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Imax Corp. (IMAX)
NYSE:IMAX
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IMAX
(NYSE:IMAX)
71Outperform
Positive Factors
Box Office Performance
IMAX reports strong box office performance, fueled by the success of Ne Zha 2, positioning the company for another strong first quarter.
Partnerships
IMAX secured an exclusive theatrical partnership with Netflix for Narnia, marking a first-of-its-kind deal that positions IMAX as a key event-driven launch platform for major streaming content.
Negative Factors
Revenue Shortfall
IMAX reported revenue of $93M, falling short of the consensus estimate of $102.5M, largely due to a weaker-than-expected Christmas holiday performance and continued softness in the Chinese market.
IMAX (IMAX) vs. S&P 500 (SPY)
Market Cap
$1.31B
Dividend YieldN/A
Average Volume (3M)755.33K
Price to Earnings (P/E)51.4
Beta (1Y)0.22
Revenue Growth-6.04%
EPS Growth6.43%
CountryUS
Employees700
SectorCommunication Services
Sector Strength79
IndustryTraditional Media
Share Statistics
EPS (TTM)0.48
Shares Outstanding53,024,090
10 Day Avg. Volume721,740
30 Day Avg. Volume755,327
Financial Highlights & Ratios
PEG Ratio7.99
Price to Book (P/B)N/A
Price to Sales (P/S)3.80
Price to Cash Flow (P/CF)29.20
P/FCF Ratio26.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$31.43Price Target Upside29.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
IMAX Business Overview & Revenue Model
Company DescriptionIMAX Corporation is a Canadian-American company that specializes in motion picture technologies and large-format film presentations. Founded in 1967, the company is renowned for its high-resolution cameras, film formats, projectors, and immersive theater systems that deliver an unparalleled cinematic experience. IMAX operates in the entertainment sector, providing its technology to both commercial multiplexes and institutional theaters, such as museums and science centers, worldwide.
How the Company Makes MoneyIMAX Corporation generates revenue primarily through several key streams: technology licensing, theater system sales and maintenance, and film distribution. The company licenses its proprietary projection and sound systems to movie theaters, which pay for the installation and ongoing use of IMAX technology. This includes both the initial sale or lease of the equipment and subsequent maintenance and service contracts. Additionally, IMAX earns revenue by distributing specially formatted films and co-producing IMAX-specific content, often partnering with major film studios to release blockbusters in the IMAX format. These partnerships enhance the company's earnings through box office revenue shares and distribution fees. Thus, IMAX's business model capitalizes on its unique technological offerings and strategic alliances within the global film industry.
IMAX Financial Statement Overview
Summary
IMAX exhibits a solid financial standing with improvements in profitability and cash generation. While revenue growth has slowed, the company has managed to enhance its margins and cash flow, pointing to operational efficiencies. The leverage is moderate but should be monitored to prevent excessive risk. Overall, IMAX maintains a stable financial position with areas of strength in profitability and cash flow.Income Statement
IMAX has shown improvement in its income statement metrics over the years. The gross profit margin has remained stable, reflecting effective cost management. Although the revenue declined by 6% from 2023 to 2024, the net profit margin improved slightly due to better cost controls. The EBIT and EBITDA margins have improved significantly from 2022 levels, indicating operational efficiency.72
Positive
Balance Sheet
IMAX's balance sheet indicates moderate stability. The debt-to-equity ratio is manageable, reflecting a balanced approach to leveraging. The equity ratio has decreased slightly over the years, indicating a slight increase in leverage risk. Return on equity has improved due to positive net income, signaling better utilization of equity capital.65
Positive
Cash Flow
The cash flow statement shows a strong operating cash flow to net income ratio, suggesting that net income translates well into cash. The free cash flow has grown significantly from 2023 to 2024, indicating robust cash generation capacity. However, fluctuations in free cash flow in prior years highlight potential volatility in cash management.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 352.21M | 374.84M | 300.81M | 254.88M | 137.00M | Gross Profit |
| 190.20M | 215.10M | 156.35M | 134.41M | 21.54M | EBIT |
| 43.86M | 50.40M | 9.05M | 7.02M | -98.56M | EBITDA |
| 111.28M | 112.96M | 52.77M | 74.16M | -69.41M | Net Income Common Stockholders |
| 26.06M | 25.34M | -19.88M | -9.58M | -155.63M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 100.59M | 76.20M | 97.40M | 189.71M | 317.38M | Total Assets |
| 830.40M | 814.67M | 821.15M | 883.25M | 997.75M | Total Debt |
| 266.26M | 252.06M | 263.02M | 226.11M | 305.68M | Net Debt |
| 165.66M | 175.85M | 165.62M | 36.40M | -11.70M | Total Liabilities |
| 452.18M | 469.08M | 491.39M | 452.88M | 532.98M | Stockholders Equity |
| 299.47M | 273.14M | 263.36M | 356.08M | 385.49M |
| Cash Flow | Free Cash Flow | |||
| 29.62M | 43.78M | -15.30M | -11.71M | -32.27M | Operating Cash Flow |
| 70.84M | 58.62M | 17.32M | 6.07M | -23.01M | Investing Cash Flow |
| -41.22M | -31.79M | -53.29M | -7.00K | -9.26M | Financing Cash Flow |
| -6.04M | -48.53M | -58.51M | -132.72M | 240.57M |
IMAX Technical Analysis
Negative
24.23
Price Trends
24.73
Negative
24.39
Negative
21.61
Positive
Market Momentum
-0.08
Positive
39.93
Neutral
23.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IMAX, the sentiment is Negative. The current price of 24.23 is below the 20-day moving average (MA) of 25.77, below the 50-day MA of 24.73, and above the 200-day MA of 21.61, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 39.93 is Neutral, neither overbought nor oversold. The STOCH value of 23.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IMAX.
