CINEPLEX INC (CGX.CA) Stock Fundamental Analysis

Canada - Toronto Stock Exchange - TSX:CGX - CA1724541000 - Common Stock

10.01 CAD

+0.01 (+0.1%)

Last: 1/23/2026, 7:00:00 PM

Fundamental Rating

Taking everything into account, CGX scores 4 out of 10 in our fundamental rating. CGX was compared to 11 industry peers in the Entertainment industry. CGX has a medium profitability rating, but doesn't score so well on its financial health evaluation. CGX has a correct valuation and a medium growth rate.

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1. Profitability

1.1 Basic Checks

CGX had negative earnings in the past year.
In the past year CGX had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: CGX reported negative net income in multiple years.
Of the past 5 years CGX 4 years had a positive operating cash flow.

1.2 Ratios

CGX has a better Return On Assets (-1.58%) than 81.82% of its industry peers.
With an excellent Return On Invested Capital value of 4.16%, CGX belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
CGX had an Average Return On Invested Capital over the past 3 years of 3.36%. This is in line with the industry average of 4.53%.
The 3 year average ROIC (3.36%) for CGX is below the current ROIC(4.16%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	-1.58%
ROE	N/A
ROIC	4.16%

ROA(3y)1.91%

ROA(5y)-6.6%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)3.36%

ROIC(5y)N/A

1.3 Margins

CGX's Operating Margin of 7.31% is amongst the best of the industry. CGX outperforms 81.82% of its industry peers.
CGX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 66.88%, CGX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of CGX has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	7.31%
PM (TTM)	N/A
GM	66.88%

OM growth 3YN/A

OM growth 5Y-3.58%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y0.02%

GM growth 5Y0.37%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CGX is destroying value.
The number of shares outstanding for CGX has been reduced compared to 1 year ago.
Compared to 5 years ago, CGX has about the same amount of shares outstanding.
The debt/assets ratio for CGX has been reduced compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 0.12, we must say that CGX is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.12, CGX is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
The Debt to FCF ratio of CGX is 17.31, which is on the high side as it means it would take CGX, 17.31 years of fcf income to pay off all of its debts.
CGX's Debt to FCF ratio of 17.31 is fine compared to the rest of the industry. CGX outperforms 72.73% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	17.31
Altman-Z	0.12

ROIC/WACC0.57

WACC7.32%

2.3 Liquidity

A Current Ratio of 0.48 indicates that CGX may have some problems paying its short term obligations.
CGX's Current ratio of 0.48 is on the low side compared to the rest of the industry. CGX is outperformed by 63.64% of its industry peers.
A Quick Ratio of 0.45 indicates that CGX may have some problems paying its short term obligations.
CGX has a worse Quick ratio (0.45) than 63.64% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.48
Quick Ratio	0.45

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 38.64% over the past year.
CGX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.50%.
The Revenue has been decreasing by -4.39% on average over the past years.

EPS 1Y (TTM)38.64%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%105.13%

Revenue 1Y (TTM)18.5%

Revenue growth 3Y26.54%

Revenue growth 5Y-4.39%

Sales Q2Q%-11.8%

3.2 Future

Based on estimates for the next years, CGX will show a very strong growth in Earnings Per Share. The EPS will grow by 51.18% on average per year.
Based on estimates for the next years, CGX will show a small growth in Revenue. The Revenue will grow by 3.16% on average per year.

EPS Next Y52.07%

EPS Next 2Y81.84%

EPS Next 3Y51.18%

EPS Next 5YN/A

Revenue Next Year0.88%

Revenue Next 2Y3.47%

Revenue Next 3Y3.16%

Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for CGX. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 12.98, the valuation of CGX can be described as correct.
Based on the Price/Forward Earnings ratio, CGX is valued cheaper than 81.82% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CGX to the average of the S&P500 Index (25.98), we can say CGX is valued rather cheaply.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	12.98

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CGX is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
CGX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CGX is cheaper than 81.82% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	6.07
EV/EBITDA	9.22

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CGX's earnings are expected to grow with 51.18% in the coming years.