IMAX (IMAX) AI Stock Analysis

• Market Cap: $1.45B
• Dividend Yield: N/A
• Average Volume (3M): 993.57K
• Price to Earnings (P/E): 58.2
• Beta (1Y): 0.15
• Revenue Growth: -1.98%
• EPS Growth: -1.18%
• Country: US
• Employees: 700
• Sector: Communication Services
• Sector Strength: 93
• Industry: Entertainment
• EPS (TTM): 0.13
• Shares Outstanding: 53,742,016
• 10 Day Avg. Volume: 607,297
• 30 Day Avg. Volume: 993,572
• PEG Ratio: -13.49
• Price to Book (P/B): 4.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.37
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 1.12
• Enterprise Value/Gross Profit: 8.05
• Enterprise Value/Ebitda: 3.74
• 1Y Price Target: $32.11
• Price Target Upside: 14.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 70 Outperform
• Price Target: ―

IMAX's overall score is driven by its strong financial performance and positive earnings outlook, despite high valuation and mixed technical signals. The company's robust cash flow and profitability, along with strategic expansion and leadership appointments, support a favorable long-term view. However, the high P/E ratio and absence of dividend yield temper short-term enthusiasm.

Positive Factors

Box Office Performance

IMAX delivered a strong start to 2025, setting a new Q1 global box office record of $298M, with China playing a dominant role in the result.

Revenue Growth

IMAX reported strong Q1 2025 results with total revenue of $86.7M, marking a 10 percent YoY increase.

Strategic Positioning

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

Hollywood Film Slate

Despite recent rhetoric from China on reducing its Hollywood film slate, IMAX remains well-positioned to thrive in the current environment, given its robust upcoming release slate and strong positioning with China.

Market Challenges

Despite recent rhetoric from China on reducing its Hollywood film slate, IMAX remains well-positioned to thrive in the current environment, given its robust upcoming release slate and strong positioning with China.

IMAX Business Overview & Revenue Model

Company Description

IMAX Corporation is a Canadian-American company that specializes in motion picture technologies and large-format film presentations. Founded in 1967, the company is renowned for its high-resolution cameras, film formats, projectors, and immersive theater systems that deliver an unparalleled cinematic experience. IMAX operates in the entertainment sector, providing its technology to both commercial multiplexes and institutional theaters, such as museums and science centers, worldwide.

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 shows a promising financial trajectory with improving profitability, stable leverage, and strong cash flow generation. However, the company should continue to monitor its debt levels and focus on sustaining revenue growth to maintain its upward momentum.

Income Statement

IMAX has shown solid improvement in its profitability metrics. The TTM gross profit margin stands strong at 54.6%, and the net profit margin has improved to 12.6% from a negative position in prior years. Revenue growth has stabilized post-pandemic, with a slight increase in TTM revenue compared to the previous year. EBIT and EBITDA margins are healthy, indicating efficient operations.

Balance Sheet

The company maintains a stable financial position with a debt-to-equity ratio of 0.77, indicating a balanced leverage. ROE improved to 15.2% in the TTM, showcasing enhanced profitability for shareholders. The equity ratio slightly decreased to 35.3%, reflecting a cautious approach to asset financing.

Cash Flow

IMAX demonstrated strong cash flow management with a significant increase in free cash flow, growing by 79.0% in the TTM. The operating cash flow to net income ratio is robust at 1.95, and free cash flow to net income ratio stands at 1.17, indicating effective cash conversion from profits.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
359.75M	352.21M	374.84M	300.81M	254.88M	137.00M
	Gross Profit
196.49M	190.20M	214.34M	156.35M	134.41M	21.54M
	EBIT
48.53M	43.86M	50.40M	-4.83M	10.98M	-121.82M
	EBITDA
100.33M	111.28M	112.96M	52.77M	74.16M	-69.41M
	Net Income Common Stockholders
25.11M	26.06M	25.34M	-22.80M	-22.33M	-143.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
97.07M	100.59M	76.20M	97.40M	189.71M	317.38M
	Total Assets
848.30M	830.40M	814.67M	821.15M	883.25M	997.75M
	Total Debt
279.60M	266.26M	252.06M	263.02M	226.11M	305.68M
	Net Debt
182.53M	165.66M	175.85M	165.62M	36.40M	-11.70M
	Total Liabilities
464.01M	452.18M	469.08M	491.39M	452.88M	532.98M
	Stockholders Equity
299.50M	299.47M	273.14M	263.36M	356.08M	385.49M
Cash Flow		Free Cash Flow
53.03M	29.62M	25.78M	-15.30M	-11.71M	-32.27M
	Operating Cash Flow
88.76M	70.84M	58.62M	17.32M	6.07M	-23.01M
	Investing Cash Flow
-48.70M	-41.22M	-31.79M	-53.29M	-7.00K	-9.26M
	Financing Cash Flow
-24.60M	-6.04M	-48.53M	-58.51M	-132.72M	240.57M

IMAX Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 28.09 is above the 20-day moving average (MA) of 26.02, above the 50-day MA of 25.11, and above the 200-day MA of 23.65, indicating a bullish trend. The MACD of 0.83 indicates Negative momentum. The RSI at 73.08 is Negative, neither overbought nor oversold. The STOCH value of 73.88 is Neutral, 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
CNK	74 Outperform	$3.87B	22.24	71.46%	0.25%	-0.80%	13.07%
IMAX	70 Outperform	$1.45B	58.21	9.00%	―	-1.98%	-1.18%
MSGE	63 Neutral	$1.76B	13.53	1222.83%	―	5.81%	133.05%
Sector *	61 Neutral	$14.08B	5.95	-4.18%	3.68%	2.79%	-36.29%
AMC	55 Neutral	$1.40B	―	20.03%	―	-5.43%	26.07%

IMAX Corporate Events

IMAX Appoints Jose Zlatar as New Accounting Officer

On April 23, 2025, IMAX Corporation’s Board of Directors appointed Jose Zlatar as the new principal accounting officer, effective April 30, 2025. Zlatar, who joined the company in February 2025 as Senior Vice President, Finance, will take over the accounting responsibilities from CFO Natasha Fernandes, who will continue as the principal financial officer. Zlatar brings extensive experience from his previous roles at Canadian National Railway and Yamana Gold Inc., and his appointment is expected to strengthen IMAX’s financial leadership and operations.