IMAX CORP (IMAX)
CA45245E1097 - Common Stock
We assign a fundamental rating of 5 out of 10 to IMAX. IMAX was compared to 77 industry peers in the Entertainment industry. IMAX scores excellent on profitability, but there are some minor concerns on its financial health. IMAX has a decent growth rate and is not valued too expensively.
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.
In multiple years IMAX reported negative net income over the last 5 years.
Of the past 5 years IMAX 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.12%, IMAX is in the better half of the industry, outperforming 76.62% of the companies in the same industry.
With an excellent Return On Equity value of 9.31%, IMAX belongs to the best of the industry, outperforming 84.42% of the companies in the same industry.
IMAX's Return On Invested Capital of 5.76% is fine compared to the rest of the industry. IMAX outperforms 77.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IMAX is significantly below the industry average of 37.63%.
The 3 year average ROIC (2.38%) for IMAX is below the current ROIC(5.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 9.31% | ||
| ROIC | 5.76% |
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
Looking at the Profit Margin, with a value of 6.79%, IMAX belongs to the top of the industry, outperforming 80.52% of the companies in the same industry.
IMAX's Profit Margin has improved in the last couple of years.
IMAX has a Operating Margin of 14.53%. This is amongst the best in the industry. IMAX outperforms 84.42% of its industry peers.
IMAX's Operating Margin has declined in the last couple of years.
IMAX has a better Gross Margin (57.20%) than 75.32% of its industry peers.
IMAX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.53% | ||
| PM (TTM) | 6.79% | ||
| GM | 57.2% |
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%
2. Health
2.1 Basic Checks
IMAX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, IMAX has less shares outstanding
Compared to 5 years ago, IMAX has less shares outstanding
IMAX has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.40, we must say that IMAX is in the distress zone and has some risk of bankruptcy.
IMAX has a Altman-Z score of 1.40. This is in the better half of the industry: IMAX outperforms 62.34% of its industry peers.
IMAX has a debt to FCF ratio of 5.77. This is a neutral value as IMAX would need 5.77 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.77, IMAX is doing good in the industry, outperforming 77.92% of the companies in the same industry.
A Debt/Equity ratio of 0.92 indicates that IMAX is somewhat dependend on debt financing.
IMAX has a worse Debt to Equity ratio (0.92) than 61.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 5.77 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.88
WACC6.56%
2.3 Liquidity
A Current Ratio of 1.87 indicates that IMAX should not have too much problems paying its short term obligations.
IMAX has a Current ratio of 1.87. This is in the better half of the industry: IMAX outperforms 68.83% of its industry peers.
A Quick Ratio of 1.64 indicates that IMAX should not have too much problems paying its short term obligations.
The Quick ratio of IMAX (1.64) is better than 70.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
IMAX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1242.86%, which is quite impressive.
The Earnings Per Share has been growing slightly by 0.65% on average over the past years.
Looking at the last year, IMAX shows a very strong growth in Revenue. The Revenue has grown by 24.61%.
The Revenue has been growing slightly by 0.02% on average over the past years.
EPS 1Y (TTM)1242.86%
EPS 3YN/A
EPS 5Y0.65%
EPS growth Q2Q-10.53%
Revenue 1Y (TTM)24.61%
Revenue growth 3Y39.86%
Revenue growth 5Y0.02%
Revenue growth Q2Q-12.23%
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.
Based on estimates for the next years, IMAX will show a small growth in Revenue. The Revenue will grow by 5.41% on average per year.
EPS Next Y0.91%
EPS Next 2Y14.72%
EPS Next 3Y15.32%
EPS Next 5Y17.56%
Revenue Next Year0.68%
Revenue Next 2Y5.51%
Revenue Next 3Y4.98%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.57, the valuation of IMAX can be described as rather expensive.
IMAX's Price/Earnings ratio is rather cheap when compared to the industry. IMAX is cheaper than 80.52% of the companies in the same industry.
IMAX is valuated rather cheaply when we compare the Price/Earnings ratio to 25.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.41 indicates a rather expensive valuation of IMAX.
85.71% of the companies in the same industry are more expensive than IMAX, based on the Price/Forward Earnings ratio.
IMAX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.57 | ||
| Fwd PE | 18.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IMAX is valued a bit cheaper than 79.22% of the companies in the same industry.
80.52% of the companies in the same industry are more expensive than IMAX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.12 | ||
| EV/EBITDA | 9.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
IMAX has a very decent profitability rating, which may justify a higher PE ratio.
IMAX's earnings are expected to grow with 15.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)20.3
PEG (5Y)28.54
EPS Next 2Y14.72%
EPS Next 3Y15.32%
5. Dividend
5.1 Amount
IMAX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
IMAX CORP
NYSE:IMAX (4/25/2024, 7:04:00 PM)
After market: 17.46 0 (0%)17.46
-0.2 (-1.13%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap924.51M
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.57 | ||
| Fwd PE | 18.41 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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EPS(NY)
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PEG (NY)20.3
PEG (5Y)28.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 9.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.53% | ||
| PM (TTM) | 6.79% | ||
| GM | 57.2% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
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ROICexcg growth 5Y
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ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
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PM growth 5Y
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F-Score
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
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Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)1242.86%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y0.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)24.61%
Revenue growth 3Y39.86%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
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