IMAX (IMAX) AI Stock Analysis

• Market Cap: $2.03B
• Dividend Yield: N/A
• Average Volume (3M): 1.58M
• Price to Earnings (P/E): 52.8
• Beta (1Y): 0.16
• Revenue Growth: 9.30%
• EPS Growth: 67.19%
• Country: US
• Employees: 700
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.47
• Shares Outstanding: 53,798,935
• 10 Day Avg. Volume: 2,159,730
• 30 Day Avg. Volume: 1,580,317
• PEG Ratio: 12.15
• Price to Book (P/B): 4.50
• Price to Sales (P/S): 3.83
• P/FCF Ratio: 45.50
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 5.36
• Enterprise Value/Gross Profit: 9.11
• Enterprise Value/Ebitda: 19.05
• 1Y Price Target: $43.42
• Price Target Upside: 14.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 1.33
• Revenue Forecast (FY): $405.56M

• Rating: 76 Outperform
• Price Target: $41.00 ▲(8.52% Upside)

IMAX's overall stock score is driven by strong financial performance and positive earnings call results. The company's robust cash flow and profitability metrics, along with a bullish technical outlook, support a favorable view. However, the high P/E ratio and lack of dividend yield suggest a premium valuation, which slightly tempers the overall score.

Positive Factors

Revenue Growth

Record-breaking quarterly revenue indicates strong demand for IMAX's offerings and effective execution of its business model, supporting long-term growth.

Market Share Expansion

Significant market share gains highlight IMAX's competitive advantage and growing influence in the entertainment industry, positioning it well for sustained success.

Cash Flow Strength

Strong cash flow generation enhances IMAX's liquidity and financial flexibility, enabling strategic investments and resilience against market fluctuations.

Negative Factors

Regional Market Challenges

Regional challenges in markets like Mexico could hinder IMAX's overall growth if similar trends emerge in other key regions, impacting revenue diversification.

Margin Pressure

Anticipated margin compression in Q4 could affect profitability, requiring careful cost management to maintain financial performance amidst rising expenses.

Revenue Growth Fluctuations

Inconsistent revenue growth history suggests potential vulnerability to market dynamics, necessitating strategic initiatives to stabilize and enhance growth trajectory.

IMAX Business Overview & Revenue Model

Company Description

IMAX Corporation is a global leader in the entertainment technology industry, specializing in the design and manufacture of advanced cinema systems, including projection and sound technologies. Founded in 1967, IMAX operates in the film and entertainment sector, providing immersive cinematic experiences through its proprietary formats and large-screen technologies. The company also engages in film distribution, partnering with filmmakers to produce and release films that leverage its high-resolution imaging and sound capabilities, enhancing the overall viewing experience for audiences worldwide.

How the Company Makes Money

IMAX generates revenue through multiple key streams, primarily from the sale and installation of its cinema systems to theaters and entertainment venues, where it charges a premium for its technology and services. The company also earns significant income from box office revenue-sharing agreements with theater operators, where it takes a percentage of ticket sales for films screened in its formats. Additionally, IMAX partners with filmmakers to produce and distribute films, often collaborating on marketing and promotional activities that can lead to further revenue opportunities. Strategic partnerships with major movie studios further enhance its earnings potential, as IMAX films often attract larger audiences due to the unique viewing experience they offer. The company's diverse revenue model is bolstered by ongoing maintenance contracts and upgrades for its installed systems, ensuring a continuous stream of income.

IMAX Financial Statement Overview

Summary

IMAX demonstrates strong profitability with a healthy gross profit margin of 58.89% and net profit margin of 10.47%. The company shows resilience in revenue growth and has improved cash flow metrics, indicating enhanced liquidity and operational efficiency. However, there are fluctuations in revenue growth that need addressing.

Income Statement

IMAX has shown a positive trajectory in its income statement metrics. The TTM data indicates a gross profit margin of 58.89% and a net profit margin of 10.47%, both of which are strong indicators of profitability. The revenue growth rate of 4.06% in the TTM suggests a steady increase in revenue. The EBIT and EBITDA margins are also healthy at 18.95% and 27.42%, respectively. However, the company has experienced fluctuations in revenue growth over the years, with a notable decline in 2020.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved to 0.66 in the TTM, indicating a reduction in leverage compared to previous years. The return on equity is 12.47%, showing a good return for shareholders. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing. Overall, the company has managed to stabilize its financial leverage over time.

Cash Flow

IMAX's cash flow metrics are strong, with a significant free cash flow growth rate of 93.31% in the TTM. The operating cash flow to net income ratio is 0.34, and the free cash flow to net income ratio is 0.84, indicating efficient cash generation relative to net income. This improvement in cash flow metrics suggests enhanced liquidity and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	377.18M	352.21M	374.84M	300.81M	254.88M	137.00M
Gross Profit	221.91M	190.20M	214.34M	156.35M	134.41M	21.54M
EBITDA	106.09M	111.28M	112.96M	52.77M	74.16M	-69.41M
Net Income	39.55M	26.06M	25.34M	-22.80M	-22.33M	-143.78M
Balance Sheet
Total Assets	889.57M	830.40M	814.67M	821.15M	883.25M	997.75M
Cash, Cash Equivalents and Short-Term Investments	143.11M	100.59M	76.20M	97.40M	189.71M	317.38M
Total Debt	257.22M	278.12M	252.06M	263.02M	226.11M	305.68M
Total Liabilities	452.87M	452.18M	469.08M	491.39M	452.88M	532.98M
Stockholders Equity	349.53M	299.47M	273.14M	263.36M	356.08M	385.49M
Cash Flow
Free Cash Flow	91.56M	29.62M	25.78M	-15.30M	-11.71M	-32.27M
Operating Cash Flow	109.18M	70.84M	58.62M	17.32M	6.07M	-23.01M
Investing Cash Flow	-45.65M	-41.22M	-31.79M	-53.29M	-7.00K	-9.26M
Financing Cash Flow	-25.47M	-6.04M	-48.53M	-58.51M	-132.72M	240.57M

IMAX Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IMAX, the sentiment is Positive. The current price of 37.78 is above the 20-day moving average (MA) of 36.77, above the 50-day MA of 34.49, and above the 200-day MA of 28.96, indicating a bullish trend. The MACD of 1.07 indicates Negative momentum. The RSI at 57.22 is Neutral, neither overbought nor oversold. The STOCH value of 80.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IMAX.

IMAX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMAX	76 Outperform	$2.03B	52.83	12.38%	―	9.30%	67.19%
SPHR	66 Neutral	$3.09B	-29.27	-4.46%	―	24.54%	-119.75%
MSGE	64 Neutral	$2.47B	74.60	―	―	0.68%	-80.73%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CNK	58 Neutral	$2.80B	23.16	32.60%	1.39%	9.70%	-31.62%
LION	52 Neutral	$2.43B	-12.12	―	―	97.19%	-21.46%
AMC	47 Neutral	$989.98M	―	―	―	9.74%	12.29%

IMAX Corporate Events

IMAX Announces $250 Million Convertible Notes Sale

On November 3, 2025, IMAX Corporation announced the sale of $220 million in 0.750% Convertible Senior Notes due 2030, with an additional $30 million option exercised by initial purchasers, culminating in a total issuance of $250 million. The proceeds, approximately $241.1 million after expenses, will be used for capped call transactions and repurchasing 2026 notes, aiming to manage share dilution and optimize capital structure.