Cinemark Holdings (CNK) AI Stock Analysis

• Market Cap: $3.57B
• Dividend Yield: 0.26%
• Average Volume (3M): 3.97M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.51
• Revenue Growth: -0.56%
• EPS Growth: 63.92%
• Country: US
• Employees: 9,252
• Sector: Communication Services
• Sector Strength: 81
• Industry: Entertainment
• EPS (TTM): 2.03
• Shares Outstanding: 117,919,400
• 10 Day Avg. Volume: 3,985,585
• 30 Day Avg. Volume: 3,966,659
• PEG Ratio: 0.23
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.09
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.81
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $34.38
• Price Target Upside: 13.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

Cinemark Holdings is on a stable financial track with strong cash flow and profitability improvements. While leverage remains a concern, the stock shows strong technical momentum and attractive valuation. The company’s strategic initiatives and positive earnings outlook provide additional confidence, though challenges in maintaining revenue growth and managing debt persist.

Positive Factors

Box Office Recovery and Financial Position

Cinemark remains a top pick for 2025, supported by a strengthening box office recovery, robust capital allocation strategy, and operational discipline.

Dividend and Shareholder Returns

Cinemark plans to increase shareholder returns through dividends and buybacks after fully repaying its convertible note, balancing leverage and assessing capital allocation based on cash flow trends.

Market Share and Loyalty Programs

Cinemark has meaningfully expanded its market share since 2019 with its reliably clean and updated theaters across its circuit and its compelling loyalty and subscription programs.

Negative Factors

Box Office Performance

A weaker-than-expected box office performance during the quarter led to lowered Q1 2025 revenue and AEBITDA estimates.

Financial Performance Challenges

The combination of a weak slate, foreign exchange pressure, and mix-driven rental expense is expected to result in softer financial performance for Q1.

Margin Pressure

Margin pressure in the quarter is expected due to film rental costs and slate carryover.

Cinemark Holdings Business Overview & Revenue Model

Company Description

Cinemark Holdings, Inc., together with its subsidiaries, engages in the motion picture exhibition business. As of June 30, 2022, it operated 522 theatres with 5,868 screens in the United States, and South and Central America. The company was founded in 1984 and is headquartered in Plano, Texas.

How the Company Makes Money

Cinemark 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 has shown commendable recovery with a strong gross profit margin and improving net profit margin. However, challenges remain with stagnant revenue growth and high leverage reflected in its balance sheet. The strong cash flow performance supports operational and debt servicing needs.

Income Statement

Cinemark Holdings showed a robust improvement in profitability with a TTM Gross Profit Margin of 47.12% and a Net Profit Margin of 8.17%. The company has managed to recover from previous losses, demonstrating strong revenue growth since the pandemic lows. However, recent revenue growth has been somewhat stagnant, and the decrease in revenue from the previous year indicates a challenge in maintaining growth momentum.

Balance Sheet

The company's balance sheet reflects a high Debt-to-Equity Ratio of 4.57 in the latest TTM period, indicating significant leverage. Despite this, the Equity Ratio stands at 7.46%, showing some improvement in equity positioning. Return on Equity improved to 70.48% in the TTM, reflecting better profitability. However, the high leverage poses potential risks, and continued focus on debt reduction would be beneficial.

Cash Flow

Cinemark's cash flow performance is notably strong, with a Free Cash Flow to Net Income Ratio of 0.90 and an Operating Cash Flow to Net Income Ratio of 1.50 in the TTM period. These metrics suggest efficient cash conversion and operational performance. The Free Cash Flow growth has been positive, although the capital expenditure remains a necessary burden due to industry demands.

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
3.46B	3.55B	3.78B	3.94B	3.93B
	Net Debt
2.40B	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
466.00M	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

• Technical Analysis Sentiment: Positive
• Last Price: 30.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNK, the sentiment is Positive. The current price of 30.3 is above the 20-day moving average (MA) of 28.28, above the 50-day MA of 26.39, and above the 200-day MA of 28.32, indicating a bullish trend. The MACD of 1.06 indicates Negative momentum. The RSI at 71.97 is Negative, neither overbought nor oversold. The STOCH value of 87.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNK.

Cinemark Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNK	75 Outperform	$3.57B	14.72	67.31%	0.26%	-0.56%	63.92%
IMAX	70 Outperform	$1.15B	44.87	9.00%	―	-1.98%	-1.18%
MCS	62 Neutral	$525.72M	―	-1.66%	1.65%	0.82%	-152.64%
Sector *	59 Neutral	$13.76B	7.65	-2.18%	3.85%	2.32%	-36.56%
LGF.A	47 Neutral	$1.97B	―	168.75%	―	-2.85%	75.96%
AMC	45 Neutral	$1.16B	―	20.03%	―	-3.64%	48.94%
LGF.B	42 Neutral	$1.97B	―	259.47%	―	-2.85%	75.96%

Cinemark Holdings Corporate Events

Cinemark Holdings Reports Q1 2025 Financial Results

On May 2, 2025, Cinemark Holdings announced its financial results for the first quarter of 2025, reporting a total revenue of $541 million and a net loss of $39 million. Despite a challenging box office environment due to the lingering effects of the 2023 Hollywood strikes, Cinemark exceeded industry benchmarks both domestically and internationally. The company is optimistic about the industry’s recovery trajectory, with strong consumer enthusiasm for theatrical experiences. Cinemark also paid its first dividend since the pandemic and initiated a $200 million stock buyback program to manage potential dilution from convertible notes. The company entertained 37 million moviegoers globally and achieved significant market share growth in the U.S. and Latin America.

Spark’s Take on CNK Stock

According to Spark, TipRanks’ AI Analyst, CNK is a Outperform.

Cinemark Holdings shows strong recovery and resilience, driven by improving financial performance and positive earnings call insights. Technical indicators signal bullish momentum, while valuation metrics indicate reasonable pricing. Key strengths include revenue growth and market outperformance, though high leverage and rising costs pose risks.

To see Spark’s full report on CNK stock, click here.

Cinemark Holdings Signs New Agreement with Marketing Leader

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.

Cinemark Holdings Reinstates Dividend Amid Strong Q4 Results

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.