IMAX (IMAX) AI Stock Analysis

• Market Cap: $1.14B
• Dividend Yield: N/A
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 44.5
• Beta (1Y): 0.09
• Revenue Growth: -6.04%
• EPS Growth: 6.43%
• Country: US
• Employees: 700
• Sector: Communication Services
• Sector Strength: 79
• Industry: Entertainment
• EPS (TTM): 0.48
• Shares Outstanding: 53,024,090
• 10 Day Avg. Volume: 1,619,606
• 30 Day Avg. Volume: 1,052,993
• PEG Ratio: 6.91
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.03
• Price to Cash Flow (P/CF): 30.90
• P/FCF Ratio: 27.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $31.88
• Price Target Upside: 48.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

IMAX presents a balanced investment profile with strong financial performance and positive strategic guidance. The company’s operational efficiency and cash generation are key strengths, complemented by promising international market expansions. However, the high P/E ratio and lack of momentum indicators pose risks. The recent earnings call emphasized robust growth projections, particularly in China, and strategic partnerships, contributing positively to the score.

Positive Factors

Financial Performance

IMAX is positioned to deliver accelerated financial growth, driven by a record number of Filmed for IMAX titles, a robust local-language pipeline in China, and continued global expansion of its premium exhibition network.

Market Expansion

IMAX is poised to benefit from structural tailwinds in premium theatrical content due to improved screen utilization, deepening filmmaker partnerships, and expanding system installations across underpenetrated markets.

Negative Factors

Political Uncertainty

Recent speculation suggested that China might ban Hollywood film imports, although officials familiar with Chinese film regulation emphasize that no new directives to halt film imports have been issued.

Regulatory Risks

Recent speculation suggested that China might ban Hollywood film imports as part of its broader policy response to global tariff disputes.

IMAX Business Overview & Revenue Model

Company Description

IMAX Corporation, together with its subsidiaries, operates as an entertainment technology company worldwide. It offers cinematic solution through proprietary software, theater architecture, intellectual property, and specialized equipment. The company offers IMAX Digital Re-Mastering (DMR), a proprietary technology that digitally enhances the image resolution, visual clarity, and sound quality of motion picture films for projection on IMAX screens; IMAX theater systems to exhibitor customers through sales, leases, and joint revenue sharing arrangements; and digital projection systems. It also provides preventative and emergency maintenance services to IMAX network; distributes large-format documentary films; film post-production and quality control services for large-format films, and digital post-production services; owns and operates IMAX theaters; and rents 2D and 3D large-format film and digital cameras, as well as offers production advice and technical assistance services to documentary and Hollywood filmmakers. The company markets its theater systems through a direct sales force and marketing staff to science and natural history museums, zoos, aquaria, and other educational and cultural centers, as well as theme parks, private home theaters, tourist destination sites, fairs, and expositions. It owns or otherwise has rights to trademarks and trade names, which include IMAX, IMAX Dome, IMAX 3D, IMAX 3D Dome, Experience It in IMAX, The IMAX Experience, An IMAX Experience, An IMAX 3D Experience, IMAX DMR, DMR, IMAX Enhanced, IMAX nXos, and Films To The Fullest. As of December 31, 2021, the company had a network of 1,683 IMAX theater systems comprising 1,599 commercial multiplexes, 12 commercial destinations, and 72 institutional facilities operating in 87 countries and territories. IMAX Corporation was founded in 1967 and is headquartered in Mississauga, Canada.

How the Company Makes Money

IMAX Corporation generates revenue primarily through several key streams: technology licensing, theater system sales and maintenance, and film distribution. The company licenses its proprietary projection and sound systems to movie theaters, which pay for the installation and ongoing use of IMAX technology. This includes both the initial sale or lease of the equipment and subsequent maintenance and service contracts. Additionally, IMAX earns revenue by distributing specially formatted films and co-producing IMAX-specific content, often partnering with major film studios to release blockbusters in the IMAX format. These partnerships enhance the company's earnings through box office revenue shares and distribution fees. Thus, IMAX's business model capitalizes on its unique technological offerings and strategic alliances within the global film industry.

