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Imax Corp. (IMAX)
NYSE:IMAX
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IMAX (IMAX) AI Stock Analysis

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IMAX

IMAX

(NYSE:IMAX)

Rating:72Outperform
Price Target:
$29.00
▲(14.40%Upside)
IMAX's strong financial performance and positive earnings call sentiment are significant strengths. However, technical weaknesses and high valuation present challenges. Corporate events add positive strategic advancements, but the overall score reflects these mixed factors.
Positive Factors
Financial Performance
IMAX delivered a strong Q2 2025, outperforming consensus expectations with significant growth in revenue and adjusted EBITDA.
Growth Prospects
Key growth catalysts include a robust pipeline of anticipated film releases and expanding international installations, positioning IMAX for durable growth.
Market Position
IMAX continues to expand its competitive moat as the leading global premium format, holding over 50% share in the premium category.
Negative Factors
Valuation Concerns
Shares remain overvalued relative to peers given the company’s exposure to the secular supply and demand side risks impacting the broader theatrical ecosystem.

IMAX (IMAX) vs. SPDR S&P 500 ETF (SPY)

IMAX Business Overview & Revenue Model

Company DescriptionIMAX 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 MoneyIMAX Corporation generates revenue through several key streams. Primarily, the company earns money by leasing its proprietary IMAX systems to commercial theaters under joint revenue sharing arrangements, where it receives a percentage of box office receipts. Additionally, IMAX earns from the sale of its projection systems and related equipment. The company also generates revenue through maintenance services, the digital re-mastering of films into the IMAX format (IMAX DMR), and licensing its technology to third-party theaters. Significant partnerships with major film studios to release blockbuster movies in the IMAX format further bolster its earnings, as these partnerships often lead to higher ticket prices and increased audience turnout.

IMAX Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: -12.68%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call for IMAX reflected a strong and positive outlook with significant growth in box office and installations, successful expansions in key markets, and a promising future film slate. Despite some challenges in alternative content and competitive pressures, the overall sentiment remains highly positive.
Q2-2025 Updates
Positive Updates
Record Box Office and Installation Growth
IMAX delivered strong financial results in Q2 2025 with a 50% increase in installations and a 41% year-over-year increase in global box office. The adjusted EBITDA margin exceeded 42% for the second straight quarter.
Expansion in Key Markets
The company opened 57 new and upgraded locations year-to-date, compared to 39 in the same period of 2024. Significant expansions were noted in France, the Netherlands, and Japan.
High Domestic Box Office Achievements
Q2 2025 was the highest grossing quarter ever at the domestic box office for IMAX, with a market share of 3.6% on less than 1% of screens, up 19% year-over-year.
Strong Pipeline and Future Prospects
IMAX has secured an impressive slate for future releases with 9 film for IMAX titles already confirmed for 2026 and at least 8 for 2027. Upcoming releases include high-profile titles like Avatar: Fire and Ash and Christopher Nolan's The Odyssey.
Successful Partnerships and Renewals
IMAX announced a significant agreement with Regal for expansion, including a new location in Manhattan and Los Angeles. The company also renewed its credit facility, increasing it to $375 million.
Negative Updates
Challenges in Alternative Content
While IMAX has seen success with some alternative content, such as music events, the impact is not as significant as Hollywood or local language films. This content serves more as a filler and does not carry the programming.
Pressures from Competitors
There are reports of U.S. theater chains discussing joint marketing of PLF screens to compete with IMAX. However, major partners like AMC and Regal have shown continued support for IMAX.
Company Guidance
During the Q2 2025 earnings call, IMAX Corporation provided robust guidance underscored by impressive growth metrics. The company reported a 50% increase in installations and over 40% growth in box office revenue, achieving an adjusted EBITDA margin of 43%. Year-to-date, IMAX opened 57 new and upgraded locations, surpassing the 39 locations during the same period in 2024. The full-year guidance for installations was raised to a range of 150 to 160 systems globally. The company also completed agreements for 124 new and upgraded systems compared to 130 for all of 2024. IMAX's domestic box office reached its highest grossing quarter ever, and the company is on track to meet its $1.2 billion box office guidance for the year. The company's market share increased to 3.6% of the total box office, with IMAX screens accounting for less than 1% of all screens, marking a 19% year-over-year increase in the second quarter. IMAX also highlighted its strategic focus on eight consecutive film releases designed for IMAX, which captured an average of 15% of the North American box office on opening weekends.

