IMAX (IMAX) AI Stock Analysis

• Market Cap: $2.02B
• Dividend Yield: N/A
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 56.8
• Beta (1Y): 0.26
• Revenue Growth: 9.30%
• EPS Growth: 67.19%
• Country: US
• Employees: 700
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.58
• Shares Outstanding: 53,993,015
• 10 Day Avg. Volume: 917,363
• 30 Day Avg. Volume: 1,045,159
• PEG Ratio: 1.74
• Price to Book (P/B): 5.87
• Price to Sales (P/S): 4.83
• P/FCF Ratio: 16.67
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 5.18
• Enterprise Value/Gross Profit: 8.72
• Enterprise Value/Ebitda: 20.42
• 1Y Price Target: $45.57
• Price Target Upside: 21.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 1.62
• Revenue Forecast (FY): $442.23M

• Rating: 73 Outperform
• Price Target: $42.00 ▲(12.12% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by improved financial performance (strong recent profitability and cash flow) and a very bullish earnings outlook with ambitious margin and growth targets. Technicals are mildly supportive but not strongly momentum-driven, while the high P/E meaningfully reduces the overall score.

Positive Factors

Improved Profitability and Margins

Sustained high gross and improved net margins materially increase durable free cash generation and return on invested capital. Higher margins provide structural capacity to fund system installs, content partnerships and margin expansion targets, reducing sensitivity to modest revenue dips.

Stronger Cash Generation and Conversion

Consistent positive operating and free cash flow with improved conversion strengthens liquidity and self-funding ability for network expansion. Reliable cash generation supports deleveraging, R&D and marketing investments, making long-term growth targets more attainable without heavy external financing.

Network Expansion and Strategic Partnerships

Ongoing system installs, signed upgrade agreements and distribution wins (e.g., streaming/sports partnerships) build a durable competitive moat: larger footprint drives higher box‑office share, better studio leverage and recurring JV revenues, underpinning mid‑term revenue and margin targets.

Negative Factors

Material Absolute Debt Load

Although leverage has improved, a still‑material absolute debt balance limits financial flexibility if box office or content timing weakens. Debt servicing and covenant sensitivity could constrain capital allocation and raise refinancing risk in adverse cycles, pressuring strategic optionality.

Slate Concentration and China Timing Volatility

Revenue and cash flow are structurally lumpy due to dependence on blockbuster release timing and regional windows. Delays or concentrated slates—especially in China—create multi-quarter swings that complicate forecasting, working capital and consistent margin realization over the medium term.

Limited Control Over Ticket Pricing

Earnings tied to exhibitor pricing and revenue-share restrict IMAX's direct ability to capture incremental ticket premium. This structural dependence reduces margin levers and monetization control, making sustained per‑screen revenue growth contingent on partner willingness and broader industry pricing dynamics.

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 primarily generates revenue through a combination of technology-based fees and content-based participation tied to the IMAX theatrical ecosystem. Key revenue streams include: (1) Theater system and services revenue: IMAX sells or leases its projection and audio systems and may earn ongoing service, maintenance, and support fees tied to installed systems. These arrangements can include installation, monitoring, and equipment-related services provided to exhibitor partners. (2) Joint revenue sharing arrangements (JRSA) and other exhibitor agreements: For many IMAX-branded auditoriums, IMAX partners with exhibitors under agreements where IMAX earns a percentage of box office receipts (and/or other economics) from IMAX screenings rather than (or in addition to) upfront equipment sales, aligning IMAX’s earnings with theater performance. (3) Content distribution and studio-related revenue: IMAX earns fees associated with making films available in the IMAX format and for IMAX bookings, which can include revenue-sharing or royalty-like participation linked to the IMAX box office performance of a title. (4) Other revenue sources: IMAX can earn income from licensing the IMAX brand/technology and from ancillary services related to theater network support and quality assurance. Significant factors influencing earnings include the size and performance of the global IMAX theater network, box office demand for IMAX showings (which depends on film slate strength and consumer attendance), and relationships with major exhibitors and film studios to secure IMAX releases and screen allocations.

IMAX Financial Statement Overview

Summary

Financials show a clear step-up: strong profitability (gross margin ~60%, net margin ~20%) and solid recent free cash flow with improved cash conversion. Offsetting factors are uneven revenue growth across years and a still-material (though improving) debt position.

Income Statement

Profitability has strengthened materially: the latest annual period shows solid gross margin (~60%) and a much-improved net margin (~20%) versus low-to-mid single digits in 2023–2024 and losses in 2020–2022. Revenue rebounded over the cycle (strong growth in 2021 and 2023, modest growth in 2025), though growth has been uneven with a decline in 2024. Overall, earnings momentum is a clear positive, but the top-line trajectory is not consistently stable year-to-year.

Balance Sheet

Leverage appears manageable but not light. Debt-to-equity improved to ~0.72 in the latest annual period (down from ~0.93–1.00 in 2022–2024), and equity has grown versus 2022–2024. Returns on equity improved meaningfully (about 24% most recently), reflecting better profitability. Key watchouts are the still meaningful absolute debt load and the fact leverage was higher in recent history, suggesting sensitivity if operating conditions weaken.

Cash Flow

Cash generation is a notable strength in the latest annual period: operating cash flow (~$127M) and free cash flow (~$119M) are both strong, with sharp free cash flow growth (~30%) versus the prior year. Cash conversion improved substantially, with free cash flow close to net income (about 0.94x), compared with weaker conversion in 2023–2024 and negative free cash flow in 2021–2022. The main risk is cyclicality—cash flow performance has been volatile over the broader period.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	410.21M	352.21M	374.84M	300.81M	254.88M
Gross Profit	237.57M	190.20M	214.34M	156.35M	134.41M
EBITDA	133.10M	111.28M	112.96M	52.77M	74.16M
Net Income	34.88M	26.06M	25.34M	-22.80M	-22.33M
Balance Sheet
Total Assets	894.03M	830.40M	814.67M	821.15M	883.25M
Cash, Cash Equivalents and Short-Term Investments	151.17M	100.59M	76.20M	97.40M	189.71M
Total Debt	297.41M	278.12M	252.06M	263.02M	226.11M
Total Liabilities	466.30M	452.18M	469.08M	491.39M	452.88M
Stockholders Equity	337.89M	299.47M	273.14M	263.36M	356.08M
Cash Flow
Free Cash Flow	118.90M	29.62M	25.78M	-15.30M	-11.71M
Operating Cash Flow	127.07M	70.84M	58.62M	17.32M	6.07M
Investing Cash Flow	-41.92M	-41.22M	-31.79M	-53.29M	-7.00K
Financing Cash Flow	-34.08M	-6.04M	-48.53M	-58.51M	-132.72M

IMAX Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 37.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IMAX, the sentiment is Neutral. The current price of 37.46 is below the 20-day moving average (MA) of 39.35, above the 50-day MA of 37.13, and above the 200-day MA of 32.67, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 44.37 is Neutral, neither overbought nor oversold. The STOCH value of 25.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IMAX.

IMAX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMAX	73 Outperform	$2.02B	56.84	10.67%	―	9.30%	67.19%
MSGE	65 Neutral	$2.69B	6.89	-618.85%	―	0.68%	-80.73%
CNK	61 Neutral	$3.08B	19.44	25.84%	1.45%	9.70%	-31.62%
SPHR	61 Neutral	$3.92B	13.10	1.51%	―	24.54%	-119.75%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
LION	51 Neutral	$2.75B	-14.33	20.86%	―	97.19%	-21.46%
AMC	44 Neutral	$569.11M	-1.27	35.45%	―	9.74%	12.29%