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Cinemark Holdings (CNK)
NYSE:CNK
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Cinemark Holdings
(NYSE:CNK)
65Neutral
Positive Factors
Box Office Recovery
Cinemark remains optimistic about box office recovery with wide releases expected to reach 90% of pre-pandemic levels, supported by improved film supply and increased investments from major players.
Shareholder Returns
Post-repayment of convertible notes, Cinemark plans to increase shareholder returns through dividends and buybacks, aligning with cash flow trends and market conditions.
Negative Factors
Cash Flow
Increased investment levels into Cinemark's business are lowering near-term free cash flow estimates.
Cinemark Holdings (CNK) vs. S&P 500 (SPY)
Market Cap
$2.97B
Dividend YieldN/A
Average Volume (3M)3.90M
Price to Earnings (P/E)12.0
Beta (1Y)0.56
Revenue Growth-0.56%
EPS Growth63.92%
CountryUS
Employees18,800
SectorCommunication Services
Sector Strength79
IndustryTraditional Media
Share Statistics
EPS (TTM)2.03
Shares Outstanding122,303,970
10 Day Avg. Volume4,267,295
30 Day Avg. Volume3,897,465
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)N/A
Price to Sales (P/S)0.98
Price to Cash Flow (P/CF)7.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$34.86Price Target Upside44.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Cinemark Holdings Business Overview & Revenue Model
Company DescriptionCinemark Holdings, Inc. is a leading global player in the motion picture exhibition industry. It operates a vast network of theaters primarily in the United States and Latin America, offering a premium viewing experience through advanced technology and amenities. Cinemark's core services include film exhibition, concession sales, and digital advertising, catering to a wide audience ranging from casual moviegoers to film enthusiasts.
How the Company Makes MoneyCinemark Holdings generates revenue primarily through three key streams: box office ticket sales, concession sales, and advertising. Box office sales are driven by the number of tickets sold for movie screenings in its theaters, with a portion of ticket revenue shared with film distributors. Concession sales, which include snacks and beverages sold at theaters, offer high-margin opportunities for additional revenue. Additionally, Cinemark earns income from on-screen advertising and lobby promotions, leveraging its theater network to provide advertisers with access to large and diverse audiences. Strategic partnerships with film studios and technology companies also play a crucial role in enhancing its offerings and driving attendance.
Cinemark Holdings Financial Statement Overview
Summary
Cinemark Holdings is on a path of recovery with improving profitability and cash flow metrics. The income statement reflects a steady recovery post-pandemic, with improved margins. The balance sheet shows reduced leverage, although it still poses potential risks due to the high debt levels. Cash flow generation is strong, providing a solid foundation for future investments and debt management. Overall, the company is moving towards financial stability, but careful management of debt and operational efficiencies will be critical moving forward.Income Statement
Cinemark Holdings shows a stable revenue base with a slight decrease in total revenue in 2024 compared to 2023. The net profit margin improved significantly from 2023 to 2024, indicating enhanced operational efficiency. However, the EBIT and EBITDA margins have slightly declined, suggesting some pressure on operational profitability. The overall recovery post-pandemic is commendable, but there is room for improvement in maintaining consistent revenue growth.72
Positive
Balance Sheet
The company's debt-to-equity ratio has improved significantly from 2023 to 2024, indicating reduced leverage, but it remains relatively high, posing potential risks. The return on equity has shown a substantial increase, reflecting better profitability on equity. However, the equity ratio remains low, implying a relatively high reliance on debt financing. The balance sheet indicates a gradual strengthening position but still carries risks associated with high leverage.65
Positive
Cash Flow
Cinemark Holdings has demonstrated strong free cash flow growth from 2023 to 2024, which is a positive indicator of financial health. The operating cash flow to net income ratio is robust, showing effective cash conversion from earnings. However, the free cash flow to net income ratio suggests that while cash generation is strong, it could be optimized further to enhance liquidity.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.05B | 3.07B | 2.45B | 1.51B | 686.31M | Gross Profit |
| 1.96B | 570.60M | 1.58B | 997.60M | 450.85M | EBIT |
| 359.30M | 371.80M | 91.80M | -230.04M | -590.82M | EBITDA |
| 616.30M | 603.90M | 140.90M | -3.79M | -511.73M | Net Income Common Stockholders |
| 309.70M | 188.20M | -268.00M | -422.21M | -617.95M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.06B | 849.10M | 674.50M | 707.34M | 655.34M | Total Assets |
| 5.07B | 4.84B | 4.82B | 5.23B | 5.56B | Total Debt |
| 1.59B | 3.55B | 3.78B | 3.94B | 3.93B | Net Debt |
| 528.40M | 2.70B | 3.10B | 3.24B | 3.28B | Total Liabilities |
| 4.46B | 4.52B | 4.70B | 4.90B | 4.76B | Stockholders Equity |
| 594.40M | 309.80M | 110.20M | 322.90M | 787.97M |
| Cash Flow | Free Cash Flow | |||
| 315.20M | 294.80M | 25.30M | 70.68M | -414.03M | Operating Cash Flow |
| 472.80M | 444.30M | 136.00M | 166.22M | -330.10M | Investing Cash Flow |
| -146.90M | -131.80M | -96.30M | -89.30M | -83.37M | Financing Cash Flow |
| -103.10M | -125.40M | -52.20M | -19.93M | 584.41M |
Cinemark Holdings Technical Analysis
Negative
24.06
Price Trends
28.72
Negative
30.10
Negative
26.92
Negative
Market Momentum
-1.62
Positive
26.78
Positive
30.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNK, the sentiment is Negative. The current price of 24.06 is below the 20-day moving average (MA) of 27.18, below the 50-day MA of 28.72, and below the 200-day MA of 26.92, indicating a bearish trend. The MACD of -1.62 indicates Positive momentum. The RSI at 26.78 is Positive, neither overbought nor oversold. The STOCH value of 30.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNK.
