (NCMI) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NCMI's key strengths?
Claude: Strong free cash flow generation of 17.8M (52.4% FCF margin) despite net losses. Solid liquidity position with 1.82x current ratio and 48.6M cash reserves. ChatGPT: Low leverage and ample liquidity (2.22x current ratio, 0.03x D/E). Positive operating and free cash flow with modest capex needs.
What are the risks of investing in NCMI?
Claude: Profitability crisis with -84.1% net margin and -26.9M operating income on 34M revenue base. Negligible revenue growth of 1% YoY indicates stagnant business with limited expansion. ChatGPT: Persistent negative operating margin and net margin. Slow top-line growth in a cyclical ad environment with high operating leverage.
What is NCMI's revenue and growth?
National CineMedia, Inc. reported revenue of $34.0M.
Does NCMI pay dividends?
National CineMedia, Inc. pays dividends, with $2.8M distributed to shareholders in the trailing twelve months.
Where can I find NCMI SEC filings?
Official SEC filings for National CineMedia, Inc. (CIK: 0001377630) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NCMI's EPS?
National CineMedia, Inc. has a diluted EPS of $-0.31.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is NCMI's fundamental grade?
Based on our AI fundamental analysis in May 2026, National CineMedia, Inc. has a C grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is NCMI stock overvalued or undervalued?
Valuation metrics for NCMI: ROE of -8.3% (sector avg: 16%), net margin of -84.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is NCMI's AI grade for 2026?
Our dual AI analysis gives National CineMedia, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NCMI's free cash flow?
National CineMedia, Inc.'s operating cash flow is $18.1M, with capital expenditures of $300.0K. FCF margin is 52.4%.
How does NCMI compare to other Services stocks?
Vs Services sector averages: Net margin -84.1% (avg: 10%), ROE -8.3% (avg: 16%), current ratio 1.82 (avg: 1.5).