IMAX Financial Statement Overview

Summary
IMAX demonstrates solid revenue growth and strong cash flow management. The company effectively manages its costs, maintaining a stable gross profit margin. However, profitability metrics and equity position could be improved further.
Income Statement
75
Positive
IMAX has shown solid revenue growth over the years, with a notable recovery post-2020. The gross profit margin is strong, reflecting efficient cost management. However, profitability metrics like the EBIT and net profit margins have room for improvement, as they have fluctuated over the analyzed periods.
Balance Sheet
70
Positive
The balance sheet reflects a stable equity position with a moderate debt-to-equity ratio. However, the company has seen a slight decrease in stockholders' equity over time. The return on equity has improved, suggesting better utilization of equity, though further strengthening could be beneficial.
Cash Flow
80
Positive
IMAX has demonstrated strong cash flow management, with positive operating cash flow trends and improving free cash flow. The free cash flow growth rate signals effective capital expenditure management, supporting long-term sustainability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue352.21M374.84M300.81M254.88M137.00M
Gross Profit190.20M214.34M156.35M134.41M21.54M
EBITDA111.28M112.96M52.77M74.16M-69.41M
Net Income26.06M25.34M-22.80M-22.33M-143.78M
Balance Sheet
Total Assets830.40M814.67M821.15M883.25M997.75M
Cash, Cash Equivalents and Short-Term Investments100.59M76.20M97.40M189.71M317.38M
Total Debt266.26M252.06M263.02M226.11M305.68M
Total Liabilities452.18M469.08M491.39M452.88M532.98M
Stockholders Equity299.47M273.14M263.36M356.08M385.49M
Cash Flow
Free Cash Flow29.62M25.78M-15.30M-11.71M-32.27M
Operating Cash Flow70.84M58.62M17.32M6.07M-23.01M
Investing Cash Flow-41.22M-31.79M-53.29M-7.00K-9.26M
Financing Cash Flow-6.04M-48.53M-58.51M-132.72M240.57M

IMAX Technical Analysis

Technical Analysis Sentiment
Negative
Last Price25.35
Price Trends
50DMA
27.53
Negative
100DMA
26.22
Negative
200DMA
25.31
Positive
Market Momentum
MACD
-0.50
Positive
RSI
36.20
Neutral
STOCH
7.48
Positive
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 25.35 is below the 20-day moving average (MA) of 27.17, below the 50-day MA of 27.53, and above the 200-day MA of 25.31, indicating a neutral trend. The MACD of -0.50 indicates Positive momentum. The RSI at 36.20 is Neutral, neither overbought nor oversold. The STOCH value of 7.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IMAX.

IMAX Risk Analysis

IMAX disclosed 29 risk factors in its most recent earnings report. IMAX reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

IMAX Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$1.36B41.9811.16%1.25%55.54%
65
Neutral
$2.98B14.2070.99%0.62%13.80%109.00%
62
Neutral
$1.75B13.491222.83%5.81%133.05%
61
Neutral
$41.44B-3.01-10.30%3.97%2.71%-44.19%
49
Neutral
$1.23B20.03%-5.43%26.07%
47
Neutral
$1.93B168.75%-2.85%75.96%
42
Neutral
$1.93B259.47%-2.85%75.96%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IMAX
IMAX
25.35
4.59
22.11%
CNK
Cinemark Holdings
25.69
0.41
1.62%
AMC
AMC Entertainment
2.87
-2.08
-42.02%
LGF.A
Lions Gate Entertainment Class A
8.59
0.00
0.00%
LGF.B
Lions Gate Entertainment Class B
7.69
0.00
0.00%
MSGE
Madison Square Garden Entertainment Corp.
38.24
2.45
6.85%

IMAX Corporate Events

Executive/Board Changes
IMAX Extends CEO Richard Gelfond’s Term to 2028
Neutral
Jul 17, 2025

On July 17, 2025, IMAX Corporation announced an amendment to the employment agreement of its CEO, Richard L. Gelfond, extending his term until December 31, 2028. The amendment outlines his compensation, including a base salary of $1.2 million, potential bonuses, and equity awards contingent on performance metrics. The agreement also details conditions for severance and equity vesting, ensuring continuity in leadership and aligning executive incentives with company performance goals.

The most recent analyst rating on (IMAX) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on IMAX stock, see the IMAX Stock Forecast page.

Private Placements and Financing
IMAX Expands Credit Agreement with Wells Fargo
Positive
Jul 15, 2025

On July 14, 2025, IMAX Corporation entered into a Seventh Amended and Restated Credit Agreement with Wells Fargo Bank and other lenders, increasing its revolving borrowing capacity to $375 million, with potential expansion to $515 million or more. The agreement, which matures in 2030, includes various financial covenants and is secured by the company’s assets. The proceeds are intended for working capital and general corporate purposes, with $52 million used to repay previous credit facility balances.

The most recent analyst rating on (IMAX) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on IMAX stock, see the IMAX Stock Forecast page.

Shareholder MeetingsStock BuybackBusiness Operations and Strategy
IMAX Expands Share Repurchase Program by $100 Million
Positive
Jun 13, 2025

On June 11, 2025, IMAX Corporation held its Annual General Meeting where shareholders elected directors, approved PricewaterhouseCoopers LLP as auditors, and endorsed executive compensation. On June 12, 2025, IMAX announced a $100 million increase to its share repurchase program, extending it through June 30, 2027, bringing the total authorization to $500 million. This move reflects IMAX’s strategic focus on enhancing shareholder value and maintaining a strong market position.

The most recent analyst rating on (IMAX) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on IMAX stock, see the IMAX Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 30, 2025