Cinemark Holdings Risk Analysis
Cinemark Holdings disclosed 31 risk factors in its most recent earnings report. Cinemark Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cinemark Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.01B | 33.16 | 6.11% | 6.45% | -1.01% | -18.46% | |
71 Outperform | $1.31B | 51.38 | 9.10% | ― | -6.04% | 6.43% | |
65 Neutral | $2.97B | 11.96 | 67.31% | ― | -0.56% | 63.92% | |
59 Neutral | $29.20B | 0.14 | -13.78% | 4.02% | 2.18% | -51.50% | |
50 Neutral | $1.28B | ― | 20.03% | ― | -3.64% | 48.94% | |
43 Neutral | $2.15B | ― | 168.75% | ― | -2.85% | 75.96% |
* Communication Services Sector Average
Performance Comparison
CNK
Cinemark Holdings
24.06
5.99
33.15%
IMAX
IMAX
24.23
7.42
44.14%
EPR
EPR Properties
52.01
12.27
30.88%
AMC
AMC Entertainment
2.97
-1.37
-31.57%
LGF.A
Lions Gate Entertainment Class A
9.36
-0.60
-6.02%
Cinemark Holdings Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -26.98% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook for Cinemark with strong revenue growth, record concession sales, and strategic initiatives driving success. While there are some challenges such as a decline in attendance and increased expenses, the reinstatement of the dividend and strong market outperformance highlight the company's resilience and recovery.Highlights
Strong Revenue Growth
Worldwide revenue reached over $3 billion with $590 million of adjusted EBITDA and a solid 19.4% adjusted EBITDA margin, flat year over year despite a 4% decline in attendance.
Record Concession Sales
Achieved all-time high concession sales with a new domestic food and beverage per cap record of $7.89.
Box Office Outperformance
Cinemark outpaced the industry by 300 basis points domestically and 100 basis points internationally, extending its trend of outperformance.
Reinstated Dividend
Cinemark announced the reinstatement of an annual cash dividend of $0.32 per share, marking a milestone in company recovery from the pandemic.
Strong International Performance
International revenue grew 23% year over year to $147.9 million, with adjusted EBITDA up 160% to $28.9 million.
Lowlights
Attendance Decline
Despite strong financial performance, there was a 4% decline in attendance year over year.
Pressure from Wage Increases
Global salaries and wages increased 11% due to higher payroll hours, wage rates, and employee benefits.
Impact of Film Rental Rates
Film rental and advertising expenses increased by 440 basis points due to a higher concentration of high-grossing titles.
Company Guidance
During the earnings call, Cinemark Holdings outlined several key metrics and guidance for the future. The company reported a domestic concession per cap record of $7.97 and a strong adjusted EBITDA of $590 million with a solid 19.4% adjusted EBITDA margin. North American industry box office reached approximately $8.8 billion in 2024, climbing to within 3% of 2023's level, despite Hollywood strikes. Cinemark outperformed the industry by 300 basis points domestically and 100 basis points internationally. The company entertained over 200 million guests globally, achieved all-time high concession sales, and reported worldwide revenue exceeding $3 billion. Looking forward, Cinemark anticipates further box office recovery and plans to allocate approximately $225 million in capital expenditures in 2025, focusing on maintaining a high-quality circuit and pursuing ROI-generating opportunities. Additionally, Cinemark reinstated its annual cash dividend at $0.32 per share, reflecting confidence in future growth and commitment to shareholder value.Cinemark Holdings Corporate Events
Executive/Board Changes
Cinemark Holdings Signs New Agreement with Marketing Leader
Neutral
Mar 3, 2025
On February 28, 2025, Cinemark Holdings entered into a new employment agreement with Ms. Wanda Gierhart, who has been with the company since 2018 in various marketing leadership roles. The agreement outlines her compensation, including a base salary of $575,000, eligibility for bonuses, and participation in the company’s equity incentive plan. The contract also details severance packages and benefits in the event of termination, ensuring Ms. Gierhart’s continued contribution to the company’s marketing strategies and operations.
DividendsBusiness Operations and StrategyFinancial Disclosures
Cinemark Holdings Reinstates Dividend Amid Strong Q4 Results
Positive
Feb 19, 2025
Cinemark Holdings reported a robust financial performance for Q4 and FY 2024, with total revenue exceeding $3 billion and net income of $313 million. The company reinstated its annual cash dividend at $0.32 per share, emphasizing its recovery from the pandemic and commitment to shareholder value. Cinemark outperformed the North American industry box office and showed significant market share growth, despite challenges like the 2023 Hollywood Guild Strikes. The company also strengthened its balance sheet by retiring pandemic-related debt and reducing interest expenses.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.