IMAX Financial Statement Overview

Summary

IMAX exhibits a solid financial standing with improvements in profitability and cash generation. While revenue growth has slowed, the company has managed to enhance its margins and cash flow, pointing to operational efficiencies. The leverage is moderate but should be monitored to prevent excessive risk. Overall, IMAX maintains a stable financial position with areas of strength in profitability and cash flow.

Income Statement

IMAX has shown improvement in its income statement metrics over the years. The gross profit margin has remained stable, reflecting effective cost management. Although the revenue declined by 6% from 2023 to 2024, the net profit margin improved slightly due to better cost controls. The EBIT and EBITDA margins have improved significantly from 2022 levels, indicating operational efficiency.

Balance Sheet

IMAX's balance sheet indicates moderate stability. The debt-to-equity ratio is manageable, reflecting a balanced approach to leveraging. The equity ratio has decreased slightly over the years, indicating a slight increase in leverage risk. Return on equity has improved due to positive net income, signaling better utilization of equity capital.

Cash Flow

The cash flow statement shows a strong operating cash flow to net income ratio, suggesting that net income translates well into cash. The free cash flow has grown significantly from 2023 to 2024, indicating robust cash generation capacity. However, fluctuations in free cash flow in prior years highlight potential volatility in cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
352.21M	374.84M	300.81M	254.88M	137.00M
	Gross Profit
190.20M	214.34M	156.35M	134.41M	21.54M
	EBIT
43.86M	50.40M	-4.83M	10.98M	-121.82M
	EBITDA
111.28M	112.96M	52.77M	74.16M	-69.41M
	Net Income Common Stockholders
26.06M	25.34M	-22.80M	-22.33M	-143.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
100.59M	76.20M	97.40M	189.71M	317.38M
	Total Assets
830.40M	814.67M	821.15M	883.25M	997.75M
	Total Debt
266.26M	252.06M	263.02M	226.11M	305.68M
	Net Debt
165.66M	175.85M	165.62M	36.40M	-11.70M
	Total Liabilities
452.18M	469.08M	491.39M	452.88M	532.98M
	Stockholders Equity
299.47M	273.14M	263.36M	356.08M	385.49M
Cash Flow		Free Cash Flow
29.62M	25.78M	-15.30M	-11.71M	-32.27M
	Operating Cash Flow
70.84M	58.62M	17.32M	6.07M	-23.01M
	Investing Cash Flow
-41.22M	-31.79M	-53.29M	-7.00K	-9.26M
	Financing Cash Flow
-6.04M	-48.53M	-58.51M	-132.72M	240.57M

IMAX Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IMAX, the sentiment is Negative. The current price of 21.44 is below the 20-day moving average (MA) of 25.33, below the 50-day MA of 25.34, and below the 200-day MA of 22.65, indicating a bearish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 57.07 is Neutral, neither overbought nor oversold. The STOCH value of 52.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IMAX.

IMAX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMAX	69 Neutral	$1.14B	44.45	9.10%	―	-6.04%	6.43%
CNK	66 Neutral	$3.29B	13.57	67.31%	0.29%	-0.56%	63.92%
MSGE	63 Neutral	$1.45B	11.55	1222.83%	―	7.44%	71.46%
Sector *	58 Neutral	$26.25B	2.79	-10.85%	4.33%	2.15%	-44.22%
AMC	50 Neutral	$1.27B	―	20.03%	―	-3.64%	48.94%
LGF.A	38 Underperform	$1.73B	―	168.75%	―	-2.85%	75.96%
LGF.B	37 Underperform	$1.73B	―	259.47%	―	-2.85%	75.96%

IMAX Corporate Events

IMAX Partners with Netflix for Exclusive Film Release

On January 17, 2025, IMAX Corporation announced an agreement with Netflix to exclusively showcase Greta Gerwig’s upcoming film ‘Narnia’ across its global theater network for two weeks, starting Thanksgiving 2026. This collaboration underscores IMAX’s strategic positioning in providing a unique cinematic experience and highlights its ongoing efforts to partner with major content creators like Netflix, potentially enhancing its market presence and stakeholder value.