IMAX Risk Analysis
IMAX disclosed 32 risk factors in its most recent earnings report. IMAX 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
IMAX 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 | $3.96B | 32.84 | 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% | |
48 Neutral | $509.37M | ― | -5.27% | ― | 45.67% | -100.72% | |
48 Neutral | $40.60M | ― | -177.51% | ― | -12.18% | -31.50% |
* Communication Services Sector Average
Performance Comparison
IMAX
IMAX
24.23
7.42
44.14%
CNK
Cinemark Holdings
24.06
5.99
33.15%
NCMI
National Cinemedia
5.35
1.48
38.24%
EPR
EPR Properties
52.01
12.27
30.88%
AMC
AMC Entertainment
2.97
-1.37
-31.57%
RDI
Reading International
1.31
-0.48
-26.82%
IMAX Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -10.98% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call highlighted IMAX's strong strategic positioning, expansion, and financial performance, particularly with a record-breaking start to 2025 in the Chinese market. Despite challenges in 2024, the company has shown resilience and adaptability, setting the stage for a promising year ahead.Highlights
Record-Breaking Chinese New Year Performance
IMAX experienced a historic Chinese New Year slate, achieving more than $120 million in box office revenue and surpassing their previous record of $66 million in 2023.
Expansion of Global Network
IMAX expanded its global network, signing 130 systems and installing 146 systems in 2024, with 57% under joint revenue sharing arrangements.
Strong Adjusted EBITDA and EPS Growth
For Q4, adjusted EBITDA increased by 48% to $37 million, and adjusted EPS grew by 59% to $0.27 per share.
Strategic Partnerships and Content Expansion
IMAX secured a first-of-its-kind partnership with Netflix for Greta Gerwig's Narnia, and expanded its content portfolio to a record 118 films, including 61 local language films.
Operational Efficiency and Cost Management
IMAX improved operating cash flows by 21% year-over-year to $71 million and achieved an adjusted EBITDA margin of 39% for the full year.
Lowlights
Softness in the China Box Office in 2024
IMAX experienced a significant headwind due to softness in the China box office in 2024, attributed to an unfavorable mix of local language films.
Impact of Hollywood Strikes
The 2024 domestic box office was affected by strike-impacted slate and some high-profile studio misses, although IMAX matched its highest grossing year despite these challenges.
Company Guidance
During the IMAX Corporation's fourth quarter 2024 earnings call, CEO Richard Gelfond outlined the company's strong financial performance and strategic advances, projecting over $1.2 billion in IMAX grosses for 2025. He highlighted a 48% increase in adjusted EBITDA to $37 million and a 59% rise in adjusted EPS to $0.27 per share for the fourth quarter. For the full year 2024, IMAX reported revenues of $352 million with an adjusted EBITDA margin of 39%, achieving the high end of their guidance. Gelfond also emphasized the record-breaking success of the Chinese New Year slate, which surpassed $120 million, indicating a robust turnaround in the China market. Additionally, the company achieved 146 system installations, with 57% under joint revenue sharing arrangements, and secured 130 system signings, with 60% of new locations in growth markets outside North America. Looking ahead, IMAX expects continued growth driven by a strong film slate and expanded global network, with guidance for adjusted EBITDA margin to be at least 40% in 2025.IMAX Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
IMAX Partners with Netflix for Exclusive Film Release
Positive
Jan 17, 2025
On January 17, 2025, IMAX Corporation announced an agreement with Netflix to exclusively showcase Greta Gerwig’s upcoming film ‘Narnia’ across its global theater network for two weeks, starting Thanksgiving 2026. This collaboration underscores IMAX’s strategic positioning in providing a unique cinematic experience and highlights its ongoing efforts to partner with major content creators like Netflix, potentially enhancing its market presence and stakeholder value.
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.