IMAX CORP (IMAX)

CA45245E1097 - Common Stock

16.41  +0.08 (+0.49%)

After market: 16.41 0 (0%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to IMAX. IMAX was compared to 76 industry peers in the Entertainment industry. IMAX has only an average score on both its financial health and profitability. IMAX is not valued too expensively and it also shows a decent growth rate.



6

1. Profitability

1.1 Basic Checks

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

1.2 Ratios

IMAX's Return On Assets of 3.18% is fine compared to the rest of the industry. IMAX outperforms 75.00% of its industry peers.
IMAX has a better Return On Equity (10.13%) than 84.21% of its industry peers.
IMAX has a Return On Invested Capital of 5.61%. This is in the better half of the industry: IMAX outperforms 77.63% of its industry peers.
IMAX had an Average Return On Invested Capital over the past 3 years of 2.38%. This is significantly below the industry average of 13.77%.
The last Return On Invested Capital (5.61%) for IMAX is above the 3 year average (2.38%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.18%
ROE 10.13%
ROIC 5.61%
ROA(3y)-0.73%
ROA(5y)-2.27%
ROE(3y)-1.88%
ROE(5y)-6.88%
ROIC(3y)2.38%
ROIC(5y)N/A

1.3 Margins

With a decent Profit Margin value of 7.14%, IMAX is doing good in the industry, outperforming 78.95% of the companies in the same industry.
IMAX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 15.03%, IMAX belongs to the top of the industry, outperforming 85.53% of the companies in the same industry.
IMAX's Operating Margin has declined in the last couple of years.
IMAX has a Gross Margin of 57.53%. This is in the better half of the industry: IMAX outperforms 73.68% of its industry peers.
In the last couple of years the Gross Margin of IMAX has remained more or less at the same level.
Industry RankSector Rank
OM 15.03%
PM (TTM) 7.14%
GM 57.54%
OM growth 3YN/A
OM growth 5Y-3.91%
PM growth 3YN/A
PM growth 5Y2.11%
GM growth 3Y53.88%
GM growth 5Y0.59%

5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IMAX is destroying value.
IMAX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, IMAX has less shares outstanding
Compared to 1 year ago, IMAX has an improved debt to assets ratio.

2.2 Solvency

IMAX has an Altman-Z score of 1.30. This is a bad value and indicates that IMAX is not financially healthy and even has some risk of bankruptcy.
IMAX has a better Altman-Z score (1.30) than 61.84% of its industry peers.
IMAX has a debt to FCF ratio of 27.05. This is a negative value and a sign of low solvency as IMAX would need 27.05 years to pay back of all of its debts.
IMAX has a better Debt to FCF ratio (27.05) than 61.84% of its industry peers.
IMAX has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
IMAX has a Debt to Equity ratio of 1.15. This is in the lower half of the industry: IMAX underperforms 67.11% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.15
Debt/FCF 27.05
Altman-Z 1.3
ROIC/WACC0.84
WACC6.67%

2.3 Liquidity

IMAX has a Current Ratio of 2.26. This indicates that IMAX is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of IMAX (2.26) is better than 73.68% of its industry peers.
IMAX has a Quick Ratio of 1.96. This is a normal value and indicates that IMAX is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of IMAX (1.96) is better than 71.05% of its industry peers.
Industry RankSector Rank
Current Ratio 2.26
Quick Ratio 1.96

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 151.35% over the past year.
The Earnings Per Share has been growing slightly by 0.65% on average over the past years.
IMAX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.01%.
Measured over the past years, IMAX shows a small growth in Revenue. The Revenue has been growing by 0.02% on average per year.
EPS 1Y (TTM)151.35%
EPS 3YN/A
EPS 5Y0.65%
EPS Q2Q%-6.25%
Revenue 1Y (TTM)12.01%
Revenue growth 3Y39.86%
Revenue growth 5Y0.02%
Sales Q2Q%-9%

3.2 Future

Based on estimates for the next years, IMAX will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.56% on average per year.
The Revenue is expected to grow by 5.41% on average over the next years.
EPS Next Y3.24%
EPS Next 2Y13.6%
EPS Next 3Y14.52%
EPS Next 5Y17.56%
Revenue Next Year1.43%
Revenue Next 2Y5.25%
Revenue Next 3Y4.88%
Revenue Next 5Y5.41%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

5

4. Valuation

4.1 Price/Earnings Ratio

IMAX is valuated rather expensively with a Price/Earnings ratio of 17.65.
81.58% of the companies in the same industry are more expensive than IMAX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.57, IMAX is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.53 indicates a correct valuation of IMAX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IMAX indicates a rather cheap valuation: IMAX is cheaper than 82.89% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.18. IMAX is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 17.65
Fwd PE 13.53

4.2 Price Multiples

IMAX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IMAX is cheaper than 77.63% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IMAX is valued a bit cheaper than the industry average as 64.47% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 78.4
EV/EBITDA 9.36

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of IMAX may justify a higher PE ratio.
A more expensive valuation may be justified as IMAX's earnings are expected to grow with 14.52% in the coming years.
PEG (NY)5.45
PEG (5Y)27.11
EPS Next 2Y13.6%
EPS Next 3Y14.52%

0

5. Dividend

5.1 Amount

No dividends for IMAX!.
Industry RankSector Rank
Dividend Yield N/A

IMAX CORP

NYSE:IMAX (6/20/2024, 3:20:02 PM)

After market: 16.41 0 (0%)

16.41

+0.08 (+0.49%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap863.49M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 17.65
Fwd PE 13.53
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.45
PEG (5Y)27.11
Profitability
Industry RankSector Rank
ROA 3.18%
ROE 10.13%
ROCE
ROIC
ROICexc
ROICexgc
OM 15.03%
PM (TTM) 7.14%
GM 57.54%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.45
Health
Industry RankSector Rank
Debt/Equity 1.15
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.26
Quick Ratio 1.96
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)151.35%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y3.24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.01%
Revenue growth 3Y39.86%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y