Cinemark Holdings (CNK) AI Stock Analysis

• Market Cap: $3.73B
• Dividend Yield: 0.25%
• Average Volume (3M): 3.45M
• Price to Earnings (P/E): 21.4
• Beta (1Y): 0.46
• Revenue Growth: -0.80%
• EPS Growth: 13.07%
• Country: US
• Employees: 9,252
• Sector: Communication Services
• Sector Strength: 89
• Industry: Entertainment
• EPS (TTM): -0.32
• Shares Outstanding: 115,011,610
• 10 Day Avg. Volume: 2,671,306
• 30 Day Avg. Volume: 3,453,498
• PEG Ratio: -0.74
• Price to Book (P/B): 10.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.32
• Enterprise Value/Market Cap: 1.70
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 5.16
• Enterprise Value/Ebitda: 2.85
• 1Y Price Target: $33.30
• Price Target Upside: 2.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 74 Outperform
• Price Target: $36.00 ▲( 10.94% Upside)

Cinemark Holdings shows strong financial recovery and technical momentum, supported by a robust cash flow and market share gains. While leverage remains a concern, recent strategic initiatives and corporate events highlight a positive outlook. The valuation is moderate, balancing growth prospects with income potential. Overall, the stock is positioned well, though attention to sustaining revenue growth and managing debt is essential.

Positive Factors

Consumer Interest

Consumer interest in moviegoing is showing definite signs of improvement as the slate recovers and studios value the exhibition window.

Financial Flexibility

Cinemark is well-positioned as it preserved cash during this box office slowdown, giving it more flexibility as the industry rebounds.

Market Share and Loyalty

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

Tariffs Impact

The most recent news regarding tariffs on foreign-produced content could cause pressure on shares across the media landscape in the near term.

Weaker Box Office Performance

The Q1 2025 revenue and AEBITDA estimates are lowered due to weaker-than-expected box office performance, with a domestic total down 11.6% year-over-year.

Cinemark Holdings Business Overview & Revenue Model

Company Description

Cinemark Holdings, Inc. is a leading global player in the motion picture exhibition industry. It operates a vast network of theaters primarily in the United States and Latin America, offering a premium viewing experience through advanced technology and amenities. Cinemark's core services include film exhibition, concession sales, and digital advertising, catering to a wide audience ranging from casual moviegoers to film enthusiasts.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.01B	3.05B	3.07B	2.45B	1.51B	686.31M
	Gross Profit
1.23B	1.96B	570.60M	1.58B	997.60M	450.85M
	EBIT
324.20M	359.30M	371.80M	91.80M	-230.04M	-590.82M
	EBITDA
566.20M	616.30M	603.90M	140.90M	-3.79M	-511.73M
	Net Income Common Stockholders
246.00M	309.70M	188.20M	-268.00M	-422.21M	-617.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
699.40M	1.06B	849.10M	674.50M	707.34M	655.34M
	Total Assets
4.68B	5.07B	4.84B	4.82B	5.23B	5.56B
	Total Debt
3.46B	3.46B	3.55B	3.78B	3.94B	3.93B
	Net Debt
2.77B	2.40B	2.70B	3.10B	3.24B	3.28B
	Total Liabilities
4.32B	4.46B	4.52B	4.70B	4.90B	4.76B
	Stockholders Equity
349.20M	594.40M	309.80M	110.20M	322.90M	787.97M
Cash Flow		Free Cash Flow
220.20M	315.20M	294.80M	25.30M	70.68M	-414.03M
	Operating Cash Flow
369.60M	466.00M	444.30M	136.00M	166.22M	-330.10M
	Investing Cash Flow
-138.90M	-146.90M	-131.80M	-96.30M	-89.30M	-83.37M
	Financing Cash Flow
-322.80M	-103.10M	-125.40M	-52.20M	-19.93M	584.41M

Cinemark Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.45
• 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 32.45 is above the 20-day moving average (MA) of 31.00, above the 50-day MA of 28.31, and above the 200-day MA of 28.97, indicating a bullish trend. The MACD of 1.08 indicates Negative momentum. The RSI at 71.75 is Negative, neither overbought nor oversold. The STOCH value of 89.05 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	74 Outperform	$3.73B	21.43	71.46%	0.25%	-0.80%	13.07%
IMAX	70 Outperform	$1.45B	58.21	9.00%	―	-1.98%	-1.18%
MCS	66 Neutral	$522.02M	―	-2.83%	1.64%	4.18%	-207.46%
Sector *	60 Neutral	$14.12B	6.43	-3.56%	3.69%	2.49%	-35.43%
AMC	55 Neutral	$1.40B	―	20.03%	―	-5.43%	26.07%

Cinemark Holdings Corporate Events

Cinemark Holdings Stockholders Approve Key Governance Decisions

On May 15, 2025, Cinemark Holdings held its Annual Meeting of Stockholders, where key decisions were made regarding the company’s governance and financial oversight. The stockholders elected nominees to the Board of Directors to serve until 2028, approved the 2024 compensation for the company’s Named Executive Officers, and ratified the selection of Deloitte & Touche LLP as the independent public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (CNK) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Cinemark Holdings stock, see the CNK Stock Forecast page.

Cinemark Declares Quarterly Dividend Amid Financial Stability

On May 15, 2025, Cinemark Holdings, Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.08 per share, to be paid on June 12, 2025, to stockholders of record as of May 29, 2025. This announcement underscores Cinemark’s commitment to returning value to its shareholders and may positively impact investor sentiment, reflecting the company’s stable financial position and confidence in its ongoing operations.

The most recent analyst rating on (CNK) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on Cinemark Holdings stock, see the CNK Stock Forecast page.

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.

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.