(NCMI) National CineMedia - Ratings and Ratios

National CineMedia, Inc. (NASDAQ: NCMI) is a leading player in the cinema advertising space, operating the largest cinema advertising network in North America through its subsidiary, National CineMedia, LLC. The company primarily generates revenue by selling advertising to national, regional, and local businesses. Its flagship product, Noovie, is a pre-show entertainment and advertising program displayed on movie screens across the U.S., offering a unique platform for brands to reach a captive audience in a high-engagement environment.

Beyond in-theater advertising, NCM extends its reach through its Lobby Entertainment Network (LEN), which consists of strategically placed digital screens in movie theater lobbies. These screens provide additional advertising opportunities, as well as promotional content for upcoming films and other entertainment-related material. The company also leverages digital platforms to expand its advertising reach. Through its Noovie Audience Accelerator product, NCM delivers targeted ads across a suite of Noovie digital properties, including popular apps like Name That Movie and Noovie Trivia. This allows advertisers to engage with entertainment-focused audiences beyond the physical theater environment.

NCM has established long-term network affiliate agreements with major theater circuits, ensuring a stable foundation for its operations. The company was incorporated in 2006 and is headquartered in Centennial, Colorado. With a market capitalization of $647.32 million, NCM operates in a niche segment of the advertising industry, focusing on the intersection of cinema and digital media. Its financial performance is closely tied to box office trends, consumer spending patterns, and the broader advertising market.

### 3-Month Forecast #### Technical Outlook: - Price Momentum: The stock is currently trading below its 20-day and 50-day moving averages (SMA 20: 6.89, SMA 50: 6.72), indicating near-term weakness. The 200-day moving average (SMA 200: 6.26) suggests longer-term support, but the stock would need to reclaim the 50-day average to signal a bullish trend reversal. - Volatility: With an Average True Range (ATR) of 0.25, the stock is expected to experience moderate price fluctuations over the next three months. This could present opportunities for short-term traders but may also indicate heightened risk. - Volume: The average 20-day volume of 390,796 shares suggests consistent liquidity, though not exceptionally high. A significant increase in volume could signal a potential breakout or breakdown. #### Fundamental Outlook: - Valuation: The forward P/E ratio of 40.65 reflects elevated expectations for future earnings growth. However, the current P/E ratio is 0.00, indicating either negative earnings or a lack of profitability. This disparity highlights the markets optimism for a recovery in NCMs financial performance. - Profitability: The return on equity (RoE) of -6.04% points to ongoing profitability challenges. The company will need to demonstrate improved earnings to justify its valuation and attract investors. - Growth Potential: With a price-to-sales (P/S) ratio of 2.64, the market appears to be pricing in modest growth expectations. NCMs ability to expand its digital advertising offerings and stabilize its core cinema advertising business will be critical factors in meeting these expectations. #### Overall Outlook: Over the next three months, NCMs stock is likely to remain range-bound, with potential upside driven by improving box office trends and the success of its digital advertising initiatives. However, the high forward P/E ratio and negative profitability metrics suggest that investor sentiment could remain cautious. The stock may experience volatility as markets weigh the companys growth potential against its current challenges.